Thursday’s Biggest Analyst Calls: Apple, Dell, Amazon, Broadcom, Crowdstrike, Pnc, & More

On Thursday, Wall Street analysts issued a series of influential recommendations and ratings for various companies, highlighting significant shifts in market sentiment. Here's a detailed look at some of the most notable calls:

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Morgan Stanley Reiterates Apple as Overweight

Morgan Stanley maintains its optimistic stance on Apple, reaffirming its overweight rating. The firm is particularly bullish as the market approaches the launch of the new iPhone. They noted that while the iPhone sales performance in early October will be crucial for gauging the growth trajectory for the upcoming cycle, there seems to be growing momentum in anticipation of the iPhone 16 launch.

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Wells Fargo Downgrades M&T Bank to Underweight from Equal Weight

Wells Fargo downgraded M&T Bank to underweight, citing concerns about the bank’s exposure to lower interest rates. The firm pointed out that M&T Bank has a higher-than-average estimated price-to-earnings ratio, despite being more vulnerable to declining rates due to its reliance on net interest income. Additionally, the bank's slower growth and increased competition in its operating regions contribute to the downgrade.

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UBS Upgrades Dutch Bros to Buy from Neutral

UBS upgraded Dutch Bros, the coffee chain, to a buy rating, highlighting the stock's attractiveness at current levels. The firm emphasized the potential for same-store sales growth and the company's long-term expansion plans, which remain intact, making the shares a compelling buy.

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Baird Initiates Valvoline as Outperform

Baird initiated coverage of Valvoline with an outperform rating, citing the company's strong position in the large and fragmented auto services industry. Valvoline is recognized as a trusted leader in this recession-resilient sector, which supports the positive outlook.

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Goldman Sachs Upgrades Progressive to Buy from Neutral

Goldman Sachs upgraded Progressive to a buy rating, driven by increased confidence in the company's ability to sustain and grow its policies in force (PIF). The firm believes that the current market estimates do not fully reflect the strength and sustainability of Progressive's growth.

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Piper Sandler Initiates Tyra Biosciences as Overweight

Piper Sandler initiated coverage of Tyra Biosciences with an overweight rating, expressing optimism about the biotech company's expertise in fibroblast growth factor receptor (FGFR) biology. Piper Sandler believes that Tyra Biosciences is well-positioned to address key limitations of earlier generation FGFR inhibitors.

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Morgan Stanley Upgrades Victoria’s Secret to Equal Weight from Underweight

Morgan Stanley upgraded Victoria’s Secret to equal weight, noting that recent management changes could reignite hopes for a turnaround. The firm also pointed to the company's strong second-quarter performance, which sets a more achievable target for the second half of the year.

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UBS Upgrades Medtronic to Neutral from Sell

UBS upgraded Medtronic to neutral from sell, driven by increased confidence in the sustainability of the company's recent diabetes turnaround. UBS now believes that the improvement in Medtronic's diabetes business is likely to continue.

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Citi Downgrades European Wax Center to Neutral from Buy

Citi downgraded European Wax Center to neutral, citing uncertainty following the company's second-quarter earnings report. The firm lowered its price target significantly, reflecting concerns about the company's near-term outlook.

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JPMorgan Downgrades bluebird bio to Neutral from Overweight

JPMorgan downgraded bluebird bio to neutral following its second-quarter earnings update. The firm expressed concern that sentiment might be further dampened by the commercial outlook for the second half of 2024, which appears less encouraging than expected.

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JPMorgan Upgrades Sea Limited to Overweight from Neutral

JPMorgan upgraded Sea Limited to overweight, citing strong performance across the company's three major business segments. The firm expects positive earnings revisions, driven by the company's robust growth.

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Deutsche Bank Upgrades Robinhood to Buy from Hold

Deutsche Bank upgraded Robinhood to a buy rating, noting over 20% upside potential for the stock over the next 12 months. The firm now sees Robinhood as a compelling investment, joining Charles Schwab as a top pick within the e-broker sector.

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KeyBanc Upgrades Brinker to Overweight from Sector Weight

KeyBanc upgraded Brinker, the owner of brands like Chili's, to overweight, advising investors to buy the dip following an 11% decline in the stock after recent results. The firm also set a new price target of $72 per share.

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Morgan Stanley Upgrades Nucor to Overweight from Equal Weight

Morgan Stanley upgraded Nucor, citing the steel company's defensive characteristics. The firm prefers Nucor's lower beta and defensive exposure in the second half of 2024, setting a new price target of $176 per share.

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Wells Fargo Downgrades Snowflake to Equal Weight from Overweight

Wells Fargo downgraded Snowflake to equal weight, citing concerns over potential customer churn following a recent data breach. The firm also noted that the premium multiple on Snowflake's stock is becoming harder to justify as the company faces increasing competition and macroeconomic challenges.

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JPMorgan Adds Dell to the Focus List

JPMorgan added Dell to its focus list, highlighting the stock's attractive valuation after a recent pullback. The firm believes that investors are overlooking Dell's total addressable market, especially as the AI investment cycle gains momentum, benefiting Dell's server and storage businesses.

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Bank of America Upgrades PNC to Buy from Neutral

Bank of America upgraded PNC Financial to buy, calling it an "all-weather stock." The firm raised its price target, driven by positive earnings revisions and a strong outlook for the regional bank.

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Bank of America Downgrades Pilgrim’s Pride to Neutral from Buy

Bank of America downgraded Pilgrim's Pride, citing tough comparisons in the poultry market. Despite maintaining its estimates, the firm believes the current environment presents challenges for the company's growth.

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Goldman Sachs Reiterates CrowdStrike as Buy

Goldman Sachs reiterated its buy rating on CrowdStrike, expressing optimism about the stock's risk/reward profile. The firm sees the upcoming quarter as crucial for establishing a foundation for growth.

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Bernstein Reiterates Amazon as a Top Idea

Bernstein reiterated Amazon as a top idea, noting that the company's operational income inflection story remains intact. The firm expects robust growth from AWS, a re-acceleration in advertising, and steady retail margin expansion in the second half of 2024.

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Bernstein Reiterates Broadcom as a Top Idea

Bernstein reiterated Broadcom as a top pick, describing it as the "cheapest way to play AI in semiconductors." The firm is optimistic about Broadcom's non-AI semiconductor business and its strong setup for 2025.

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Stifel Initiates Advanced Energy Industries as Buy

Stifel initiated coverage of Advanced Energy Industries with a buy rating, highlighting the company's strong position as a supplier of power delivery subsystems.

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Oppenheimer Reiterates Ulta as Outperform

Oppenheimer reiterated its outperform rating on Ulta Beauty, following news that Warren Buffett's Berkshire Hathaway took a stake in the company. Shares of Ulta Beauty surged after the announcement.

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UBS Upgrades Millicom to Buy from Neutral

UBS upgraded Millicom, a Latin American telecom company, to buy, citing its strong positioning and a new price target of $33 per share.

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