On Monday, analysts were buzzing about tech giants Apple and CrowdStrike, discussing price target changes and downgrades. Apple received a price target increase from Wells Fargo, while CrowdStrike was downgraded by Guggenheim following a global outage. Let’s take a deeper look at these analyst calls and the implications for investors.
Morgan Stanley made a bullish call on Fiserv, upgrading the financial technology stock to overweight from equal weight. Analyst James Faucette also raised the price target to $175 from $154, citing strong potential for future earnings growth. Fiserv’s stock has already rallied 17% in 2024, and Faucette believes that the company will continue to drive strong merchant growth, especially with assets like Clover. The analyst sees Clover as an attractive growth asset for Fiserv, with potential for further international expansion. Overall, Morgan Stanley is optimistic about Fiserv’s ability to outperform in an easing competitive landscape.
In contrast, Raymond James double-downgraded Estee Lauder, citing a delayed recovery and weakening demand in the China marketplace. Analyst Olivia Tong lowered the rating to market-perform from strong buy, noting that the stock is already down 32% this year. Tong sees limited upside potential for Estee Lauder, with intensifying competition and potential risks for profit recovery. The analyst highlighted the impact of a potential U.S. political shift on Chinese consumers’ interest in U.S. goods as a key concern for the company.
Morgan Stanley also downgraded Fidelity National Information Services to equal weight from overweight, citing a lack of catalysts ahead. The bank believes that most of the expected price upside related to better banking growth and other factors has already been priced into the stock. Analyst James Faucette noted that most of the stock’s catalysts have already played out, leaving limited opportunities for significant upward earnings revisions. This downgrade reflects a more cautious outlook on Fidelity National Information Services in the near term.
On the positive side, Piper Sandler raised Nvidia’s price target ahead of its next earnings report, expecting a rebound after recent struggles. Analyst Harsh Kumar reaffirmed an overweight rating and increased the price target to $140 from $120, implying a potential 19% upside from the current price. Kumar highlighted strong business trends for Nvidia and potential demand drivers in various sectors. While the stock has faced challenges amid a tech sector rotation, Piper Sandler believes that Nvidia’s upcoming quarterly report could boost the stock.
Guggenheim downgraded CrowdStrike to neutral following a global outage that caused disruptions across the globe. Analyst John DiFucci cited potential resistance to new deals in the near term and concerns about the stock trading at a high multiple of recurring revenue. While DiFucci still respects CrowdStrike’s leadership team, he believes that the incident could impact new business signings in the near term. Despite the downgrade, the analyst believes that investors with a multi-year horizon can likely ride out the incident.
Overall, these analyst calls provide valuable insights for investors looking to navigate the market’s volatility. It’s essential to consider the rationale behind each call and weigh the potential risks and rewards before making investment decisions. Stay tuned for more updates on analyst calls and Wall Street chatter.