Here are the biggest calls on Wall Street on Friday:
Bank of America reiterates Apple as buy
Bank of America says it is bullish on the company’s artificial intelligence approach.
“We see Apple Intelligence opening up new ways to monetize an attractive installed base of users.”
Barclays reiterates Netflix as equal weight
Barclays says Netflix needs to consider a “free tier.”
“Thus far, this has been a difficult transition as evidenced by the fact that advertising has been dilutive to price since the company launched the ad supported tier. The company also acknowledged at the recent upfronts that advertising will remain dilutive for some time, which indicates price increases on other tiers would have to be more significant than previously to offset this impact on revenue growth.”
Deutsche Bank reinstates Dell as buy
Deutsche Bank resumed coverage of the stock and says it sees robust growth ahead.
“We expect top-line growth to accelerate into the double-digits over the next several quarters, as DELL benefits from a confluence of tailwinds across key segments, where it is a share leader.”
Bank of America downgrades HP to neutral from buy
The firm says it sees slowing earnings per share growth.
“We downgrade shares of HPQ to Neutral from Buy. Our rating change is predicated on our thesis that any EPS growth will come purely from share buybacks as potential upside from PCs (including AI PCs) should be offset by lower print margins.”
Goldman Sachs reiterates Costco as buy
Goldman Sachs says it is sticking with the stock following earnings on Thursday.
“We continue to have confidence in COST’s value proposition resonating with consumers, and we reiterate our Buy rating with an updated 12-month price target of $995.”
Citi reiterates Walmart as a top pick
Citi said the stock is a long-term winner. The firm raised its price target to $98 per share from $75.
“Longer term, we believe many of their higher-margin growth opportunities will help drive higher sales/EBIT margins and change the way investors think of WMT.”
JPMorgan adds Best Buy to the focus list
JPMorgan says it sees an “improving product cycle” for Best Buy.
“We upgraded the stock in February and are now adding it to JPM’s Analyst Focus List as a Value idea as we believe investors under-appreciate how punitive the cycle has been the past few years post- COVID, the degree of replacement demand that exists/will build, the innovation level in computing, and the potential for key categories to inflect in a positive existing home sales environment.”
Morgan Stanley upgrades Wynn Resorts to overweight from equal weight
Morgan Stanley says it sees an attractive risk/reward for Wynn shares.
“The combination of near low valuation, an underappreciated growth opportunity in UAE, and optionality around Macau provide a favorable risk-reward & re-rating potential based on a combination of catalysts:”
KeyBanc downgrades Bumble to sector weight from overweight
KeyBanc downgraded the stock mainly on valuation and app weakness.
“We are downgrading shares of BMBL to Sector Weight as we believe: 1) shares are now up +12% since the day after earnings (vs. +9% for the NASDAQ); 2) app data points to continued weakness in top of funnel trends; 3) we believe the app refresh undermines Bumble’s core differentiator.”
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