Here are Tuesday's biggest analyst calls: Nvidia, Apple, Tesla, JetBlue, Disney, Caterpillar, Super Micro and more

Published Tue, Feb 20 20248:19 AM ESTUpdated Tue, Feb 20 20249:03 AM EST

Here are Tuesday's biggest calls on Wall Street: Morgan Stanley downgrades Oatly to equal weight from overweight Morgan Stanley resumed coverage of the oats company and said it sees too many negative catalysts. " Oatly Resumption of Coverage at Equal-weight Given Low Visibility, Despite Turnaround Progress." Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it's sticking with Tesla despite a slew of negative data points in a recent investor survey. "Amidst the seemingly overwhelming bearish institutional investor sentiment, we reiterate our OW rating on Tesla with a $345 price target." Bernstein reiterates Apple as market perform Bernstein said it's standing by its market perform rating on Apple , but that the iPhone 16 could have some artificial intelligence capabilities. "We expect potential AI capabilities that are also largely consistent with existing products, including advanced image and video capture/editing tools, translation and transcription, enhanced messaging support, enhanced Siri and greater automation in Music, among others." Morgan Stanley reiterates Nvidia as overweight Morgan Stanley said it's standing by Nvidia heading into earnings later this week. "All of that points to a strong quarter; our top line estimate for January of $21 bn is $1 bn above guidance and $700 mm above consensus, and for April we are at $22.8 bn vs consensus $22.1." Bernstein reiterates Disney as outperform Bernstein raised its price target on the stock to $120 per share from $115 and said it likes the company's crackdown on password sharing. "We estimate ~$1.2B in incremental revenue from the effort, taking Disney 6 to 8 quarters to capture the full benefit from when it starts enforcing (using Netflix's cadence as a proxy)." RBC upgrades Ball to outperform from sector perform RBC upgraded the packaging and jar company after it sold its aerospace business. "We upgrade BALL to Outperform from Sector Perform and raise our target to $74 following the completion of the sale of its Aerospace business to BAE Systems for ~$4.5B after-tax cash proceeds, which will be used for debt paydown ($2B) and share buybacks." Evercore ISI downgrades Caterpillar to in line from outperform Evercore ISI said in its downgrade of the stock that it's doing "prudent profit taking." "Downgrading The Sector To In Line (Neutral), With 3 Individual Names Downgraded With The Same Reasoning -- Caterpillar, Ingersoll Rand, and Timken Each Downgraded From Outperform to In Line." Rosenblatt reiterates Super Micro as buy Rosenblatt raised its price target on the stock to a Street high and said it's an "AI market and share gain combo." "We are raising our PT for SMCI to $1,300 from $700, driven by the continued momentum in AI computing, as observed during our recent visits in Silicon Valley and the UK." Deutsche Bank upgrades JetBlue, Alaska Air and Southwest to buy from hold Deutsche Bank upgraded several airlines, noting it sees an "improving domestic supply backdrop." "We believe more moderate domestic ASM (available seat mile) growth for 2024 will have positive implications for domestic unit revenue performance, and by extension, should translate into solid top-line performance for the domestic-focused names. As such, we are raising our ratings on Alaska (ALK), JetBlue (JBLU), and Southwest (LUV) from Hold to Buy." Redburn Atlantic Equities downgrades MSCI to sell from neutral Redburn Atlantic Equities said it sees too many headwinds for the global market services company. "As earnings growth slowed in 2023, MSCI's underperformance versus peers was notable. Yet the current valuation implies the market is expecting the business to return to higher levels of growth as the cyclical backdrop improves. We are less convinced." Goldman Sachs initiates BrightSpring Health as buy Goldman Sachs said shares of the home-based health services company are attractive. "We initiate coverage of BrightSpring Health Services with a Buy rating and Target Price of $26." Wolfe upgrades Freshworks to outperform from peer perform Wolfe said the cloud-based software-as-a-service company has improving fundamentals. "When we downgraded FRSH in December of '22 we saw a tougher