Wednesday's Biggest Analyst Calls: Apple, Micron, Tesla, Instacart, Spotify, Netflix, Cava, Target & More

Here are Wednesday’s biggest calls on Wall Street:

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Oppenheimer initiates Pure Storage at "Outperform":
Oppenheimer has initiated coverage of Pure Storage with an "Outperform" rating, highlighting the data storage company's potential to increase its market share. Analysts cite Pure Storage as benefiting from two major trends: the increase in unstructured data generated to support AI applications and its long-term advantage in the all-flash array (AFA) market, where Pure Storage holds a technological edge.

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Evercore ISI downgrades Caterpillar to "In Line" from "Outperform":
Evercore ISI has downgraded Caterpillar, pointing out potential risks to the company’s earnings per share. While Caterpillar has positive tailwinds from growth in areas like power generation, data centers, government infrastructure, and energy transition, these benefits are offset by current market challenges. Analysts note that significant operational leverage from volume growth isn’t currently in place, reflecting a less favorable setup for the company.

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UBS upgrades 3M to "Buy" from "Neutral":
Following an analyst coverage change, UBS has upgraded 3M to a "Buy," describing it as an “idiosyncratic opportunity with much to improve.” The firm praises 3M’s new CEO, William M. Brown, who is reallocating resources towards growth and improving operational efficiency. Key initiatives include boosting spending on R&D, particularly for new product development, and enhancing order fill rates—steps that UBS believes could help reinvigorate growth.

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BTIG upgrades On Holding to "Buy" from "Neutral":
BTIG has raised its rating on On Holding to "Buy," identifying strong momentum and growth potential for the shoe brand. The firm noted that On Holding's third-quarter performance reflects the company’s true revenue momentum, contrasting with the challenges it faced in the previous quarter when direct-to-consumer sales were constrained.

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Wells Fargo upgrades Bank United to "Overweight" from "Equal Weight":
Wells Fargo has given Bank United an "Overweight" rating, citing positive trends in its balance sheet. Analysts are optimistic about the company’s shift in its funding base, which includes growth in demand deposit accounts, and the advantages provided by the Florida and New York markets, which support commercial loan growth to replace lower-yielding, longer-duration residential assets.

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Morgan Stanley upgrades CCC Intelligent Solutions Holdings to "Overweight" from "Equal Weight":
Morgan Stanley upgraded CCC Intelligent Solutions Holdings, noting the software company’s strong market position within the property and casualty insurance sector. Analysts believe the firm is well-positioned to benefit from the industry's shift towards digitalization and automation.

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Barclays maintains an "Overweight" rating on Instacart:
Barclays reiterated its "Overweight" rating on Instacart after the company’s earnings report. The firm stated that Instacart’s stock is starting to reflect its strong fundamentals, though its 11x EBITDA valuation still significantly trails its peers, providing room for potential growth.

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Redburn Atlantic Equities downgrades Starbucks to "Sell" from "Neutral":
Redburn downgraded Starbucks, citing limited near-term growth opportunities. The firm expressed concern that Starbucks' recovery could come with higher costs that consensus estimates may not fully capture. Additionally, Starbucks' stock is trading at a high price-to-earnings multiple, leaving limited room for underperformance, and Redburn set a price target of $77.

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Telsey Advisory Group reaffirms "Outperform" for Target:
Ahead of Target’s earnings report next week, Telsey Advisory Group has reiterated its "Outperform" rating, expressing confidence in the continuation of Target’s positive comparable sales trend into the third quarter of 2024.

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Bank of America reiterates "Buy" on Salesforce, raises price target:
Bank of America maintains its "Buy" rating on Salesforce, raising its price target from $325 to $390. The firm noted that conversations with partners reveal stable deal activity across Salesforce’s major cloud products. Notable growth sectors for the company include healthcare, life sciences, financial services, and government.

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Morgan Stanley reiterates "Overweight" for Spotify:
Following Spotify's earnings report, Morgan Stanley continues to list the company as a top pick. Analysts highlight Spotify’s leadership in product innovation, pricing strength, and operational efficiency, which they expect will significantly boost free cash flow from nearly zero in 2022 to $2.3 billion in 2024, with projections for $3.6 billion by 2026.

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Jefferies reiterates "Buy" for Netflix:
Jefferies reaffirmed its "Buy" rating on Netflix after the company disclosed that its ad-supported tier now has 70 million monthly active users—a 75% increase since May. With 50% of new subscribers joining through this tier, analysts believe this metric weakens the bear case around Netflix’s ad-supported model’s scale.

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Piper Sandler reiterates "Overweight" for Micron:
After a series of discussions with Micron’s management, Piper Sandler has reiterated an "Overweight" rating for the semiconductor company. Analysts noted that Micron is well-positioned with its high-bandwidth memory (HBM) products, which are seeing strong demand from the data center market. The firm also anticipates long-term growth from sectors like automotive and mobile devices.

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Evercore ISI reiterates "Outperform" for Apple:
Evercore ISI has reaffirmed its "Outperform" rating on Apple, calling it a top pick for 2025. Analysts expect strong growth in Apple’s Services and Wearables segments, alongside steady year-over-year growth in iPhone sales. The combination of these factors could contribute to Apple’s stock performance in the upcoming year.

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Wedbush reiterates "Outperform" for Tesla:
Wedbush is sticking with its "Outperform" rating for Tesla, citing optimism around Elon Musk’s potential influence in Washington, following his appointment to a Department of Government Efficiency advisory role. Wedbush believes Musk’s involvement could support fast-tracking autonomous driving and AI initiatives, benefiting Tesla over the next 12-18 months.

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TD Cowen reiterates "Buy" for Cava:
Following Cava's third-quarter earnings report, TD Cowen reaffirmed its "Buy" rating, calling the quarter “flawless.” The firm is encouraged by Cava’s revenue beat and improved 2024 guidance, driven by increased brand awareness and customer satisfaction.

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