Monday’s Biggest Analyst Calls: Nvidia, Tesla, Dollar Tree, Mondelez, Teva, Ulta, Carnival & More

Monday witnessed significant recommendations and assessments from Wall Street analysts, providing insights into the prospects of various companies across different sectors.

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Deutsche Bank reaffirmed its buy rating for Saia, a transportation company, emphasizing its robust earnings power. Despite expectations of a 2% year-over-year decline in 2023 earnings per share (EPS), Saia's resilience was highlighted by Deutsche Bank.

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KeyBanc designated Bloom Energy as a top pick, citing its proven fuel cells with commercial viability. The energy company was positioned as a standout within KeyBanc's Clean Tech coverage, and an overweight rating with a $20 price target was reiterated.

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On the contrary, Citi downgraded Foot Locker to sell from neutral, citing challenging positioning and timing for a turnaround. The downgrade was prompted by Foot Locker's stock surpassing Citi's $18 price target.

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New Street initiated Pinterest as a buy, identifying upside potential in the social media stock. The analysts expressed confidence in Pinterest's near-term adjusted EBITDA consensus and considered the long-term guidance as conservative.

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Citi initiated a negative catalyst watch on Ulta ahead of its earnings, expressing concerns about potential shrink and anticipating a more cautious view of the holiday season. The management's likely reduction of fiscal year 2023 guidance was a focal point.

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JMP downgraded Okta to market perform from market outperform following a recent security incident. The shift in rating was attributed to the security incident announced on October 20.

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Wells Fargo reiterated Dollar Tree as overweight, maintaining a positive outlook on the stock as it approached earnings. The anticipation included a modest reduction in 2023 guidance but emphasized the importance of evaluating Dollar Tree's credibility in achieving its turnaround.

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Deutsche Bank downgraded Old Dominion to hold from buy, citing less upside for the shipper within their valuation framework. While acknowledging the potential for double-digit upside for most of their coverage, Deutsche Bank indicated a more conservative outlook for Old Dominion.

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Raymond James downgraded Weyerhaeuser to market perform from strong buy, aligning with a challenged outlook for the lumber company. The Timber REIT sector recommendation was reduced to Market Weight, and both Weyerhaeuser and PotlatchDeltic received Market Perform ratings.

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UBS upgraded Teva to buy from hold, highlighting the pharmaceutical company's unique position for a significant transition to a more brand-focused approach, expected to drive stock outperformance.

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Wells Fargo initiated Waste Management as equal weight, expressing concerns about overestimations for the trash company. While acknowledging the positive aspects of the Waste Management story, the analysts believed that investors had set overly optimistic out-year estimates.

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Redburn Atlantic Equities downgraded Novartis to sell from neutral, emphasizing its lower attractiveness compared to peers. The assessment incorporated a new analysis, existing work on valuation and growth, indicating a less favorable view of Novartis.

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Bernstein reiterated Tesla as underperform, expressing confusion over Tesla's valuation compared to BYD, another electric auto company. The analysts struggled to bridge the substantial valuation gap between the two and maintained an underperform rating on Tesla.

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Needham downgraded Lucid to hold from buy, citing a less optimistic view of the electric vehicle company after lowering unit estimates and considering commentary following 3Q results.

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Jefferies initiated Pulte Group as buy, selecting it as the favorite among the three largest US homebuilders. While acknowledging favorable long-term demand trends for homebuilders, Jefferies anticipated potential choppiness in the next several quarters due to affordability issues.

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RBC upgraded Mondelez to outperform from sector perform, considering it best-in-class with the potential for superior top-line and margin performance.

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UBS downgraded GE Healthcare to sell from neutral, citing an unattractive risk/reward balance in the near term and skepticism about delivering midterm guidance.

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Jefferies reiterated Nvidia as buy, emphasizing its key role in autonomous driving. The automotive design win pipeline reaching $14 billion for the next six years was highlighted.

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Melius upgraded Carnival to buy from hold, expressing increasing bullishness on the stock. Factors such as excess free cash flow and positive returns outside the US contributed to the optimistic outlook for Carnival into 2024.

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