Key Wall Street Calls on Thursday
Here’s what analysts are saying on Wall Street today:
Bank of America reaffirmed its stance on Tesla stock, indicating it will continue to purchase shares following recent results. They consider Tesla a buy, citing its leadership in consumer autonomy and potential to dominate robotaxi services in the near future.
TD Cowen also maintained its buy rating on NVIDIA, expressing confidence in the company despite Google’s latest AI chip announcements. They assert NVIDIA remains the market leader, largely thanks to its expansive ecosystem.
Meanwhile, UBS has raised its target price for Berkshire Hathaway from $578 to $581 per share. They note that since the acquisition announcement, the stock has been undervalued, and share repurchases may significantly impact investor sentiment.
Raymond James upgraded On from Outperform to Strong Buy, citing its pricing power and recognizing recent market weaknesses as an opportunity.
HSBC announced its acquisition of Oklo, a nuclear company. They praised Oklo’s innovative ‘owner-operator’ model for next-generation small modular reactors (SMRs), which they believe will expedite the integration of power and fuel production.
Conversely, Morgan Stanley downgraded CSX from equal weight to underweight, pointing to capped valuations despite a decent first-quarter performance. They noted that productivity improvements are ongoing.
Post-earnings, Bank of America reiterated a buy rating for Alphabet, highlighting several positive indicators, including IBM’s defensiveness due to its steady revenue and cost-cutting strategies. They see Alphabet as well-equipped for long-term growth, particularly with its advancements in AI technology across various platforms.
Northland has made strides in the rare earths sector, and with substantial liquidity, USAR is confident in establishing a robust supply chain outside China.
Rosenblatt noted that Sirius has been selected as the exclusive advertising agency for YouTube’s audio ad space in the U.S., marking a significant shift for Google as it partners with an external distributor.
Bernstein raised its price target for Amazon from $265 to $300 per share, further demonstrating confidence in the company’s growth potential.
Texas Instruments received an upgrade as Bank of America cited their strong first-quarter results and optimistic outlook in sectors like aviation and defense, positioning them for potential market share gains amid a constrained chip environment.
Rothschild upgraded McDonald’s from sell to neutral, mentioning that some previous concerns, like unsustainable pricing and traffic issues, appear to have been addressed. They recognized significant changes in McDonald’s value strategy since the dollar menu days.
JP Morgan downgraded Lucky Strike from neutral to underweight. Their analysis suggested that macroeconomic uncertainties are impacting traffic, leading growth to stagnate below pre-pandemic levels.
Citi downgraded Madison Square Garden Sports from buy to neutral, anticipating potential changes in the next 12-18 months, including a possible tax-free spin-off and new developments at an MSG venue. However, they believe these changes won’t significantly alter their price target.
KeyBank has initiated coverage of Starling Infrastructure, an infrastructure company they believe is undergoing a turnaround, rating it as an Outperform with a price target of $572.
