Thursday's Biggest Analyst Calls: Nvidia, Meta, Apple, Netflix, Roku, McDonald's, Micron & More
Here are the notable analyst calls that made headlines on Wall Street:
Barclays Initiates Jabil and Flex as Overweight
Barclays initiated coverage on several technology manufacturers, including Jabil and Flex, with overweight ratings. The company sees potential for margin expansion and believes that both companies will benefit from various growth drivers, such as EV, healthcare, renewables, and cloud growth.
Wells Fargo Initiates Valvoline as Overweight
Wells Fargo initiated coverage on Valvoline, stating that the stock has room for growth. The company highlighted Valvoline's strong performance, accelerating unit growth, and asset-light model as key factors contributing to its positive outlook.
HSBC Initiates Goldman Sachs and Morgan Stanley as Buy
HSBC initiated coverage on several banks, including Goldman Sachs and Morgan Stanley, with buy ratings. The company expects these banks to benefit from a recovery in investment banking activity and projects high-single-digit to low double-digit revenue growth for 2024.
Wells Fargo Upgrades McDonald's to Overweight
Wells Fargo upgraded McDonald's, stating that the company is well positioned to weather challenges. The upgrade is based on the belief that McDonald's is a best-in-class operator with potential for comp/margin upside and upcoming catalysts, such as the ongoing Best Burger roll out and unit growth acceleration.
Morgan Stanley Reiterates Apple as Overweight
Morgan Stanley reaffirmed its overweight rating on Apple ahead of the company's iPhone event. Despite historical trends of "sell-the-news" events, Morgan Stanley sees upside potential in Apple's future performance, driven by favorable tailwinds in fiscal year 2024.
Citi Opens Positive Catalyst Watch on Micron
Citi raised its price target on Micron and opened a positive catalyst watch. The company believes that DRAM pricing is turning around and expects Micron to benefit from this trend, making it a top pick in the market.
Jefferies Reiterates Oracle as a Top Pick
Jefferies maintains its bullish stance on Oracle ahead of the company's earnings. Oracle is seen as a value pick in the large-cap software sector.
Canaccord Initiates Kenvue as Buy
Canaccord initiated coverage on Kenvue, a consumer wellness company and Johnson & Johnson spinoff. Canaccord sees Kenvue as well positioned to capitalize on the growing demand for self-care, given its portfolio of globally recognized brands.
JPMorgan Reiterates Netflix as Overweight
JPMorgan stands by its overweight rating on Netflix. While there are areas of investor push-back, such as paid sharing monetization and subscriber growth concerns, JPMorgan remains positive on Netflix's shares.
Bernstein Reiterates Tesla as Underperform
Bernstein expresses concern about Tesla's future performance, believing that further price cuts may be necessary to achieve volume targets. This could potentially impact the company's margins.
In conclusion, these analyst calls provide insights into the market's perception of various companies. Investors should consider these recommendations alongside their own research and analysis when making investment decisions.
Conclusion: The Impact of Analyst Calls on New Businesses
The analyst calls highlighted in this report provide valuable insights for new businesses.
Understanding Market Trends
Analyst calls reflect the market's perception of various sectors and companies. They can help new businesses understand current trends, such as the growing importance of EV, healthcare, renewables, and cloud growth, as highlighted by Barclays' initiation of Jabil and Flex.
Learning from Established Companies
New businesses can learn from the strategies and performance of established companies. For example, Wells Fargo's upgrade of McDonald's underscores the value of being a best-in-class operator and having clear growth catalysts.
Preparing for Challenges
Analyst calls also highlight potential challenges, as seen in Bernstein's underperform rating for Tesla due to concerns about the need for further price cuts. New businesses must be prepared to adapt their strategies in response to such challenges.
In conclusion, analyst calls offer a wealth of information that new businesses can use to guide their strategies and decisions. By understanding market trends, learning from established companies, and preparing for challenges, new businesses can position themselves for success in the market.
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