Here are Wednesday’s biggest calls on Wall Street: Nomura upgrades Xpeng to buy from neutral After a change in analyst coverage, Nomura upgraded Xpeng and said the China EV company has an “encouraging pipeline.” “Assume coverage with a Buy rating and DCF-based TP of USD30, implying 22% upside; solid market share gain momentum.” Compass Point initiates Robinhood as buy Compass said the stock trading company is well positioned in crypto. “We initiate coverage on HOOD with a Buy rating and $61 PT. We see Robinhood increasing ARPUs for its 12m crypto users alongside an improving U.S. regulatory environment.” Citi names Texas Instruments a top pick Citi said it sees a compelling risk/reward. ” TXN our top pick based on best risk/reward — Texas Instruments is our top pick in analog based on the best risk/reward.” Barclays upgrades Mosaic to overweight from equal weight Barclays upgraded the potash and phosphate company after bullish commentary at Mosaic’s investor day. “We upgrade Mosaic to OW (from EW) and raise our price target to $33 (from $27). After undergoing a significant amount of project investments and facing unexpected macro headwinds in 2024, we expect Mosaic to begin to realize profit benefits as soon as this year.” Stephens initiates Klaviyo as overweight Stephens named the software company a top pick and said it has “multiple expansion.” “Think KVYO is a potential takeout. Think has meaningful room for price increase as last increase KVYO did was a while ago and did not meaningfully impact on retention. Successfully moving up market.” Baird upgrades RTX to outperform from neutral The firm said the defense company is a beneficiary of “meaningful supplemental spending bills” in Congress. “We are upgrading RTX to Outperform and raising our Price Target to $160 (previously $136)…” TD Cowen upgrades Shell to buy from hold TD Cowen said the European gas company is “best positioned.” ” SHEL is best positioned among Euro peers to stabilize attractive shareholder distributions even in a lower price environment.” Compass Point upgrades Affirm to buy from neutral Compass said investors should buy the dip following the fintech company losing its partnership with Walmart. “AFRM also has a great track record on credit, outperforming peers while growing faster than peers over the past few years. Putting this together, we continue to believe AFRM is very well positioned to outperform and that the recent pullback in shares creates a buying opportunity insofar as it does not give AFRM credit for strong growth, operating leverage and upside optionality.” UBS downgrades PG & E to neutral from buy UBS downgraded the utility company and says PG & E “lacks catalysts.” “We move to Neutral from Buy for the following reasons: 1) the potential depletion of the California wildfire insurance fund due to the Eaton fire; 2) wildfire volatility, and 3) the absence of a catalyst path to rerate the stock.” JPMorgan upgrades Vulcan Materials to overweight from neutral JPMorgan said the construction company has upside. “We are upgrading the stock to OW (from N) but decreasing our Dec-25 PT by $10 to $285 (+22% upside).” Morgan Stanley reiterates Alphabet as overweight The firm said it’s sticking with the stock following its acquisition of cyber company Wiz. “Post-close, the companies confirmed that Wiz will continue to provide multi-cloud support (AWS, Azure, Oracle, etc.), while also leveraging access to GOOGL’s first-party data and scale to innovate further on its existing solutions.” Morgan Stanley initiates ResMed as overweight The firm initiates coverage of the sleep apnea company and says ResMed is attractive. “A market-leading position in the obstructive sleep apnoea (OSA) market, with the approval of Zepbound (GLP-1 receptor agonist/RA) for the treatment of OSA in obese patients potentially supporting uptake through increased awareness and diagnosis. Valuations appear attractive at current levels, with a strong balance sheet position and the highest ROIC across our sector coverage.” Cantor Fitzgerald upgrades Tesla to overweight from neutral Cantor upgraded the stock after a visit to company headquarters and says it sees an attractive entry point. “With Tesla’s shares now down ~45% YTD, we upgrade Tesla to Overweight (from Neutral) ahead of upcoming material catalysts; Our $425 12-month PT is unchanged.” Oppenheimer downgrades Goldman Sachs to perform from outperform Oppenheimer downgraded Goldman over concerns about a slowing M & A rebound. “Moreover, we fear that the current uncertainty over tariffs, a fiscal ‘detox’ and the general upheaval of 80 years of trade and security arrangements is likely to cause a pause in M & A activity.” Bank of America reiterates Nvidia as buy The firm said it’s standing by the stock following bullish commentary at Nvidia’s Global AI Conference. “We maintain Buy, $200 PO following slate of product/partner announcements at flagship GTC conference in addition to post keynote meeting with CFO that demonstrate NVDA continuing to deepen its competitive moat in a $1T+ infrastructure/services TAM.” Guggenheim reiterates Roku as buy Guggenheim lowered its price target on the stock to $100 per share from $115 but says it’s standing by shares of the connected TV company. “We maintain our high conviction that Roku will further improve engagement and economics in 2025, and that the business will exit the year at its strongest.”