macro, post-IPO execution issues, worsening retention, decelerating revenue, and little to no FCF support. Fourteen months later, we see a very different setup and are taking the opportunity to upgrade the stock to an Outperform rating." Piper Sandler upgrades US Foods to overweight from neutral Piper Sandler upgraded the food service company following earnings. "Following USFD's 4Q23 earnings results late last week, we are upgrading the shares to Overweight, from Neutral prior." Goldman Sachs initiates ArriVent Biopharma to buy from neutral Goldman Sachs said the biopharma company has a "differentiated and de-risked across select lung cancer populations." "We initiate coverage on AVBP with a Buy rating and a 12-month price target of $27 (~20% upside potential)." B. Riley upgrades Brunswick to buy from neutral B. Riley upgraded the marine company after a constructive meeting with company management. "Coming away from our management meetings at MIBS, [Miami International Boat Show] we are upgrading Brunswick Corporation (BC) from Neutral to Buy, while raising our PT from $100 to $108." Loop downgrades W.W. Grainger to hold from buy Loop said it sees a more balanced risk/reward for the industrial supply company. "We are increasing our price target to $1,000 per share ($925 prior) and would look to get more constructive again if our survey reveals an acceleration in demand, or further upside to GWW' s share capture initiatives." Barclays upgrades AvalonBay Communities to overweight from equal weight Barclays said the real estate company has an interesting platform. " AvalonBay benefits from its unique development platform (2,600 homes expected to deliver in 2024, largely financed by forward equity raises), which helps the company generate relatively solid FFO [funds from operations] growth." JPMorgan initiates Immunovant to overweight from neutral JPMorgan said the biopharma company has a "compelling profile." "We initiate coverage on IMVT with an OW rating and a Dec-2024 PT of $51." Northcoast downgrades Texas Roadhouse to neutral from buy Northcoast downgraded the Texas-theme chain restaurant mainly on valuation. "With a clear path to double-digit revenue growth from mid-to-high single digit unit growth and mid-to-high single-digit SSS, balanced between traffic and pricing/mix, Texas Roadhouse should continue to execute on its playbook to drive system and organic sales growth that supports the firm's current valuation." Mizuho upgrades LivaNova to buy from neutral Mizuho said in its upgrade of LivaNova that it likes the med tech company's incoming CEO. "We see two pivotal paths ahead of the company both of which can lead to asymmetric upside from the current depressed level." JPMorgan downgrades Holley to neutral from overweight JPMorgan said it's negative heading into the manufacturing company's earnings report next week. "We are downgrading HLLY to Neutral from Overweight and lowering our Dec 24 PT to $5; we are also placing HLLY on Negative Catalyst Watch into 4Q23 earnings on Wednesday, February 28th." Morgan Stanley initiates CG Oncology as buy Morgan Stanley said shares of the bladder cancer company are "compelling." " CG Oncology is a late-stage clinical company focused on developing therapies for bladder cancer." UBS initiates Morgan Stanley Direct Lending Fund as buy UBS said the financial services company is a defensive. "We initiate coverage on Morgan Stanley Direct Lending with a Buy rating and $23.50 PT. MSDL is a business development company (BDC) focused on middle market & upper middle market companies." Seaport initiates Booking Holdings as buy Seaport said it likes the travel website's fundamentals. "We are positive on BKNG fundamentals given: 1) clear leader in global online accommodations, with particular strength in Europe and Asia; 2) expect ~high single digit long-term bookings/revenue growth driven by global travel growth, online share gains, expansion of Alternative Accommodations, and increasing traction with Connected Trip." Bank of America downgrades AIG to neutral from buy Bank of America said in its downgrade of the stock that it sees too many headwinds. "After a strong 4Q23 result in both AIG's General Insurance business and Corebridge, AIG appears to be executing well operationally in nearly all its businesses. However, AIG stock faces a number of difficulties in 2024."