Friday’s Biggest Analyst Calls: Apple, Dell, Wynn, Walmart, Best Buy, Costco, Netflix and More

On Friday, several significant calls were made by major Wall Street firms, addressing stocks across various sectors. Here's a detailed breakdown of those calls and their key points.

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Morgan Stanley upgrades Wynn Resorts to Overweight from Equal Weight
Morgan Stanley upgraded Wynn Resorts, highlighting that the risk/reward profile for Wynn's stock is now more attractive. This optimism stems from a combination of factors, including the stock's relatively low valuation, potential growth in the United Arab Emirates (UAE), and the possibility of positive developments in Macau. These catalysts provide a favorable outlook for the stock's potential re-rating, positioning it for future growth.

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Deutsche Bank reinstates Dell as Buy
Deutsche Bank resumed coverage of Dell, expressing confidence in the company's growth prospects. The firm expects Dell's top-line growth to accelerate into double digits over the coming quarters. This growth is driven by a favorable combination of factors across Dell's key segments, where the company maintains a leadership position. Deutsche Bank believes these tailwinds will significantly benefit Dell’s financial performance.

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KeyBanc downgrades Bumble to Sector Weight from Overweight
KeyBanc downgraded Bumble due to concerns about valuation and weakness in the app's user metrics. The stock has risen by 12% since its earnings report, but KeyBanc sees troubling trends in the app's user acquisition funnel. Additionally, they believe that recent updates to the app may undermine Bumble’s unique value proposition, making it less competitive in the dating app market.

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Piper Sandler upgrades Accenture to Overweight from Equal Weight
Following Accenture's earnings report, Piper Sandler upgraded the IT services giant. The firm cited improving top-line metrics, a conservative financial outlook, and Accenture’s position as a key player in generative AI (GenAI) projects. These factors make the stock an attractive investment opportunity, according to Piper Sandler.

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Goldman Sachs reiterates Costco as Buy
Goldman Sachs reiterated its Buy rating on Costco, maintaining confidence in the company’s business model. Following Thursday's earnings report, Goldman expressed continued faith in Costco’s value proposition, which resonates well with consumers. The firm also updated its 12-month price target for the stock, raising it to $995.

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Bank of America reiterates Apple as Buy
Bank of America remains bullish on Apple, focusing on the company’s approach to artificial intelligence (AI). The firm believes that Apple's AI initiatives have the potential to unlock new monetization opportunities within its vast installed user base, driving future growth for the tech giant.

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UBS upgrades Vista Energy to Buy from Neutral
UBS upgraded Vista Energy, citing the energy company's strong positioning in the market. The firm increased its price target for Vista to $60 per share, up from $55. This change was made based on a forward-looking valuation model, with expectations of continued strong performance through 2026.

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UBS upgrades Certara to Buy from Neutral
UBS upgraded Certara, a company specializing in software for drug development and biotechnology, citing a unique entry point for investors. UBS believes Certara is poised for further growth in biosimulation, a key tool in drug development, and expects the company to return to double-digit sales growth after a period of stagnation.

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Citi opens a negative catalyst watch on Pepsi
Citi issued a negative catalyst watch on Pepsi ahead of its earnings report in early October. The firm expects the beverage giant to miss earnings expectations and raised concerns about the likelihood of a downward earnings adjustment in 2025. This potential rebase poses a significant risk for investors heading into the fourth quarter.

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Citi reiterates Walmart as a top pick
Citi remains optimistic about Walmart's long-term prospects, reiterating the stock as a top pick. The firm raised its price target to $98 from $75, citing Walmart’s higher-margin growth opportunities, which are expected to drive higher sales and earnings before interest and taxes (EBIT) margins. Citi believes these factors will ultimately change how investors perceive the company.

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UBS initiates Cava as Neutral
UBS initiated coverage of Cava, a fast-casual restaurant chain, with a Neutral rating. The firm sees a long growth runway for the company but notes that the current stock price already reflects much of this potential, tempering its bullish outlook.

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Citi downgrades Dollar General to Sell from Neutral
Citi downgraded Dollar General, citing increased competitive pressures. The firm sees challenges ahead for the discount retailer, prompting it to shift its rating from Neutral to Sell.

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Raymond James initiates Mercado Libre as Outperform
Raymond James initiated coverage of Mercado Libre with an Outperform rating. The firm is optimistic about the Latin American e-commerce giant, citing opportunities for market share growth driven by investments in fulfillment, loyalty programs, and artificial intelligence (AI). Additionally, Mercado Libre’s nascent advertising and credit card businesses are expected to offset any macroeconomic challenges in the region.

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JPMorgan adds Best Buy to the Focus List
JPMorgan added Best Buy to its Analyst Focus List, citing an improving product cycle. The firm believes that investors have underestimated how challenging the retail environment has been post-COVID and expects a rebound in key categories such as computing. This, combined with potential demand from the housing market, makes Best Buy an appealing value play.

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Roth MKM initiates Chesapeake Energy as Buy
Roth MKM initiated coverage of Chesapeake Energy with a Buy rating, highlighting the company’s strong capital return policy. The firm expects gas prices to rise over the next few years, which should benefit Chesapeake's financial performance.

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Barclays reiterates Netflix as Equal Weight
Barclays reiterated its Equal Weight rating on Netflix, emphasizing the challenges the company faces with its ad-supported tier. Advertising has been dilutive to Netflix’s pricing strategy, and the company may need to significantly raise prices on other subscription tiers to compensate for this. Barclays believes that Netflix should consider adding a free tier to further diversify its revenue streams.

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Bank of America downgrades HP to Neutral from Buy
Bank of America downgraded HP, citing concerns about slowing earnings growth. The firm expects future earnings per share (EPS) increases to come primarily from share buybacks rather than organic business growth. Moreover, potential gains from AI-driven personal computers (PCs) may be offset by declining margins in the printing segment.

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Cantor Fitzgerald initiates Amgen as Overweight
Cantor Fitzgerald initiated coverage of Amgen, expressing optimism about the pharmaceutical company's potential in the obesity treatment market. The firm believes Amgen’s obesity program is a significant growth driver, earning it a spot on Cantor’s list of recommended stocks.

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These key analyst calls reflect a diverse set of opportunities and challenges across various industries, providing investors with valuable insights for navigating the market.

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