Monday’s Biggest Calls on Wall Street: Analyst Recommendations
Here are the latest analyst recommendations on Wall Street for various companies:
Evercore ISI Reiterates Apple as Outperform
Evercore ISI has reiterated its “outperform” rating for Apple, stating that the company is an “underappreciated” beneficiary of artificial intelligence (AI). Evercore believes that Apple is well-positioned to bring AI inference to the edge through its iPhone, which could lead to shorter replacement cycles, additional pricing opportunities, and a stronger competitive advantage.
Barclays Reiterates Walmart as Overweight
Barclays has maintained its “overweight” rating for Walmart ahead of the company’s earnings report. The investment bank is positive about Walmart’s fourth-quarter performance and outlook, although it anticipates some conservatism with guidance, which is consistent with historical trends.
Barclays Downgrades Rivian to Equal Weight
Barclays has downgraded Rivian from “overweight” to “equal weight” due to concerns about supply constraints. The bank acknowledges Rivian’s growth potential in the near and mid-term but believes that its production volumes are limited by supply availability.
JPMorgan Upgrades Lowe’s to Overweight
JPMorgan has upgraded Lowe’s from “neutral” to “overweight” and added it to its Analyst Focus List as a value stock idea. The investment bank recommends buying Lowe’s shares ahead of its upcoming earnings announcement, citing improving consumption trends and moderating headwinds.
Piper Sandler Upgrades Teva to Overweight
Piper Sandler has upgraded Teva from “neutral” to “overweight,” recommending investors buy shares of the pharmaceutical company for the first time since 2011. The upgrade is based on Teva’s potential for revenue growth, margin expansion, and increased free cash flow.
Jefferies Initiates TKO as Buy
Jefferies has initiated coverage of the combined UFC and WWE company, now known as TKO, with a “buy” rating. The investment firm sees TKO as an entertainment platform that operates leading combat sports leagues.
JPMorgan Reiterates Netflix as Overweight
JPMorgan maintains its “overweight” rating on Netflix shares. The bank is optimistic about Netflix’s ability to accelerate revenue growth in 2024, improve margins, and drive long-term free cash flow growth.
Citi Upgrades Willis Towers Watson to Buy
Citi has upgraded Willis Towers Watson from “neutral” to “buy,” citing the insurance company’s attractive share price and visibility of near-term margin strength. Citi believes that cost initiatives will drive improved margins alongside softer year-over-year comparisons.
Citi Upgrades PepsiCo to Buy
Citi has upgraded PepsiCo from “neutral” to “buy” based on an attractive stock setup. The investment bank notes that PepsiCo has been a heavily debated stock but sees potential upside after providing initial 2024 guidance at the high end of long-term targets.
UBS Upgrades Urban Outfitters to Neutral
UBS has upgraded Urban Outfitters from “sell” to “neutral” ahead of its earnings announcement. The bank believes that Urban Outfitters has had strong sales momentum in January and expects positive fourth-quarter results.
Morgan Stanley Downgrades Hershey to Underweight
Morgan Stanley has downgraded Hershey from “equal weight” to “underweight” due to concerns about cocoa inflation, a tougher pricing environment, and weaker consumer demand for confectionery and popcorn products.
Loop Downgrades Big Lots to Sell
Loop has downgraded Big Lots from “hold” to “sell,” stating that the discount retailer has lost consumer relevance. The investment firm has also lowered its price target on Big Lots, implying significant downside from current levels.
Loop Reiterates Meta as Buy
Loop maintains its “buy” rating on Meta and has raised its price target on the stock. The investment firm updated its forecast for Meta following strong fourth-quarter results and sees further upside potential.
Loop Reiterates Alphabet as Hold
Loop maintains its “hold” rating on Alphabet (Google) but has raised its price target on the stock. The investment firm believes that Google continues to deliver solid results, although it may be underwhelming compared to other mega-cap peers.
Morgan Stanley Downgrades XPO to Underweight
Morgan Stanley has downgraded XPO Logistics from “equal weight” to “underweight” primarily due to valuation concerns. While XPO reported strong fourth-quarter results, the stock’s recent performance already reflects high expectations.
Stifel Upgrades Viavi Solutions to Buy
Stifel has upgraded Viavi Solutions from “hold” to “buy,” citing the company’s status as an underappreciated AI beneficiary. The investment bank believes that Viavi Solutions has significant growth potential and has increased its price target accordingly.
UBS Reiterates Target as Buy
UBS maintains its “buy” rating on Target, stating that the stock is compelling. The investment bank sees an attractive setup for Target in the fourth quarter and anticipates positive performance in 2024.
Citi Reinstates Rocket Lab as Buy
Citi has reinstated coverage of Rocket Lab with a “buy” rating, citing accelerating momentum for the satellite space company. The investment bank highlights recent capital market transactions and major government awards as positive factors.
Bank of America Upgrades Marqeta to Buy
Bank of America has upgraded Marqeta from “neutral” to “buy,” viewing the financial services company as an attractive investment opportunity. The bank believes that Marqeta has strong growth potential in the medium term.
Bank of America Downgrades Duke Energy to Neutral
Bank of America has downgraded Duke Energy from “buy” to “neutral” primarily due to valuation concerns. The utility and energy company has seen significant outperformance, prompting the downgrade.
Raymond James Downgrades Newell Brands to Market Perform
Raymond James has downgraded Newell Brands from “outperform” to “market perform” due to slow recovery in consumer discretionary categories and increasing operating expenses. The investment firm expects management’s advertising efforts this year to have a significant impact on future performance.
Piper Sandler Upgrades Old Republic to Overweight
Piper Sandler has upgraded Old Republic from “neutral” to “overweight,” recommending investors buy the dip in shares of the property and title insurance company. The investment firm believes that Old Republic is attractively priced and offers significant upside potential.
Melius Reiterates Nvidia as Buy
Melius maintains its “buy” rating on Nvidia shares, stating that the company continues to perform well. The investment firm believes that Nvidia’s positive performance is a reflection of its strong business fundamentals.
Loop Upgrades Corteva to Buy
Loop has upgraded Corteva from “hold” to “buy,” citing the company’s compelling attributes. The investment firm sees potential upside in Corteva’s stock price and has raised its price target accordingly.
Deutsche Bank Upgrades Mohawk Industries to Buy
Deutsche Bank has upgraded Mohawk Industries from “hold” to “buy,” stating that the flooring company’s shares are attractive. The bank expects Mohawk’s earnings to stabilize in the first half of 2024, leading to improved investor sentiment.
Roth MKM Initiates SilverBow Resources as Buy
Roth MKM has initiated coverage of SilverBow Resources with a “buy” rating, highlighting the company’s attractive valuation and growth prospects. The investment firm believes that SilverBow has significant potential for organic production growth and leverage to natural gas upside.
Guggenheim Reiterates Sunrun as Buy
Guggenheim maintains its “buy” recommendation for Sunrun, emphasizing the company’s strong cash position. The investment firm has adjusted its price target for Sunrun but remains optimistic about its future performance.
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