On Wall Street, analysts are constantly evaluating and reevaluating their recommendations on various stocks. Monday saw a flurry of activity with several major calls being made by top firms. From reiterating overweight ratings to initiating coverage on new stocks, the day was filled with important updates for investors to consider.
Wells Fargo reiterated Apple as overweight and raised its price target on the stock to $275 per share from $225 ahead of earnings on Aug. 1. The firm sees potential for moderate upside to iPhone estimates and is focusing on Apple Intelligence’s ability to drive a significant refresh on an aging install base.
Piper Sandler also reiterated Nvidia as overweight and raised its price target on the stock to $140 per share from $120. The firm views the setup for Nvidia positively ahead of the July quarter earnings and the October quarter guidance.
Goldman Sachs made a couple of moves, initiating coverage on Talos Energy as a buy with a target price of $14. The firm cited the company’s strong oil mix and free cash flow as reasons for the buy rating. However, Goldman also downgraded Lennar to neutral from buy based on valuation concerns.
Guggenheim downgraded CrowdStrike to neutral from buy following a global IT outage on Friday. The firm cited likely resistance to new deals in the near-term due to fallout from the IT systems disruption and risk in consensus estimates.
In contrast, Goldman Sachs initiated Webtoon as a buy with a target price of $62. The firm expressed bullish sentiment on the digital storytelling company and sees potential for growth in the future.
TD Cowen initiated Berkshire Hathaway as a hold, citing full valuation as a reason for not assigning a buy rating. The conglomerate’s structure has faced challenges despite a strong insurance business.
Raymond James downgraded Estee Lauder to market perform from strong buy, expressing concerns about a slower recovery in China and travel retail, as well as heavy competition in the U.S.
JPMorgan upgraded Abercrombie & Fitch to overweight from neutral, citing rising demand for the clothing retailer. The firm pointed to continued broad-based demand at the Abercrombie brand as a reason for the upgrade.
JMP initiated nCino as market outperform, highlighting the fin tech company as best-in-class in the lending platform space.
Citi initiated Tamboran Resources as a buy with a target price of $32 per share, expressing bullish sentiment on the natural gas company.
Citi also added a positive catalyst watch on Nvidia, citing further upside potential ahead of an annual conference where the company is appearing.
Jefferies reiterated Amazon as a buy, noting favorable setup heading into earnings on Aug. 1. The firm highlighted high-margin AWS and advertising segments as drivers for revenue and margin growth.
Benchmark initiated Enovix as a buy, expressing bullish sentiment on the battery manufacturer’s technology in the smartphone lithium-ion battery market.
Baird upgraded Henry Schein to outperform from neutral, citing potential upside for the dental company despite underperformance in the sector.
Bernstein downgraded American Airlines to market perform from outperform, pointing to a slow commercial recovery as a reason for the downgrade.
Stifel upgraded International Flavors to buy from hold, noting the stock is at a volume inflection point and anticipating continued growth in 2024.
Lastly, Wells Fargo named Burlington a top pick, raising its price target on the stock to $300 and designating it as a new top pick at the firm.
Morgan Stanley upgraded Fiserv to overweight from equal weight, citing the financial services company as an attractive earnings compounder with consistent management execution.
Jefferies also upgraded 10X Genomics to buy from hold, expressing bullish sentiment on the biotech company’s potential in single cell research.
Citi opened a negative catalyst watch on Micron due to concerns about competition from Nvidia, despite maintaining a long-term buy rating.
Overall, Monday’s calls on Wall Street provided a diverse range of perspectives on various stocks, giving investors plenty to consider as they navigate the ever-changing market landscape. It’s important for investors to carefully consider these recommendations in the context of their own investment goals and risk tolerance. Bank of America recently initiated a negative catalyst watch on Micron Technology Inc. (MU), predicting that the stock will perform poorly over the next month. The reason cited for this prediction is the expectation that Samsung will qualify High Bandwidth Memory (HBM) with NVIDIA in the third quarter of 2024, which could potentially lead to an increase in capital expenditures for Micron.
This news comes at a time when the semiconductor industry is facing increased competition and challenges. With advancements in technology and the constant need for innovation, companies like Micron must stay ahead of the curve to remain competitive in the market.
On the flip side, there is some positive news for another company in the technology sector. Bank of America has upgraded C.H. Robinson to a buy rating from underperform. The firm sees potential margin upside for the trucking company, leading to the decision to raise their price target to $99 from $76. This upgrade reflects optimism about the company’s future performance and growth potential.
Meanwhile, Oppenheimer has reiterated its outperform rating on Coinbase, a leading cryptocurrency exchange platform. The firm believes that there is an attractive entry point for investors to buy Coinbase shares at the current price. They also argue that the long-term thesis for Coinbase is underappreciated by the market, indicating that there may be significant upside potential for the stock in the future.
Overall, these recent developments in the technology and finance sectors highlight the dynamic nature of the stock market. While some companies may face challenges and negative catalysts, others may benefit from positive news and upgrades from analysts. Investors should carefully consider these factors when making decisions about their portfolios and stay informed about the latest trends and developments in the market.