Here are Monday's biggest analyst calls: Tesla, Nvidia, Apple, AMD, Home Depot, Western Digital & more

Published Mon, Jan 22 20248:25 AM ESTUpdated Mon, Jan 22 202410:19 AM EST

Here are Monday's biggest calls on Wall Street: Bernstein upgrades Union Pacific and Norfolk Southern to outperform from market perform Bernstein said it sees an attractive entry point for shares of Union Pacific and Norfolk Southern. "We view the recent run in the stock as less micro / company specific and more macro / rate speculation driven, and with our conviction that the next freight cycle is going to start in 2024 we are more constructive on the outlook. In today's note, we upgrade UNP and NSC to Outperform." UBS initiates Enovis as buy UBS said the health-care solutions company has an "attractive valuation." "We initiate coverage of ENOV shares with a Buy rating and a $75 price target." UBS upgrades J.B. Hunt to buy from neutral UBS said the shipping and freight company "provides strong leverage to a freight cycle turn." "Considering a backdrop where JBHT stock is reflecting anticipation of an improving freight cycle, we believe it is important for JBHT to convert an upcycle in truck and intermodal to strong EPS growth." Northland downgrades Advanced Micro Devices to market perform from outperform Northland downgraded the stock mainly on valuation. " AMD' s shares are $6 above our PT rolled out on 1/3/24 and significantly above our upgrade from 7/5/23 before NVDA's blowout quarter. We downgrade on valuation to "a heck if we know" rating or MP." KeyBanc reiterates Nvidia as overweight Key said it's staying bullish heading into earnings in late February. "We expect NVDA to deliver higher results and higher guidance." BTIG upgrades SentinelOne to buy from neutral BTIG said its field checks on the cybersecurity company are looking bullish. "In short, there was a clear uptick in discussions on the endpoint security space at all contacts, and we came away feeling better about the market's growth potential in 2024 relative to 2023. Within this context, feedback on S was consistently positive." Morgan Stanley names Western Digital a top pick Morgan Stanley raised its price target on the stock to $73 per share from $52 and said it's a new top pick. "We are raising estimates on WDC, and making it our Top Pick - replacing NVDA, where we are still positive." Oppenheimer downgrades Home Depot and Lowe's to perform from outperform Oppenheimer said in its downgrade of both stocks that it's waiting for a better entry point. "We assume a more cautious, near-term stance towards home improvement retail and lower ratings on shares of Home Depot (HD) and Lowe's (LOW) to Perform (from Outperform)." Bernstein reiterates Apple as market perform Bernstein said it expects "not great" Apple earnings on Feb. 1. "Over the long term, we believe Apple's revenue growth is likely to moderate to 4-5%. Our view is that the quality of Apple's ecosystem and franchise justifies a premium, and see limited risk that near-term catalysts could drive a meaningful de-rating. HSBC downgrades Lululemon to hold from buy The bank cited valuation concerns for the athleisure wear maker. "We are downgrading lululemon to Hold (from Buy): the stock had a fantastic run in 2023 (up 60%) and current valuation does not look compelling in the context of impending moderation of growth, in our view." Goldman Sachs downgrades Archer-Daniels-Midland to neutral from buy Goldman downgraded the stock due to concerns about a disclosed accounting investigation. "On Sunday evening (1/21), ADM disclosed an ongoing investigation into the accounting practices of its Nutrition segment, the immediate placement of CFO Vikram Luthar on administrative leave, and guidance on 4Q23 results below its prior expectations and prior GSe/Consensus." Morgan Stanley upgrades International Flavors to overweight from equal weight Morgan Stanley upgraded the fragrance and flavors company and said it has an attractive valuation. "IFF to Overweight. We see upside risk to FY24/25 Adj EPS cons at compelling valuation." Benchmark initiates Instacart as buy Benchmark said in its initiation of the delivery company that it's "mispriced." "CART's valuation underappreciates its discounted FCF outlook and addressable TAM [total addressable market] despite our expectation for future digital grocery market share loss to competing intermediaries and traditional grocers." William Blair downgrades Vita Coco to market perform from outperform William Blair said it's concerned about higher costs for the beverage company. "First, we believe Vita Coco's branded measured channel consumption growth may moderate during coming months due to more challenging comparisons and, while still solid, more moderate contributions from commercial initiatives." Wolfe upgrades American Airlines to outperform from peer perform Wolfe said its getting bullish on shares of American. "Along with our 2024 Airline outlook report we're upgrading our rating on AAL from Peer Perform to Outperform as we selectively recommend increasing exposure to airlines as domestic capacity growth slows." Barclays reiterates NiSource as overweight Barclays said NiSource is a "premium gas / electric utility" play. "We initiate coverage of NiSource (NI) with an Overweight rating and $28 PT." Morgan Stanley reiterates Tesla as overweight Morgan Stanley lowered its price target on Tesla to $345 per share from $380 and said it sees a "challenging year." "We anticipate Tesla's 2024 outlook to be cautious on volume and profitability. Goldman Sachs upgrades Stone to buy from neutral Goldman said in its upgrade of the Brazilian payments company that it sees "new banking and credit revenue potential." " Stone is our preferred name within Brazil payments, given its superior revenue and earnings growth outlook Bernstein upgrades ASML to outperform from market perform Bernstein said it's getting bullish on shares of the semis company. " ASML's share price has only appreciated 24% over the last twelve months we believe ASML's comparatively strong EPS growth for 2022-25 makes them attractively priced, and on that basis we upgrade to Outperform." Evercore ISI reiterates Netflix as outperform Evercore said it's standing by Netflix heading into earnings on Tuesday. "We view the Street's Q4 Revenue (11% Y/Y), Op Margin (14%) and EPS estimates ($2.21) as reasonable." JPMorgan opens a positive catalyst watch on Xerox JPMorgan said it's bullish on Xerox's reorganization plan. "The announced reduction of 15% of the global workforce at the start of the year along with a reorganization of the business is targeted to accelerate the realization of the 3-year $300 mn cost reduction plan, including in our estimate targeting significant majority of the $300 mn reduction in Year-1 of the plan itself." Raymond James downgrades Comerica to market perform from outperform Raymond James said the earnings outlook looks too challenging for Comerica. "We are downgrading CMA shares from Outperform to Market Perform and reducing our 2024 EPS estimate to reflect its initial 2024 outlook."