SUPERNEWS

Equities

Top Analyst Calls: Apple Up, Estee Lauder Down, More Shifts

Wall Street analysts adjust ratings on Apple, Target, and Coinbase, signaling strategic shifts and market reactions.

By Alex P. Chase

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5/3, 08:58 EDT
Apple Inc.
Coinbase Global, Inc.
Expedia Group, Inc.
Joby Aviation, Inc.
Target Corporation
Union Pacific Corporation
Williams-Sonoma, Inc.
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Key Takeaway

  • Bank of America reiterates Apple as a top pick with a raised price target, highlighting strong earnings.
  • Stifel upgrades Union Pacific to Buy due to improving service metrics; JPMorgan shifts Williams-Sonoma to Neutral.
  • Morgan Stanley downgrades Estee Lauder, expecting slower recovery; BMO downgrades Expedia over VRBO platform concerns.

Wall Street's Latest Moves

Wall Street analysts have made several significant calls, affecting a range of companies from tech giants to transportation leaders. RBC has initiated coverage on FTAI Aviation with an Outperform rating, citing the company's potential in engine lease and maintenance. Stifel upgraded Union Pacific to Buy, pointing to improving service metrics, while JPMorgan shifted its stance on Williams-Sonoma to Neutral, noting the stabilizing home furnishings category. Conversely, BMO downgraded Expedia due to concerns over its VRBO platform, and Morgan Stanley downgraded Estee Lauder, anticipating a slower recovery.

Notably, Bank of America has reiterated Apple as a top pick, raising its price target following strong earnings. Wells Fargo initiated Kiniksa Pharmaceuticals at Overweight, optimistic about its treatment for pericarditis. Amidst these varied analyst calls, the market is reacting to strategic shifts, upgrades, and downgrades, reflecting the dynamic nature of investment landscapes.

Strategic Investments and Upgrades

Several companies have received upgrades or initiated coverage, reflecting positive market sentiment and strategic investments. For instance, Truist upgraded Ollie’s to Buy, citing a reasonable valuation and steady growth. Guggenheim reiterated Target as Buy, advising investors to buy the dip. Citi opened a positive catalyst watch on Apple ahead of its Worldwide Developer’s Conference, expecting AI developer tools announcements.

JPMorgan upgraded Joby to Neutral, acknowledging that its bear thesis has largely played out. Similarly, Jefferies upgraded Arista to Buy, dismissing competitive concerns and highlighting its role as a prime AI beneficiary. These upgrades and positive outlooks underscore the analysts' confidence in these companies' strategic directions and market opportunities.

Challenges and Downgrades

While many companies are receiving upgrades, others face downgrades due to various challenges. Bernstein downgraded Peloton to Market Perform, questioning the company's growth potential. Bank of America initiated Avidity as Buy, bullish on its prospects in treating rare diseases. However, CFRA reiterated Berkshire Hathaway as Buy, optimistic about its underwriting results and investment income growth.

The downgrades and cautious stances reflect concerns over market saturation, operational efficiencies, and competitive pressures. Companies like Peloton and Estee Lauder are navigating through these challenges, aiming to reposition themselves for growth amidst shifting market dynamics.

Street Views

  • RBC (Bullish on FTAI Aviation):

    "We are initiating coverage of FTAI Aviation (FTAI) with an Outperform rating and an $85 PT."

  • Stifel (Bullish on Union Pacific):

    "While still not as cheap as we would like, there is enough upside to justify upgrading to Buy."

  • JPMorgan (Neutral on Williams-Sonoma):

    "We are moving WSM to a Neutral rating as we believe the broader home furnishings category is sequentially improving with improvement in key west coast housing markets while we see upside potential to gross margin based on sales-driven leverage and selling margin[s] continuing to improve."

  • BMO (Neutral on Expedia):

    "We are downgrading shares of EXPE to Mkt Perform from OP with a target price of $145 vs. $165 previously."

  • Bank of America (Bullish on Apple):

    "The thesis for our upgrade to Buy earlier this year is playing out with: (1) strong multi-year iPhone upgrade cycle coming driven by GenAI (mgmt. commentary on earnings call very bullish), (2) Services growth reaccelerating."

  • Wells Fargo (Bullish on Kiniksa Pharmaceuticals):

    "We rate shares Overweight. We believe Arcalyst provides a good floor value for the stock, with a market opportunity of ~$1.2B in recurrent pericarditis."

  • JPMorgan (Neutral on Joby):

    "On the stocks, we upgrade JOBY to Neutral and maintain our $5 price target. Our call to downgrade JOBY in July 2023 has largely played out since the middle of last year, with JOBY’s premium more in line with its historical norm."

  • Truist (Bullish on Ollie’s Bargain Outlet Holdings Inc. - OLLI ):> "Upgrade OLLI to Buy; leaning into Value; reverting to a steady growth algo w reasonable valuation.”

  • Guggenheim(** Bullish **on Target): > "We believe the recent pullback in the shares has presented a buying opportunity.”

  • Citi(** Bullish **on Apple): > "...expect Apple unveil multiple AI developer tools enhance interactivity..."

  • JPMorgan(** Bullish **Mister Car Wash): > "...upgrading MCW Overweight maintaining our $8.50 Dec 24 PT..."

  • Bank America(** Bullish **Avidity Biosciences): > "Avidity Biosciences(RNA)... pioneering new class RNA-based drugs treat forms muscular dystrophy other rare diseases.”

  • Oppenheimer(** Bullish **Coinbase): > "COIN reported strong 1Q adj EBITDA versus estimate consensus's"

  • CFRA(** Bullis h*** Berkshire Hathaway ): > We view shares undervalued versus historical levels think improved underwriting results GEICO continued strong reinsurance demand pricing trends...