Wall Street Updates
Here are the top highlights from Wall Street this Monday:
HSBC has upgraded both Visa and Mastercard from hold to buy, identifying them as good entry points. The new price targets are $389 for Visa, up from $335, and $633 for Mastercard, up from $598.
Meanwhile, Morgan Stanley has downgraded Tesla from overweight to equal weight. They are looking for a more favorable entry point, noting the stock’s current price is 30 times 2030 EBITDA, suggesting potential downsides in the near term.
Evercore ISI continues to endorse Apple, boosting its price target from $300 to $325. They emphasize Apple’s plans to profit from new AI revenue opportunities while maintaining a cautious approach.
Pivotal has downgraded Netflix from buy to hold, citing concerns over an expensive acquisition deal with Warner Bros. They see this move as indicative of management’s worries over declining subscriber engagement, shifting towards a more conservative outlook.
In other news, Deutsche Bank has downgraded 3M from buy to hold after seeing a 64% rise since July, largely attributed to the “Bill Brown Effect.” KeyBank has upgraded Thermo Fisher from sector weight to overweight, expressing optimism about its growth prospects leading into 2026, thanks to a promising acquisition strategy.
JP Morgan upgraded Generac from neutral to overweight, suggesting the company is well-positioned for 2026 amidst trends like backup power needs and residential solar initiatives. Bernstein has reiterated an outperform rating for TSM, raising its price target to $330 from $290 based on slightly better-than-expected revenues but weaker margins.
In a different direction, Morgan Stanley has downgraded Ferrari’s stock rating, mentioning limited upside potential and anticipating growth below 5% over the next few quarters.
Bernstein has also reaffirmed that NVIDIA is outperforming, considering the data center opportunities still in their infancy and holding significant upside potential. JPMorgan upgraded Novartis from neutral to overweight, praising its pipeline and growth prospects.
Bank of America has increased its target for Carvana to $455 per share, following its inclusion in the S&P 500 index. Barclays has upgraded KB Home from equal weight to overweight, foreseeing recovery in return on equity through 2027.
There’s more movement at Morgan Stanley with Jefferies being upgraded from equal weight to overweight, as the outlook appears positive for capital markets. General Motors also received an upgrade to overweight, with the company adjusting its capital allocation strategy around EV and AV growth.
Barclays has initiated coverage on Louisiana Pacific with an overweight rating, believing the company can gain market share in engineered wood siding. Citigroup is moving ahead with its acquisition of Matador Resources, citing competitive advantages in the natural gas sector.
JP Morgan upgraded Devon Energy to overweight from neutral, indicating a compelling investment based on their new ranking methodology and an optimization plan.
Bank of America started coverage on Canaan, labeling it a strong growth opportunity while Benchmark downgraded Marvell Technology from buy to hold, worrying over its recent loss with Amazon’s Trainium chip.
Five Below has been upgraded from hold to buy, reflecting its potential for rapid growth, while Mizuho launched Commvault with an outperform rating, seeing a bright future for the software company.
TD Cowen upgraded Ulta Beauty to buy, highlighting changes in leadership expected to enhance performance. Morgan Stanley has also upgraded Old Dominion and Canadian Pacific, noting appealing risk-reward scenarios despite high valuations.
On a more cautious note, Pinterest saw a downgrade from outperform to neutral, with a lowered price target as Bank of America anticipates raising its target ahead of upcoming earnings.
Finally, Barclays decreased Oracle’s price target from $400 to $330 as concerns about AI bubbles persist, expecting a potential buying opportunity in the wake of earnings reports.
