Here are Tuesday’s biggest calls on Wall Street: TD Cowen initiates Affirm as buy TD Cowen said the fintech company is well positioned going forward. “AFRM is one of the top performing BNPL brands in the U.S. with a full-suite POS lending capability vs peers, and likely the most pro consumer practices in the industry.” Citi upgrades Old Dominion and Union Pacific to buy from neutral The firm said the transport companies are of the “highest quality.” “We upgrade KNX, ODFL and UNP to Buy, as these companies are among the highest quality names in our group.” Morgan Stanley names Netflix a top pick The firm said the streaming giant is defensive. “A more defensive lens to our M & E [media and entertainment] coverage leaves us incrementally bullish on Netflix, our new Top Pick.” Piper Sandler upgrades Wells Fargo to overweight from neutral Piper Sandler said the banking giant’s stock has an attractive valuation. “While we have thought highly of WFC’ s recent move from defense to offense, as well as the heightened pace of regulatory resolution, our only hang-up has been the stock’s valuation and (until recently) outperformance, which we felt appropriately captured the company’s improving fortunes.” Goldman Sachs upgrades Eli Lilly to buy from neutral Goldman Sachs said it sees an attractive entry point for the biopharma company. “We assume coverage on Eli Lilly & Co. (LLY) with a Buy rating (from Neutral) and a 12-month price target of $888 ($892 prior).” Goldman Sachs upgrades Johnson & Johnson to buy from neutral Goldman Sachs said the company is a “defensive bellwether.” “We assume coverage of JNJ with a Buy-rating (from Neutral) and a 12m PT of $172 ($157 prior) representing 15% upside.” Goldman Sachs downgrades America Airlines to sell from neutral Goldman Sachs said it sees too much macro uncertainty. “As macroeconomic and geopolitical uncertainty increase, we are downgrading AAL shares to Sell as its relatively higher balance sheet leverage and operating leverage drive significantly larger cuts to our outlook vs. the industry.” JPMorgan upgrades Levi Strauss to overweight from neutral The firm said the jeans company has a compelling entry point. “We are upgrading LEVI to Overweight with the macro-driven -50% pullback over the trailing 9 months providing an entry point at ~5x FY26 EBITDA to own a multi-year mid-teens(+) total return profile.” Morgan Stanley upgrades Charles Schwab to overweight from equal weight Morgan Stanley said the company is a “high quality franchise.” “We upgrade SCHW to OW (from EW) as we see more defensible earnings profile given idiosyncratic levers that can drive 20% EPS CAGR in next 2 yrs, and greater appreciation for a high-quality franchise amidst a tough macro backdrop.” Morgan Stanley downgrades Robinhood to equal weight from overweight The firm said the brokerage has “heightened uncertainty weighing on confidence.” “This leads us to downgrade HOOD to EW (from OW) and VIRT to UW (from EW), as we have less confidence in our forward estimates given exposure to the retail investor that can pull back given the sharp sell-off in risk assets, portfolio losses, potential margin calls and heightened uncertainty weighing on confidence.” JPMorgan initiates Weyerhaeuser as overweight The firm said it is bullish on the wood products company. “WY is the largest public timber REIT in North America and one of the largest manufacturers and distributors of wood products.” KeyBanc reiterates Apple as underweight KeyBanc lowered its price target on the stock to $170 per share from $200 and said there is too much uncertainty. “We remain UW AAPL and lower our PT to $170 PT on a lower valuation multiple.” JPMorgan upgrades Nu Holdings to overweight from neutral JPMorgan said the Brazilian banking company is a global growth winner. “Even in our more conservative estimates we see Nu growing earnings > 30% in next 3 years, something hard to find. Assuming Brazil is a relative winner in the global trade war, we believe Nubank should also be a relative winner for global/growth investors.” Morgan Stanley upgrades Teradata and CDW to overweight from equal weight Morgan Stanley said both tech companies have “defensibility.” “Our upgrade to CDW is based primarily on an attractive, near-trough valuation on our new, lower estimates, relative end-market diversification/safety in business model, and historical outperformance during more late cycle conditions. Fo r TDC , we acknowledge the company remains a model in transition with risk of extending sales cycles, but at < 9x P/E on our new CY26 EPS, a 10+ year low, we believe this is more than priced in.” KeyBanc downgrades Advanced Micro Devices to equal weight from overweight KeyBanc said it sees a slew of negative catalysts ahead for AMD. “AMD (mixed, fine-tuning estimates, downgrading to Sector Weight) – We are downgrading AMD from Overweight to Sector Weight given: 1) increasing concerns regarding the sustainability of its China AI business; 2) increasing risk to GM given a potential price war with INTC…” Wells Fargo upgrades Welltower to overweight from equal weight Wells Fargo said buy the dip in the real estate investment trust. “We’re upgrading WELL to OW following the recent sell-off, as we see the core business as more resistant to tariffs / recession vs other REIT sectors and view the growth story as intact.” Wells Fargo upgrades Ross Stores and Ralph Lauren to overweight from equal weight Wells Fargo said both stocks have defensive characteristics. “In conjunction with today’s deep dive into down cycles and the ramifications on our space, we are upgrading ROST (PT to $150 from $140) + RL (PT to $240 from $275) to OW due to their more defensive nature…” Cantor Fitzgerald initiates Coinbase as overweight Cantor Fitzgerald said the crypto company is undervalued. “We are initiating coverage of Coinbase with an OW rating and a 12-month $245 PT.” Melius upgrades Dollar General to buy from hold Melius said the company has minimal tariff exposure. ” DG will likely benefit from a deteriorating macroeconomic environment and lack of tariff exposure.” KeyBanc reiterates Nvidia as overweight KeyBanc said it is standing by the stock after a series of supply chain checks. “While disappointing, we feel comfortable with our NT estimates in part due to the revenue recognition dynamics with NVDA selling into EMS [electronic manufacturing services], and we ultimately believe these NT issues are transient in nature. We’d recommend investors continue to own NVDA.” Morgan Stanley reiterates Tesla as overweight The firm said it is sticking with top pick Tesla. “Our OW rating and $410 price target are underpinned by our belief that Tesla’s capabilities in key areas of physical AI including data, robotics, energy storage, compute, manufacturing and space/comms/networking/infrastructure offer growth and margin opportunities that greatly exceed those of the traditional EV business which is under pressure.”
