Monday’s Biggest Analyst Calls: NVIDIA, Apple, Qualcomm, Robinhood, Starbucks, Disney & More

On Monday, several major Wall Street firms released key recommendations and updates on various stocks, reflecting their current market outlooks and strategic insights.

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UBS Reiterates Buy Rating on Nvidia

UBS reaffirmed its buy rating on Nvidia shares as the company approaches its earnings report later this month. Despite making only minor adjustments to its model, UBS maintains its price target at $150. The firm’s analysis follows discussions with customers and further examination of Nvidia's supply chain, which led them to remain confident in their current outlook.

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Morgan Stanley Remains Bullish on Disney’s Experiences Division

Morgan Stanley reiterated its overweight rating on Disney, with a particular emphasis on the company’s Experiences division. The firm highlighted Disney’s plans to double its capital expenditures in experiential assets over the next decade, particularly focusing on U.S. parks and its cruise fleet. This expansion is seen as a significant move, given the division's history of high and increasing return on invested capital (ROIC). Morgan Stanley believes that Disney’s strategic investments will continue to drive growth in this segment.

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RBC Initiates Outperform Rating on Ardent Health

RBC Capital Markets initiated coverage on Ardent Health Partners, a behavioral health company, with an outperform rating and a price target of $23. The firm believes that Ardent Health has a differentiated platform, positioning it well in the competitive behavioral health sector.

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Wolfe Research Downgrades Qualcomm to Peer Perform

Wolfe Research downgraded Qualcomm from outperform to peer perform, citing concerns about Apple’s development of its internal modem. Wolfe noted that Apple’s move could significantly impact Qualcomm’s business. Additionally, the normalization of the premium Android market and potential challenges in the Internet of Things (IoT) sector, which Qualcomm is likely to emphasize in its upcoming analyst day, contribute to Wolfe's more cautious outlook.

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Wedbush Reiterates Outperform Rating on Apple

Wedbush reaffirmed its outperform rating on Apple, expressing optimism about the upcoming iPhone 16 launch, which is expected to feature AI-driven enhancements. According to Wedbush, recent checks in Asia have bolstered confidence that this new iPhone cycle will lead to a significant growth phase for Apple over the next year, marking a potential renaissance for the tech giant.

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Jefferies Upgrades Par Technology to Buy

Jefferies upgraded Par Technology, a company specializing in restaurant technology, from hold to buy. The firm cited significant progress made by Par in positioning itself for sustainable and profitable growth as the reason for the upgrade.

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Evercore ISI Issues Positive Tactical Call on Walmart

Evercore ISI initiated a positive tactical trading call on Walmart ahead of the company's earnings report this week. The firm views Walmart as a "steady ship" amid consumer volatility and expects the retailer to meet its second-quarter earnings expectations. Evercore also believes that Walmart will be able to maintain its full-year guidance for sales and earnings, reinforcing its positive outlook on the stock.

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HSBC Initiates Buy Rating on GE Vernova

HSBC initiated coverage on GE Vernova, a company involved in power generation and distribution, with a buy rating. The firm believes GE Vernova is well-positioned to benefit from long-term trends in the energy sector, thanks to its strong portfolio of equipment and services.

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Piper Sandler Upgrades Robinhood to Overweight

Piper Sandler upgraded Robinhood from neutral to overweight, citing an attractive entry point for investors. The firm also expects Robinhood to benefit from the launch of a new web-based trading platform and the introduction of index options and futures trading later this year.

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Goldman Sachs Initiates Buy Rating on General Mills

Goldman Sachs initiated coverage on General Mills with a buy rating, praising the company’s diverse portfolio that aligns with current consumption trends. Goldman noted that General Mills is less exposed to risks from private label competition than previously feared and has a strong track record of maintaining resilient margins compared to its peers.

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Piper Sandler Initiates Overweight Rating on TWFG

Piper Sandler initiated coverage of The Western Financial Group (TWFG), an insurance broker, with an overweight rating and a price target of $27 per share. The firm is optimistic about TWFG’s market position and growth potential.

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Canaccord Upgrades Blend Labs to Buy

Canaccord upgraded Blend Labs, a fintech company specializing in mortgage applications, from hold to buy. The firm highlighted Blend's significant market share among major mortgage lenders, positioning the company to benefit from any future increase in mortgage volumes.

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Mizuho Reiterates Outperform Rating on Micron

Mizuho reiterated its outperform rating on Micron, although it lowered the price target from $155 to $145 due to lower market multiples amid the recent AI pullback. The firm remains confident in Micron's prospects and increased its earnings estimates for the company.

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Goldman Sachs Initiates Buy Rating on Conagra

Goldman Sachs initiated coverage on Conagra Brands with a buy rating, citing the company’s well-positioned portfolio of frozen foods and snacks. Goldman noted that Conagra's offerings align with current consumer trends toward convenience and that the company is less vulnerable to private label competition than initially thought.

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Morgan Stanley Names Cummins as Top Pick

Morgan Stanley named Cummins as a top pick, reiterating its overweight rating. The firm views Cummins as the preferred way to invest in the data center theme within the machinery sector, given the company's strong position and growth prospects.

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Wells Fargo Reiterates Overweight Rating on Starbucks

Wells Fargo reiterated its overweight rating on Starbucks, expressing a positive outlook due to increasing interest from activist investors. The firm noted that recent reports suggest Starboard Value has joined Elliott Management in seeking to drive operational improvements at Starbucks, which could lead to positive changes for the coffee giant.

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Bank of America Upgrades Liberty Global to Neutral

Bank of America upgraded Liberty Global from underperform to neutral, citing a more favorable valuation outlook. The firm noted that Liberty Global had announced several strategic moves aimed at unlocking shareholder value, which has improved its investment case.

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Wells Fargo Upgrades Prudential and Allstate

Wells Fargo upgraded both Prudential and Allstate from underweight to equal weight, adopting a more defensive stance on these insurance stocks. The firm acknowledged improvements in Allstate’s auto insurance business and emphasized Prudential's strong capital base and ongoing momentum in its key businesses.

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Deutsche Bank Upgrades Eli Lilly to Buy

Deutsche Bank upgraded Eli Lilly from hold to buy, following the company’s strong second-quarter earnings report. The firm believes the solid performance has helped to alleviate concerns in a volatile macroeconomic environment.

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Bank of America Upgrades Churchill Downs to Buy

Bank of America upgraded Churchill Downs, a company known for horse racing and gaming, from neutral to buy. The firm also raised its price target to $155 from $145, citing a strong growth pipeline.

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Bank of America Upgrades Coherent to Buy

Bank of America upgraded Coherent, a semiconductor manufacturer, to buy from neutral, citing confidence in the company's operational turnaround under its new CEO, Jim Anderson. The firm believes Anderson’s leadership, based on his previous success at Lattice Semiconductor, will drive significant improvements at Coherent.

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HSBC Upgrades Take-Two Interactive to Buy

HSBC upgraded Take-Two Interactive from hold to buy, expressing optimism about the game maker’s outlook. The firm cited an improved outlook for mobile gaming and increased confidence in the company’s topline guidance, particularly with the anticipated release of "Grand Theft Auto VI."

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