Here are Monday’s biggest calls on Wall Street: Truist upgrades Krispy Kreme to buy from hold Truist said in its upgrade of Krispy Kreme that it’s underappreciated. “Upgrading to Buy; Time to Indulge in an Underappreciated Story.” New Street initiates Microsoft as buy New Street said Microsoft is well positioned for “years to come.” “A set of high-quality franchises, well positioned to profitably grow in the low teens for years to come. Morgan Stanley resumes Broadcom as overweight Morgan Stanley resumed coverage of the stock saying it’s “compelling.” “Growth in AI, potential upside synergies from VMW, and recovery in core enterprise semis all make AVGO compelling relative to others in the ‘AI winners’ camp. OW, PT $1,658.” UBS reiterates Apple as neutral UBS said its survey checks show that interest in AI remains “muted” for Apple. “iPhone purchase intent remains soft while interest in AI is muted.” TD Cowen reiterates Nvidia as buy TD Cowen raised its price target on “best idea” Nvidia following the company’s stock split. “No real updates here, just model tweaks (and proving we can divide by ten). Reiterate Buy, Best Idea, and adjust (raise) our PT to $140 from $120.” Bernstein reiterates Tesla as underperform Bernstein said it doesn’t think CEO Elon Musk is going to get his $56 billion pay package. “We believe that if the pay package is rejected, the stock would likely be down (potentially 5%+) amid fears that Musk might leave Tesla.” Bernstein reiterates Disney as outperform Bernstein said Disney Parks could see some “softness” but that it’s standing by its outperform rating. “Demand recovery coming out of Covid could lead to softness in attendance in ’24 and potentially in ’25. Given the difference in demand recovery timing between US and Int’l Parks, decline in overall demand may not be too bumpy.” Morgan Stanley names DraftKings a top pick Morgan Stanley moved the gaming back to top pick status despite the Illinois gaming tax issues. “We add DKNG back as our Top Pick in North America Gaming & Lodging as we see positive catalysts alleviating recent pressure from the recent tax headlines..” Jefferies upgrades Planet Fitness to buy from hold Jefferies said it sees a slew of positive catalysts ahead for Planet Fitness. “Shares have been under pressure over the past 6-9 months; however, we believe current headwinds are well understood and now there’s a more visible path to improving trends ahead following 1) new CEO (Colleen) starts TODAY; 2) franchisee model adjustments.” JPMorgan upgrades PG & E to overweight from neutral JPMorgan said it sees long-term growth for the utility company. “As a result, we upgrade PCG to OW and raise our PT to $22 ahead of the companys June 12 Investor Day, which we expect to highlight these elements in providing more granularity across spend breakdown within the capital plan, outlining net customer benefits, and refreshing wildfire mitigation updates.” JPMorgan upgrades Walmart to overweight from neutral JPMorgan said the stock is offensive and defensive. “We are upgrading WMT to Overweight as we believe the stock adds a strong balance of defense and offense on both the top and bottom lines in a soft (to softening) consumer backdrop with a highly uncertain 2H24 ahead.” Morgan Stanley downgrades Advanced Micro Devices to equal weight from overweight Morgan Stanley said investors expectations are “too high.” “We like the AMD story, but investor expectations for the AI business still seem too high to us. UBS upgrades Honeywell to neutral from sell UBS upgraded Honeywell up to neutral mainly on valuation. “Valuation reset and growth deficiency should start to improve. U/G to Neutral.” UBS reiterates Micron as buy UBS raised its price target on Micron to $155 per share from $125, “Amid a sector-wide re-rating for anything touching AI and our new C2025 EPS of ~$17.50, we see no reason why valuation should impede a move to our new $155 PT and we remain Buy.” Wells Fargo reiterates Nike as overweight Wells lowered its price target on the stock to $115 per share from $120 but says it’s sticking with Nike shares. “We believe NKE numbers are again coming down, as impacts from both 1) a tougher macro and 2) their own needed reset will weigh more heavily on 1H25 than originally thought. We cut numbers below Street and see another re-base ahead. PT to $115.” Raymond James upgrades Mohawk to strong buy from market perform Raymond James said shares of the flooring company are undervalued. “We upgrade shares of MHK to Strong Buy.” Rosenblatt reiterates Arm as buy Rosenblatt said it likes shares of Arm as much as Nvidia. “We reiterate our Buy rating for ARM with a price target of $180. We consider it as a top secular pick alongside NVDA.” JPMorgan upgrades Lithia Motors to overweight from neutral JPMorgan upgraded the auto company following a “material de-rating.” ” LAD (OW): Move to OW from N after material de-rating since 3Q23 results shifts shares higher in our rank ordering.” Melius downgrades Adobe to hold from buy Melius said competition is rising for shares of Adobe. “While Adobe may be in better shape than – say Salesforce – we have seen a plethora of new competitors get stood up much faster than we could have imagined even a year ago.” Citi reiterates General Motors as buy Citi said the automaker is a top pick. “The next 2-4 months will be important in shaping the GM EV story.” Bank of America reiterates T-Mobile as buy Bank of America said the company has a “long runway for growth” following a series of management meetings. “We exited the meeting confident in TMUS’s ability to execute against its current plan and to continue identifying new growth segments within a mature market. We are increasing our price objective to $195 (from $175) as we roll forward our valuation basis to 2025E.”
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