Here are Friday’s biggest calls on Wall Street:
Evercore ISI reiterates Apple as outperform
The firm said it is bullish heading into earnings later this month and added a tactical outperform to the stock.
“We think Apple is positioned to deliver an in-line quarter with continued emerging market growth and strength from Services and Wearables (new AirPods and Watch).”
Barclays reiterates Nvidia as overweight
The firm raised its price target on the stock to $175 per share from $160 and said it is a top idea in 2025.
“Given the ongoing focus on the AI compute end-market, we would be remiss to not mention
NVDA’s continued upside potential.”
Cantor Fitzgerald initiates Microsoft as overweight
Cantor said the tech giant is well positioned.
“Microsoft has been very clear and consistent that they are spending against bookings now and that leverage will follow with slowdown in capex and recurring AI revenues remaining in future periods.”
Morgan Stanley reiterates Amazon as overweight
Morgan Stanley said Amazon is a “strong strategic” fit for TikTok.
“TikTok could potentially be a strong strategic fit for AMZN including 1) improved social shopping/ad network offering 2) competition in the broader online ad space and 3) AMZN’s strong balance sheet.”
Evercore ISI reiterates Netflix as outperform
Evercore ISI said it is sticking with Netflix ahead of earnings next week.
“Looking for a Modest Beat-and-Bracket Q4.”
TD Cowen upgrades Salesforce to buy from hold
TD Cowen said the entry point is too compelling to ignore right now.
“We upgrade CRM from Hold to Buy and raise our PT to $400. Following a strong end of ’24 rally on the heels of Agentforce excitement, shares have pulled back, creating a compelling entry point.”
KeyBanc upgrades Lam Research and Applied Materials to overweight from sector weight
KeyBanc said the semi companies have “immediate growth drivers.”
“We are upgrading AMAT & LRCX to OW from SW as we reposition our Semicap coverage toward immediate growth drivers including AI-related devices and leading edge technology transitions.”
Wolfe downgrades Spotify to peer perform from outperform
The firm downgraded Spotify mainly on valuation.
“Valuation looks reasonable, but renters’ economics in music limit margins, necessitating further investment in new verticals to achieve 35-40% GMs LT [gross margin long term].”
Bank of America downgrades Southwest and JetBlue to underperform from neutral
The firm said both airline stocks have “less exposure to the strongest industry trends.”
“Given less exposure to corporate, premium, and international routes, we downgrade both LUV and JBLU to Underperform from Neutral.”
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