Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley reiterates Rivian as overweight Morgan Stanley cut its price target on Rivian to $14 per share from $24 but said it’s standing by the stock. “The risks are high but so is the potential strategic value to a hypothetical partner. Remain OW. PT to $14.” Citi reiterates Snowflake as a top pick Citi said Snowflake remains a top pick at the firm. “We are optimistic on the 2024 set-ups for ESTC and SNOW, with easing cloud optimization tailwinds and GenAI product cycles.” Berenberg reiterates Eli Lilly as a buy Berenberg raised its price target on the stock to $850 per share from $780. “Despite a strong start to the year (+32% ytd, in absolute terms), Eli Lilly remains our top pick in US pharma.” Morgan Stanley downgrades Unilever to underweight from equal weight Morgan Stanley downgraded the stock due to concerns about missing growth targets. “While we are not significantly below consensus on earnings, we think Unilever’s re-rating – to a small premium to Staples – is overdone, particularly given weaker cash conversion, and higher EM exposure, relative to peers.” Benchmark initiates MicroStrategy as buy Benchmark said the bitcoin company is a “timely play.” “We are initiating coverage of MicroStrategy with a Buy rating and a price target of $990 based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s bitcoin holdings and (2) our estimate of the year-end 2025 value of its business intelligence software business.” Morgan Stanley initiates Fractyl Health as overweight Morgan Stanley said in its initiation of the biotech company that it has “novel approaches to treating metabolic disease.” “Pioneering Novel Approaches to Treating Metabolic Disease.” Edward Jones initiates Goldman Sachs as buy Edward Jones said the investment banking giant is very “well positioned.” “With a premier investment-banking franchise, we believe that GS is well-positioned to benefit from a more favorable environment for capital-markets activity, particularly for mergers & acquisitions and equity initial public offerings.” Piper Sandler upgrades Unity to neutral from underweight Piper Sandler said in its upgrade of the stock that it sees a more balanced risk/reward for the software company. “Given the multiple has compressed to 21x the CY25 exit run-rate EBITDA and the model appear conservatively reset, we are upgrading U to Neutral from Underweight on a more balanced risk-reward.” Piper Sandler names Datadog a top pick Piper Sandler said the stock is well-positioned. “Last week we hosted a discussion with Yuka Broderick, VP of Investor Relations & Strategic Finance, and investors, which helped reinforce our view of DDOG as a top name to own in our coverage for 2024. … Following the discussion, we reiterate our OW rating, continuing to see DDOG as the most compelling way in our coverage to play trends around receding cloud optimizations and GenAI. Citi opens a positive catalyst watch on American Eagle Citi said American Eagle is well-positioned into the company’s upcoming investor day. “4Q/Investor Day Preview: Expect F24 Guide Above Cons, and F26 EBIT Margin Target of LDD [low double digit]; Opening Positive Catalyst Watch.” Janney downgrades Sunrun to neutral from buy Janney said in its downgrade of the stock that residential solar remains too uncertain. “We are downgrading RUN to Neutral from Buy and lowering our Fair Value Estimate to $13.00 from $20.00.” Citi reiterates Micron as buy Citi said concerns about the stock underperformance is overdone and investors should buy the dip in top pick Micron. “We reiterate our Buy rating on Micron and maintain our price target of $95.00, above its historical average given the DRAM upturn and continued upside.” UBS reiterates Netflix as buy UBS raised its price target on the stock to $685 per share from $570. “While we expect net adds to slow, we believe Netflix still has significant runway as it continues to convert users to paid subs and attracts new cohorts.” Argus upgrades Domino’s Pizza to buy from hold Argus said it likes Domino’s ” solid U.S. same-store growth.” “Our upgrade from HOLD, with a target price of $530, reflects the company’s economies of scale, early entry into the pizza delivery business and prospects for growth in international and domestic markets.” Citi downgrades Sunoco to neutral from buy Citi downgraded the oil and gas company mainly on valuation. “We downgrade SUN to Neutral following recent outperformance since the NuStar (NS) deal announcement. Following the NS deal, we upgraded SUN to Buy on expectations for SUN to exceed the accretion target and easily achieve guided synergy levels. We continue to expect both of those merits to be realized; however, SUN has largely closed the valuation gap since the deal announcement.” Wells Fargo upgrades Kroger to equal weight from underweight Wells Fargo said in its upgrade of the stock that “headwinds are near a bottom.” ” KR: Risk/Reward More Balanced with Industry Headwinds near a Bottom and ACI Coming to a Head; Upgrading to Equal Weight.” Wells Fargo downgrades Roku to underweight from equal weight Wells Fargo said Walmart’s deal for Vizio creates too much risk for Roku. “We downgrade ROKU to Underweight as we think WMT’s acq. of VZIO creates substantial risk.” Deutsche Bank upgrades BrightSpring Health to buy from neutral Deutsche Bank upgraded the home health-care company and says it sees a compelling entry point. “We believe BTSG’s earnings story, which should accelerate over 2025 / 2026 is compelling and the current valuation of 7.6x 2025 EV/EBITDA provides investors with an attractive entry position.” Seaport initiates Duolingo as buy Seaport said the language learning company is a category leader. “We are initiating coverage of Duolingo with a Buy rating and $222 price target (12x 2025 revenues).” New Street downgrades Arm to neutral from buy New Street said the risk/reward outlook is too “unattractive” right now for shares of Arm. “Unattractive risk reward – we downgrade the stock to Neutral.” Bank of America initiates Magnolia Oil & Gas as buy Bank of America said in its initiation of the oil and gas company that it has a “differentiated strategy.” “Since inception MGY has been differentiated by a strategy that prioritizes capital discipline and cash returns.” Bernstein reiterates Alphabet as market perform Bernstein said Alphabet risks are overdone but it’s standing by its market perform rating. “So is this the end of an era? Not so fast. We continue to argue that the risk to search is more severe outside of Gen AI, namely vertical and social search.” Bank of America reiterates NXP Semiconductors as buy Bank of America said the semiconductor company remains a top pick. “Alongside our diversified semis analysis, we raise PO for our top auto/industrial semi pick NXPI to $300 (from $270).” Citi reiterates Nvidia as a top pick Citi said it’s staying long shares of Nvidia. “We continue to favor NVDA, AMD, and AVGO and expect the upcoming AVGO earnings to be another positive catalyst.” Evercore ISI initiates Seagate as outperform Evercore ISI said the hard disk data storage company is well-positioned. “We are initiating on STX with an OP rating and $110 price target as we think not just the Hard Disk Drive (HDD) industry, but Seagate specifically is positioned to benefit from a combination of: 1) Cyclical recovery with Hyperscalers & beyond, 2) margin expansion as Heat Assisted Magnetic Recording (HAMR) technology scales up.” Bank of America upgrades Sprouts to buy from underperform Bank of America double upgraded the grocery store and raised its price target to $70 per share from $30. “Our prior Underperform rating reflected concerns over SFM’s lack of sales and traffic strength following its implementation of a less promotional strategy (beginning in 2019) that resulted in the loss of 25% of its customer base in 2020.” JPMorgan downgrades Domino’s Pizza to neutral from overweight JPMorgan said in its downgrade of Domino’s that it sees no near-term positive catalysts. “Believe most catalysts priced in – hit our “hoped for price and time to move on (to N) despite near-term momentum remaining.” D.A. Davidson downgrades Comerica to neutral from buy D.A. Davidson said in its downgrade of the stock that it’s tough for “CMA to outperform in a higher for longer rate environment.” “Downgrading CMA to NEUTRAL (was Buy) and lowering PT to $56 (was $63).”
