Here are some of Wall Street’s hottest stocks on Monday: Truist upgrades Krispy Kreme to Buy from Hold Truist upgrades Krispy Kreme, saying the company is undervalued. “Upgraded to Buy. Time to soak in the undervalued story.” New Street initiates Microsoft to Buy New Street said Microsoft is well positioned “for years to come.” “With a series of high-quality franchises, it’s well positioned for profitable growth in the low teens over the next few years.” Morgan Stanley resumes Broadcom to Overweight Morgan Stanley resumed coverage of Broadcom, saying it is “attractive.” “AI growth, potential synergies from VMW, and a recovery in core enterprise semiconductors make AVGO attractive relative to others in the ‘AI winners’ camp. OW, $1,658 PT.” UBS re-evaluates Apple to Neutral UBS said interest in Apple’s AI remains “subdued” based on survey results. “iPhone buying interest remains weak and interest in AI is muted.” TD Cowen Renews Buy Recommendation for Nvidia TD Cowen raised its “best idea” price target for Nvidia following the company’s stock split. “No updates, just model tweaks (and proof that it can be divided by 10). We renew our buy recommendation, best idea, and adjust (raise) our price target to $140 from $120.” Bernstein Renews Underperform Recommendation for Tesla Bernstein said he doesn’t think CEO Elon Musk will receive his $56 billion compensation package. “We see the stock probably declining (5% or more) on concerns that Musk might leave Tesla if the compensation package is rejected.” Bernstein Renews Outperform Recommendation for Disney Bernstein said Disney Parks could be “soft,” but maintained his outperform rating. “Demand recovery from the COVID pandemic could lead to sluggish attendance numbers in ’24 and possibly ’25. Given the difference in timing of demand recovery between U.S. and international parks, the overall demand decline may not be as large.” Morgan Stanley Names DraftKings Top Pick Despite the Illinois gambling tax issue, Morgan Stanley restored gambling stocks to top pick status. “We are restoring DKNG to our top pick in North American Gaming & Lodging as we see positive catalysts easing recent pressure from recent tax headlines.” Jefferies Upgrades Planet Fitness to Buy from Hold Jefferies said it sees a number of positive catalysts going forward for Planet Fitness. “While the stock has been under pressure for the past 6-9 months, we believe the current headwinds are well understood and that 1) the new CEO (Colleen) who is starting today and 2) the adjustments to the franchise model provide a clearer path to improving trends going forward.” JP Morgan Upgrades PG&E to Overweight from Neutral JP Morgan said it sees the utility company poised for growth over the long term. “As a result, we have upgraded PCG to OW and increased our price target to $22 ahead of the company’s investor day on June 12, where we expect the company to highlight these factors, including providing a more detailed breakdown of spending within its capital plan, outlining net customer benefits, and providing an update on wildfire mitigation measures.” JPMorgan upgrades Walmart to Overweight from Neutral JPMorgan said the stock is a combination of offensive and defensive. “We upgrade WMT to Overweight as we believe the stock offers a strong balance of defensive and offensive on both top and bottom lines amid a soft (to soft) consumer environment with a highly uncertain outlook for the second half of 2024.” Morgan Stanley downgrades Advanced Micro Devices to Equal Weight from Overweight Morgan Stanley said investor expectations are “too high.” “We like the AMD story, but investor expectations for the AI business still appear too high.” UBS Upgrades Honeywell to Neutral from Sell UBS upgraded Honeywell to Neutral, primarily due to valuation. “Valuation reset and growth shortfall should start to improve. U/G Neutral.” UBS Reiterates Buy on Micron UBS raised its price target on Micron to $155 from $125 per share. “With an industry-wide reassessment of AI-related material and our new C2025 EPS of approximately $17.50, we see no reason why valuation should preclude us from moving to our new $155 price target and remain a Buy.” Wells Fargo Reiterates Overweight on Nike Wells lowered its price target on Nike to $115 per share from $120 but said it would continue to hold the stock. “We see NKE’s numbers lower again as the impacts of both 1) tougher macro and 2) their own necessary reset weigh more heavily in the first half of 2025 than we originally thought. We lower our numbers below the Street and see a lower baseline again going forward. Price target $115.” Raymond James upgrades Mohawk to Strong Buy from Market Average Raymond James said the flooring company’s shares are undervalued. “Upgraded MHK shares to Strong Buy.” Rosenblatt Reiterates Buy on ARM Rosenblatt said he likes ARM shares as much as NVIDIA shares. “Reiterated Buy rating on ARM with $180 price target. Viewed as a top long-term pick alongside NVDA.” JP Morgan Upgrades Lithia Motors to Overweight from Neutral JP Morgan upgraded the auto company following a “significant downgrade.” “LAD (OW): Significant downgrade since 3Q23 earnings announcement, upgraded to OW from N, shares rise in our ranking.” Melius downgrades Adobe to Hold from Buy Melius said Adobe shares are facing increased competition. “Adobe may be in a better position than, say, Salesforce, but there are many new competitors rising that would have been unimaginable a year ago.” Citi re-rates General Motors to Buy Citi said the automaker is its top pick. “The next 2-4 months will be critical in shaping GM’s EV story.” Bank of America re-rates T-Mobile to Buy After a series of management meetings, Bank of America said the company has a “long path to growth.” “We left the meeting confident in TMUS’ ability to execute on its current plans and continue to identify new growth segments within mature markets. We raise our target price to $195 from $175 as we roll our valuation criteria out to 2025.”
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