Here are Friday’s biggest calls on Wall Street:
Bank of America reiterates Alphabet as buy
Bank of America said it is sticking with its buy rating on Alphabet following earnings Thursday.
“The quarter beat expectations across all major business lines, supporting a narrative change: Google is a beneficiary of AI. Search is still not without disruption risk, but we remain constructive on Google infrastructure, data and distribution advantages.”
Goldman Sachs reiterates Microsoft as buy
Goldman Sachs said it likes the company’s “margin stability” following earnings on Thursday.
“We reiterate our Buy rating and raise our 12-month PT to $515 (from $450 prior) as we see Microsoft offering a unique growth profile at their scale, with the ability to grow both top-line and EPS by double-digits in FY25.”
Maxim reiterates Apple as hold
Maxim said it is sticking with its hold rating on Apple heading into earnings on May 2.
“Our focus is on the following: 1) iPhone sales, given the over-reliance on the product, 52.3% of FY23 net sales; 2) China revenues, also given the elevated exposure, 18.9% in FY23; 3) China supply chain dependence, we expect diversification over time…”
Bank of America reiterates Nvidia as buy
Bank of America said Nvidia remains a top idea at the firm.
“We remain bullish on vendors serving the cloud infra market including NVDA, AVGO, MRVL, AMD, MU and their associated supply chain of semicap equipment and design tool (EDA) suppliers.”
Deutsche Bank reiterates Snap as buy
Deutsche Bank said it is sticking with its buy rating on the stock following earnings on Thursday.
“Snap delivered a much-needed beat, and positive forward outlook, which now adds to our conviction that the ad platform rebuild is gradually bearing fruit.”
HSBC upgrades Snap to buy from hold
HSBC said it sees an “ad market recovery” for shares of the social media company.
“Upgrade to Buy: 1Q24: Ad market recovery and improved platform drive gains for Snap.”
Goldman Sachs reiterates Intel as sell
Goldman Sachs said it is standing by its sell rating on Intel shares following earnings Thursday.
“Maintain Sell as AI prioritization continues to weigh on traditional server demand.”
Barclays upgrades Enphase Energy to overweight from equal weight
Barclays said in its upgrade of Enphase that it sees an attractive entry point for shares of the solar company.
“We think current levels provide a reasonable entry point as destocking is completed by the end of 2Q and demand is set to increase from trough levels as we move through the year.”
Benchmark upgrades Western Digital to buy from hold
Benchmark upgrades Western Digital following the company’s “major upside” earnings report.
“Higher Flash Prices and Nearline Drive Sales Drive Major Upside Results, Moving to Buy with $85 Target.”
Bank of America downgrades Hertz to underperform from neutral
Bank of America said it sees too many negative catalysts for the car rental company.
“Liquidity is also an increasing concern among investors as HTZ has an older fleet that will need to be refreshed at a time when used vehicles are dropping and new vehicle prices are softening only modestly.”
Morgan Stanley downgrades Mobileye to underweight from equal weight
Morgan Stanley said the autonomous vehicle parts company is a victim of the electric vehicle slowdown.
“MBLY’s leadership in computer vision creates option value for new content growth. However, a surprise slowdown in EV adoption limits the TAM through 2030 amidst aggressive competition.”
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