Thursday's Top Analyst Calls: Nvidia, Apple, BJ's, Etsy, Carnival, Blackrock, FedEx, and More
Here are the notable analyst calls on Wall Street for Thursday:
Bank of America Downgrades J.M. Smucker
Bank of America downgraded J.M. Smucker from buy to neutral, citing complexities arising from its acquisition of Hostess. The downgrade reflects concerns about execution risks and the potential impact on the company's mixed M&A history.
Morgan Stanley Reiterates Amazon as Overweight
Morgan Stanley reaffirmed its overweight rating on Amazon, expecting a 20-60% upside in the coming months. The investment bank believes Amazon's focus on improving efficiency and profitability will drive retail profitability and deliver a return on investment.
Wells Fargo Reiterates Nvidia as Overweight
Wells Fargo maintained its overweight rating on Nvidia, stating that the company remains in a league of its own. The absence of any significant competitive threats to Nvidia's dominance in the market contributes to the positive outlook.
JPMorgan Reiterates Apple as Overweight
JPMorgan reiterated its overweight rating on Apple, despite recent survey checks indicating a softening of iPhone market share ahead of the iPhone 15 launch. The investment bank believes the temporary moderation in share is driven by consumer spending pauses and anticipates a rebound with the new product launch.
Deutsche Bank Adds Catalyst Call Buy on Penn
Deutsche Bank maintained its long-term hold rating on Penn but added a catalyst call buy due to several potential upside drivers in the near term. The investment bank sees positive catalysts ahead for Penn shares, providing a free option on the Interactive segment.
Citi Upgrades Virtu Financial to Buy
Citi upgraded Virtu Financial from neutral to buy, advising investors to take advantage of the dip in shares. The investment bank sees the current weakness as an attractive entry point, considering the historical opportunities presented by regulatory headlines.
Bank of America Reiterates Alphabet as Buy
Bank of America reaffirmed its buy rating on Alphabet, citing AI innovation and potentially lower expenses as key factors. The investment bank remains constructive on Google, anticipating improved ad demand to drive revenue acceleration for Search and YouTube.
William Blair Upgrades JFrog to Outperform
William Blair upgraded JFrog to outperform from market perform, recognizing the software supply chain company's next phase of growth. JFrog's consistent track record of execution and profitability, along with its positive progress towards long-term targets, contributed to the upgrade.
BMO Upgrades First Solar to Outperform
BMO upgraded First Solar to outperform from market perform, advising investors to buy the dip in shares. The investment bank believes the recent decline in stock price following the Analyst Day is unwarranted and sees potential for the stock to outperform.
Jefferies Upgrades MetLife to Buy
Jefferies upgraded MetLife from hold to buy, taking a more constructive view of the insurance industry. The investment bank highlighted MetLife's stable performance and above-peer improvement in excess capital, driven by the reinsurance deal announced in May.
Susquehanna Upgrades Semtech to Positive
Susquehanna upgraded Semtech from neutral to positive, recommending investors to buy the dip in shares. Despite a challenging year with major resets, the investment bank expresses confidence that the turnaround for the semiconductor company is underway.
Wolfe Upgrades Etsy to Outperform
Wolfe upgraded Etsy to outperform from peer perform, foreseeing share outperformance ahead. While uncertainties in the macro environment exist, the investment bank sees multiple paths for Etsy's shares to outperform over the next 12-18 months.
TD Cowen Initiates BJ's as Outperform
TD Cowen initiated BJ's as outperform, recognizing its value proposition with strong appeal to a younger demographic. The investment bank appreciates BJ's holistic approach to club membership engagement, incorporating digital analytics and a complete basket value proposition.
Redburn Atlantic Equities Upgrades Carnival and Norwegian
Redburn Atlantic Equities upgraded Carnival and Norwegian from neutral to buy, considering the cruise companies stronger post-COVID. The investment bank anticipates a turbocharged demand strength in the cruise industry, driven by the growing US over-65 population.
TD Cowen Downgrades Frontier
TD Cowen downgraded Frontier from outperform to market perform, citing booking trends below expected levels. The investment bank lowered its price target to $8 per share following the latest guidance update from management.
Bank of America Reiterates Blackrock as Buy
Bank of America reaffirmed its buy rating on Blackrock, recognizing the company as a leading platform for investing and tech solutions. The investment bank believes Blackrock is well-positioned for key secular themes, given the new higher rate backdrop and multiple other factors.
Goldman Sachs Reiterates FedEx as Buy
Goldman Sachs maintained its buy rating on FedEx, expressing confidence ahead of the upcoming earnings. The investment bank believes investors will focus on the volume trajectory as the company enters 2024, in addition to long-term cost savings.
In conclusion, Thursday's top analyst calls reflect a range of recommendations and outlooks for various companies across different sectors. These calls provide valuable insights for investors and businesses looking to make informed decisions in the market.
Conclusion: The Impact on New Businesses
Thursday's top analyst calls offer valuable insights into the current market trends and future outlooks, which can significantly impact new businesses.
Adapting to Market Trends
New businesses should pay close attention to these calls as they provide a clear understanding of market trends and investor sentiment. For instance, the downgrade of J.M. Smucker due to complexities arising from its acquisition of Hostess highlights the importance of considering the potential impact of M&A activities on business operations and market perception.
Opportunities for Growth
On the other hand, the upgrades of companies like Amazon, Nvidia, and JFrog suggest potential growth opportunities in their respective sectors. New businesses in these sectors can leverage these insights to align their strategies with market expectations and position themselves for success.
Managing Market Volatility
The varying ratings across different companies and sectors also underscore the volatility of the market. New businesses should be prepared to navigate this volatility by closely monitoring market trends and adjusting their strategies accordingly.
In conclusion, Thursday's top analyst calls can serve as a valuable resource for new businesses, helping them understand market trends, identify growth opportunities, and manage market volatility. By leveraging these insights, new businesses can make informed decisions and strategically position themselves in the market.
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