Wednesday's Biggest Analyst Calls: NVIDIA, Apple, Spotify, Arm, Robinhood, Alphabet, Shopify, Disney & More

On Wednesday, several major Wall Street firms made key calls on notable stocks, affecting investor sentiment and market movements. These updates covered a wide range of sectors, providing insights into investment strategies and the future outlook of several companies. Here's a summary of the day's most significant analyst calls.

‍

Goldman Sachs Downgrades Morgan Stanley

Goldman Sachs downgraded Morgan Stanley from "buy" to "neutral," stating that while the firm remains a high-quality franchise, better investment opportunities exist elsewhere. Goldman believes other stocks are more likely to benefit from a recovery in the capital markets.

‍

Goldman Sachs Upgrades Evercore

Conversely, Goldman upgraded Evercore from "neutral" to "buy," citing the investment banking firm's best-in-class status. Goldman expects Evercore to continue delivering above-average revenue growth and gaining market share. The firm has made significant investments in both advisory and non-advisory services, which are anticipated to pay off over time, especially during this cycle.

‍

Rosenblatt Initiates Canaan with a Buy Rating

Rosenblatt initiated coverage of Canaan, a bitcoin mining company, with a "buy" rating and a 12-month price target of $3.00. Rosenblatt views Canaan as well-positioned to benefit from the upcoming Bitcoin bull market, emphasizing its strong position in the industry.

‍

Jefferies Upgrades Williams-Sonoma to Buy

Jefferies upgraded Williams-Sonoma from "hold" to "buy," highlighting potential earnings-per-share growth. The firm noted that Williams-Sonoma is positioned to benefit from a housing recovery, as 25% of its sales are tied to existing home sales.

‍

Guggenheim Initiates Coverage of Elastic

Guggenheim initiated coverage of Elastic, a software company, with a bullish outlook, citing the company's leading enterprise search engine as a core strength. Elastic is best known for powering highly relevant results across corporate websites, product catalogs, and tech stacks. Over the last decade, it has expanded its core business into new areas such as security and observability.

‍

JPMorgan Initiates Viking Therapeutics as Overweight

JPMorgan is optimistic about Viking Therapeutics, initiating coverage with an "overweight" rating. The firm is particularly bullish on Viking's obesity drug and expects substantial growth in the market for GLP-1 treatments, forecasting U.S. market sales to reach approximately $120 billion by 2030, with an increasing role for oral treatments.

‍

Citi Adds a Positive Catalyst Watch on Apollo Global

Citi expressed optimism about Apollo Global ahead of its upcoming investor day, which is set for October 1, 2024. The firm highlighted Apollo's positive momentum and added it to its list of stocks with a favorable catalyst watch.

‍

Citi Upgrades Charter to Neutral

Citi upgraded Charter Communications from "sell" to "neutral," pointing to improved fundamentals. The firm maintained its target price of $350 for the stock, noting that it expects the company to see continued improvement in the near term.

‍

Bernstein Reiterates Robinhood as Outperform

Bernstein reiterated its "outperform" rating on Robinhood, noting that the trading platform is well-positioned with millennials. The firm emphasized that millennials now account for 10% of household wealth in the U.S., up from just 1% in 2010. Given Robinhood's focus on younger investors, with 60% of its assets coming from customers under 43, the company is in a strong position for future growth.

‍

Bank of America Downgrades Novartis

Bank of America downgraded Novartis from "buy" to "neutral," citing a lack of near-term positive catalysts. The firm believes there are fewer opportunities for Novartis to outperform in the short term, prompting the downgrade.

‍

JPMorgan Reiterates Nvidia as Overweight

JPMorgan reiterated its "overweight" rating on Nvidia, emphasizing the company's strong position in the emerging artificial intelligence (AI) arms race. Nvidia continues to lead in the AI space with its silicon, software, hardware systems, and full-stack ecosystem, making it a key player in the growing market for AI computing.

‍

Morgan Stanley Reiterates Arm as a Top Pick

Morgan Stanley reaffirmed its overweight rating on Arm, a leading semiconductor company, stating that Arm plays an essential role in the shift towards edge AI. The firm sees Arm as a critical player in this transition and maintains its positive outlook.

‍

Bank of America Reiterates Apple as Buy

Bank of America stood by its "buy" rating on Apple, citing a multi-year iPhone upgrade cycle and strong cash flows as reasons for optimism. The firm expects Apple to continue benefiting from a favorable environment for its flagship products.

‍

Wells Fargo Upgrades One Gas to Overweight

Wells Fargo upgraded One Gas from "equal weight" to "overweight" after a series of constructive investor meetings. The firm sees the natural gas company as well-positioned for growth in the coming years.

‍

Wells Fargo Adds Spotify to Signature Picks List

Wells Fargo added Spotify to its signature picks list, citing the stock's defensive nature in a potential recession. The firm is bullish on Spotify's mid-term operating income margins and believes the company will capture a larger share of music monetization.

‍

Wells Fargo Removes Disney from Signature Picks List

While maintaining an "overweight" rating on Disney, Wells Fargo removed the entertainment giant from its top picks list. The firm expressed concerns about uncertainty in the broader economic outlook, which could weigh on Disney's near-term performance.

‍

Wells Fargo Adds Shopify to Signature Picks List

Wells Fargo added Shopify to its signature picks list, noting the e-commerce platform's potential for outsized growth. The firm believes Shopify is at an inflection point, particularly as it moves further into the up-market space.

‍

Truist Reiterates Alphabet as Buy

Truist reiterated its "buy" rating on Alphabet, stating that while the company remains well-positioned, visibility into the impact of generative AI on its search traffic and monetization will be key in determining the stock's direction in the near to medium term.

‍

Wolfe Upgrades Antero Resources

Wolfe upgraded Antero Resources to "outperform," viewing it as an opportunistic entry point. The firm sees value in the stock, particularly in comparison to peers such as Chesapeake and EQT.

‍

Jefferies Initiates AES as Buy

Jefferies initiated coverage of AES with a "buy" rating, praising the company's exposure to U.S. renewables. The firm sees AES's transition towards renewable energy and regulated utilities as a significant growth opportunity.

‍