Here are Wednesday’s biggest calls on Wall Street:
Loop reiterates Nvidia as buy The firm said it’s standing by the stock heading into earnings on Wednesday.
“While there has been increased ‘noise’ throughout the Gen AI ecosystem of late the net of our work suggests that NVDA’ s anticipated demand trajectory remains intact, and our work frankly hasn’t picked up on any material alterations to our broader expectations.’
Deutsche Bank upgrades Gaming & Leisure Properties to buy from hold
Deutsche said shares of the real estate investment trust are “compelling.”
“We are upgrading shares of GLPI to Buy from Hold and raising our price target to $54 from $49, which, when coupled with the dividend yield, offers a compelling mid to high teens return, with what we believe to be limited downside risk.”
Bernstein reiterates Robinhood as outperform
Bernstein said the stock is a “crypto deregulation’ trade.”
“We see more upside potential and are moving up our target price to $51 from $30.
HOOD has so far operated a regulatory-constrained crypto business – barely listed 15 tokens (vs. more than 250 on Coinbase), made no revenue from staking, lending, derivatives or stablecoins – offered by competing exchanges.
Pivotal reiterates Netflix as buy
Pivotal raised its price target on Netflix to a Street high $1,100 from $925.
“Post the (mostly) successful Tyson/Paul fight, which was streamed by a massive ~65M households (and likely ~150M+ viewers) we raised our medium/long term subscriber and ARPU forecasts, which combined with a modest increase in our terminal EBITDA multiple led to a $175 increase in our NFLX YE’25 target price to $1,100.”
Bank of America reiterates Walmart as buy
Bank of America raised its price target to $105 per share from $95 following earnings on Tuesday.
“We see support for WMT’s outlook as broad-based share gains continue and long-term profitability improves supported by growth of high-margin digital advertising and 3P Marketplace seller fees as well as improvements in core ecommerce losses.”
Bernstein reiterates Apple as outperform
The firm said Apple is a “best idea.”
“We view Apple as a quality compounder, with mid-single digit revenue growth, improving margins, disciplined capital return, and double-digit EPS growth.”
Goldman Sachs reiterates Microsoft as buy
Goldman said it’s standing by the stock following the company’s Ignite Conference in Chicago on Tuesday.
“We reiterate our Buy rating and $500 PT following Ignite 2024 where Microsoft unveiled Gen-AI advancements across the tech stack, strengthening our conviction in Microsoft’s ability to become the platform-of-choice as AI spend moves from the Infrastructure layer to the Platform and Applications layers.”
Piper Sandler initiates AppLovin as overweight
Piper said the software publisher is an “AI innovator with more room to run.”
“We initiate APP with an OW rating and $400 PT. Shares have appropriately re-rated following an AI-driven acceleration, but we still see upside. APP’s technology has driven ad revenue growth well above the market, and we see room to drive monetization/minute higher.”
Morgan Stanley reiterates Adobe as overweight
Morgan Stanley said the stock is in a “uniquely position.”
“Limited disclosure has left the Adobe investor story rudderless amidst rising competitive pressures and a fast moving GenAI innovation cycle. However, broad workflows and deep data sets uniquely position Adobe to leverage GenAI, while historically low multiples frame an attractive risk/reward.”
Morgan Stanley upgrades Lemonade to equal weight from underweight
Morgan Stanley says it’s getting “significantly more optimistic” in the insurance stock.
“Lemonade charted an ambitious goal of growing its business from $1 billion in premiums to $10 billion over the next few years.”
JPMorgan reiterates Amazon as overweight
The firm said the stock is a best idea heading into the holidays.
“Amazon maintains a leading ~45% share of US e-comm & enters the holiday season with strong momentum from early holiday promotions, SD1D delivery [same day one day], regionalization, expansion of the Prime ecosystem, & competitive prices (see the pricing study below). AMZN remains our Best Idea.”
Evercore ISI adds Dell to the tactical outperform list
The firm said it’s bullish ahead of earnings next week.
“DELL is well positioned to report upside to consensus Oct-qtr rev/EPS estimates of $24.69B/$2.07, driven by strength in ISG segment on the heels of storage, general-purpose compute, and AI server strength.”
Bank of America upgrades Chewy to buy from underperform
Bank of America said in its upgrade of the stock that trends are stabilizing.
“We upgrade Chewy to Buy from Underperform & raise our PO to $40 from $24. Shelters are still taking in more pets on a net basis and YoY pet spend is negative, per BAC aggregated credit & debit card data.”
Guggenheim upgrades SolarEdge to neutral from sell
Guggenheim said it sees a more balanced risk/reward for the solar company
“The decline in SEDG’s stock price has brought the stock close to our previous target of $10. Although we’re making some additional revisions to our model, at this point we regard the stock as fairly valued at approximately 10x our 2026 EBITDA estimate.”
Oppenheimer downgrades JPMorgan Chase to perform from outperform
Oppenheimer downgraded the banking giant mainly on valuation.
“We are, however, downgrading JPM to Perform (from Outperform) as the stock now trades essentially in line with our fair value model.”
JPMorgan adds a positive catalyst watch on EVgo
The firm said it’s more bullish on the electric charging company after a series of investor meetings.
“Most investors were keen to better understand EVGO’s unit economics at scale and implications of potential changes to policy support under Trump 2.0.”
Barclays upgrades Newell Brands to overweight from equal weight
The firm said the turnaround is underway for the consumer products company.
“By contrast, we believe NWL’s turnaround strategy is still in the very early days of yielding benefits to the P & L and expect this to result in share price out performance.”
JPMorgan upgrades Energizer to neutral from underweight
The firm said it’s getting more constructive on the battery company.
“We are upgrading Energizer (ENR) to a Neutral rating as we believe the company is set to have a more consistent top line and bottom line performance ahead.”
Citi downgrades Target to neutral from buy
The firm downgraded the stock following earnings on Wednesday morning and says it’s losing share.
“We are downgrading TGT from Buy to Neutral. Though 3Q may have had some unique challenges, we believe very poor results at TGT in 3Q (and an uninspiring outlook for 4Q) show TGT is likely losing share to WMT.”
HSBC upgrades Trip.com to buy from hold
HSBC upgraded the travel website following earnings.
“Trip.com’s 3Q revenue was largely in line, but the adj OP [operating performance] margin set a post-COVID high of 34.4% on lower marketing spending.”
Bernstein initiates Cava as market perform
The firm said the healthy food chain is “priced as a diamond.”
“We believe Cava has the potential to be the ‘next big thing’ in the restaurant industry, having showed ability to grow SSS by 25% over the past 3 years, while doubling its number of stores and demonstrating the portability of the concept by expanding the geographic footprint.”
Correction: Bank of America upgraded Chewy to buy from underperform. A previous version misstated the bank’s previous rating.
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