Here are Wednesday’s biggest calls on Wall Street: Deutsche Bank upgrades Digital Realty to buy from neutral Deutsche Bank said it sees “enhanced visibility” for the data center company. “Momentum remains at DLR’ s back, with robust demand (AI/hyperscale/ enterprise) and space/power constraints that are unlikely to moderate any time soon creating a highly favorable demand and pricing backdrop (with yields on new developments that continue to improve).” Bernstein reiterates Microsoft and Oracle as outperform The firm said it sees many tailwinds ahead for stocks like Oracle and Microsoft. “As to our coverage we would own Oracle, Microsoft and SAP today.” Bernstein upgrades Devon Energy & EQT to outperform from market perform Bernstein said its bullish on several hydrocarbon exploration companies. “First, note that EQT is clearly extremely levered to gas price and thus clearly its target price moves up significantly. We upgrade. … We highlight DVN as having the most gas beta in the E & P space and we upgrade DVN.” Bank of America reiterates Apple as buy Bank of America said its analysis shows margins on the iPhone Pro models are “moving higher.” “Our analysis of the teardowns of iPhone 16 Pro Max and comparison vs 15 Pro Max suggests that Apple has been very focused on driving lower costs across the Pro lines where the mix of the iPhones is steadily increasing.” Oppenheimer reiterates Nvidia as outperform The firm said the stock remains a top pick ahead of earnings later this quarter. ” NVDA remains the dominant supplier of general purpose AI accelerators.” Oppenheimer reiterates Netflix as outperform The firm said it’s sticking with Netflix heading into earnings next week. “While we are lowering our target to $1,040 from $1,065 on FX, we are highlighting our Dec report and believe setup is favorable into 4Q earnings with shares -10% from Dec. high vs. NASDAQ -5%.” Barclays reiterates Tesla as equal weight Barclays raised its price target on the stock to $325 per share from $270. “The stock has become untethered from fundamentals, arguably similar to what we saw with Tesla stock in late 2021 when the market was awash in EV euphoria. Yet it’s important to note this move has very little to do with EVs, as the Election catalyst is objectively a negative for EVs.” Jefferies reiterates Planet Fitness as buy Jefferies said the stock is a top idea in 2025 and is firing on all cylinders. “We reiterate PLNT as our top pick for 2025. As the ‘Walmart of Gyms’, PLNT is a consistent grower benefiting from secular tailwinds that will accelerate SSS [same-store sales] and unit growth.” Deutsche Bank names Meta, Reddit and Spotify top picks in 2025 Deutsche said it sees “near term returns” for shares of Meta, Reddit and Spotify in 2025. “As we look forward to 2025, we think successful themes of 2024 will similarly dictate stock action and sentiment this year. In particular, we think the combination of durable topline trends and positively inflecting margins will be the minimum requirements for favorable flow of funds.” Morgan Stanley upgrades CBRE to overweight from equal weight Morgan Stanley said the real estate investment trust is a top pick under a commercial real estate recovery scenario. “With clear signs of green shoots and higher conviction that a CRE transaction recovery can materialize in 2025, we upgrade CBRE to OW, Top Pick, and raise our PT +39% to $160 for +29% total returns.” William Blair initiates SoFi and Affirm as outperform William Blair initiated a couple of fintech stocks on Wednesday and says there’s a “paradigm shift” in digital finance. “We are initiating coverage on the digital finance subsegment of fintech with Outperform ratings on Affirm and SoFi. ” Oppenheimer initiates SentinelOne as outperform Oppenheimer said the cybersecurity company has “platform breadth [that] is underappreciated.” “We’re initiating coverage on SentinelOne with an Outperform rating and $32 PT.” Ladenburg Thalmann upgrades Edison International to neutral from sell The firm upgraded the utility company and says the wildfires are already priced into the stock. “We are upgrading Edison to Neutral from Sell based on valuation following the recent sell-off in the stock. With Edison trading at a 34% P/E discount we believe the stock reflects reasonable worst-case outcomes associated with the current California wildfires.”
