Friday’s Biggest Analyst Calls: Nvidia, Tesla, Microsoft, Alphabet, Walmart & More

On Friday, Wall Street saw a series of significant analyst calls across various sectors, reflecting both optimism and caution about the future of several major companies.

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Piper Sandler Initiates Coverage on Couchbase as OverweightPiper Sandler began its coverage of Couchbase, a cloud database services company, with an "overweight" rating. The firm believes that the recent selloff in Couchbase's stock is exaggerated. Piper Sandler remains confident in the long-term growth potential for multi-cloud database services, suggesting that the fundamentals of the industry remain strong despite recent market volatility.

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Bernstein Reaffirms Underperform Rating on TeslaBernstein reiterated its "underperform" rating on Tesla, expressing skepticism about the company's near-term growth prospects. The firm argues that Tesla is unlikely to regain market share or see significant growth until it introduces new, more affordable models, which Bernstein predicts won’t happen until 2026 or 2027. Moreover, Bernstein highlighted a growing disconnect between Tesla's current valuation and its underlying financial performance, implying that the stock is overpriced relative to its fundamentals.

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Wolfe Research Upgrades Newmark Group to OutperformWolfe Research upgraded Newmark Group, a commercial real estate advisory firm, to "outperform" from "peer perform." Wolfe pointed out that Newmark is particularly strong in capital markets, which the firm sees as a highly advantageous business segment at the moment. This positioning is expected to drive superior performance in the near term.

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Williams Trading Upgrades Nike to BuyWilliams Trading upgraded Nike from "sell" to "buy," citing recent changes in the company’s management as a positive catalyst. The firm raised its price target for Nike from $67 to $93, indicating increased confidence in the company's future direction. Williams Trading does not foresee a major shift in Nike’s overall strategy but believes that the return of Tom Peddie as Vice President of Marketplace Partners signals potential for meaningful change.

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Barclays Upgrades CF Industries to OverweightBarclays upgraded CF Industries, an agricultural company, from "equal weight" to "overweight." The upgrade is based on CF Industries' potential for sustainable profitability, particularly due to its focus on share buybacks and investment in low-carbon assets. Barclays believes these initiatives will provide CF Industries with a competitive edge moving forward.

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JPMorgan Upgrades Sphere Entertainment to OverweightJPMorgan upgraded Sphere Entertainment, a Las Vegas-based entertainment company, from "neutral" to "overweight." The firm sees an attractive risk/reward profile for Sphere Entertainment, reflected in its new price target of $57, up from the previous target of $37. This upgrade suggests that JPMorgan is optimistic about the company's growth potential in the coming years.

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Piper Sandler Upgrades Microchip Technology to OverweightPiper Sandler also upgraded Microchip Technology from "neutral" to "overweight," citing multiple growth catalysts on the horizon. The semiconductor company is expected to benefit from a range of upcoming opportunities that could drive significant growth in the near term.

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Wells Fargo Downgrades Lumen Technologies to UnderweightWells Fargo downgraded Lumen Technologies from "equal weight" to "underweight," citing concerns over declining revenues. Despite the downgrade, Wells Fargo did raise its price target for Lumen to $4 from $1.75, indicating a slightly more positive outlook on the company's stock price, albeit with reservations about its overall business trajectory.

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Raymond James Upgrades Kimco Realty and Kite Realty to Strong BuyRaymond James issued upgrades for both Kimco Realty and Kite Realty, moving them from "market perform" to "strong buy." The firm is increasingly bullish on shopping center real estate investment trusts (REITs), particularly those trading at lower multiples or discounts to their net asset value (NAV). Raymond James sees significant upside potential in these investments.

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Morgan Stanley Names FTAI Aviation as a Top PickMorgan Stanley identified FTAI Aviation as a "top pick" in the aerospace sector, citing the company's underappreciated growth prospects. The firm raised its price target for FTAI Aviation to $140 from $105, reflecting increased confidence in the company’s future performance.

