Tuesday’s Biggest Analyst Calls: Nvidia, Apple, Tesla, Meta, Snowflake, Walmart, Wells Fargo, Alphabet & More

Here are Tuesday’s biggest calls on Wall Street:

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Loop Capital’s Buy Ratings on NXP Semiconductor and On Semiconductor

‍Loop Capital initiated a "Buy" rating for NXP Semiconductor (NXPI), setting a target price of $300. The firm is optimistic about NXPI’s potential, noting that semiconductor stocks tied to the automotive industry have faced market pressure since late 2023, a time when carmakers began to cut back on their inventory levels. Loop sees an opportunity in NXPI’s current position, particularly as the industry stabilizes.

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Similarly, Loop Capital started coverage on On Semiconductor (ON) with a "Buy" rating, attributing this to the company’s relatively low valuation. As with NXP, On Semiconductor's stocks have been under pressure as the automotive industry has adjusted its inventory. Loop believes ON’s valuation makes it attractive in a sector facing challenges from flatlining vehicle production.

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Mizuho’s Positive Outlook for Nvidia

‍Ahead of Nvidia’s earnings report scheduled for Nov. 20, Mizuho reiterated its “Outperform” rating on the stock, raising its price target from $140 to $165. Nvidia remains Mizuho’s top pick in the AI sector due to its dominance in the AI accelerator market, which has seen exponential growth due to demand for advanced AI computing solutions.

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Morgan Stanley’s Optimism on Walmart and Tesla

‍Morgan Stanley reiterated its “Overweight” rating on Walmart (WMT), raising its price target from $82 to $89 ahead of next week’s earnings report. The investment firm is confident that Walmart’s ability to attract higher-income customers and its expanding digital advertising platform will sustain its performance. With these factors, Walmart is positioned to benefit from a larger share of the e-commerce market.

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Tesla (TSLA) also retained its “Overweight” rating from Morgan Stanley, with analysts expressing optimism for the electric vehicle manufacturer’s prospects under the Biden administration. Morgan Stanley anticipates that Tesla’s total addressable market (TAM) will expand significantly over the next few years as it taps into new sectors, which could lead to growth beyond current expectations in financial models.

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Morgan Stanley’s Upgrades for International Flavors and Viking

‍International Flavors and Fragrances (IFF) received an upgrade from “Equal Weight” to “Overweight” as Morgan Stanley noted that the recent decline in its share price offers a compelling re-entry point. The firm expects stronger growth in the fourth quarter and into fiscal 2025, which could present a positive turnaround for the fragrance and spice company.

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The firm also upgraded Viking Cruises (VIK) to “Overweight,” projecting a potential 10% upside. Viking’s recent rally, although slightly underperforming relative to its peers, makes it an appealing option for investors. Morgan Stanley sees the valuation as favorable given Viking’s strong market position and relative resilience.

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Redburn’s Bullish Stance on Nvidia

‍Redburn Atlantic Equities initiated coverage of Nvidia with a “Buy” rating, citing the company’s “competitive moat” in the market. Nvidia holds a leadership position with the largest installed base of high-performance GPUs, supported by its powerful CUDA software ecosystem and extensive library of applications.

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Citi’s Downgrade of Ross and Upgrade of C.H. Robinson

‍Citi downgraded Ross Stores (ROST) from “Buy” to “Neutral,” noting uncertainties around the retailer’s upcoming CEO transition. Since the new CEO comes from outside the off-price retail industry, Citi sees increased risk with Ross’s outlook, making it less appealing for investors in the short term.

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Meanwhile, Citi upgraded C.H. Robinson (CHRW) to “Buy” from “Neutral,” finding the stock’s current valuation reasonable given its diversified market exposure. Citi’s decision comes amid a market environment with elevated valuations, where the focus on well-valued stocks with diversified macro exposure stands out.

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Deutsche Bank’s Upgrade for SentinelOne

‍In the cybersecurity arena, Deutsche Bank upgraded SentinelOne (S) from “Hold” to “Buy,” highlighting the company’s momentum in the market. Deutsche sees SentinelOne benefiting from organic growth as well as a shake-up in the endpoint security space, allowing the company to strengthen its market position.

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Bank of America Adds Wells Fargo to Its Top Picks

‍Bank of America added Wells Fargo (WFC) to its “US1 List,” designating it as one of its top investment ideas. This addition reflects the firm’s confidence in Wells Fargo’s current trajectory and potential for growth.

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Wells Fargo’s Upgrade of Twilio

‍Wells Fargo upgraded Twilio (TWLO) from “Equal Weight” to “Overweight.” Twilio, a leader in cloud-based communications, has a significant presence in the artificial intelligence (AI) space. Wells Fargo sees Twilio’s position as favorable, especially as it works with independent software vendors (ISVs) to expand AI applications across multiple channels.

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Leerink’s Upgrade of Bristol Myers Squibb

‍Biotech company Bristol Myers Squibb (BMY) was upgraded from “Market Perform” to “Outperform” by Leerink. The firm raised its price target on BMY, expressing confidence in its pipeline, which has promising growth prospects.

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MoffettNathanson’s Confidence in Meta and Alphabet

‍Analysts at MoffettNathanson reiterated their “Buy” ratings for both Meta (META) and Alphabet (GOOGL). The firm regards these tech giants as resilient long-term investments, citing a combination of consistent earnings growth and attractive valuations.

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Bank of America’s Consistent Buy Rating on Apple

‍Bank of America maintained its “Buy” rating on Apple (AAPL), driven by the company’s margin expansion through its silicon developments and growth in its Services segment. The bank expects Apple’s Mac revenue to increase by 8% year-over-year in 2024.

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Deutsche Bank’s Downgrade of Okta

‍Okta (OKTA), an identity and access management provider, was downgraded by Deutsche Bank from “Buy” to “Hold.” While Deutsche Bank believes in Okta’s potential, the firm noted that it may take several quarters for Okta to reach its full value, potentially making it a better investment further down the road.

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D.A. Davidson’s Endorsement of Snowflake

‍D.A. Davidson reiterated its “Buy” rating for Snowflake (SNOW), adding it to its “Gold Trophy” list of top investment ideas. Snowflake is a leader in cloud data warehousing, enabling companies to conduct advanced data analytics. As more companies move their data to the cloud, Snowflake’s solutions offer valuable insights, making it an essential player in the digital transformation space.

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These varied analyst calls underscore the evolving dynamics across sectors, with Wall Street’s attention focused on companies poised for both immediate and long-term growth.

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