Friday's Biggest Analyst Calls: NVIDIA, Peloton, Chewy, Uber, Burlington Stores, BJ's Wholesale Club, Roku and More

On Friday, Wall Street analysts made significant moves in terms of stock ratings and price targets for various companies. Below are some of the most notable calls:

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Evercore ISI Maintains Nvidia as Outperform

‍Evercore ISI continues to rate Nvidia as "outperform," emphasizing its position as the top choice for what they describe as a "Tectonic Shift in Computing." The firm believes Nvidia's comprehensive ecosystem uniquely positions it to capture a substantial share—estimated at 70-80%—of the value generated in the era of parallel processing.

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Piper Sandler Elevates Chewy to Overweight

‍Piper Sandler upgraded Chewy from a "neutral" to an "overweight" rating. Despite muted growth trends, the firm sees Chewy at a critical point of profitability, driven by an expansion in gross margins. This improvement is attributed to a shift toward higher-margin revenue streams and disciplined discounting, with the second quarter showing a decline in discount levels compared to the previous year. Additionally, gains in efficiency and automation have bolstered Chewy's operating leverage, making this an opportune moment for an upgrade.

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JMP Securities Upgrades Warby Parker to Market Outperform

‍JMP Securities has lifted its rating on Warby Parker from "market perform" to "market outperform." The firm has raised its estimates for both revenue and earnings, reflecting an optimistic outlook based on their analysis of the company and the broader industry. As the eyewear retailer expands its vision care offerings and increases in-network insurance coverage, JMP anticipates potential upside for the stock, particularly as industry volatility diminishes in the near term.

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RBC Capital Markets Upgrades Westlake to OutperformWestlake received an upgrade from RBC Capital Markets, moving from "sector perform" to "outperform." RBC outlined three key reasons for this upgrade: the belief that earnings from its Petrochemical & Materials segment have hit a low point, strong performance in its Housing and Infrastructure Products division, and effective capital deployment into mergers and acquisitions. These factors combined make Westlake a more attractive investment opportunity in RBC’s view.

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JPMorgan Downgrades Peloton to Neutral

‍JPMorgan downgraded Peloton from "overweight" to "neutral" following a significant 35% increase in its stock price on Thursday, a day when the broader market declined. The downgrade is based on concerns about Peloton's ability to return to growth, particularly in its connected fitness subscriptions and revenue streams. The firm cites ongoing secular and macroeconomic pressures that limit visibility into the company's future performance.

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Bank of America Reaffirms Uber as a Buy

‍Bank of America reiterated its "buy" rating for Uber, noting potential developments in the company’s partnerships. While the firm acknowledged the recent disruption in services provided by Cruise, they speculate that an expanded partnership with Waymo or a new collaboration with Tesla could provide a positive catalyst for Uber’s stock in the near term, although a deal with Tesla is not expected anytime soon.

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Nomura Upgrades Bilibili to Buy

‍Nomura upgraded Bilibili from "neutral" to "buy," arguing that the stock's significant discount is no longer justified. The firm sees a brighter financial outlook for Bilibili, driven by the strengthening of its gaming and advertising businesses. As these segments continue to grow, Nomura believes the stock has more upside potential.

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Wells Fargo Reiterates Burlington Stores as Top Pick

‍Wells Fargo continues to regard Burlington Stores as its "top pick," highlighting the company's potential for growth and margin expansion. The firm sees a strong case unfolding in real-time, with both an acceleration in comparable sales and significant margin improvement. Based on these factors, Wells Fargo has raised its estimates for the second quarter and full fiscal year, setting a price target of $325 for the stock.

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Wells Fargo Upgrades BJ’s Wholesale Club to Overweight

‍Wells Fargo upgraded BJ’s Wholesale Club from "equal weight" to "overweight." The firm supports the company’s strategic decision to invest in margins, despite short-term challenges, viewing it as a move that complements robust membership gains. The Margin-Focused Initiative (MFI) is expected to enhance the company’s financial position, with further upside anticipated as BJ’s returns to its typical growth algorithm in 2025.

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Goldman Sachs Downgrades Bill.com to Neutral

‍Goldman Sachs downgraded Bill.com from "buy" to "neutral," citing increased investment levels and reduced valuation support in the near term. As a result, the firm has also lowered its price target for the stock to $54. This downgrade reflects concerns over the company’s ability to deliver expected returns amid a challenging environment.

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Guggenheim Upgrades Roku to Buy

‍Guggenheim upgraded Roku from "neutral" to "buy," expressing confidence in the company's prospects as it approaches its third-quarter earnings report in November. The firm expects growing investor enthusiasm as Roku continues to expand its advertising sales through third-party demand-side platforms and enhances monetization of its home screen, positioning it for a strong performance in the upcoming quarter.

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