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Morgan Stanley Reiterates Buy Rating on WalmartMorgan Stanley reiterated its "buy" rating on Walmart, raising its price target to $82 from $75 following the company’s earnings report. The firm continues to see Walmart as a market leader with a strong profit growth story, driven by its ability to gain market share and improve margins.

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BMO Capital Markets Reiterates Outperform Rating on NetflixBMO Capital Markets reaffirmed its "outperform" rating on Netflix, expressing optimism about the company’s long-term positioning in the on-demand video streaming market. BMO believes that Netflix, along with other connected TV opportunities, is well-positioned to capitalize on the growing demand for streaming content.

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Mizuho Reiterates Outperform Rating on AlphabetMizuho reiterated its "outperform" rating on Alphabet, despite concerns about potential antitrust actions by the Department of Justice (DOJ). The firm acknowledged reports that the DOJ could push for a breakup of Alphabet following its loss in an antitrust case related to search advertising. However, Mizuho believes that the legal precedent, such as the breakup of AT&T in 1982, makes such an outcome unlikely.

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Evercore ISI Issues Tactical Underperform on Palo Alto NetworksEvercore ISI issued a tactical "underperform" rating on Palo Alto Networks, despite maintaining a long-term "outperform" rating. The firm is cautious ahead of the company’s earnings report next week, suggesting that the upcoming financial results could serve as a reset point, potentially offering a better buying opportunity afterward.

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Cantor Fitzgerald Upgrades Teradyne to OverweightCantor Fitzgerald upgraded Teradyne, a semiconductor company, from "neutral" to "overweight," citing the company’s potential as a "sneaky" AI play. The firm highlighted Teradyne’s exposure to AI, its scarcity value, and its earnings power, leading Cantor to add the stock to its "Top Picks" list.

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Bank of America Downgrades Estee Lauder to NeutralBank of America downgraded Estee Lauder from "buy" to "neutral," primarily due to weaker-than-expected performance in China. The beauty company has historically relied on strong sales in China, which accounts for a significant portion of its revenue, but recent trends have been disappointing.

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New Street Upgrades Cisco to BuyNew Street Research upgraded Cisco Systems from "neutral" to "buy," following the company’s recent earnings report. The firm believes that cyclical headwinds are now behind Cisco, and that the company is poised to return to growth.

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Jefferies Reiterates Buy Rating on NvidiaJefferies reiterated its "buy" rating on Nvidia, despite concerns about delays in the release of the company’s Blackwell chip. While investor confidence in Nvidia’s potential upside has slightly diminished, Jefferies believes that the company is still positioned to beat earnings estimates.

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Wells Fargo Upgrades Fox Corporation to OverweightWells Fargo upgraded Fox Corporation from "equal weight" to "overweight," praising the media company’s sports strategy. The firm believes that Fox has the right approach to navigate the rapidly changing television ecosystem.

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BMO Capital Markets Reiterates Microsoft as a Top PickBMO Capital Markets reiterated its designation of Microsoft as a "top pick," emphasizing the company’s leadership in AI and the breadth of its portfolio. BMO sees Microsoft as well-positioned to benefit from the growing importance of AI in the tech industry.

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Bank of America Reiterates Buy Rating on SalesforceBank of America reiterated its "buy" rating on Salesforce, raising its price target to $316 from $288. The firm’s discussions with key Salesforce partners suggest that deal activity remains strong, supporting the company’s growth prospects.

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Deutsche Bank Reiterates Buy Rating on Live NationDeutsche Bank reiterated its "buy" rating on Live Nation, noting that demand for concerts and live events remains robust. The firm highlighted the growth potential of Live Nation’s owned and operated venue portfolio, which it sees as a key driver of future success.

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Bank of America Reiterates Buy Rating on Applied MaterialsBank of America reiterated its "buy" rating on Applied Materials, citing strong growth drivers for the semiconductor company. The firm believes that Applied Materials is well-positioned to benefit from increasing demand for chips in a data-driven economy, following its recent earnings report.

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