Wednesday's Biggest Analyst Calls: NVIDIA, Netflix, Ups, Levi Strauss, Carvana, AMD & More

Here are Wednesday’s biggest calls on Wall Street:

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Bernstein Reiterates Nvidia as Outperform

Bernstein maintains its bullish stance on Nvidia after its presentation at the Consumer Electronics Show (CES) in Las Vegas. The firm highlighted announcements related to gaming, automotive partnerships (including Toyota as a new autonomous vehicle partner), robotics, physical AI, and a compact AI developer workstation.

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Wells Fargo Upgrades Northrop Grumman to Overweight

Wells Fargo upgraded Northrop Grumman, citing its robust defense portfolio. The firm noted that the company’s lower material supply to Ukraine, compared to peers, could reduce its exposure as the conflict subsides. Additionally, free cash flow is projected to double by 2028 due to reduced investments, improved pension contributions, and fewer tax impacts from research and development.

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Wells Fargo Upgrades RPM International to Overweight

Wells Fargo upgraded RPM, highlighting "resilient volume growth" for the chemical manufacturer. The firm anticipates positive EBIT growth in fiscal year 2025 despite weak demand, with stronger growth expected in fiscal 2026.

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Deutsche Bank Downgrades Adobe to Hold

Deutsche Bank lowered Adobe to a hold rating, stating the need for more concrete evidence of AI monetization. The firm expects the stock to remain range-bound until significant AI-related revenue materializes.

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Goldman Sachs Upgrades Travelers to Buy

Goldman Sachs expressed optimism for Travelers, projecting strong performance in 2025. The firm believes the company is well-positioned to exceed expectations through improved profitability in commercial lines and investment income, with personal lines providing an additional boost.

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KeyBanc Upgrades Winnebago to Overweight

KeyBanc upgraded Winnebago, citing attractive valuation and solid dynamics in the recreational vehicle (RV) market. The firm views the company as favorably positioned within the leisure vehicle segment.

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Gordon Haskett Upgrades Shake Shack to Buy

Gordon Haskett finds Shake Shack shares "increasingly compelling," driven by market share gains and margin expansion opportunities. The firm believes current 2025 estimates might be conservative.

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Barclays Initiates Levi Strauss as Overweight

Barclays sees Levi Strauss as a leader in denim sales growth, expecting organic sales to accelerate in 2025 through wholesale normalization, growth in women's apparel and tops, and innovations in denim.

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Barclays Upgrades Tapestry to Overweight

Barclays upgraded Tapestry, the owner of brands like Kate Spade, highlighting its potential for market share gains and strong inventory management.

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HSBC Downgrades AMD to Reduce

HSBC downgraded AMD, citing concerns over its AI GPU roadmap. The firm believes AMD’s competitiveness in the AI market is weaker than initially anticipated, limiting its market penetration.

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Bernstein Upgrades L3Harris Technologies to Outperform

Bernstein upgraded L3Harris Technologies, viewing the recent decline in defense stocks as an attractive entry point. The firm lowered its target price to $267.

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Bank of America Upgrades Ferguson to Buy

Bank of America double-upgraded Ferguson, pointing to long-term growth potential, favorable U.S. inflation dynamics, and realistic consensus expectations. The firm sees an attractive entry point into the plumbing supply company.

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Evercore ISI Upgrades Allstate to Outperform

Evercore upgraded Allstate, citing undervaluation. The firm highlighted a disconnect between its valuation at 10x price-to-earnings and expected growth in policies in force by early 2025.

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TD Cowen Upgrades Coca-Cola to Buy

TD Cowen upgraded Coca-Cola, emphasizing its strong execution and raised its fiscal 2025 organic sales growth estimate to 6%, the high end of the company’s long-term growth range.

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Barclays Upgrades RH to Overweight

Barclays upgraded RH (formerly Restoration Hardware), expecting improved sales driven by product, pricing, and inventory dynamics. The firm also sees incremental margin opportunities in 2025.

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Goldman Sachs Reiterates Netflix as Neutral

Goldman Sachs maintained a neutral rating on Netflix, citing recent live events that stimulated user engagement and sign-ups. The firm sees potential in advertising opportunities tied to live events.

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Morgan Stanley Upgrades NetEase to Overweight

Morgan Stanley upgraded NetEase, predicting a turnaround in 2025. The firm highlighted the growth potential of PC games as a key driver.

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UBS Upgrades PulteGroup to Buy

UBS upgraded PulteGroup, praising its industry-leading margins and strong return on equity. The firm noted the homebuilder’s diversified customer base, which supports profitability.

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UBS Upgrades Novo Nordisk to Buy

UBS sees Novo Nordisk as a standout growth story in European pharmaceuticals, benefiting from strong demand for GLP-1 medications.

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Wolfe Upgrades UPS to Outperform

Wolfe upgraded UPS, expecting a positive inflection in U.S. package margins by 2025. Historically, this trend has boosted stock performance.

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Mizuho Upgrades Twilio to Outperform

Mizuho upgraded Twilio, anticipating clarity on top-line stabilization, growth opportunities, and margin improvements following the company’s upcoming investor day.

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Jefferies Upgrades GE Healthcare to Buy

Jefferies upgraded GE Healthcare, citing its pullback as a compelling entry point. The firm noted the stock’s current valuation is below its historical average.

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Citi Upgrades Carvana to Buy

Citi upgraded Carvana, emphasizing expanding profitability. The firm believes the company is efficiently ramping up inventory to meet growing demand.

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Deutsche Bank Reiterates AT&T as Buy

Deutsche Bank reaffirmed its buy rating for AT&T, calling it a top idea for 2025. The firm projects annual free cash flow growth of 5-6% over the next six years.

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