Here are the biggest calls on Wall Street on Tuesday:
Wells Fargo names Citi a top 2025 pick
The firm says Citi is a “dominant number one.”
“Our dominant number one Overweight-rated large cap bank remains Citigroup.”
Bernstein downgrades FedEx to market perform from outperform
Bernstein said it was downgrading FedEx ahead of earnings later this month due to fears about execution.
“We’re taking a tactical pause and lowering our rating ahead of a widely expected reset in the near-term guidance framework / uncertainty around meeting high LTL [less than truckload] freight spinoff expectations.”
KBW upgrades Citi to outperform from market perform
KBW says the stock is undervalued.
“We are upgrading Citi to Outperform from Market Perform owing to its discounted valuation and the meaningful lag in its shares relative to peers since October earnings.”
Deutsche Bank upgrades CVS to buy from hold
Deutsche says it sees “improving profitability” for CVS.
“We are upgrading CVS shares to Buy from Hold as we believe both earnings and the multiple for the business are now likely near trough levels and it has taken steps to turn the company towards improving profitability.”
BMO downgrades Kroger to market perform from outperform
BMO says the grocery store stock is overvalued.
“We are downgrading KR to Market Perform. Our target price remains $60. We believe KR remains on track to reiterate EPS targets for F25 but believe that valuation expansion beyond 13x would likely require stronger grocery market share trends and/or upward EPS revisions.”
Jefferies upgrades Kroger to buy from hold
Jefferies says the stock has “upside potential.”
“Concurrently, KR foot traffic trends have been sequentially improving, while its fuel business is structurally more profitable now than prepandemic, an incremental kicker.”
Morgan Stanley upgrades Axon to overweight from equal weight
Morgan Stanley says the safety weapons and equipment company is a “core holding.”
“We have increasing confidence that the ~25-30% growth AXON is seeing is durable as software continues to become a growing portion of the model.”
CFRA reiterates Tesla as buy
The firm says it’s sticking with its buy rating but that Tesla will likely “fall short of its 2025 vehicle sales growth guidance.”
“While we think Cybertruck production will increase materially, the growth might not be as robust as many are expecting given the uniqueness of the vehicle, and we see Model 3 and Y sales growth continuing to moderate.”
Wells Fargo names American Express a top 2025 pick
Wells says the credit card company is a top idea heading into next year.
“Similar to other sectors where top-quality companies are commanding high valuations, we see further multiple expansion potential for top pick American Express (AXP) and mid-teens EPS growth.”
Redburn Atlantic Equities upgrades Upstart to buy from neutral
Redburn says it’s getting bullish on the AI lending platform.
“Upstart Holdings has now delivered two quarters that have been ahead of expectations, with forward guidance an incremental positive.”
Bank of America upgrades Credo to buy from underperform
Bank of America double upgraded the high speed connectivity company and says it sees a growth inflection.
“Following a solid beat and material raise earnings call, we double upgrade CRDO to Buy from Underperform, raise FY26/27E EPS by 65%/88% to $1.01/$1.51, and take our PO to $80 from $27.”
Bank of America reiterates Apple as buy
Bank of America says it’s sticking with its buy rating Apple following data showing an increase in App Store revenue.
“As per SensorTower data, App Store revenues in F1Q25 (after 64 days) increased to $5.6bn, with total downloads (iPhone + iPad) +7.4% y/y (6.1bn) during the same period.”
Wells Fargo downgrades Ollie’s to equal weight from overweight
Wells says it sees a more balanced risk/reward for the retailer.
“The best time to own OLLI may have passed. Mgmt has firmed up the foundation while capturing cyclical tailwinds, but the path forward seems trickier than appreciated and big picture questions linger. Risk/reward balanced at this price, moving to EW.”
Wells Fargo upgrades Synchrony to overweight from equal weight
Wells says the consumer financial has a “leading position in digital spend.”
“We rate SYF Overweight. They have the largest franchise in private label cards with a leading position in digital spend..”
Mizuho reiterates Nvidia as buy
The firm says it’s sticking by its buy rating on Nvidia after a check-in with company management.
“We see NVDA remaining the leader in the AI training and inference chips for Data Center applications (we estimate >95% share), which we believe is growing at a 74% CAGR to >$400B by 2027E.”
MoffettNathanson reiterates Amazon as buy
Moffett says Amazon’s international business is underappreciated.
“While International does not garner the same level of focus from investors as AWS and North America, it is expected to account for a meaningful 20% of consensus EBIT dollar growth from 2023A to 2027E and has the potential to both accelerate the growth trajectory of Amazon as well as derail it.”
