Wednesday’s Biggest Analyst Calls: Nvidia, Apple, Meta, Marriott, Starbucks, Roku & More

Wall Street’s Biggest Calls on Wednesday
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Stifel Initiates Coverage on Penumbra with a Buy Rating

Stifel expressed optimism about Penumbra, a medical device company. The firm highlighted Penumbra's solid position as one of the few companies in the MedTech sector generating positive free cash flow while also maintaining high growth rates.

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HSBC Initiates KKR with a Buy Rating

HSBC initiated coverage of KKR & Co., a private equity firm, with a buy rating and a price target of $148. The bank believes that the market is not fully appreciating KKR's potential for significant earnings growth.

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Bernstein Reiterates Apple as Outperform

In response to investor concerns about lower-than-expected demand for the new iPhones, Bernstein urged calm, reiterating an outperform rating for Apple. Despite worries about the reduced lead times for new iPhones and potentially lower order volumes, the firm remains optimistic about the tech giant’s long-term performance.

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Bank of America Reiterates Buy on FedEx

While Bank of America slightly lowered its price target for FedEx from $347 to $345, it maintained its buy rating ahead of the company’s earnings report, scheduled for September 19.

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Morgan Stanley Reiterates Tesla as Overweight

Morgan Stanley reiterated its overweight rating on Tesla, citing the growth of global data center emissions as a key factor supporting Tesla's energy business. The firm sees this as underscoring the company’s advantage and highlighting compliance risks for traditional auto manufacturers.

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BTIG Upgrades GE Healthcare to Buy

BTIG upgraded GE Healthcare from neutral to buy, noting an improved outlook for the medical solutions and systems company. After a challenging first half of 2024 due to issues in China, BTIG believes the situation is now more favorable for GE Healthcare.

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UBS Initiates Talen Energy with a Buy Rating

UBS initiated coverage of Talen Energy with a buy rating, citing the company's "underappreciated upside potential."

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JPMorgan Initiates Civitas Resources as Overweight

JPMorgan initiated coverage of Civitas Resources, a carbon energy producer, with an overweight rating and a price target of $67 by December 2025. The firm pointed to the company's significant potential for stock buybacks as a key reason for its positive outlook.

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Wells Fargo Reiterates Micron as Overweight

Wells Fargo lowered its price target on Micron from $190 to $175 but maintained an overweight rating ahead of the company’s upcoming earnings report. The firm dismissed concerns about a potential downturn in the DRAM market in the first half of 2025, viewing them as exaggerated.

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Barclays Upgrades VF Corp and Victoria’s Secret

Barclays upgraded VF Corp, the parent company of brands like Vans, to overweight from equal weight, citing an attractive risk-reward scenario. Additionally, the firm upgraded Victoria’s Secret to equal weight from underweight, highlighting a more balanced risk/reward profile due to new leadership and modest expectations for the latter half of 2024.

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Wolfe Downgrades ResMed to Underperform

Wolfe downgraded ResMed, a sleep apnea company, to underperform due to concerns about the launch of a new obstructive sleep apnea treatment by Lilly. The firm sees this as a significant risk that could disrupt ResMed’s patient base.

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Bank of America Reiterates Buy on Off-Price Retailers

Bank of America reiterated buy ratings for off-price retailers TJX Companies, Burlington, and Ross. The firm believes these companies are well-positioned to attract younger consumers and maintain a long runway for market share gains.

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Bank of America Reiterates Starbucks as Buy

Bank of America raised its price target for Starbucks to $118 from $112, reflecting increased confidence in the coffee giant's execution. The firm continues to recommend buying shares of Starbucks.

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Goldman Sachs Initiates Marriott with a Buy Rating

Goldman Sachs initiated coverage of Marriott, labeling it a "high-quality compounder." The firm noted Marriott's exposure to luxury and urban hotels, which are expected to benefit from the recovery in business travel.

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Needham Initiates Super Micro Computer as Buy

Needham initiated coverage of Super Micro Computer with a buy rating and a $600 price target. The firm described the data center AI company as the "coolest kid in AI town."

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Guggenheim Upgrades Sirius XM to Buy

Guggenheim upgraded Sirius XM to buy from neutral, expressing optimism about the company's future free cash flow, capital returns, and stabilizing subscriber base.

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Bank of America Reiterates Buy on Alphabet, Meta, Amazon, and Uber

Bank of America highlighted Alphabet, Meta, Amazon, and Uber as top picks for investors seeking a more defensive position during the economic downturn. These companies are expected to benefit during the downturn phase of the economic cycle.

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William Blair Initiates Nvidia and Broadcom as Outperform

William Blair initiated coverage of Nvidia and Broadcom with outperform ratings. For Nvidia, the firm praised its "long and storied history" in designing parallel computing systems. Regarding Broadcom, William Blair sees steady growth driven by increasing demand for custom chips, software monetization, and the growth of Ethernet AI network fabrics.

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JPMorgan Reiterates Roku as Overweight

JPMorgan raised its price target for Roku from $80 to $90, following a series of investor meetings. The firm emphasized Roku's focus on platform monetization and its potential for revenue growth through partnerships and home screen changes.

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William Blair Reiterates Arm as Outperform

William Blair reiterated its outperform rating on Arm, citing its "best-in-class financials." The firm emphasized Arm’s role in providing essential computing IP across various markets, including mobile, automotive, IoT, and data centers.

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