Thursday’s Biggest Analyst Calls: Nvidia, Apple, Micron, Nike, Meta, Microsoft, First Solar, Tesla & More

Here are the most notable Wall Street analyst calls for Thursday:

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Goldman Sachs upgrades Bilibili to buy from neutral

Goldman Sachs has raised its rating on Bilibili, a Chinese online entertainment platform, from neutral to buy. The firm highlighted Bilibili’s potential for margin expansion, citing its shift towards a more profitable business model centered on advertising and gaming, which carry higher margins. They noted that Bilibili has a highly engaged young user base but has been under-monetized to date, meaning there is room for growth as the platform capitalizes on its audience more effectively.

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UBS downgrades GE Healthcare to sell from neutral

UBS has downgraded GE Healthcare from neutral to sell, citing concerns about the company’s risk exposure, particularly in China. The firm believes that the stock is currently priced based on the assumption that the company will meet its mid-term guidance, but it does not fully account for potential risks related to its business in China. This has raised caution for the medical technology company, leading UBS to recommend selling the stock.

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Morgan Stanley downgrades Tencent Music Entertainment to equal weight from overweight

Morgan Stanley downgraded Tencent Music Entertainment to equal weight from overweight. The firm pointed to slowing growth and uncertainty regarding new user acquisitions. After seven consecutive quarters of high growth, the company may face challenges maintaining its momentum, as easy growth opportunities have largely been exhausted. This raises concerns about the company’s ability to continue adding users at the same rate going forward.

Oppenheimer reiterates Microsoft as outperform

Oppenheimer reaffirmed its outperform rating on Microsoft, advising long-term investors to stay with the stock. The firm noted that while their estimates for Microsoft are slightly below consensus for the first time, they continue to believe in Microsoft’s leadership in enterprise artificial intelligence (AI). Oppenheimer maintained its 18-month price target of $500, seeing the company as a strong player in the AI sector despite potential short-term volatility.

Truist initiates First Solar as buy

Truist initiated coverage of First Solar with a buy rating, citing the company’s competitive advantage due to its American-made products. The firm highlighted First Solar’s "wide moat" in the solar industry and set a price target of $300 per share. This suggests that First Solar’s U.S.-based manufacturing and technology differentiation position it well in the growing renewable energy sector.

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Deutsche Bank reiterates Tesla as buy

Deutsche Bank reiterated its buy rating on Tesla ahead of the company’s third-quarter delivery report. The firm expects Tesla’s deliveries to meet or exceed market expectations, forecasting between 460,000 to 465,000 units for the quarter. These estimates are largely in line with earlier forecasts, signaling continued confidence in Tesla’s ability to meet delivery targets despite challenges in the global automotive market.

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Jefferies downgrades Hershey to underperform from hold

Jefferies downgraded Hershey to underperform from hold, expressing concerns about pricing pressures and a stretched consumer. The firm pointed out that chocolate sales have been lagging behind other snack categories since 2019, with price gaps between chocolate and other snacks widening further. With Hershey needing to raise prices again, there is a risk that the company could see further declines in sales volumes.

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Susquehanna reiterates Nvidia as positive

Susquehanna maintained its positive rating on Nvidia, emphasizing the company’s critical role in enabling AI development. The firm acknowledged that while competitors are offering similar AI accelerators at lower prices, Nvidia’s competitive advantage lies in its vertical integration across semiconductor design, systems, and software. This unique combination makes Nvidia a dominant force in the AI hardware market.

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Deutsche Bank reiterates Nike as buy

Deutsche Bank raised its price target for Nike to $95 per share from $92 while reiterating its buy rating. The firm expects Nike’s upcoming earnings to showcase gradual improvement, which should help propel the stock upward. Despite challenges, Deutsche Bank believes Nike is on a path toward renewed growth and market leadership.

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Oppenheimer reiterates Apple as outperform

Oppenheimer maintained its outperform rating on Apple, expressing little concern about competition from Meta’s Orion augmented reality (AR) products. While Meta’s AR glasses represent a significant technological advancement, Oppenheimer believes it will take years before they can rival the commercial success of Apple’s Vision Pro, which is expected to dominate the market in 2024.

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Bernstein upgrades Starbucks to outperform from market perform

Bernstein upgraded Starbucks to outperform from market perform, driven by optimism about the company’s new CEO. While they acknowledged that Starbucks’ turnaround will take time, the firm believes that the stock will start to perform well even before the turnaround is fully completed.

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Barclays upgrades New York Community Bank to overweight from equal weight

Barclays upgraded New York Community Bank to overweight from equal weight, citing favorable risk/reward dynamics. The firm noted that the bank has successfully navigated key challenges related to credit evaluation and capital growth. While difficulties remain, Barclays sees the stock as well-positioned for future growth.

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UBS reiterates Micron as buy

UBS reiterated its buy rating on Micron following the company’s latest earnings report. The firm highlighted Micron’s leadership in memory technology and expressed confidence in the company’s supply and demand outlook for the coming year.

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Bank of America reiterates Meta as buy

Bank of America raised its price target for Meta to $630 per share from $563 after Meta’s latest augmented reality product announcements. The firm was impressed with the innovations showcased during CEO Mark Zuckerberg’s keynote and noted the expanding AI capabilities across Meta’s suite of applications.

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Morgan Stanley downgrades Sonos to underweight from overweight

Morgan Stanley issued a double downgrade for Sonos, lowering the stock to underweight from overweight. The firm cited concerns over the impact of the company’s app redesign, which it believes could negatively affect both revenue and profitability more than the market currently expects.

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Truist initiates GE Vernova as buy

Truist initiated coverage of GE Vernova with a buy rating, calling the company an “energy transition behemoth.” The firm highlighted GE Vernova’s unmatched scale in both traditional and renewable energy products and services.

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JPMorgan reiterates DraftKings as overweight

JPMorgan reaffirmed its overweight rating on DraftKings and raised its price target to $54 per share from $48. The firm continues to view DraftKings positively and expects strong performance through the end of 2025.

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Bank of America reiterates Ralph Lauren as buy

Bank of America reaffirmed its buy rating on Ralph Lauren following a series of meetings with the company’s management. The firm remains optimistic about the brand’s potential for sales and margin growth over the course of the year.

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