Wednesday’s Biggest Analyst Calls: Nvidia, Apple, Tesla, Starbucks, Disney, Microsoft, Cisco, Coinbase & More

On Wednesday, Wall Street analysts shared their top stock picks and recommendations, highlighting notable updates across various sectors.

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Wells Fargo Reiterates Goldman Sachs as Overweight

Wells Fargo maintained its overweight rating for Goldman Sachs, raising its price target from $550 to $600 per share following the bank's earnings report. The firm noted that Goldman is in the midst of a transformation toward greater stability, emphasizing the increasing contributions from more reliable revenue streams.

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Wells Fargo Reiterates Citi as Overweight

Wells Fargo also reiterated its overweight rating on Citi, which remains one of its top picks after the company's strong earnings report on Tuesday. The firm pointed out that Citi beat earnings expectations by 15%, reaffirmed its previous guidance, and exhibited strong operational leverage, particularly with double-digit growth in services, which accounts for a quarter of the company. The CEO also quelled concerns about regulatory issues.

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Baird Upgrades Grainger to Outperform from Neutral

Baird upgraded Grainger, an industrial distributor, to outperform, citing the company's market share gains, best-in-class return on invested capital (ROIC), and potential to close the valuation gap with competitors like Fastenal.

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BMO Reiterates Microsoft as Outperform

BMO reiterated its outperform rating on Microsoft but removed it as a top pick. The firm explained that it doesn’t expect much upside in Microsoft’s top-line estimates over the next few quarters.

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Loop Reiterates Netflix as Buy

Ahead of Netflix's earnings report, Loop reiterated its buy rating for the streaming giant and raised its price target from $750 to $800. The firm expressed optimism, anticipating upward revisions to earnings estimates.

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Jefferies Initiates Rapid7 as Buy

Jefferies initiated coverage of cybersecurity firm Rapid7 with a buy rating, citing improved execution and changes in its go-to-market strategy, which the firm believes positions the company for future growth. Jefferies noted that the stock trades below its implied base value.

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Jefferies Initiates Brookdale Senior Living as Buy

Jefferies also initiated coverage of Brookdale Senior Living with a buy rating and an $8 price target. The firm expects the senior housing company to benefit from demographic trends, particularly as baby boomers age into the prime target market for the industry.

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Citi Reiterates JB Hunt as a Top Pick

Citi reiterated its top pick rating for JB Hunt, noting that the shipping giant exceeded low expectations with its earnings report. The 8% after-hours stock price jump indicated investor relief and optimism.

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Wells Fargo Initiates Autodesk as Overweight

Wells Fargo initiated an overweight rating on Autodesk, expressing confidence in the software company's recent business model transitions. The firm believes these changes will help accelerate revenue growth and restore free cash flow margins above 30%.

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Bernstein Reiterates Nvidia as Outperform

Bernstein reiterated its outperform rating on Nvidia, highlighting the immense opportunity in the data center sector. According to Bernstein, the market remains in its early stages, with significant upside potential still ahead.

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Barclays Reiterates Tesla as Equal Weight

Barclays remained cautiously optimistic about Tesla heading into next week’s earnings report. The firm expects Tesla to beat third-quarter estimates and believes the results could serve as a positive short-term catalyst for the stock.

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Jefferies Reiterates Apple as Hold

Jefferies reiterated its hold rating on Apple, noting that iPhone 16 sales will be a critical near-term driver for the stock. The firm also discussed the risk of Apple’s partnership with Google coming under scrutiny due to the Department of Justice's antitrust case against Google, though it believes the potential impact on Apple will be limited.

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UBS Initiates California Resources as Buy

UBS initiated coverage of California Resources, an energy company, with a buy rating. The firm cited the company’s diversified asset base, which includes power generation, real estate, and a burgeoning carbon capture and storage business.

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UBS Initiates Chord Energy as Buy

UBS also initiated coverage of Chord Energy, giving it a buy rating and a $168 price target. The firm pointed to the company’s improving operational efficiency as a key driver of its recommendation.

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TD Cowen Downgrades Yum Brands to Hold from Buy

TD Cowen downgraded Yum Brands, the parent company of Taco Bell, to hold from buy. The firm sees a more balanced risk-reward scenario, especially with concerns that development may miss expectations in 2024 and 2025. The removal of Taco Bell breakfast at some U.S. locations also poses a potential sales headwind.

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Morgan Stanley Reiterates Starbucks as Overweight

Morgan Stanley raised its price target for Starbucks from $98 to $115 per share. The firm acknowledged that while the company faces challenges, there is an opportunity for a strategic reset. Early signs of future plans could influence investor sentiment positively.

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Piper Sandler Initiates Disney as Neutral

Piper Sandler initiated coverage of Disney with a neutral rating and a $95 price target. The firm sees limited upside in the near term, particularly as growth in the company’s experiences segment slows.

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Guggenheim Reiterates Disney as Buy

Guggenheim raised its price target for Disney from $105 to $110 per share, expressing confidence in Disney’s fiscal 2025 guidance. The firm expects earnings per share (EPS) to grow modestly and free cash flow to remain strong.

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Citi Upgrades Cisco to Buy from Neutral

Citi upgraded Cisco to buy from neutral, citing the growing importance of artificial intelligence in the company’s future. Although AI currently represents only 2% of Cisco’s revenue, Citi believes it will play a more significant role in the company’s growth moving forward.

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HSBC Downgrades Estee Lauder to Hold from Buy

HSBC downgraded Estee Lauder to hold, citing concerns about the company’s performance in China. The firm also highlighted internal restructuring challenges and potential issues with retaining staff.

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Bank of America Upgrades Corteva to Buy from Neutral

Bank of America upgraded Corteva, an agricultural chemical company, to buy from neutral, raising its price target to $67 from $59. The firm expects several tailwinds to benefit the company in 2025 and beyond.

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Citi Puts Qualcomm on Negative Catalyst Watch

Citi added Qualcomm to its negative catalyst watch, expecting a lowered forecast as Apple shifts away from using Qualcomm chips starting in 2025. Citi projects a decline in Qualcomm’s performance in the upcoming quarters.

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Citi Reiterates Coinbase as Buy

Citi reiterated its buy rating on Coinbase but lowered its price target from $345 to $275 per share. The firm anticipates increased volatility in the stock ahead of third-quarter results and the U.S. elections.

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