Thursday’s Biggest Analyst Calls: NVIDIA, Apple, Amazon, Spotify, AMD, Uber, McDonald's, Broadcom and More

Morgan Stanley on Eli Lilly: Reiterates Overweight

Morgan Stanley reaffirmed its positive stance on Eli Lilly, raising the stock's price target to $1,083 from $1,023. The firm highlighted their optimistic forecast for the US Zepbound estimates in 2025, projecting $18 billion compared to the consensus $9 billion. This suggests Eli Lilly could outperform market expectations even if pricing is lower than anticipated, due to high expected volumes.

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Rosenblatt on Ribbon: Initiates Buy

Rosenblatt initiated coverage on Ribbon Communications with a buy rating and set a price target of $5. The firm believes the telecommunications company is well-positioned for growth, signaling a significantly improved investment outlook.

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Rosenblatt on Broadcom: Reiterates Buy

Rosenblatt reaffirmed its buy rating on Broadcom and increased its price target to a Street-high of $2,400 from $1,650. This revision is based on a projected low 30s P/E multiple, ahead of the company’s upcoming 10-for-1 share split.

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Bank of America on Apple: Reiterates Buy

Bank of America reiterated its buy rating on Apple, raising its price target to $256 from $230. The firm cited a strong refresh cycle driven by an aging installed base and new AI features, which are expected to boost customer upgrade intentions.

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JPMorgan on Amazon: Reiterates Top Pick

JPMorgan maintained Amazon as a top pick following the AWS Summit, emphasizing the company’s focus on generative AI. Amazon’s comprehensive capabilities, extensive customer data, and security-focused approach were noted as key differentiators.

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Goldman Sachs on Nvidia: Reiterates Buy

Goldman Sachs reiterated its buy rating on Nvidia, considering it a top pick for autonomous technology. The firm believes advancements in AI technology will significantly enhance performance in the industry, although widespread adoption of autonomous vehicles is still a few years away.

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Mizuho on Equinix and Digital Realty: Initiates Buy

Mizuho initiated coverage on several real estate investment trusts, including Equinix and Digital Realty, with buy ratings. For Equinix, the firm sees consistent revenue growth and underappreciated AI benefits. For Digital Realty, Mizuho anticipates a new path to high single-digit earnings growth, maintaining elevated valuation multiples despite past disappointments.

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Truist on Republic Services: Upgrades to Buy

Truist upgraded Republic Services from hold to buy, raising the price target to $220 from $192. The firm sees the waste management company’s shares as attractive.

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Wells Fargo on Advanced Micro Devices: Reiterates Overweight

Wells Fargo reiterated its overweight rating on AMD, increasing the price target to $205 from $190. This follows AMD’s announcement of a $665 million acquisition of Silo AI, aimed at enhancing its AI software capabilities.

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Morgan Stanley on Microchip: Downgrades to Equal Weight

Morgan Stanley downgraded Microchip to equal weight from overweight, citing its high valuation. The firm believes the company's valuation reflects lofty expectations and anticipates a slower pace of deleveraging due to a heavy balance sheet.

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KBW on Interactive Brokers: Downgrades to Market Perform

KBW downgraded Interactive Brokers to market perform from outperform. The decision is primarily driven by valuation concerns after the stock’s strong performance, with expectations of slower net interest income and EPS growth as global central banks begin cutting interest rates.

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Guggenheim on Itron: Upgrades to Buy

Guggenheim upgraded Itron from neutral to buy, setting a price target of $130. The firm is increasingly bullish on the water energy and resource management tech company’s shares.

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Bank of America on Costco: Reiterates Buy

Bank of America reiterated its buy rating on Costco, raising the price target to $962 from $874. This follows Costco’s strong sales report and announcement of a membership fee increase.

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Jefferies on Darden: Downgrades to Underperform

Jefferies downgraded Darden Restaurants to underperform from hold, citing potential share shifts. The firm sees risks to near-term fundamentals due to a more promotional environment and persistent weakness at the low end.

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Jefferies on Spotify: Upgrades to Buy

Jefferies resumed coverage of Spotify with a buy rating. The firm expressed increased confidence in Spotify’s ability to deliver sustainable 15%+ revenue growth over the next three years.

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Jefferies on Roblox: Downgrades to Hold

Jefferies resumed coverage of Roblox, downgrading it to hold from buy. The firm cited the company’s lofty valuation and high growth and margin expectations, with anticipated 20%+ bookings growth and 30%+ incremental margins in the coming years.

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Morgan Stanley on Telefonica Brasil: Upgrades to Overweight

Morgan Stanley upgraded Telefonica Brasil to overweight from equal weight after meeting with management. The firm noted the stock’s lost valuation gains post-Oi closing and the accelerating fixed business adding to continued mobile strength.

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Goldman Sachs on Daqo New Energy: Initiates Buy

Goldman Sachs initiated coverage on Daqo New Energy with a buy rating. The firm highlighted Daqo as a leading poly producer with a strong balance sheet, holding a significant global market share.

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Goldman Sachs on Uber and Instacart: Reiterates Buy

Goldman Sachs reiterated its buy ratings on Uber and Instacart. The firm remains bullish on these companies within the sub-sector.

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Morgan Stanley on McDonald’s: Reiterates Overweight

Morgan Stanley reaffirmed its overweight rating on McDonald’s, lowering the price target to $300 from $312. The firm noted ongoing challenges in sentiment and trends but maintained that re-establishing value is possible, albeit not immediate.

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