Friday’s Biggest Analyst Calls: Apple, Tesla, Sunrun, Fedex, Reddit, Amazon, Nio, Capital One, Nike & More

On Friday, Wall Street analysts shared their latest stock recommendations, with significant changes in ratings for various companies across industries. Below are some of the most notable calls of the day:

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Jefferies Initiates Duke Energy as a Buy

Jefferies initiated coverage on Duke Energy, giving it a "Buy" rating and setting a price target of $138. The firm highlighted the energy company as one of its top large-cap ideas, expressing confidence in its potential.

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Morgan Stanley Upgrades Centessa Pharmaceuticals to Overweight

Morgan Stanley upgraded Centessa Pharmaceuticals from "Equal Weight" to "Overweight," raising its price target to $26 from $11. The firm is optimistic about the company’s development of a narcolepsy treatment, signaling bullish expectations for its future performance.

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Morgan Stanley Downgrades Pepsi to Equal Weight

In a downgrade of PepsiCo, Morgan Stanley shifted its rating from "Overweight" to "Equal Weight." The firm cited "topline softness" and concerns about the company's market share in U.S. scanner data. Additionally, Morgan Stanley noted that if Pepsi’s reinvestment efforts do not yield sufficient returns, further spending in 2025 could result in a decline in earnings.

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Evercore ISI Reiterates Amazon as Outperform

Evercore ISI reaffirmed its "Outperform" rating on Amazon, raising its price target from $225 to $240. The firm continues to see Amazon as its top large-cap stock pick, maintaining a strong outlook for the e-commerce giant.

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KeyBanc Initiates Amkor Technologies as Overweight

KeyBanc initiated coverage on semiconductor manufacturer Amkor Technologies, rating it "Overweight." The firm anticipates the company will deliver high single- to low double-digit growth over the next few years, translating to double-digit earnings per share growth and solid share price returns.

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B. Riley Initiates Reddit as Buy

B. Riley began coverage on Reddit with a "Buy" rating, citing the company’s strong risk/reward profile. The firm emphasized Reddit’s unique platform, which serves tens of millions of users across over 100,000 communities, providing a valuable offering to users, advertisers, and content licensees alike.

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Morgan Stanley Highlights Nio as a Research Catalyst

Morgan Stanley expressed optimism about Nio, the Chinese electric vehicle manufacturer, after the release of its latest model, the L60. The firm believes Nio’s stock price will rise over the next 15 days, positioning it as a research catalyst idea.

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UBS Reiterates Apple as Neutral

UBS reiterated its "Neutral" rating on Apple, reporting that demand for the upcoming iPhone 16 may not be as weak as initially feared. While the firm noted that the new iPhone’s features are more evolutionary than revolutionary, it advised investors not to overreact to early signs of tepid demand.

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Bernstein Downgrades Darden Restaurants to Market Perform

Following the latest earnings report from Darden Restaurants, Bernstein downgraded the owner of Olive Garden from "Outperform" to "Market Perform." The firm pointed to limited upside potential and ongoing macroeconomic pressures that have impacted sales growth across all income segments.

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Morgan Stanley Downgrades ASML to Equal Weight

Morgan Stanley downgraded ASML, the European semiconductor company, from "Overweight" to "Equal Weight." The firm believes that the risk/reward balance has shifted, reflecting late-cycle dynamics in the company’s share price.

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RBC Initiates CyberArk as Outperform

RBC initiated coverage on cybersecurity firm CyberArk with an "Outperform" rating and a price target of $328. The firm considers CyberArk one of its top mid-cap cybersecurity ideas, expecting the company to benefit from solid growth prospects.

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Wells Fargo Upgrades Aptiv to Overweight

Wells Fargo upgraded Aptiv, an automotive technology supplier, from "Equal Weight" to "Overweight." The firm cited the company’s improved valuation and strong gross operating margin as key reasons for its more favorable outlook.

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Wells Fargo Upgrades Visteon to Overweight

Similarly, Wells Fargo upgraded Visteon, an auto electronics supplier, to "Overweight" from "Equal Weight." The firm noted that Visteon offers above-average growth at an attractive valuation, making it a good investment opportunity.

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Morgan Stanley Downgrades FedEx to Underweight

After a disappointing earnings report, Morgan Stanley downgraded FedEx from "Equal Weight" to "Underweight." The firm highlighted structural challenges in the parcel delivery market, such as volume, pricing, and competition from e-commerce shifts, as ongoing concerns for the company.

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Deutsche Bank Adds a Catalyst Call Buy on American Airlines

Deutsche Bank added a catalyst call "Buy" rating on American Airlines, stating that earnings headwinds are starting to shift to tailwinds. The firm noted that American Airlines’ stock has significantly underperformed the broader market and its peers, but expects improvements moving forward.

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Susquehanna Initiates Affirm as Positive

Susquehanna initiated coverage on Affirm, a payments company, with a "Positive" rating. The firm expressed confidence in Affirm’s growth prospects, particularly through its expanding merchant acceptance and increasing consumer accounts.

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Evercore ISI Upgrades Darden to Outperform

Evercore ISI upgraded Darden Restaurants from "In Line" to "Outperform," highlighting the company’s focus on profitable sales growth. The firm expects Darden’s earnings to benefit from benign commodity inflation and improved labor productivity over the next year.

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Morgan Stanley Reiterates Sunrun as Overweight

Morgan Stanley reiterated its "Overweight" rating on Sunrun, a solar company, and expressed long-term optimism regarding its partnership with Costco. Although the termination of this partnership may hinder growth, the firm believes it will help improve margins in the long run.

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Bank of America Reiterates Tesla as Buy

Bank of America reaffirmed its "Buy" rating on Tesla, particularly ahead of the company’s upcoming robotaxi event in October. The firm expects Tesla to put on an impressive show and anticipates any additional details shared during the event will likely have a positive impact on the stock.

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Citi Initiates Capital One as Buy

Citi initiated coverage on Capital One with a "Buy" rating, praising the company’s leadership in technology. The firm believes Capital One’s competitive advantage in credit cards, one of the most profitable banking segments, makes it a standout in the financial services industry.

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Bank of America Reiterates Nike as Buy

Bank of America reiterated its "Buy" rating on Nike, highlighting the positive implications of the company’s recent CEO change. The firm believes this leadership shakeup could be the catalyst needed to turn around Nike’s recent underperformance.

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Morgan Stanley Reiterates Mercado Libre as Overweight

Morgan Stanley raised its price target for Mercado Libre from $2,175 to $2,500, maintaining an "Overweight" rating on the stock. The firm continues to have confidence in the Argentine online marketplace company, despite some near-term risks.

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Jefferies Initiates Clearway Energy as Buy

Jefferies initiated coverage on Clearway Energy with a "Buy" rating, recognizing the company’s consistent, reliable growth as a standout in the renewable infrastructure space.

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