Here are the key calls on Wall Street on Monday: Goldman Sachs reiterates Nvidia as a buy. Goldman says it is bullish on the stock ahead of next week’s earnings release. “From an equity perspective, we believe the setup is constructive for NVDA as the stock trades at 42x consensus NTM EPS (next twelve months), or a relative premium of just 46%, and our updated bull/bear framework indicates a favorable risk/reward.” RBC upgrades Gates to outperform from neutral. RBC said in its Gates upgrade that it sees a number of catalysts for the powertrain maker. “We are particularly excited about the multi-year upcycles in personal mobility, the Chinese auto aftermarket, expansion in India and the shift from chain to assembly line.” Morgan Stanley reiterates Salesforce as overweight. Morgan Stanley said it is maintaining its overweight rating ahead of Salesforce’s earnings release next week. “Robust partner checks, flat macro and the closing of broken deals are likely to prove sufficient against investors’ low expectations and provide prudent guidance.” Morgan Stanley reiterates Amazon, Walmart as overweight Morgan Stanley says Amazon and Walmart are “leaders” in retail. “Amazon and Walmart account for 40 cents of every incremental dollar of retail sales. The big guys are getting bigger and there’s nothing standing in their way right now.” KeyBanc reiterates Apple as sector weight Key said its survey checks showed caution ahead of the iPhone 16 launch in September. “Growth expectations for AAPL looking to fiscal 2025/2026 have never been higher, while we continue to have concerns that there will not be a big increase in upgrade rates, which we expect will still be low.” Bernstein reiterates Tesla as underperform Bernstein says Tesla is a laggard in the robotaxis space. “While Tesla is clearly focused on launching a robotaxis, Waymo and Cruise already operate robotaxis in the U.S. today. The available data is clearly not perfect, but at this point Tesla appears to be lagging behind the market leaders in this space.” Goldman Sachs upgrades Bradesco to buy from neutral. Goldman upgraded the Brazilian financial services company after earnings. “We are upgrading Bradesco to buy based on better-than-expected Q2 2024 results.” Morgan Stanley rates Lineage a buy. Morgan Stanley has named the storage company a top pick, saying it is a “cash compounder.” “LINE is the global leader in temperature-controlled storage with the highest quality assets and a differentiated, technology-enabled platform to drive efficiency and margins.” Morgan Stanley downgrades Hewlett Packard to equal weight from overweight. Morgan Stanley said in downgrading Hewlett Packard that it sees “limited upside to the valuation.” “Our OW thesis was based on the belief that the market is undervaluing a return to PC revenue growth, stable pressure margins and accelerating returns on capital.” Morgan Stanley reiterates Dell at overweight Morgan Stanley cut its price target on Dell to $142 per share from $155 ahead of next week’s earnings release, but says it is maintaining its overweight rating. “It’s time to ignore the noise and refocus on the fundamentals, which we believe continue to point to the upside relative to consensus.” Piper Sandler downgrades Shake Shack to neutral from overweight Piper says it sees a more balanced risk-reward for Shake Shack stock. “With that in mind, we believe the menu pricing part will get a little more difficult going forward, and as analysts tasked with picking stocks, we think the risk-reward has become more balanced at current levels, hence the rating change.” Piper Sandler downgrades Sweetgreen to neutral from overweight Piper says it sees a more balanced risk-reward for Sweetgreen. “With that in mind, as analysts tasked with picking stocks, we believe the risk-reward has become more balanced at current levels, hence the rating change.” Piper Sandler downgrades Dutch Bros to neutral from overweight Piper downgraded the coffee chain’s rating. “Nevertheless, we have always viewed BROS as a higher-risk, higher-reward situation considering the industry space it operates in as well as its balance sheet positioning relative to certain fast casual growth entities.” Goldman Sachs initiates buy rating for Concentra Goldman says it sees “strong execution in a stable market” for the healthcare company. “Concentra is a healthcare services company that operates as a market leader in the workers’ compensation space.” Loop upgrades Prog Holdings to buy from neutral Loop says it is bullish on the fintech company’s shares. “We are upgrading PROG Holdings to buy from hold while raising our price target to $55 from $41, representing 26% upside from current levels.” Citi initiates buy rating on Clearwater Analytics Citi called the stock an “attractive software vertical.” “We initiate coverage on Clearwater Analytics (CWAN) with a buy rating and a $28 price target. Evercore ISI reiterates McDonald’s as outperform Evercore raised its price target on the stock to $320 per share from $300. “We are increasingly optimistic about McDonald’s U.S. business in 2025 as the relative market share trend has improved somewhat recently and we believe this will continue through H2 2024.” Piper Sandler initiates Rubrik as Overweight Piper says the cloud-based data protection platform is a top idea. “We initiate coverage on Rubrik with an Overweight rating and a $42 price target, and label it as one of our top ideas.” JPMorgan begins OneStream as Overweight JPMorgan says the software provider for the CFO’s office is well positioned for share gains. “We initiate coverage on OneStream with an OW rating and a $30 price target for December 2024.” BTIG upgrades Taylor Morrison to buy from neutral BTIG upgraded the homebuilder on valuation. “We are upgrading TMHC to Buy and setting a price target of $78 based on 1.5x current book value per share after holding virtual investor meetings with management last week.” Needham upgrades Onto Innovation to Buy from Neutral Needham says the semiconductor company is undervalued. “ONTO (upgraded to Buy) is a classic example of underperforming in China but outperforming outside of China. The setup for next year favors names like ONTO, in our view.” MoffettNathanson rates Apple Neutral Moffett says AI is already priced into Apple. “There are also execution risks. To be clear, we firmly believe Apple will execute its strategy very well. But that is priced in, too. We just have to decide whether the upgrade cycle that Apple Intelligence is designed to trigger will be larger or smaller than expected (and priced in).”
Wall Street analysts call for Apple and Nvidia meeting on Monday
