Monday’s Biggest Analyst Calls: NVIDIA, Apple, Tesla, Netflix, Colgate, Pfizer, Disney and More

Wall Street's biggest calls on Monday brought a spectrum of opinions and insights on various companies, highlighting their financial prospects and the factors impacting their stock prices. Here's a comprehensive breakdown of these calls:

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Morgan Stanley on Apple:Morgan Stanley reiterated Apple's rating as "overweight" but lowered its price target from $215 to $210 per share. The upcoming earnings report, scheduled for early next month, is not expected to significantly alter the market's sentiment towards the stock. The quarter showcased robust margins and upside in services, but it's unlikely to sway investors. Morgan Stanley maintains its "overweight" rating.

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JPMorgan on Nvidia:JPMorgan reiterates Nvidia's rating as "overweight" and emphasizes that the growing demand for Nvidia's products is driven by the expansion of artificial intelligence buildouts. The continued development of generative AI and large language/transformer models fuels the demand for Nvidia's accelerated compute and networking silicon platforms and software solutions.

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UBS on UnitedHealth:UBS upgraded UnitedHealth from "neutral" to "buy," considering the stock a "core holding." Although the first quarter presented several challenges that weighed on valuations for UnitedHealth and the managed care organization (MCO) sector, a strong third-quarter release from UnitedHealth is seen as a turning point that could lead to an improved valuation for the stock.

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Jefferies on Pfizer:Jefferies upgraded Pfizer from "hold" to "buy," recommending investors to buy the dip in Pfizer's shares. Cost-cutting measures, resulting in savings of $3.5 billion, are expected to make consensus earnings per share (EPS) for 2024 and 2025 more attainable. Jefferies believes that attractive catalysts lie ahead for Pfizer.

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Goldman Sachs on D.R. Horton:Goldman Sachs upgraded D.R. Horton from "neutral" to "buy" based on expectations of earnings upside for the homebuilder. D.R. Horton is projected to leverage its operational expertise, contributing to positive results.

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Goldman Sachs on Instacart:Goldman Sachs initiated coverage of Maplebear Inc. (Instacart) with a "buy" rating and set a 12-month price target of $48. Instacart, a grocery technology company, operates an online delivery platform for consumers and offers technology solutions to enterprises. Goldman Sachs expresses a bullish stance on the stock.

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Piper Sandler on Tesla:Piper Sandler maintains its rating of "overweight" on Tesla but has lowered the price target from $300 to $290 per share. The caution stems from upcoming earnings that may not yield substantial price movement. While growth initiatives like the Cybertruck are on the horizon and the likelihood of margin improvement in Q3 exists, Piper Sandler suggests that Tesla may trade sideways in the coming months.

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UBS on Disney:UBS reiterates Disney's rating as "buy" but has adjusted the price target from $122 to $110 per share. The market expects continued top-line pressure in Linear, cost-cutting, and solid growth for US Parks in the fourth quarter. UBS maintains its "buy" rating ahead of Disney's earnings next month.

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Truist on Klaviyo:Truist initiates coverage of the marketing automation company Klaviyo with a "buy" rating, expressing strong confidence in the stock. It recommends investors buy Klaviyo shares ahead of a robust expected third-quarter report. Truist anticipates sustained best-in-class growth and expanding profits and cash flow.

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UBS on Evolent Health:UBS initiates coverage of Evolent Health with a "buy" rating and a price target of $46. Evolent Health has transformed from an IT platform serving mainly administrative needs for payors into a competitive provider of specialty management tools in value-based care.

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Morgan Stanley on Varonis Systems:Morgan Stanley upgrades Varonis Systems from "equal weight" to "overweight," citing "underappreciated AI tailwinds." Stabilizing demand and faster-than-expected SaaS transition support the upgrade. Morgan Stanley's bullish scenario could potentially lead to the stock doubling in value as Varonis' data security platform becomes a key enabler of Generative AI adoption within enterprises.

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Morgan Stanley on Nice Systems:Morgan Stanley upgrades Nice Systems from "equal weight" to "overweight" as the contact center software company stands to benefit from AI advancements. Competition and strategic activity to capture opportunities are expected, and the early positioning of Nice Systems is favored by Morgan Stanley.

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Evercore ISI on Netflix:Evercore ISI maintains its "outperform" rating on Netflix ahead of earnings later in the week but anticipates mixed results. The firm believes Netflix can maintain a strong earnings per share (EPS) of $15.00 under various scenarios in 2024, backed by a 20x price-to-earnings (P/E) multiple.

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UBS on TAL Education:UBS upgrades TAL Education to "buy" from "neutral," noting that a turnaround for the education technology company is in progress. Despite recent strong performance, TAL's valuation still appears attractive when adjusted for growth.

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RBC on UBS:RBC upgrades UBS from "sector perform" to "outperform," expressing better "visibility." RBC is reassured by various developments and expects further details with UBS's next strategic update, scheduled for February.

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BMO on Enphase Energy:BMO downgrades Enphase Energy from "outperform" to "market perform," citing an uncertain recovery for the solar company. The trough in U.S. residential solar demand appears deeper than anticipated, and the timing of recovery remains uncertain.

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Stifel on Colgate-Palmolive:Stifel upgrades Colgate-Palmolive to "buy" from "hold" as it expects modest multiple expansion and improving fundamentals. The upgrade reflects improving fundamentals coupled with an undemanding valuation.

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