Thursday’s Biggest Analyst Calls: Nvidia, Tesla, Eli Lilly, Cheesecake Factory, Walmart, Costco, Broadcom & More

Top Wall Street Analyst Calls for Thursday

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Piper Sandler: Nvidia Reiterated as Overweight

Piper Sandler reaffirmed its "overweight" rating on Nvidia, emphasizing its dominant position in the GPU market. The firm noted that Nvidia commands over 70% of the market, with competitors AMD and Intel vying for the remaining share. Piper continues to see Nvidia as a top pick heading into 2025, driven by its leadership in the enterprise GPU sector.

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Jefferies: Diageo Upgraded to Buy

Jefferies upgraded beverage company Diageo from "hold" to "buy," citing a renewed emphasis on growth under its new CFO. The firm believes Diageo is poised to benefit from increased confidence in the spirits market and expects improvements in profitability, cash flow, and overall growth strategy.

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Goldman Sachs: Cheesecake Factory and Brinker Initiated as Buy

Goldman Sachs initiated coverage of Cheesecake Factory (CAKE) and Brinker (EAT) with "buy" ratings. For Cheesecake Factory, the firm pointed to strong potential for unit growth compared to other full-service restaurant peers. Brinker, the parent company of Chili’s, was highlighted for its operational improvements and ongoing momentum following fundamental changes at Chili’s.

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Bernstein: Okta Upgraded to Outperform

Bernstein upgraded Okta, a leader in identity access management, from "market perform" to "outperform." The firm sees potential for renewed growth and believes now is the right time to adopt a more optimistic stance on the stock.

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Jefferies: Disney Initiated as Hold

Jefferies initiated coverage of Disney (DIS) with a "hold" rating and a price target of $120, noting balanced risks and rewards. The firm believes Disney’s recent multiyear guidance is already priced into the stock.

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Oppenheimer: Broadcom Reiterated as Outperform

Ahead of Broadcom’s earnings report on December 12, Oppenheimer reiterated its "outperform" rating. The firm sees growth driven by AI compute and networking franchises, forecasting a 10% increase in both AI and non-AI semiconductor segments for the fourth quarter.

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Wolfe: Ford Downgraded to Underperform

Wolfe Research downgraded Ford to "underperform," citing concerns about the automaker’s free cash flow and earnings expectations for 2025. The firm remains cautious on Detroit-based automakers and does not foresee a clear path to improvement in the near term.

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Citi: Netflix Reiterated as Neutral

Citi maintained its "neutral" rating on Netflix while raising its price target from $725 to $920. The firm attributes Netflix’s equity performance this year to increased confidence in its ad-supported subscription tier.

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Morgan Stanley: Hewlett Packard Enterprise Upgraded

Morgan Stanley upgraded Hewlett Packard Enterprise (HPE) to "overweight," emphasizing the near-term value of its acquisition of Juniper Networks. The firm sees this as a strategic move to tap into new cloud customers and improve inventory dynamics.

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Morgan Stanley: Applied Materials Downgraded

Morgan Stanley downgraded Applied Materials (AMAT) to "underweight," forecasting a challenging operating environment for the semiconductor company. The firm expects weaker demand in DRAM and trailing-edge logic markets during the first half of 2024.

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Morgan Stanley: Brown & Brown Upgraded

The insurance risk management company Brown & Brown received an "overweight" rating from Morgan Stanley, which praised its strong track record and culture of ownership as key competitive advantages.

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Wolfe: Mobileye Upgraded to Outperform

Autonomous driving company Mobileye was upgraded to "outperform" by Wolfe Research. The firm highlighted that near-term expectations have been recalibrated, positioning the company to play a crucial role in providing autonomous solutions to Western automakers.

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JPMorgan: ConocoPhillips Upgraded

JPMorgan upgraded ConocoPhillips (COP) to "overweight," favoring natural gas-focused producers amid low gas prices. However, the firm also downgraded Devon Energy (DVN) and SM Energy (SM) to "neutral," aiming for a more balanced ratings approach.

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Barclays: Gates Industrial Upgraded

Barclays upgraded Gates Industrial (GTES) to "overweight," citing its significant exposure to short-cycle industrials and its attractive valuation.

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Bank of America: Walmart Added to US1 List

Bank of America added Walmart (WMT) to its US1 list, replacing Costco (COST). While both stocks remain "buy" rated, the firm sees Walmart as better positioned for market share growth, digital advertising expansion, and reduced e-commerce losses.

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JPMorgan: American Eagle Downgraded

JPMorgan downgraded American Eagle (AEO) to "neutral," following earnings that reflected moderating sales and inconsistent consumer trends over the past six months.

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Bank of America: Tesla Reiterated as Buy

Tesla (TSLA) maintained its "buy" rating at Bank of America, which raised its price target from $350 to $400. A visit to Tesla’s Austin gigafactory left analysts confident in the company’s growth potential through its EV business, upcoming robotaxi launch, and long-term innovations like Optimus.

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Deutsche Bank: Robinhood Reiterated as Buy

Deutsche Bank reiterated its "buy" rating on Robinhood (HOOD) and increased its price target from $36 to $42. The firm praised the company’s long-term vision, presented during its investor day, for becoming a leader in active trading and wallet share penetration.

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Morgan Stanley: Eli Lilly Reiterated as Overweight

Eli Lilly (LLY) remains a top pick for Morgan Stanley heading into 2025. The firm believes Lilly’s oral GLP-1 drug, Orforglipron, is well-positioned to address growing demand amidst injectable supply constraints.

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