Tuesday’s Biggest Analyst Calls: Nvidia, Apple, Tesla, Jetblue, Disney, Caterpillar, Super Micro and More

Here are the notable calls on Wall Street for Tuesday:

Morgan Stanley Downgrades Oatly to Equal Weight from Overweight:Morgan Stanley has downgraded Oatly, citing low visibility despite turnaround progress. The investment bank expressed concerns over negative catalysts affecting the oat-based product company.

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Morgan Stanley Reiterates Tesla as Overweight:Despite negative data points in a recent investor survey and overwhelming bearish institutional investor sentiment, Morgan Stanley reiterated its overweight rating on Tesla with a $345 price target. The investment bank remains optimistic about Tesla's prospects.

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Bernstein Reiterates Apple as Market Perform:Bernstein maintains its market perform rating on Apple, noting that the upcoming iPhone 16 could incorporate artificial intelligence capabilities. The firm expects AI features consistent with existing products, including advanced image and video tools, translation, transcription, enhanced Siri, and increased automation in music.

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Morgan Stanley Reiterates Nvidia as Overweight:Morgan Stanley stands by Nvidia ahead of its earnings report, anticipating a strong quarter. The investment bank's top-line estimate for January exceeds guidance and consensus, pointing to robust performance for the graphics processing unit (GPU) manufacturer.

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Bernstein Reiterates Disney as Outperform:Bernstein raised its price target on Disney to $120 per share from $115, citing the company's crackdown on password sharing. The firm estimates around $1.2 billion in incremental revenue from this effort, expecting Disney to capture the full benefit over the next 6 to 8 quarters.

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RBC Upgrades Ball to Outperform:RBC upgraded packaging and jar company Ball to outperform following the sale of its aerospace business for approximately $4.5 billion in after-tax cash proceeds. The funds will be used for debt reduction and share buybacks.

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Evercore ISI Downgrades Caterpillar to In Line:Evercore ISI downgraded Caterpillar, along with Ingersoll Rand and Timken, from outperform to in line. The firm cites prudent profit-taking as the reason for the downgrade.

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Rosenblatt Reiterates Super Micro as Buy:Rosenblatt reiterated its buy rating on Super Micro, raising the price target to $1,300 from $700. The firm attributes the increase to the continued momentum in AI computing and share gains.

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Deutsche Bank Upgrades JetBlue, Alaska Air, and Southwest to Buy:Deutsche Bank upgraded several airlines—Alaska Air, JetBlue, and Southwest—from hold to buy, citing an improving domestic supply backdrop. The firm expects more moderate domestic available seat mile (ASM) growth for 2024, positively impacting unit revenue performance.

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Redburn Atlantic Equities Downgrades MSCI to Sell:Redburn Atlantic Equities downgraded MSCI to sell, citing headwinds and notable underperformance versus peers as earnings growth slowed in 2023.

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Goldman Sachs Initiates BrightSpring Health as Buy:Goldman Sachs initiated coverage of home-based health services company BrightSpring Health Services with a buy rating and a target price of $26.

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Wolfe Upgrades Freshworks to Outperform:Wolfe upgraded cloud-based software-as-a-service company Freshworks to outperform, citing improving fundamentals. The firm sees a positive shift in the company's macro environment, execution, retention, revenue, and free cash flow support.

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Piper Sandler Upgrades US Foods to Overweight:Piper Sandler upgraded food service company US Foods to overweight following its fourth-quarter earnings results. The firm expects solid top-line performance for domestic-focused names.

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Goldman Sachs Initiates ArriVent Biopharma as Buy:Goldman Sachs initiated coverage on biopharma company ArriVent Biopharma with a buy rating, noting its differentiated and de-risked profile across select lung cancer populations.

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B. Riley Upgrades Brunswick to Buy:B. Riley upgraded marine company Brunswick from neutral to buy, raising the price target from $100 to $108. The upgrade follows constructive meetings with company management at the Miami International Boat Show.

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Loop Downgrades W.W. Grainger to Hold:Loop downgraded industrial supply company W.W. Grainger to hold from buy, citing a more balanced risk/reward scenario. The firm increased its price target to $1,000 per share.

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Barclays Upgrades AvalonBay Communities to Overweight:Barclays upgraded real estate company AvalonBay Communities to overweight from equal weight. The firm highlighted AvalonBay's unique development platform, expecting solid funds from operations (FFO) growth.

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JPMorgan Initiates Immunovant to Overweight:JPMorgan initiated coverage on biopharma company Immunovant with an overweight rating and a December 2024 price target of $51. The firm finds Immunovant's profile compelling.

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Northcoast Downgrades Texas Roadhouse to Neutral:Northcoast downgraded Texas Roadhouse to neutral from buy, primarily based on valuation. The firm acknowledges the restaurant chain's path to double-digit revenue growth but sees a balanced risk/reward scenario.

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Mizuho Upgrades LivaNova to Buy:Mizuho upgraded medtech company LivaNova, citing its favorable view of the incoming CEO and potential paths for asymmetric upside from the current depressed level.

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JPMorgan Downgrades Holley to Neutral:JPMorgan downgraded manufacturing company Holley to neutral from overweight ahead of its earnings report, citing negative sentiment. The firm placed Holley on Negative Catalyst Watch.

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Morgan Stanley Initiates CG Oncology as Buy:Morgan Stanley initiated coverage on bladder cancer company CG Oncology with a buy rating, describing its shares as compelling. CG Oncology is a late-stage clinical company focused on developing therapies for bladder cancer.

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UBS Initiates Morgan Stanley Direct Lending Fund as Buy:UBS initiated coverage on financial services company Morgan Stanley Direct Lending Fund with a buy rating and a $23.50 price target. The fund focuses on middle-market and upper-middle-market companies.

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Seaport Initiates Booking Holdings as Buy:Seaport initiated coverage on travel website Booking Holdings with a buy rating, citing positive fundamentals. The firm expects strong long-term bookings/revenue growth driven by global travel expansion, online share gains, alternative accommodations, and traction with Connected Trip.

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Bank of America Downgrades AIG to Neutral:Bank of America downgraded insurance company AIG to neutral from buy, noting the stock faces challenges in 2024 despite strong operational performance.

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