Tuesday's Biggest Analyst Calls: Supermicro, CVS, Royal Caribbean, Dell, Arm Holdings, Planet Fitness, Nvidia, Rackspace Technology, Apple, Micron, GE Healthcare, Array Technologies, Starbucks, Deere, and Alphabet
Barclays Initiates Supermicro as Overweight
Barclays initiated coverage on Supermicro as overweight, citing the company's strong positioning for artificial intelligence. They believe Supermicro is well positioned to capture the rising AI server opportunity due to its design capability and AI partnerships.
Evercore ISI Upgrades CVS to Outperform
Evercore ISI upgraded CVS to outperform, stating that the stock is attractive. They see operational issues improving and find the current valuation appealing, setting a new price target of $83.
Goldman Sachs Downgrades Lazard to Sell
Goldman Sachs downgraded Lazard to sell, citing a challenging outlook for the investment bank. They anticipate near-term earnings pressure due to a challenging top-line trajectory and a longer path to margin improvement.
Truist Upgrades Royal Caribbean to Buy
Truist upgraded Royal Caribbean to buy, noting strength in booking trends. They are positive on the sector and upgraded Royal Caribbean from hold to buy, as well as changing their rating on Carnival Corporation to hold from sell.
Daiwa Upgrades Dell to Outperform
Daiwa upgraded Dell to outperform, highlighting the beginning of a new demand up cycle and the increasing impact of AI. They raised their rating to outperform from neutral.
Redburn Atlantic Equities Initiates Arm Holdings as Neutral
Redburn Atlantic Equities initiated coverage on Arm Holdings as neutral, expressing concerns about the company's current valuation. They believe Arm's guidance for a rapid pivot in achieved royalty rates needs to be sustained to justify the valuation.
JPM Downgrades Planet Fitness to Neutral
JPMorgan downgraded Planet Fitness to neutral due to leadership changes and ongoing systemic challenges. The unexpected removal of the CEO and concerns about the company's future performance led to the downgrade.
TD Cowen Reiterates Nvidia as Outperform
TD Cowen reiterated Nvidia as outperform, expressing increased confidence in the company's leadership in training and the growing importance of AI. They remain optimistic about Nvidia's position in the AI industry.
Raymond James Upgrades Rackspace Technology to Outperform
Raymond James upgraded Rackspace Technology to outperform, praising the management's execution and strategic direction. They raised their rating on the cloud computing company from market perform to outperform.
Barclays Reiterates Apple as Equal Weight
Barclays reiterated Apple as equal weight, citing channel checks that showed iPhone 15 preorders were down compared to the previous year. They observed a 5% decrease in overall unit orders with a 4% lower pro mix on a year-over-year basis.
Goldman Sachs Reiterates Micron as Buy
Goldman Sachs reiterated Micron as a buy, raising their price target to $85 per share. They expect improving demand trends and disciplined supply to drive higher pricing, improving margins, and sustained stock price outperformance.
Citi Initiates GE Healthcare as Buy
Citi initiated coverage on GE Healthcare as a buy, emphasizing the company's essential and pervasive products throughout the healthcare continuum. They view the spinoff company positively and set a price target of $82.
Bank of America Adds Array Technologies to the US1 List
Bank of America added Array Technologies to the US1 list, recognizing the solar manufacturer as a promising player in the cleantech market. They see Array Technologies as a standout company with potential for future growth.
TD Cowen Downgrades Starbucks to Market Perform
TD Cowen downgraded Starbucks to market perform, expressing concerns about macro and competitive pressures, particularly in China. They anticipate challenges to China same-store sales and have adjusted their rating accordingly.
Evercore Downgrades Deere to In Line
Evercore downgraded Deere to in line, citing agriculture production cuts. They expect revenue declines for Deere in the next fiscal year, which deviates from the generally flat consensus.
KeyBanc Reiterates Alphabet as Overweight
KeyBanc reiterated Alphabet as overweight, expressing confidence in the company's margin expansion. They anticipate further potential savings from real estate rationalization and cloud margin improvements.
In conclusion, these analyst calls reflect the changing sentiments and evaluations of various companies by Wall Street experts. Investors should consider these recommendations and the rationale behind them when making investment decisions.
Conclusion
The recent analyst calls on Wall Street provide valuable insights into the current market trends and the future prospects of various companies. These evaluations can significantly impact new businesses, particularly those operating in similar sectors or considering entry into these markets.
Implications for New Businesses
For instance, Barclays' initiation of Supermicro as overweight due to its strong positioning for artificial intelligence (AI) highlights the growing importance of AI in the tech industry. New businesses in this sector should consider this trend when developing their strategies and product offerings. Similarly, the upgrade of CVS to outperform by Evercore ISI underscores the potential for growth in the healthcare sector, offering opportunities for new businesses in this field.
Learning from Analyst Calls
Analyst calls also offer valuable lessons in business strategy and management. For example, the downgrade of Planet Fitness due to leadership changes and systemic challenges underscores the importance of strong leadership and effective management of challenges. New businesses can learn from this and strive to build strong leadership teams and robust systems to manage potential challenges.
In conclusion, Wall Street's analyst calls offer a wealth of insights and lessons for new businesses. By carefully analyzing these calls, new businesses can gain a better understanding of market trends, identify potential opportunities, and learn valuable lessons in business strategy and management.
.svg)
