Tuesday’s Biggest Analyst Calls: NVIDIA, Amazon, AMD, Exxon, Ulta, Eli Lilly, & More

On Tuesday, several major Wall Street firms issued significant calls on various stocks, reflecting their analysis and predictions for these companies. Below are the highlights of the day:

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Goldman Sachs Initiates MediaAlpha with a Buy Rating

Goldman Sachs has initiated coverage of MediaAlpha (MAX) with a Buy rating, setting a 12-month price target of $20. The firm is optimistic about the ad tech platform company, expressing confidence in its growth potential.

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Morgan Stanley Reiterates Nvidia as Overweight

Morgan Stanley reiterated its Overweight rating on Nvidia, underscoring its positive outlook on the company's stock. The firm anticipates that Nvidia's upcoming earnings report will alleviate any investor concerns, leading to a rebound in the share price, particularly benefiting the broader AI supply chain.

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Goldman Sachs Upgrades Santander Chile to Neutral

Goldman Sachs upgraded its rating on Santander Chile from Sell to Neutral, becoming more optimistic about the Latin American bank's prospects. The firm expects strong earnings momentum in the medium term, with projected earnings per share (EPS) growth averaging 24% annually from 2023 to 2026. Goldman also foresees a recovery in profitability following a significant decline in 2023.

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Barclays Initiates LATAM Airlines with an Overweight Rating

Barclays initiated coverage of LATAM Airlines with an Overweight rating, highlighting the company's promising outlook post-restructuring. According to Barclays, LATAM Airlines is well-positioned to capitalize on a favorable market environment due to its extensive network, efficient cost structure, and robust balance sheet.

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UBS Reiterates Exxon as a Buy

UBS reiterated its Buy rating on Exxon Mobil (XOM), maintaining that it remains a top pick. The firm also expressed its favorable view of Chevron (CVX), emphasizing that both companies are well-positioned for the current market cycle. UBS pointed to their strong upstream growth prospects, downstream capacity expansions, solid balance sheets, and increasing investments in low-carbon initiatives.

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JPMorgan Upgrades Vista Energy to Overweight

JPMorgan upgraded Vista Energy from Neutral to Overweight, identifying the company as a standout player in the oil and gas sector, particularly in Argentina. The firm initiated coverage with a price target of $68, emphasizing Vista's differentiated positioning in the market.

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JPMorgan Reiterates Burlington as Overweight

JPMorgan reiterated its Overweight rating on Burlington Stores (BURL), describing it as one of the best-positioned off-price retailers. The firm noted that Burlington, the third-largest off-price retailer behind TJX and Ross, offers an attractive opportunity to benefit from the outperformance of the off-price retail sector. Burlington's sales per square foot are significantly lower than its peers, and the firm believes the company's growth cycle is still in its early stages.

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Bank of America Reinstates TKO as a Buy

Bank of America reinstated its Buy rating on TKO, a sports and media company, highlighting its resilience. The firm pointed out that TKO shares have gained approximately 45% year-to-date, significantly outperforming traditional media companies and the broader market.

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Bernstein Upgrades Biomarin to Outperform

Bernstein upgraded Biomarin from Market Perform to Outperform, citing optimism ahead of the company's investor day in early September. Bernstein expects management to outline a credible path for margin expansion, including further near-term cost optimization, which should help bridge the gap between buyside and sellside operating margin expectations.

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Daiwa Downgrades JPMorgan to Outperform

Daiwa downgraded JPMorgan Chase from Buy to Outperform, noting that the upside for the banking giant appears limited following its strong performance over the past two years.

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JPMorgan Reiterates Amazon as a Best Idea

JPMorgan reiterated its strong support for Amazon (AMZN), maintaining it as a top investment idea. The firm believes that U.S. e-commerce penetration of adjusted retail sales could nearly double from the current 22% to over 40% in the long term.

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Evercore ISI Upgrades Vornado to Outperform

Evercore ISI upgraded Vornado Realty Trust from Underperform to Outperform, citing multiple positive catalysts on the horizon. Although the stock has already risen 17% year-to-date, outpacing the REIT index, Evercore believes there are several additional drivers that could sustain this outperformance over the next 6 to 12 months.

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Wells Fargo Names Eli Lilly a Top Pick

Wells Fargo named Eli Lilly (LLY) as its top pick, highlighting the company's strong manufacturing capabilities and vast data resources as key factors that will create a significant competitive moat in the long term.

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Citi Opens a Positive Catalyst Watch on Abercrombie & Fitch

Citi expressed optimism about Abercrombie & Fitch ahead of the company’s upcoming earnings report. While maintaining a neutral long-term rating, Citi placed the stock on a 30-day positive catalyst watch, believing the risk/reward profile is favorable heading into the second quarter earnings announcement.

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Morgan Stanley Reiterates Palo Alto Networks as Overweight

Morgan Stanley reiterated its Overweight rating on Palo Alto Networks (PANW), raising its price target from $360 to $390 per share following the company's earnings report. The firm is confident that multiple product cycles, AI-related growth, and easier comparisons will drive top-line acceleration through fiscal year 2025.

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Edward Jones Initiates Advanced Micro Devices as Buy

Edward Jones initiated coverage of Advanced Micro Devices (AMD) with a Buy rating, expressing confidence in the semiconductor company. The firm expects growing demand for data-center infrastructure to boost sales of AMD's chips, particularly its graphics processing units (GPUs) and central processing units (CPUs).

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Needham Initiates Sonic Automotive as Buy

Needham initiated coverage of Sonic Automotive (SAH) with a Buy rating, setting a price target of $73. The firm believes the auto dealer franchise is well-positioned to benefit from current market conditions.

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JPMorgan Names Mastercard a Top Pick

JPMorgan named Mastercard (MA) as a top pick, citing better visibility into revenue and guidance upside. The firm highlighted Mastercard's status as the second-largest global card network, with significant exposure to faster-growing non-U.S. markets and a robust suite of value-added services.

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Oppenheimer Reiterates Ulta Beauty as Outperform

Oppenheimer reiterated its Outperform rating on Ulta Beauty (ULTA), remaining positive on the stock despite the recent disclosure of Berkshire Hathaway's stake. The firm acknowledged that the near-term outlook may be more challenging, but for long-term investors, Oppenheimer sees opportunities to capitalize on any dips, especially given Ulta's attractive valuation and potential for growth under new management initiatives starting in fiscal year 2025 and beyond.

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