Wall Street Updates: Revisions and Ratings
On Friday, there were significant shifts in how different analysts view various companies on Wall Street. DA Davidson has changed its rating for Amazon from buy to neutral, citing concerns that Amazon Web Services (AWS) is losing ground to competitors like Microsoft and Google. They noted that AWS is struggling to regain its market dominance amidst increasing investment.
In other news, BTIG has initiated coverage on Merit Medical, labeling it as a “high quality” medical device company with a diverse range of products for interventional procedures.
Meanwhile, UBS has expressed optimism about the Brazilian meat company JBS, issuing a buy rating with a target price of $19.50 per share, which suggests a 23% upside. RBC has also reaffirmed its positive outlook on Nvidia, Marvell Technology, and Micron, highlighting that demand remains robust even as industry-wide supply constraints loom for the next year or so.
Goldman Sachs has announced plans to acquire Biohaven, calling it “best-in-class,” and assigning it a buy rating with a target of $23 in the next year. Biohaven focuses on late-stage programs targeting inflammation, epilepsy, and obesity.
Barclays has downgraded Canada Goose from equal weight to underweight, citing ongoing profitability issues and limited revenue growth potential.
Goldman Sachs has also upgraded Vistra from neutral to buy, suggesting that if the company secures contracts for its nuclear plants at similar pricing, EBITDA could see a 3% to 9% increase by 2028. In a contrasting view, Jefferies cautioned that PLTR stock, which had experienced significant rises, might now have more potential for decline than growth.
Additionally, Oppenheimer upgraded Roku to outperform, while Deutsche Bank shifted Ares Management from hold to buy, stating it’s a good opportunity to invest in asset management amid market fluctuations.
Citi upgraded Estée Lauder to buy, noting improvements since the brand changed its strategy under CEO Stéphane de la Faverie.
In a downgrade, Deutsche Bank moved Old Dominion from buy to hold, stating the stock has already accounted for much of the expected improvements in returns.
UBS downgraded Norfolk Southern from buy to hold, anticipating challenges ahead due to lower yields and operating margins.
On a positive note, Cantor Fitzgerald has launched Jumia Technologies as overweight. They believe this African marketplace is poised to emerge as a major player in e-commerce after undergoing a challenging transformation.
Bank of America is maintaining its buy rating on Amazon, though it reduced the price objective from $286 to $275 due to concerns over AWS margins and competition.
Stevens upgraded Bootburn from equal weight to overweight, benefiting from tax refunds. Morgan Stanley still considers Reddit to be overweight, albeit lowering its price target from $265 to $240.
Deutsche Bank continues to back Roblox as a buy, praising its recent performance and future prospects despite potential viral impacts not yet reflected in their forecast.
Lastly, BTIG advised investors to stay calm amid Bitcoin’s volatility, emphasizing that MSTR’s debt situation is manageable regardless of Bitcoin’s price fluctuations.
