Here are the biggest calls on Wall Street on Thursday:
Deutsche Bank upgrades RTX to buy from hold
Deutsche says the defense company is a compounder.
“We are upgrading RTX to a Buy from Hold with a $140 target price (increased from $131). RTX trades like a defense stock and is valued like a defense stock but compounds EBIT like an aerospace stock.”
JPMorgan reiterates Apple as overweight
JPMorgan says it’s sticking with Apple in 2025.
“We expect to see continued resilience from the shares till we are in the middle of the iPhone 17 cycle, with investors less likely to push back on the premium earnings multiple while waiting for more clearer signs of Edge AI proliferation to benefit consumer devices, including for example Smartphones and PCs.”
Bank of America adds Wells Fargo to the top ideas list in the first quarter
Bank of America says shares are attractive at current levels for Wells Fargo.
“External catalysts (asset cap removal, regulatory relief on capital) coupled with internal levers (improving efficiency, fee revenue growth) while being led by a best-in-class management team creates an attractive opportunity for investors, in our view.”
Bank of America reiterates Nvidia as buy
The firm says it’s sticking with its buy rating ahead of the Consumer Electronics Show next week.
“Reiterate Buy on our sector top pick, NVDA, ahead of CES tradeshow that starts Jan-6 with keynote and other events featuring NVDA CEO.”
Jefferies upgrades Topgolf Callaway Brands to buy from hold
Jefferies said in its upgrade of the golf company that the stock is “oversold.”
“While TG fundamentals are weak, and MODG has suffered misexecution, shares appear oversold.
Goldman Sachs upgrades Cloudflare to buy from sell
Goldman says it sees “sales productivity improving” for the IT service management company.
“We upgrade Cloudflare from Sell to Buy with 27% upside to our 12-month price target of $140 (up from $77).”
Jefferies upgrades Simon Property to buy from hold
Jefferies says the mall company’s stock has an attractive valuation.
“In addition to industry tailwinds from a resilient consumer, supporting growth in operating metrics, Simon can grow earnings through temp to perm conversions, we think.”
Barclays initiates Orchestra Biomed Holdings as hold
Barclays called the company an “innovative developer of high-impact medical devices.”
“We are initiating coverage on OBIO with an Overweight rating and $16 price target.”
Jefferies upgrades CBRE to buy from hold
The firm says it’s bullish on the real estate investment trust.
“We are upgrading CBRE to Buy from Hold, as the company’s leadership in the outsourcing industry should continue to drive DD top-line growth, with upside from capital markets activities.”
JMP downgrades Uber and Alphabet to market perform from market outperform
JMP downgraded Alphabet due to regulatory concerns. The firm says it has concerns about the transition to autonomous for Uber.
“We are downgrading Alphabet (GOOGL) from Market Outperform to Market Perform given the risk of anti-trust penalties that could significantly impact Google’s U.S. distribution of search and search revenue. ... .We are downgrading Uber (UBER) from Market Outperform to Market Perform as the ride-share industry transitions to AVs [autonomous vehicles].”
Truist reiterates Tesla as hold
Truist suggested in a note that “investors should spend some time investigating” whether TSLA’s AI initiatives have long-term value.
“We continue to argue that TSLA’s AI efforts are significant to the stock — especially at the current price.”
Wells Fargo adds McDonald’s to the top ideas list in the first quarter
Wells says McDonald’s a top first quarter idea.
“With E. coli issues now in the rearview, a U.S. traffic recovery underway & McValue platform launching in Jan, we see Q1/FY25 re-rating potential as compares gradually ease, unit growth likely accelerates & menu catalysts step up (Snack Wraps, etc.).”
Wells Fargo reiterates Citi as overweight
Wells says Citi is a top idea ahead of earnings later this month.
“Over 3 yrs, look for est. 2x higher stock on 2x higher earnings and 2x better-than-peer improvement in EPS, efficiency, and returns.”
DA Davidson upgrades US Bancorp to buy from neutral
DA says the bank stock is at an inflection point.
“After several years of meaningful stock underperformance and losing its premium valuation, we believe USB is in the early stages of an inflection and set to regain positive operating leverage above 0.5%, after missing it 7 out of the last 8 years, led by an expected rebound in revenue growth and controlling expenses.”
BTIG names Starbucks a top first half idea
The firm says the coffee giant has turnaround potential.
“We expect 2025 will be a transition and investment year for Starbucks, as management has suspended guidance, slowed development, and reset operations to engineer a sustainable turnaround.”
Goldman Sachs adds Uber to the conviction buy list
Goldman says it sees a “a sustained mix of growth, margins and free cash flow.”
“Scaling end-markets, rising profitability levels (even while remaining committed to investing for the long-term), and increased evidence of the platform cross-sell and ‘flywheel’ effects should drive a sustained mix of growth, margins and free cash flow at UBER, combined with rising capital returns.”
Loop names Western Digital a top 2025 pick
The firm says the stock has a slew positive catalysts in 2025.
“We believe WDC has a unique combination of fundamental and special situation catalysts.”
Deutsche Bank reiterates Boeing as buy
The firm raised its price target on the stock to $215 per shar from $184.
“While Boeing had a strong run to exit 2024, we see additional upside in 2025 in the context of this improving production momentum and Street FCF estimates that look substantially under-modeled relative to the Street’s own delivery forecasts.
