Tuesday’s Biggest Analyst Calls: Nvidia, Palantir, Amazon, Shopify, Walmart, Microsoft, Palantir, Tesla & More

Here are some of the most significant calls made by Wall Street analysts on Tuesday, covering a range of sectors from technology and e-commerce to healthcare and utilities.

Oppenheimer Reiterates Nvidia as a Top Pick

Oppenheimer reaffirmed its bullish stance on Nvidia, maintaining it as a top pick. The firm continues to view Nvidia favorably for its long-term growth prospects. Oppenheimer also highlighted other semiconductor companies like Broadcom (AVGO), Monolithic Power Systems (MPWR), and Marvell Technology (MRVL) as top selections in the sector. The firm emphasized the importance of structural growth drivers in these companies for sustained outperformance.

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Bank of America Reiterates Amazon as a Buy

Following a recent letter to employees from CEO Andy Jassy, Bank of America reiterated its buy rating on Amazon. The letter outlined two main objectives for Amazon: enhancing the speed and ownership of workflows, and fostering a culture of invention, collaboration, and connection. Bank of America believes these initiatives will positively impact customer and business outcomes, solidifying Amazon's growth trajectory.

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Bernstein Reiterates Tesla as Underperform

Bernstein maintained its underperform rating on Tesla, though it acknowledged the company's disruptive potential in the robotaxi market. Bernstein noted that if Tesla can successfully implement its camera- and software-based approach to autonomous driving, it could have a significant impact on the industry. However, the firm remains cautious about Tesla's ability to deliver on this promise.

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Redburn Atlantic Equities Upgrades Shopify to Buy

Redburn Atlantic Equities upgraded Shopify from neutral to buy, citing the e-commerce platform's extensive growth potential. The firm highlighted Shopify's robust moat, characterized by its scale, high switching costs, and a strong three-sided network. Redburn believes that Shopify's structural growth and capacity to capture more market share make it a compelling investment.

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Stifel Upgrades Lattice Semiconductor to Buy

Stifel upgraded Lattice Semiconductor to a buy rating following the appointment of Dr. Ford Tamer as the new CEO. The firm views this leadership change positively, suggesting that it could steer the company toward greater innovation and strategic growth.

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Mizuho Initiates Dell as Buy

Mizuho initiated coverage on Dell with a buy rating, pointing to the company's diverse product portfolio in servers, PCs, and storage solutions. Mizuho also commended Dell's solid balance sheet, free cash flow, and effective working capital management, indicating a strong position in the technology market.

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JPMorgan Downgrades ViaSat to Neutral

JPMorgan downgraded ViaSat from overweight to neutral after United Airlines announced a change in its inflight internet service provider, shifting from ViaSat to Starlink for over 1,000 aircraft. This move could impact ViaSat's growth prospects, prompting JPMorgan to adopt a more cautious stance on the stock.

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Morgan Stanley Reiterates Virgin Galactic as Underweight

Morgan Stanley reiterated its underweight rating on Virgin Galactic and reduced its price target from $35 to $5 per share. The firm expressed concerns over the company's delayed commercial flight plans, now pushed out until around 2026. The stock's significant decline reflects skepticism regarding the feasibility and economic viability of Virgin Galactic's business model.

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Citi Names Analog Devices as a Top Pick

Citi upgraded Analog Devices (ADI) to its top pick among semiconductor stocks. Citi believes that ADI has lower downside risk in the automotive sector compared to its peers, largely due to its recent positive earnings announcement.

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Jefferies Upgrades BioNTech to Buy

Jefferies upgraded BioNTech to a buy rating, expressing optimism about the company's oncology pipeline. Despite the early stage of the data, Jefferies conservatively estimates peak sales of €2.1 billion from BioNTech's oncology products, highlighting the firm's bullish outlook on the biotech company's growth potential.

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UBS Initiates Jefferies as Buy

UBS initiated coverage of Jefferies with a buy rating and a $67 price target, viewing the capital markets company as a strategic play for a rebound in mergers and acquisitions (M&A) activity. The firm believes that Jefferies is well-positioned to benefit from an uptick in M&A deals.

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RBC Upgrades Aramark to Outperform

RBC upgraded Aramark to outperform from sector perform, citing multiple levers for driving shareholder value, including imminent share buybacks. RBC believes that Aramark is better positioned compared to larger peers and has the potential to outperform in the concessions and food services sector.

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Morgan Stanley Reiterates Walmart as Overweight

Morgan Stanley maintained its overweight rating on Walmart, noting that the retailer's partnership with Burger King has significantly boosted Walmart+ memberships. According to the firm's survey data, Walmart+ reached a record high in August, indicating strong momentum for the membership program.

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Morgan Stanley Reiterates Microsoft as Overweight

Morgan Stanley reiterated its overweight rating on Microsoft, highlighting the company's compelling risk-reward profile. With mid-teens earnings per share (EPS) growth, the firm believes Microsoft offers a strong and durable return potential, making it an attractive investment option.

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Bank of America Adds Palantir to US1 List

Bank of America added Palantir Technologies to its US1 list, indicating a high level of conviction in the stock. The firm also added Sempra (SRE) to this list, suggesting these companies offer compelling investment opportunities in their respective sectors.

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Barclays Upgrades Entergy to Overweight

Barclays upgraded Entergy from equal weight to overweight, citing reduced regulatory risks and positive regulatory developments. The firm sees a largely de-risked path for Entergy, with a long-term earnings per share growth rate of 6-8%. Despite these positives, Entergy trades at a discount compared to its multi-state, vertically integrated peers, offering an attractive investment opportunity.

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These calls reflect the diverse perspectives of Wall Street analysts, highlighting both opportunities and risks across various sectors.

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