SUPERNEWS

Equities

Analyst Calls Impact Market with Upgrades and Downgrades

Wall Street's latest analyst calls impact sectors from tech to consumer goods, with major ratings on Nvidia, Tesla, and Disney.

By Alex P. Chase

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4/1, 08:42 EDT
Adobe Inc.
Amazon.com, Inc.
Broadcom Inc.
Bill.com Holdings, Inc.
Cameco Corporation
C.H. Robinson Worldwide, Inc.
Crocs, Inc.
Delta Air Lines, Inc.
Deckers Outdoor Corporation
Walt Disney Company
Devon Energy Corporation
J.B. Hunt Transport Services, Inc.
McDonald's Corporation
Microsoft Corporation
Motorola Solutions, Inc.
Micron Technology, Inc.
Netflix, Inc.
NVIDIA Corporation
On Holding AG
Skechers U.S.A., Inc.
Tempur Sealy International, Inc.
Tesla, Inc.
Taiwan Semiconductor Manufacturing Company Ltd.
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Key Takeaway

  • Bank of America reiterates buy on Nvidia, highlighting strong management and long-term potential; Mizuho downgrades Tesla to neutral due to EV demand concerns.
  • Barclays upgrades Disney to overweight, expecting positive estimate revisions; Citi raises Netflix price target to $660 on subscriber growth optimism.
  • Wells Fargo upgrades GoodRx to overweight, citing improved visibility; JPMorgan initiates Super Micro Computer as overweight, eyeing AI revolution benefits.

Analyst Calls Impact Market

Wall Street analysts have recently made a series of significant calls that have influenced various sectors, including technology, consumer goods, and financial services. Notably, Bank of America has reiterated its buy rating on Nvidia, emphasizing the company's strong management, balance sheets, and potential for long-term returns. Conversely, Mizuho downgraded Tesla, Rivian, and Nio to neutral, citing concerns about slowing electric vehicle demand and tightening liquidity. Wells Fargo has reiterated its overweight rating on Citi, raising its price target to $80 per share, while RBC initiated coverage on Kinetik Holdings with an outperform rating, highlighting its focus on the Permian basin. Northland has initiated Astera Labs as outperform, expressing optimism about its connectivity platform for cloud and AI.

Sector-Specific Movements

In the consumer sector, Bank of America upgraded Huya to buy from neutral, optimistic about its solid cash position and positive cash dividend plan. Argus downgraded McDonald’s to hold from buy due to concerns about slowing customer traffic. Barclays upgraded Disney to overweight from equal weight, anticipating a narrative reset that could lead to positive estimate revisions. In the technology sector, Morgan Stanley reiterated Adobe as overweight, focusing on its potential to enable GenAI capabilities. Evercore ISI initiated Motorola Solutions as overweight, describing it as a unique asset in the market.

Financial Forecasts and Upgrades

Citi has raised its price target on Netflix to $660 per share from $555, expecting healthy subscriber growth. Loop upgraded Tempur Sealy to buy from hold, optimistic about the potential financial impact of its Mattress Firm acquisition. Wells Fargo upgraded GoodRx to overweight from equal weight, citing improved visibility for the company. JPMorgan initiated Super Micro Computer as overweight, positioning it at the forefront of the AI revolution. Morgan Stanley reiterated Tesla as overweight, anticipating the introduction of new products that could drive the stock's performance.

Street Views

  • Jefferies (Bullish on Microsoft):

    "We believe that MSFT is the key beneficiary of Gen AI, poised to benefit from both infrastructure (Azure OpenAI) and app angles (series of Copilots) opportunities, capturing the most of this transformational opportunity."

  • Goldman Sachs (Bullish on Cameco):

    "We are initiating coverage on CCJ/CCO.TO with a Buy rating and US$55/C$74 price targets, implying ~30% upside from current levels."

  • Barclays (Bullish on Crocs, Skechers, On Holding, Deckers):

    "We are expanding our footwear coverage, initiating on CROX, DECK, ONON, and SKX all at Overweight."

  • Barclays (Neutral to Bearish on J.B. Hunt and Werner; Bearish on C.H. Robinson):

    "Weak bid season results will likely result in volume challenges for J.B. Hunt... softer margins for Werner... growth headwinds for C.H. Robinson."

  • Morgan Stanley (Bullish on Compass Pathways):

    "Treatment-resistant depression (TRD) represents an area of significant unmet need."

  • Morgan Stanley (Bullish on Taiwan Semiconductor):

    "We reiterate our OW rating into the 1Q24 print..."

  • Morgan Stanley (Bullish on Delta Airlines):

    "...Delta’s push into 'premium' will reward investors."

  • Bank of America (Bullish on Nvidia and Broadcom): > "The adoption of accelerated/AI servers is a generational shift with NVDA and AVGO the leaders..."

  • Wells Fargo(** Bulllish **on Amazon)> " We reiterate our Overweight rating ... Increase PT to $217"

  • Bank Of America(** Bulllish **on Micron)> " We raise MU’s PO to $144 ..."

  • Wells Fargo(** Bulllish **on Devon Energy)> " ... we now believe the stock offers an attractive entry point ..."

  • Evercore ISI(** Bulllish **on Bloom Energy)> " Bloom Energy is executing ...to deploy hydrogen solutions at scale ..."

  • Wells Fargo(*** Bearrish ***on Bill.com )> " While near-term trends have stabilized,... see estimates more likely to move lower than higher in months ahead "

  • Bank Of America(*** Bulllish ***On Disney )

    " We anticipate DIS’ F2Q to reflect a continuation...."

-Wells Fargo(*** Bearrish ***On Tesla )

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