Thursday's Biggest Analyst Calls: Apple, Nvidia, Roku, Meta, Oracle, Broadcom, Micron & More

Here are some of the biggest Wall Street calls for Thursday, highlighting notable stock recommendations and updates from various financial firms:

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Stifel downgrades Simon Property Group (SPG) to hold from buy

Stifel downgraded Simon Property Group, a real estate investment trust (REIT), primarily due to concerns over its valuation. Despite this, the firm acknowledged that Simon Property Group has strong fundamentals at its higher-productivity centers, which should help counterbalance potential challenges. Specifically, Stifel pointed out that while growth might be hindered by bankruptcies and store closures, demand from retailers and leasing leverage at these high-performing locations remains robust.

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Wells Fargo initiates Blackstone (BX) and Apollo Global Management (APO) as top picks

Wells Fargo initiated coverage on several alternative asset management firms, naming Blackstone and Apollo Global Management among its top picks. The firm described these companies as some of the best-kept secrets in the investment world. Wells Fargo believes both companies are well-positioned within their respective sectors, with TPG and Apollo standing out in particular.

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Wells Fargo initiates BlackRock (BLK) as overweight

Wells Fargo also initiated coverage on BlackRock, rating the asset management giant as overweight. The firm emphasized BlackRock’s leadership in the industry, praising its consistent fund flow, revenue generation, and margins. Wells Fargo also noted that BlackRock’s recent mergers and acquisitions (M&A) activity is likely to support its long-term growth profile.

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Stephens initiates Carvana (CVNA) as overweight

Stephens initiated coverage on Carvana, the online used car retailer, with an overweight rating and a price target of $190 per share. The firm referred to Carvana as a "category killer," suggesting that the company is uniquely positioned within its industry, with potential for significant growth.

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Bernstein reiterates Nvidia (NVDA) and Broadcom (AVGO) as top ideas

Bernstein reiterated its top ratings for Nvidia and Broadcom, expressing confidence in both companies despite recent concerns over margins. The firm downplayed any fears about profitability, particularly in light of recent delays with Nvidia’s new platform, stating that these issues are minor and unlikely to derail the companies’ growth trajectories.

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Bernstein reiterates Oracle (ORCL) as a top investment idea

Bernstein also reiterated Oracle as one of its top investment ideas. The firm highlighted Oracle’s robust customer base, which consists of large enterprises relying on critical workloads, and its increasing revenue growth driven by its cloud services. According to Bernstein, these factors make Oracle an attractive investment with downside protection.

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Bank of America upgrades Diageo (DGE) to buy from neutral

Bank of America upgraded British beverage company Diageo from neutral to buy, citing a turnaround after two years of earnings downgrades and underperformance in its stock price. The firm believes that the worst is now over for Diageo, and the company is poised for recovery.

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Barclays initiates Flutter (FLUT) as overweight

Barclays initiated coverage of Flutter, a leading digital gaming company, with an overweight rating. Barclays views Flutter as the undisputed leader in its space, benefiting from a strong product moat, unmatched scale, and substantial global opportunities. The firm sees significant potential for the company’s growth in the future.

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Morgan Stanley reiterates Amazon (AMZN), Alphabet (GOOGL), and Meta (META) as overweight

Morgan Stanley reiterated its overweight ratings on Amazon, Alphabet, and Meta, citing their strong positions within the U.S. advertising market. The firm expects performance advertising across digital media, along with growth in e-commerce and connected TV (CTV), to drive continued success for these companies into 2024.

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Goldman Sachs reiterates FedEx (FDX) as overweight

Goldman Sachs maintained its overweight rating on FedEx, ahead of the company’s earnings report next week. The firm expressed optimism about FedEx’s valuation, stating that the stock remains attractive based on a sum-of-the-parts analysis.

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Jefferies reiterates McDonald’s (MCD) as buy

Jefferies reiterated its buy rating on McDonald’s, pointing out that the fast food giant is well-positioned heading into the back-to-school season. The firm highlighted McDonald’s ability to capitalize on promotional opportunities during this period.

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UBS reiterates Costco (COST) as buy

UBS maintained its buy rating on Costco ahead of the company’s fourth-quarter earnings report later this month. UBS expects Costco to deliver steady results, showcasing the company’s resilience in a competitive retail environment.

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Bank of America upgrades PotlatchDeltic (PCH) to buy from neutral

Bank of America upgraded PotlatchDeltic, a lumber company, from neutral to buy, citing margin expansion opportunities. While the firm acknowledged a lack of short-term catalysts, it sees 20% upside potential for the stock, driven by improvements in the company’s fundamentals.

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Wolfe upgrades Roku (ROKU) to outperform from peer perform

Wolfe Research upgraded Roku, noting that the company’s sales growth is poised to accelerate. Wolfe emphasized Roku’s trimmed cost structure and evolving sales strategies as key factors supporting its positive outlook. The firm believes Roku’s risks are diminishing, while its growth prospects are improving.

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Morgan Stanley reiterates Apple (AAPL) as overweight

Morgan Stanley reiterated its overweight rating on Apple, naming the tech giant to its "Vintage Values" list as a stock to hold for the next 12 months. The firm expects Apple to generate $8.70 in earnings per share by fiscal year 2026, driven by double-digit growth in its services business and stable gross margins.

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Raymond James reiterates Micron (MU) as outperform

Raymond James reiterated its outperform rating on Micron but lowered its price target from $160 to $125 per share. The firm believes that Micron has significant opportunities in the AI space, particularly with its High Bandwidth Memory (HBM) products, and expects the company to capture a fair share of this growing market.

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