Here are the biggest calls on Wall Street on Monday: Morgan Stanley reiterates Netflix as overweight Morgan Stanley raised its price target on Netflix to $780 per share from $700 before it reports results on Thursday. “We expect continued strong results from Netflix heading into 2H24, raise estimates and our PT to $780.” Morgan Stanley reiterates Apple as overweight Morgan Stanley raised its price target on the iPhone maker to $273 per share from $216. The bank also said it’s a new top pick in place of Dell. “Apple is now our Top Pick.” Morgan Stanley downgrades BP to equal weight from overweight Morgan Stanley downgraded the oil major due to “weak earnings.” ” BP’s disappointing trading update follows several quarters of weak earnings, putting 2025 guidance at risk. We lower our rating back to Equal-weight.” TD Cowen reiterates Nvidia as buy TD raised its price target on the dominant maker of AI processors to $165 per share from $140. “Overall we see a product roadmap indicating a relentless pace of innovation across all aspects of the AI compute stack and reiterate Nvidia as a Top Pick, PT to $165.” TD Cowen reiterates Advanced Micro Devices as buy TD Cowen raised its price target on AMD to $210 per share from $200. “Over the last 9 months, sentiment has moved (up and down) much more than fundamentals at AMD as Datacenter upside was until now masked by downside in other segments.” Citi downgrades Electronic Arts to neutral from buy Citi downgraded the video game maker mainly on valuation. “Since fiscal 4Q24 results, EA’s shares have risen ~15% on optimism around the upcoming release of College Football.” BMO upgrades Teck Resources to outperform from market perform BMO said in its upgrade of the copper and zinc mining company that it sees a cleaner investment story. “Where we see opportunities for surprise are in potential future M & A — we have seen many Canadian investors speculating on Teck making future acquisitions and some U.S. investors considering Teck as an acquisition candidate.” Baird upgrades Carrier to outperform from neutral Baird sees numerous catalysts ahead for the air conditioning company. “We’re also upgrading CARR to Outperform, as we see multiple catalysts that could play out over the next 12-18 months (asset sales, buybacks, reaccelerating residential trends) and see scope for longer-term multiple expansion.” JPMorgan upgrades Solid Biosciences to overweight from neutral JPMorgan said in its upgrade of Solid Biosciences that the life sciences company has a solid pipeline. “Upgrading to Overweight; Pipeline Progress Should Bridge the Gap on Current Valuation Disconnect.” Truist initiates Zeta Global as buy Truist called the marketing tech company is “unique.” “We believe Zeta represents a potential disruptive force in the large and growing [marketing technology] space, serving enterprises with a unique combination of data, AI-powered intelligence, marketing cloud and activation capabilities.” Baird initiates Rubrik at outperform Baird is bullish on shares of the cybersecurity company. “We’re initiating with an Outperform rating and a $42 price target. Rubrik stands out as a top-tier data security vendor, seamlessly integrating backup and security amid surging data and cyber threats.” Citi downgrades Bank of New York Mellon to neutral from buy Citi downgraded Bank of New York Mellon following earnings and a record high close, mainly citing valuation. “Mgmt. has made great strides towards their medium term targets, and we see stock as fairly valued at 2.5x [tangible book value] and as a result we are downgrading our rating to Neutral.” Loop Capital upgrades Apple to buy from hold Loop says Apple can be a “Gen AI base camp” for the next several years. “We’re upgrading to Buy and $300 PT as the work of Loop Capital Supply Chain Analyst John Donovan suggests that AAPL has an opportunity [over] the next few years to solidify itself as consumer’s Gen AI ‘base camp’ of choice, just as it did for social media 15 years ago and digital content consumption 20 years ago.” Morgan Stanley upgrades Alcon to equal weight from underweight Morgan Stanley upgraded the eye care company, saying “there can be no doubt that ALC has found other factors that have more than offset the risk[s].” “ALC moving up to Equal-weight as positives offset softer U.S. IOL [intraocular lense] business.” Evercore ISI initiates a tactical underperform on Amazon Evercore said it likes the stock but the earnings bar may be too high. “As for our AMZN Tactical Underperform call, here’s the nuance. We continue to like AMZN as a long with a $225 PT. But the 28% YTD share price outperformance is raising the bar for Q2 EPS results.” Wells Fargo reiterates Tesla as underperform Wells says Tesla fundamentals remain too “weak.” “We maintain our UW on TSLA. While the stock rose ~40% (S & P +4%) over the last month, mostly driven by ‘razzle-dazzle’ headlines as most fundamentals remain weak. We raise our Q2 EPS on deliveries & energy, but lower our FY24E on tariff & pricing.” Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said it has “increased clarity” on AI monetization. “Our CIO survey results showcase Microsoft’s leading GenAI beneficiary position, but the investor debate on the scale of capex investments versus the magnitude and timing of the GenAI revenue opportunity has risen.” Susquehanna downgrades Caesars to negative from neutral Susquehanna says the effect of “underinvestment” is now obvious in Caesars shares. “We have cut our CZR rating to Negative given our opinion it has ‘over-yielded’ its properties over the past three years, leading to a competitively inferior set of assets in [Las Vegas] (vs. MGM) and regionally (vs. PENN) without any relevant digital prospects to offset.” Bank of America reiterates Amazon as buy Bank of America said it’s bullish heading into Prime Day on Tuesday for Amazon. “We estimate Prime Day could generate $13bn in [gross merchandise value].” Evercore ISI initiates Datadog at outperform Evercore said it’s bullish on the cloud scale applications company. “After treading water for two years, we believe DDOG has matured to a point (and grown into its valuation) so that it can become a more consistent compounder over the next 12-24 months.” Citi names KLA Corp. a top pick Citi raised its price target on the semiconductor equipment maker to $980 from $760. “We raise our TP on Buy-rated KLAC to $980 to reflect outsized leading-edge WFE spend exposure, which is expected to grow mid to high teens in 2025, and management’s confidence in the 2026 target model.” Morgan Stanley downgrades Rocket Lab to equal weight from overweight Morgan Stanley said it sees a “limited catalyst path” for the space company. “We downgrade Rocket Lab (RKLB) to EW from OW and lower our PT to $6 from $8 as we see a more limited catalyst path and grow more cautious re: [Department of Defense] Space spend.”
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