Thursday’s analyst calls like Nvidia on Wall Street

“Every indication from management is that we are still early in a long term AI investment cycle.”

“We remain bullish shares on 1) a long runway for revenue growth, 2) above consensus expectations for operating leverage and EPS, and 3) a deepening competitive moat.”

“We upgrade CVS to OW and increase our PT to $82 (from $63).”

“After almost 15 years recommending HON, despite new management that we believe is doing the right things for the long term, we are moving to the sidelines, mostly due to the spin that appears dilutive, resulting in another year that lacks clarity on the forward earnings curve, for a stock that is cheap but remains a consensus Sell Side long.”

“Microsoft’s first-mover AI advantage, as well as an unwavering focus on AI innovation, will strongly position the company to continue to be the AI-provider of choice in our view.”

“We upgrade TROX to Buy from Neutral and raise our PT to $19 (~35% upside).

“Solar installer Sunnova could be one of the best turnaround stories in our clean coverage after it revised its ’24-’26 cash outlook +70% up following recent issuance of domestic content guidelines.”

“While we continue to view PEP as a top-tier CPG company, we believe that aggressive pricing in their three biggest U.S. categories over-extended their value equation to consumers and will compromise their near-term pricing power.”

“We upgrade shares of EVGO from Neutral to Buy, following the $1.05bn DOE loan conditional commitment announced last week. In our view, the conditional commitment provides increased visibility to EVGO funding new stall deployments beyond 2025, at a potentially accelerated pace relative to current run-rate expectations.”

“We believe Builders FirstSource is well positioned to capitalize on macro, industry and company-specific trends over the coming years, enabling above average earnings growth and returns relative to our building products coverage.”

“Our view is as follows: (1) MDT’s core business is poised to comfortably deliver MSD sales growth against a backdrop of positive healthcare utilization; (2) MDT’s growth kickers continue to derisk, potentially setting up the company for upside with multiple shots on goal.”

” We downgrade PayPal to MP. We tactically upgraded the stock at the end of July due to better product velocity & execution under new management, improving gross profit growth and attractive valuation.”

“We are merely stepping aside here as we feel CY26 should be another year of strong content uplift. In the interim, we think Street December numbers are $20M+ too high and could be a negative catalyst for the stock.

“Investor enthusiasm for a turnaround at Chili’s and successful execution by CEO Kevin Hochman are evident in EAT’s year-to-date rally and multiple expansion. While the outperformance is justified, in our view, risk/reward looks balanced from here, and as such we upgrade to Neutral from Underperform.”

“We have been cautious on Nike since our launch in the Fall’23. While we still view a turnaround process as long/uncertain, we’re more optimistic on shares as investor expectations finally seem to accurately reflect this reality.”

“BIRK stands out as a unique retail growth story that marries a long brand legacy with future expansion potential, capable of delivering strong DD% [double digit] top-line growth (long-term algo calls for mid-to-high teens) with stable to improving margins.”

“Like other publicly traded miners, MARA is a way to play Bitcoin.”

“We are upgrading shares of LHX to Ouperform from Peer Perform with better confidence in a turning point in relative growth in sales/earnings and mid-teens FCF/sh growth.”

“Our bullish view of AIG reflects its outsized EPS growth, lower exposure to risks facing commercial lines carriers (casualty reserves and higher cat loads), high capital flexibility, and attractive valuation.”

“Also, we see the following positives: 1) We believe Google is well-positioned in the search market today, as users would likely choose to use Google, if given a fair choice; 2) Now that the DOJ has provided its potential remedies, Google’s counter proposals in December will likely provide a more positive potential outcome.”