Wednesday's Biggest Analyst Calls: NVIDIA, Apple, Netflix, Fedex, Reddit, Broadcom, Chewy & More

Here are some of the key calls made by Wall Street analysts on Wednesday, highlighting major companies across different sectors:

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Citi Initiates Buy Ratings for FedEx and UPS
Citi issued a buy rating for both FedEx and UPS, stating that these companies are well-positioned to benefit from a potential cyclical recovery in the freight industry. According to Citi's note, investors should take advantage of opportunities presented by companies that can leverage improved freight conditions. As the market tightens, both firms are expected to realize significant gains.

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Jefferies Upgrades Southwest Airlines to Hold
Jefferies upgraded Southwest Airlines from underperform to hold, citing management's recent efforts to steer the company in the right direction. These efforts include revising cabin segments, forming Atlantic partnerships, and reducing net capital expenditure through fleet monetization. However, Jefferies emphasized that execution will be key to maintaining these improvements, which justified the hold rating.

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Deutsche Bank Reiterates Hold on Netflix
Ahead of Netflix’s upcoming earnings report, Deutsche Bank raised its price target for the streaming giant from $590 to $650 per share. Despite the higher target, the bank maintained its hold rating, indicating that Netflix’s valuation is already fully accounted for. Deutsche Bank still considers Netflix a growth story with ample room for revenue, earnings, and free cash flow growth in the coming years.

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Guggenheim Initiates Buy on Crocs
Guggenheim expressed confidence in Crocs’ long-term sustainability, initiating coverage of the footwear brand with a buy rating and a price target of $182. The firm sees strong potential for the company, valuing it at 13 times its estimated earnings for fiscal year 2025.

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TD Cowen Initiates Buy on MetLife
TD Cowen initiated coverage of MetLife with a buy rating, describing the insurance company as well-positioned for future growth. The firm pointed to MetLife's market-leading group benefits and international operations, which could support more than 10% earnings per share (EPS) growth, with limited exposure to macroeconomic risks.

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Morgan Stanley Initiates Overweight on GitLab
Morgan Stanley started coverage of GitLab with an overweight rating and a price target of $70. The firm views GitLab as a key player in consolidating the enterprise software market, positioning itself as the next major platform in the space.

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Barclays Initiates Overweight on Shift4Payments
Barclays also initiated coverage of Shift4Payments with an overweight rating and a $120 price target. The firm expressed optimism about the company’s future growth potential in the payment processing sector.

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Piper Sandler Downgrades Blackstone to Neutral
Piper Sandler downgraded Blackstone from overweight to neutral, noting that much of the positive outlook has already been priced into the stock. With Blackstone shares up more than 20% in the past three months and over 40% in the past year, Piper believes that the good news has been largely reflected in its current valuation.

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Piper Sandler Reiterates Neutral on Apple
Piper Sandler maintained its neutral rating on Apple, citing its latest survey, which showed that iPhone upgrade expectations among teens are lower than in previous years. Only about 30% of teens are planning to upgrade their Apple hardware in the next six months, which the firm considers a low figure given the enthusiasm for the company’s products.

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Wells Fargo Upgrades Valero to Overweight
Wells Fargo upgraded Valero Energy from equal weight to overweight, highlighting the company as one of the best independent refiners in the industry.

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Jefferies Initiates Buy on Reddit
Jefferies initiated coverage of Reddit with a buy rating, noting that the social media platform is capitalizing on AI-driven product enhancements and its vast archive of contextual content. The firm pointed out that user growth has accelerated to its highest level in more than two years.

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Wolfe Downgrades Vale to Underperform
Wolfe Research downgraded metals and mining company Vale to underperform, citing concerns over a structural decline in iron ore demand. The firm set a new price target of $10, reflecting a more cautious outlook for the company's future prospects.

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Deutsche Bank Initiates Buy on New York Times
Deutsche Bank initiated coverage of The New York Times with a buy rating, praising the company’s strong fundamentals and its successful shift to a digital-first subscription model. The firm pointed to healthy engagement trends, pricing power, and advertising growth as key drivers of the company’s long-term success.

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Wells Fargo Upgrades LPL Financial to Overweight
Wells Fargo upgraded LPL Financial from equal weight to overweight, citing an improved risk/reward profile. The firm noted that LPL’s valuation has become more attractive compared to its peers, particularly after recent cuts to sweep rates.

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TD Cowen Initiates Buy on Chewy
TD Cowen initiated coverage of Chewy with a buy rating, describing it as the leading eCommerce player in the $144 billion U.S. pet industry. The firm highlighted Chewy’s strong retail business and growing pet health offerings, including its position as the largest online pet pharmacy.

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Morgan Stanley Upgrades Affirm to Equal Weight
Morgan Stanley upgraded Affirm from underweight to equal weight, noting that the company has made significant progress in better distribution, zero-percent promotions, and lower pricing. These changes could help Affirm attract higher-income consumers.

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Mizuho Reiterates Outperform on Nvidia and Broadcom
Mizuho reaffirmed its outperform ratings on Nvidia and Broadcom. The firm expects Nvidia to maintain its leadership in the AI space, while Broadcom is well-positioned with a strong portfolio in custom and networking solutions.

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Loop Upgrades Home Depot and Lowe’s to Buy
Loop Capital upgraded both Home Depot and Lowe’s from hold to buy, citing bottoming demand in the home improvement sector. The firm raised its price targets for Home Depot to $460 and Lowe’s to $300, reflecting optimism as the Federal Reserve moves toward lowering interest rates.

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Wells Fargo Reiterates Overweight on Roblox
Wells Fargo raised its price target for Roblox to $54 from $46 ahead of the company’s earnings report in late October. The firm is optimistic about strong engagement trends and believes another strong quarter will boost investor confidence.

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BTIG Initiates Buy on Blue Bird
BTIG initiated coverage of Blue Bird, a leading manufacturer of school buses, with a buy rating. The firm highlighted Blue Bird's market leadership in alternative fuel school buses, including gasoline, propane, natural gas, and electric models.

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Citi Upgrades Norwegian Cruise Line to Buy
Citi upgraded Norwegian Cruise Line from neutral to buy, citing confidence in the company’s revised strategy. The firm believes that Norwegian’s pricing opportunities will outweigh potential cost concerns.

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Evercore ISI Reiterates Outperform on Amazon
Evercore ISI reaffirmed its outperform rating on Amazon, pointing to the company's satellite initiative, Project Kuiper, as a key future growth driver. Evercore expects investors to focus on the costs and revenue opportunities associated with Amazon's satellite-based internet service.

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