Here are Monday's biggest analyst calls: Nvidia, Tesla, Apple, AbbVie, Chevron, Krispy Kreme, Roku and more

Published Mon, Oct 30 20238:36 AM EDTUpdated Mon, Oct 30 20239:33 AM EDT

Here are the biggest calls on Wall Street on Monday: JPMorgan upgrades Eastman Chemical to overweight from neutral JPMorgan said it sees an earnings rebound for Eastman Chemical. "We think there is room for Eastman's earnings to rebound in 2024. Eastman's normal average volume growth is about 2% per year." Barclays upgrades AbbVie to overweight from equal weight Barclays said in its upgrade of the drugmaker that the sell-off is overdone for AbbVie. "Friday's sell-off looks like an over-reaction to external sector dynamics, against a backdrop of Immunology momentum and commentary de-risking '24 pricing." Bank of America reiterates Roku Bank of America said it's standing by its buy rating heading into earnings later this week. "Our Buy rating is based on 1) assumption of the scatter Ad market strengthening as the macro improves and Roku continuing to outperform given the scale of the platform and targeting capabilities." Bernstein reiterates Tesla as underperform Bernstein said the outlook for Tesla shares remains too uncertain. "While we have more confidence in our ability to call the fundamentals than the short term price moves, we note that the setup for the stock appears similar to October of last year, and arguably, the outlook for T+2 (i.e., FY 2025) and beyond appears more uncertain than a year ago." Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's bullish heading into Apple 's earnings later this week. "New data from the last two weeks supports our view that Apple will post a better-than-expected Sept Q but guide to a below seasonal/Consensus Dec Q, creating a tactically cautious setup." Citi reiterates Pinterest as buy Citi is standing by its buy rating heading into earnings on Monday afternoon. "With PINS set to report 3Q23 earnings on 10/30, we are encouraged with what we believe are improving engagement trends and ads innovation that should support accelerating revenue growth (we project 3Q revenue growth of +9% Y/Y vs. consensus +8.7%) going forward." Raymond James downgrades Cisco to market perform from outperform Raymond James said in its downgrade that it's concerned about a sales decline. "We downgrade Cisco to Market Perform from Outperform following our reassessment of our estimates, expectations and trends." TD Cowen initiates Arcellx as outperform TD said the biotech company is well-positioned for more upside. " Arcellx is a clinical-stage biotechnology company developing cellular therapies with validated targets for cancer and other incurable diseases." Citi upgrades Vale to buy from neutral Citi upgraded the metals and mining company after the stock's underperformance. "We upgrade Vale to Buy with $16/sh target price. Iron ore is entering the seasonally strong period, driven by China steel mill stocking — and this could be exacerbated in 2023-24 by China's recent move to expand its fiscal budget." Citi upgrades Stanley Black & Decker to buy from neutral Citi upgraded Stanley Black & Decker after its earnings report Friday. "We thus raise EPS by 3-17% during 2023- 25E on higher margin assumptions and TP to US$118, also raising our rating to Buy from Neutral. However, we see that end-demand remains soft amid channel destocking this year." Baird downgrades Datadog to neutral from overweight Baird said in its downgrade of Datadog that it's increasingly concerned about 2024 for the software company. "While still multiple long-term positives, our industry conversations suggest optimization headwinds are likely to continue into next year. In addition, we believe consensus growth expectations for 2024 are too high." JPMorgan downgrades Newell Brands to neutral from overweight JPMorgan said in its downgrade of the maker of Rubbermaid products that it sees a demand recovery taking longer than anticipated. "After three consecutive guidance cuts mostly due to weaker category demand which will likely linger for longer (12-18 months), we believe it is prudent to move to the sidelines, and as a result, we are downgrading Newell Brands (NWL) to Neutral." JPMorgan downgrades Olin to neutral from overweight JPMorgan downgraded the chemical company citing concerns about reduced product demand. " Olin is sharply reducing its chemical production in 4Q:23 in service of tightening the supply/demand balances in its markets in order to create a more constructive price environment." UBS upgrades East West Bancorp to buy from neutral UBS said shares of the bank are attractive. "After 3Q23 earnings we upgrade EWBC to Buy and raise our price target to $61. We now have mild upside to our 2024 estimates vs. consensus, and think the shares, which are trading 2x below the median SMID P/E, are attractive in the current environment." Raymond James upgrades L3 Harris to outperform from market perform Raymond James said in its upgrade of the defense contractor that business is bottoming. "We are upgrading LHX to Outperform and establishing $210 price target as business appears to be bottoming post 3Q print." JPMorgan downgrades Valley National to neutral from overweight JPMorgan downgraded the regional bank mainly on valuation. "With the implied cost of equity of the shares now in the range of peers, however, the shares no longer appear as mis-priced to us today as they did when we upgraded the stock to Overweight in June. While we continue to see material upside in VLY shares (in the 35% range to our revised $10 price target), this is now in line with peers." Bank of America upgrades Chevron to buy from neutral Bank of America said the reaction to last week's earnings report and Hess acquisition is overdone. "With a preliminary assessment of the accretion in long term value that now accrues to CVX we upgrade our rating to Buy, with a revised PO of $200/sh ($190 prior)." Bank of America initiates Cooper Companies as buy Bank of America said the contact lens company is well positioned. " COO is the second-largest contact lens manufacturer (26% share) and is better positioned than its three main competitors to capitalize on favorable industry trends, in our view." Truist downgrades Krispy Kreme to hold from buy Truist said in its downgrade of Krispy Kreme that it's concerned about an obesity drug overhang. "Our call is based on the belief the current GLP-1 overhang on packaged food stocks will not dissipate for 6-12 months, if not longer." Piper Sandler reiterates Microsoft as overweight Piper said the company's release of M365 is an "iPhone moment." "We see the formal release of M365 Copilot this week as an 'iPhone moment' for MSFT as part of a broader strategy to capitalize on a first-mover advantage in generative AI." Oppenheimer upgrades Invitation Homes to outperform from market perform Oppenheimer said in its upgrade of Invitation that the stock is attractive. "Upgrade to Outperform and $35 PT; Attractive 2024 Story Coming Into Focus At a Near Trough Valuation." Goldman Sachs reiterates Okta as buy Goldman said shares of Okta are still very attractive. "We maintain a Buy rating on the stock as our updated bull/bear scenarios suggest that risk reward is still attractive, even when lowering estimates for deal cycle elongation, slower new logo adds and weaker cross sell." Deutsche Bank reiterates Nvidia as buy Deutsche said Nvidia continues to see "meaningful revenue growth" from AI. "AI has been the dominant theme in processing and networking this year and will likely be so into 2024. However, the timing of revenues will be spread out unevenly. Among companies, Nvidia (NVDA) and to a lesser extent Broadcom (AVGO) are seeing meaningful revenue growth this year." Barclays upgrades Femsa to overweight from equal weight Barclays said in its upgrade of the Mexican beverage giant that it sees "'substantial' potential to return cash to shareholders" for Femsa. "Additionally, management stated post review of the business that after considering cash for M & A, there is likely 'substantial' potential to return cash to shareholders." Wolfe upgrades Saia to outperform from peer perform Wolfe said in its upgrade of the less-than-truckload, or LTL, transportation company that it's a multiyear growth story. " SAIA is now trading at 20x our reduced C24 EPS and 16.5x our C25 EPS, so we view the recent pullback as a buying opportunity for arguably the best multi-year LTL growth story."