Friday’s top Wall Street calls by analysts
Here are the biggest calls on Wall Street on Friday: Morgan Stanley upgrades Wynn Resorts to overweight from equal weight Morgan Stanley says it sees an attractive risk/reward for Wynn shares. “The combination of near low valuation, an underappreciated growth opportunity in UAE, and optionality around Macau provide a favorable risk-reward & re-rating potential based on a combination of catalysts:” Deutsche Bank reinstates Dell as buy Deutsche Bank resumed coverage of the stock and says it sees robust growth ahead. “We expect top-line growth to accelerate into the double-digits over the next several quarters, as DELL benefits from a confluence of tailwinds across key segments, where it is a share leader.” KeyBanc downgrades Bumble to sector weight from overweight KeyBanc downgraded the stock mainly on valuation and app weakness. “We are downgrading shares of BMBL to Sector Weight as we believe: 1) shares are now up +12% since the day after earnings (vs. +9% for the NASDAQ); 2) app data points to continued weakness in top of funnel trends; 3) we believe the app refresh undermines Bumble’s core differentiator.” Piper Sandler upgrades Accenture to overweight from equal weight Piper Sandler upgraded the IT company following its earnings report. “Overall, we believe owning ACN is attractive, given improving top-line metrics, a conservative guide and that it is a key beneficiary of GenAI related work.” Goldman Sachs reiterates Costco as buy Goldman Sachs says it is sticking with the stock following earnings on Thursday. “We continue to have confidence in COST’s value proposition resonating with consumers, and we reiterate our Buy rating with an updated 12-month price target of $995.” Bank of America reiterates Apple as buy Bank of America says it is bullish on the company’s artificial intelligence approach. “We see Apple Intelligence opening up new ways to monetize an attractive installed base of users.” UBS upgrades Vista Energy to buy from neutral UBS says the energy supplier is well positioned. “We are upgrading Vista to Buy, from Neutral, increasing our PT to US$60/sh (from US $55/sh), as we also roll over our valuation by one year, now based on a 3.5x 2026E EV/EBITDA multiple.” UBS upgrades Certara to buy from neutral UBS says it sees a “unique” entry point for shares of the company that uses software for medicines and biotech. “We’re upgrading Certara (CERT) to Buy from Neutral with increased conviction that the company is uniquely positioned to drive further adoption of biosimulation in drug development and cross-sell related software, the combination of which should restore double-digit sales growth from current depressed levels.” Citi opens a negative catalyst watch on Pepsi Citi said it is concerned about the beverage giant’s earnings report in early October. “We open a negative 30-day Catalyst Watch ahead of earnings on the expected miss. We believe the most important debate on PEP is the likelihood of a 2025 EPS rebase, which we acknowledge is a risk factor into Q4 earnings.” Citi reiterates Walmart as a top pick Citi said the stock is a long-term winner. The firm raised its price target to $98 per share from $75. “Longer term, we believe many of their higher-margin growth opportunities will help drive higher sales/EBIT margins and change the way investors think of WMT.” UBS initiates Cava as neutral The firm says it sees a long runway for growth but shares already reflect it. “We initiate on CAVA w/ a Neutral rating and $135 PT.” Citi downgrades Dollar General to sell from neutral Citi says it sees too many competitive challenges. “We are downgrading DG from Neutral to Sell.” Raymond James initiates Mercado Libre as outperform Raymond James says it is bullish on shares of the LatAm e-commerce marketplace. “We initiate coverage of MELI at Outperform, as we see room for structural share gains in commerce enabled by fulfillment/loyalty/AI investments and an early-stage advertising and credit card cross-sell opportunity more than offsetting Latam macro unevenness.” JPMorgan adds Best Buy to the focus list JPMorgan says it sees an “improving product cycle” for Best Buy. “We upgraded the stock in February and are now adding it to JPM’s Analyst Focus List as a Value idea as we believe investors under-appreciate how punitive the cycle has been the past few years post- COVID, the degree of replacement demand that exists/will build, the innovation level in computing, and the potential for key categories to inflect in a positive existing home sales environment.” Roth MKM initiates Chesapeake as buy Roth says the energy company has a “strong capital return policy.” “We initiate coverage on Chesapeake Energy (CHK) at Buy with a $92 price target based on our expectation that gas prices rise over the next few years.” Barclays reiterates Netflix as equal weight Barclays says Netflix needs to consider a “free tier.” “Thus far, this has been a difficult transition as evidenced by the fact that advertising has been dilutive to price since the company launched the ad supported tier. The company also acknowledged at the recent upfronts that advertising will remain dilutive for some time, which indicates price increases on other tiers would have to be more significant than previously to offset this impact on revenue growth.” Bank of America downgrades HP to neutral from buy The firm says it sees slowing earnings per share growth. “We downgrade shares of HPQ to Neutral from Buy. Our rating change is predicated on our thesis that any EPS growth will come purely from share buybacks as potential upside from PCs (including AI PCs) should be offset by lower print margins.” Cantor Fitzgerald initiates Amgen as overweight The firm says it is bullish on the company’s obesity opportunity. “We’re officially adding Amgen to our list – and we’re big believers in the obesity program.”
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