Tuesday's Biggest Analyst Calls: Apple, Meta, Tesla, Costco, Walmart, Disney, First Solar & More

Here are Tuesday’s biggest calls on Wall Street:

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Loop Capital Initiates Coverage on AppLovin as Buy

Loop Capital began its coverage of AppLovin, a key software player in the mobile gaming industry, with a "Buy" rating. The firm believes that AppLovin is an essential infrastructure provider in this space, making it crucial for the sector's overall ecosystem. Loop set a price target (PT) of $181 for the stock.

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Bernstein Initiates Costco as Outperform

Bernstein has taken a bullish stance on Costco, initiating the stock with an "Outperform" rating. Despite Costco’s stock trading at a premium valuation of about 50 times price-to-forward earnings, Bernstein argues that the company’s consistent earnings growth potential is not fully appreciated. They view Costco as the highest quality stock under their coverage due to its steady business model and long-term growth outlook.

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Bernstein Initiates Walmart as Outperform

Walmart also received an "Outperform" rating from Bernstein, which positions it as the firm’s top pick among major retailers. The analyst firm anticipates that Walmart's massive scale will allow it to offer strong value to consumers while expanding its e-commerce operations profitably. They expect the company’s investments in its omni-channel strategy to pay off, with earnings growth outpacing sales growth over time. Bernstein set a price target of $95 for Walmart shares.

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Citi Upgrades First Solar to Buy

Citi upgraded First Solar from "Neutral" to "Buy," indicating a favorable outlook for the solar energy company regardless of the outcome of the upcoming presidential election. The firm sees First Solar benefiting from both a potential Democratic victory, which could drive a sharp recovery in the renewable energy sector, and a Republican win, which may result in higher tariffs, leading to a longer-term recovery for the company.

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Mizuho Initiates Cadence and Synopsys as Outperform

Mizuho expressed optimism about the Electronic Design Automation (EDA) software sector, initiating both Cadence Design Systems and Synopsys with "Outperform" ratings. The firm believes that these companies are well-positioned within the EDA space and sees significant growth opportunities ahead.

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Jefferies Reiterates Hold Rating on Tesla

Jefferies maintained its "Hold" rating on Tesla while raising the price target from $165 to $195 per share. While Tesla remains a pioneer in innovation and drive, Jefferies views the company more like a venture capital portfolio funded by its core auto business, which is facing increasing pressure.

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Morgan Stanley Reiterates Apple as Top Pick

Ahead of Apple’s earnings report next week, Morgan Stanley reiterated Apple as its top stock pick. The firm’s long-term view on the tech giant remains bullish, especially regarding the company's AI upgrade cycle. However, they noted that near-term market conditions may pose challenges.

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Loop Capital Reiterates Buy Rating on Microsoft

Loop Capital remains positive on Microsoft heading into the company’s earnings next week. The firm expects solid results for Microsoft’s fiscal first quarter (ending September), with key growth drivers accelerating and continuing to perform strongly into the end of the calendar year.

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Bank of America Reiterates Buy Rating on Meta

Bank of America reiterated its "Buy" rating on Meta, emphasizing the company’s strong position in artificial intelligence. Meta has risen 63% year-to-date, and BofA sees further growth potential from AI-driven ad revenue, multi-year opportunities in generative AI, and increased app usage by younger users.

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Redburn Atlantic Equities Initiates Mondelez as Buy

Mondelez was initiated as a "Buy" by Redburn Atlantic Equities, with the firm naming it as their top pick. Redburn believes Mondelez is well-positioned to capitalize on growth in emerging markets and the snacking trend, offering strong potential for both revenue growth and margin expansion.

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KeyBanc Initiates Zeta Global as Overweight

KeyBanc initiated coverage on Zeta Global with an "Overweight" rating and a $40 price target. The firm sees the company’s marketing software platform as highly attractive and believes it has significant growth potential in the coming years.

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Stifel Initiates Braze and Klaviyo as Buy

Stifel initiated coverage on Braze and Klaviyo with "Buy" ratings. Braze is seen as a leading player in the customer engagement software space, offering a multi-channel platform that’s difficult for competitors to replicate. Similarly, Klaviyo’s innovative software makes it a strong player in the marketing space, with a price target of $45 per share.

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Morgan Stanley Reiterates Disney as Overweight

Morgan Stanley reiterated its "Overweight" rating on Disney, noting that the company is poised for accelerating growth starting in 2026. Although growth has been muted recently due to heavy investments in its theme parks, Morgan Stanley sees this phase as temporary and believes Disney shares offer a favorable risk/reward ratio.

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Citi Upgrades Fluor to Buy

Citi upgraded Fluor from "Neutral" to "Buy," citing the company's positive outlook and execution improvements. While progress has been slow, Fluor’s growing backlog, which was up 20% year-over-year as of the second quarter of 2024, and improved execution are strong indicators of long-term potential. Citi expects continued recovery in Fluor's business.

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JPMorgan Downgrades Hertz to Underweight

JPMorgan downgraded Hertz from "Neutral" to "Underweight," citing high financial leverage. The firm also removed its price target for Hertz, factoring in weaker travel trends and concerns about vehicle fleet turnover.

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BTIG Downgrades Deckers to Neutral

BTIG downgraded shoe company Deckers to "Neutral," pointing to slowing growth. The firm noted that its research shows a weaker-than-expected start to the holiday season for UGG, a key Deckers brand. As a result, BTIG now views the stock’s risk/reward profile as balanced.

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Jefferies Upgrades Paylocity to Buy

Jefferies upgraded Paylocity to "Buy," citing strong growth prospects. The firm believes that Paylocity is well-positioned for organic outperformance, particularly as expectations for fiscal year 2025 have been reset.

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Guggenheim Names Itron a Top Idea

Guggenheim reiterated its "Buy" rating on water tech company Itron, making it a top pick. The firm is confident that strong bookings in the second half of 2024 will drive growth for the company.

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KeyBanc Initiates Flex as Overweight

Lastly, KeyBanc initiated coverage of Flex with an "Overweight" rating. The firm sees Flex as a company increasing its exposure to high-value markets, which should enhance both its profitability and resilience in the face of market challenges.

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