Tech Giants Nvidia, Tesla, Apple in Focus: Analysts Optimistic

Key Takeaway

• Loop Capital and KeyBanc highlight optimism in tech, with MongoDB and Nvidia receiving strong buy ratings due to cloud and AI capabilities.
• Analysts focus on AI and cloud technologies, upgrading companies like Datadog for their potential in generative AI workloads.
• Sector adjustments include downgrades for Sunnova and Warner Brothers, reflecting market challenges and growth concerns.

Analyst Optimism in Tech and Consumer Sectors

Wall Street analysts have shown a mix of optimism and caution in their latest evaluations of companies across the tech and consumer sectors. Loop Capital initiated MongoDB with a Buy rating and a $415 price target, citing the company as the "de facto standard" for cloud application development platforms. Similarly, JPMorgan reiterated its Overweight rating on General Motors and Ford, preferring them over Tesla and Rivian due to "Undemanding Valuation." KeyBanc maintained Nvidia as Overweight, highlighting its position in generative AI and its progress through the destocking process. BMO raised its price target on Amazon to $215 from $205, expecting an uptick in demand from generative AI workloads.

Focus on Cloud and AI Technologies

The emphasis on cloud computing and artificial intelligence (AI) technologies is evident in the recent analyst calls. Wells Fargo upgraded Datadog to Overweight, raising its price target to $150, citing the end of cost optimization and the company's potential in generative AI workloads. D.A. Davidson added Salesforce among others to its Best-of-Breed Bison list, recognizing their leading positions in the software sector. Evercore ISI reiterated Alphabet as Outperform, expressing a bullish stance ahead of its earnings report, while Morgan Stanley maintained its Overweight rating on Harley-Davidson, noting the iconic brand's revamped business model and strategy.

Sector Adjustments and Downgrades

Analysts have also made several sector adjustments and downgrades, reflecting changing market conditions and company performances. KeyBanc downgraded Sunnova to Sector Weight from Overweight, pointing to the challenging landscape for residential solar companies in the U.S. JPMorgan upgraded Roblox to Overweight from Neutral, seeing a "compelling entry point" for the stock. Conversely, Barclays reiterated Apple as Underweight and Tesla as Equal Weight, expressing caution ahead of Apple's earnings and noting Tesla's focus on its robotaxi strategy. Wolfe downgraded Warner Brothers to Underperform from Peer Perform, concerned about slowing growth in the media sector.

Street Views

• Loop Analyst on MongoDB (Bullish on MongoDB):

  "We are initiating coverage of MongoDB with a Buy rating and $415 PT."

• JPMorgan on General Motors and Ford (Bullish on General Motors and Ford):

  "Prefer GM & F to TSLA & RIVN on Undemanding Valuation."

• KeyBanc on Nvidia (Bullish on Nvidia):

  "From a stock perspective, we recommend positioning in stocks indexed to gen AI and/or are further through the destocking process and thus favor MU, NVDA, and QCOM."

• BMO on Amazon (Bullish on Amazon):

  "We raise our ’24 AWS growth to 15% (from 14%)... positions AWS well for potential ’24 acceleration."

• Wells Fargo upgrades Datadog (Bullishon Datadog):

  "We are upgrading DDOG to OW, raising our PT to $150 (prev. $130) as cost optimization comes to an end."

• D.A. Davidson adds Salesforce to the best-of-breed list:

  • No specific quote provided

• JPMorgan upgrades Assai (Bullishon Assai):

  "Assaí – Upgrading to OW on better operations, visibility, and deleveraging."

• Wells Fargo reiterates Disney as overweight:

  • No specific quote provided

• Berenberg upgrades STMicroelectronics (Bullishon STMicroelectronics):

  • No specific quote provided

• Morgan Stanley reiterates Harley-Davidson as overweight:

  • No specific quote provided

• JPMorgan upgrades Roblox(** Bullish **on Roblox): > " We are upgrading Roblox(RBLX)to Overweight"

• Evercore ISI reiterates Alphabet(** Bullish on Alphabet): > " We are constructive on GOOG into the print."- Barclays reiterates Apple( Bearish on Apple): > " We see an in-line Mar-Q.We expect June-Q guide will miss Street estimates due"- Barclays reiterates Tesla( Neutral on Tesla): > " Although considerable uncertainty remains around the specifics,it’s clear that there has been a shift within Tesla towards a stronger pursuit of Robotaxi."- Rosenblatt initiates Nice( Bullis hon Nice): > " We believe NICE is well positioned across the largeand mid enterprise market"- Oppenheimer reiterates Church&Dwight(- Bearis h**) : "** CHD shares have traded mixed following recent prints.We would take advantage of any profit taking should it materialize."- JP Morgan adds Albertsons(- Bearis h) : "** We also addthe stocktoJ.P.Morgans Positive Catalyst WatchandAnalyst Focus List(Value)"- Key Banc downgrades Sunnova(- Bearis h) : "** Despitean undemanding valuation at present,wedowngrading NOVAto SWand removingourPT.The overall residential solar landscapeintheU.S.remains challenging"- Evercore ISIupgrades First Solar(- Bul lishi ) : " WebelieveFSLRwillbeoneofthemainbeneficiariesofnew/highertariffs."- Truistupgrades Penn Entertainment(- Bul lishi ) : " Wer’eupgrading PENNtoBuy(fromHold),largelyonorisk/reward,givenweeffectivelyseezerotonegativevalueascribedforESPNBetatcurrenttradinglevels."- JP Morgandowngrades Five Below(**- N eutral **) :" Ourworkpointstoanunderlyinglow-to-mid-teensEPSgrowthprofilemulti-yearpost~100bpsofoperatingmarginrecapturethroughFY26.”- Benzhmarkinitiates Qualcommasbuy: "- Wolfe downgrades Warner Brothers:Beari sh: “With ~80%