Market Updates on Key Stocks
On Thursday, Wall Street highlighted Bank of America’s reaffirmation of NVIDIA as a “Buy.” The bank maintains that NVIDIA’s current stock levels are still “attractive.” They noted that projected P/E valuations for 2026 and 2027—25x and 19x, respectively—are compelling, especially given that earnings growth is only about 0.5x compared to roughly 2x for the broader Mag-7 peers.
Bank of America also adjusted its price target for Oracle, lowering it from $368 to $300 per share. This change follows Oracle’s strong performance post-OpenAI announcement, suggesting that cautious investors are regaining trust in Oracle’s potential as an AI compute hyperscaler. They believe that investor sentiment and expectations could continue to improve.
Barclays maintained an “equal weight” rating on Tesla, asserting that recent delivery numbers aren’t expected to significantly impact the stock price. They predict that deliveries might be weak in the fourth quarter but don’t see this affecting Tesla’s overall valuation.
UBS expressed its continued commitment to acquiring Micron Technology, raising its price target ahead of the company’s upcoming earnings. The firm has updated its earnings per share forecast upwards to approximately $38 for 2027, which supports a new price target of $295, an increase from the previous $275, while keeping a “buy” rating.
BMO upgraded BCE to an “Outperform” rating, citing a favorable risk/reward profile for Canadian media companies. They expect wireless and wireline services revenue growth to remain steady at around 2% year-over-year.
Jeffries upgraded Roku from “Hold” to “Buy,” suggesting there could be “revenue upside” as 2026 approaches. They noted Roku’s management focus on cost discipline could support notable growth in operating margins.
Goldman Sachs recently initiated coverage on Abercrombie & Fitch and Bootbarn, suggesting strong positioning for both companies. They linked this to an aggressive pace of store openings and what seems like sustainable earnings growth for Abercrombie & Fitch.
Mizuho started its coverage of several quantum computing firms, indicating an optimistic outlook. They project outperforming ratings for IONQ, RGTI, and QBTS, along with respective price targets of $90, $50, and $46.
Bernstein also initiated coverage of BridgeBio with an “Outperform” rating, citing good potential for growth. They set a price target of $94.
Goldman Sachs identified Amazon and Meta Platforms as top picks moving into 2026. They believe Amazon’s strategic use of AI in its cloud and e-commerce sectors will foster significant operating income growth. Meta, despite some controversies, appears to present a favorable risk/reward scenario as well.
UBS recently initiated coverage on KKR, likening it to a “mini Berkshire Hathaway,” given its strategic investment approach. This comparison suggests that KKR could operate with a similar model to the famed investment firm.
Piper Sandler upgraded Unity from “Neutral” to “Overweight,” stating that the mobile ad tech market looks robust. They increased their price target from $330 to $365, highlighting that Google is seeing strong growth in its digital budgets.
Meanwhile, Morgan Stanley reaffirmed its “Overweight” stance on Meta Platforms, although it lowered the price target from $820 to $750. Despite some negative sentiment from investors, they remain optimistic about 2026 based on earnings revisions and operational efficiency.
Truist upgraded Global-E Online from “Sell” to “Hold” and dLocal from “Hold” to “Buy,” while expressing high expectations for volume growth for both companies.
Deutsche Bank upgraded JB Hunt, highlighting improved earnings forecasts for 2027, which they believe makes JBHT a compelling candidate for future growth.
Bank of America has upgraded Visa from “Neutral” to “Buy,” citing an attractive return potential following its recent struggles.
Conversely, they downgraded PayPal from “Buy” to “Neutral,” pointing to uncertainties in its growth efforts, particularly regarding its core branded checkout services.
Citigroup upgraded Bausch & Lomb to “Buy” from “Neutral,” asserting strong fundamentals despite some volatility likely due to stock liquidity constraints. Meanwhile, Baird downgraded Citizen Financial from “Outperform” to “Neutral,” citing valuation concerns.
Finally, Bank of America initiated coverage on Synopsys, highlighting its stock as appealing at current levels following a notable recent financial performance.
