Here are Monday’s biggest calls on Wall Street: Bank of America reiterates Nvidia as buy Bank of America said Nvidia is one of the firm’s picks for its best-of-breed second-quarter list. “BoB stocks have strong management, balance sheets, EPS growth, cash flow; the highest quality companies generate the best relative returns long term and protect against volatility short term. Mizuho downgrades Tesla, Rivian and Nio to neutral from buy Mizuho downgraded several EV companies due to concerns about slowing EV demand. “While we remain constructive on the broader EV landscape with the LT trend to electrification, near-term EV demand and tightening liquidity are creating challenges into 2025E. We are therefore downgrading TSLA, RIVN and NIO to Neutral, while maintaining GM/ALV at Buy.” Wells Fargo reiterates Citi as overweight Wells Fargo raised its price target on Citi to $80 per share from $70. “We increase our PT to $80.” RBC initiates Kinetik Holdings as outperform RBC said Kinetik is a “Permian basin pure-play.” “We initiate coverage of Kinetik Holdings Inc. with an Outperform rating and $40 price target.” Northland initiates Astera Labs as outperform Northland said it’s bullish on the connectivity platform for cloud and AI. “We initiate Astera Labs with an Outperform rating and $85 PT. Three vectors drive compute performance, processing, memory, and bandwidth. AI is pushing the limits of all three vectors.” Bank of America upgrades Huya to buy from neutral Bank of America upgraded the China gaming platform after Huya declared a special dividend. “We upgrade to Buy from Neutral due to 1) solid cash position and positive cash dividend plan; 2) new business is likely to help offset the decline of game streaming business, along with margin improvement in 24-25E.” Bank of America reiterates Amazon & Meta as buy Bank of America said it’s standing by its buy rating on Meta and Amazon after a series of meetings with hedge-fund clients. “We thought sentiment on Big-3 Internet stocks was most positive on Meta, very positive on Amazon, and most cautious on Alphabet.” Argus downgrades McDonald’s to hold from buy Argus downgraded McDonald’s on concerns about slowing traffic. “Downgrading to HOLD on prospects for weak customer traffic.” Raymond James downgrades Dave & Buster’s to market perform from outperform Raymond James downgraded Dave & Buster’s mainly on valuation. “Downgrade to Market Perform; More Balanced Risk/Reward; NT Comps Soft as Enter Key Comp Test.” Barclays upgrades Disney to overweight from equal weight Barclays said in its upgrade of Disney that it sees a “narrative reset.” “The recent narrative reset is likely to be followed by positive estimate revisions, which is still early in the cycle and should further support valuation.” Morgan Stanley reiterates Adobe as overweight Morgan Stanley said it’s standing by its overweight rating on the stock. “The investment thesis for Adobe builds on a premise ‘the whole is more valuable than the sum of its parts’, specifically in enabling GenAI capabilities. However, more disclosure would help to garner confidence from investors that the equation is valid and competitive threats are overstated.” Evercore ISI initiates Motorola Solutions as overweight Evercore said in its initiation of the stock that it’s a “unique asset.” “We are initiating coverage of Motorola Solutions (MSI) with an Outperform rating and $400 Target price.” Evercore ISI upgrades Foot Locker to outperform from in line Evercore upgraded the stock after meeting with management, and said “there is going to be the most significant investment behind the specialty athletic retail channel that we’ve seen in years.” “Upgrading FL to Outperform from In Line.” Citi reiterates Netflix as neutral Citi raised its price target on Netflix to $660 per share from $555. “Looking ahead, we expect the firm to continue to see healthy sub growth and see scope for consensus subscriber estimates to move higher.” Loop upgrades Tempur Sealy to buy from hold Loop upgraded the mattress company on hope that its Mattress Firm acquisition closes. “We are raising our rating from Hold to Buy and raising our price target for TPX from $50 to $75 after folding the potential financial impact from the Mattress Firm acquisition into our model.” Wells Fargo upgrades GoodRx to overweight from equal weight Wells said it sees “improved visibility” for the telemedicine and prescription company. “GDRX : Business Staying Power & Improved Visibility Should Compensate for Slower Growth; PT to $10; Upgrade to OW.” JPMorgan initiates Super Micro Computer as overweight JPMorgan said Super Micro Computer is at the “forefront” of the AI revolution. “AI Revolution Through Rich Compute; Initiate at OW with PT of $1,150.” Raymond James downgrades Scotts Miracle-Gro to market perform from strong buy Raymond James downgraded the stock mainly on valuation. “We’re downgrading the shares of Scotts Miracle-Gro from Strong Buy to Market Perform and removing our prior $70 target price.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it’s standing by its overweight rating on the stock. “We know it’s very hard to imagine today… but we eventually expect to potentially see a load of new product coming out of Tesla and expect the stock to eventually price this in well ahead of their respective launches.” Wells Fargo upgrades Masimo to overweight from equal weight Wells said in its upgrade of the stock that a separation of the business could be a “step in the right direction.” “We are upgrading MASI from Equal Weight to Overweight and raising our price target to $160 from $117. We view the announcement that MASI is evaluating a proposed separation of its consumer business as a key positive and a step in the right direction.” UBS reiterates Apple as neutral UBS said its survey checks on Apple’s iPhone show “more consumption of Services but [the] rate of change [is] slowing.” “Key takeaways include: 1) iPhone retention rate in the US is 79%, down 400 bps from last year. In China, iPhone retention rate is 49%, up from 44% last year. 2) The average age of the iPhone installed base ex China is over 34 months, vs 31 months in the prior survey likely driven by soft global sell-through over the past 12 mos.” Citi reiterates Arista Networks as buy Citi removed the stock from its focus list mainly on valuation. “We have removed Buy-rated Arista (ANET) from Citi’s Focus List, with shares up ~30% since mid December 2023.”
