Here are Friday’s biggest calls on Wall Street:
Goldman Sachs says the diabetes management company is well positioned.
“While recent CEO transition is likely top of mind for investors, we see the move as coming from a position of relative strength. We see Insulet as well positioned to accelerate market share capture given its unique form factor (patch vs durable), pharmacy access and type 2 indication.”
Bank of America raised its price target on the dominant streaming platform to $1,490 per share from $1,175.
“We continue to view Netflix as well positioned given the company’s unmatched scale in streaming, further runway for subscriber growth, significant opportunities in advertising and sports/live and continued earnings and [free cash flow] growth.”
JPMorgan says the largest U.S. e-commerce platform remains a top idea.
“We continue to believe US e-commerce penetration of Adj. Retail Sales could nearly double from ~23% in 2024 to 40%+ long term, and AMZN remains our best idea.”
The firm says Dell remains well positioned following earnings on Thursday.
“Reiterate Buy as we are still in the early stages of AI adoption, margins from mix, and tailwind from upcoming PC refresh and longer-term AI PC adoption.”
UBS says Costco has “superior consistency and execution” following earnings on Thursday.
“This quarter was a good illustration of why we think COST is well set up to outperform.”
JPMorgan sees “sustained AI demand” for Marvell following earnings on Thursday.
“Overall, we see a positive setup for the company, driven by a recovery in its cyclical businesses and sustained AI tailwinds.”
Piper said in its downgrade of Zscaler that it sees limited upside for shares of the IT security company.
“While the year appears to be playing out as we had hoped, with the company topping 3Q metrics and the back half billings ramp appearing less daunting given quarterly performance, the recent run in shares (+30% over past 3 months) have us mulling upside from here.”
The bank is bullish on shares of the retail real estate investment trust.
“Our Buy on Brixmor reflects visibility into mid-single digit [funds from operations] growth at an attractive valuation.”
Needham says the owner of brands such as Tommy Hilfiger is undervalued.
“We believe PVH is a mispriced asset, with underappreciated EPS drivers over the next few years.”
Bank of America raised its price target on the machinery maker to $385 per share from $335.
“A disconnect has emerged between the two Machinery bellwethers: CAT & DE shares have been tightly correlated over a long period of time and both are likely to deliver $18-$19 of EPS in FY25, yet CAT is trading at a 25-30% valuation discount to DE. The discount does not typically get steeper based on prior cycles and we believe there is a path for CAT’s multiple to ‘catch up’ to Deere.”
JPMorgan says volatility may be ahead but it is sticking with both stocks.
“Large-cap top picks: OW AVGO, OW ADI, OW MRVL, OW KLAC, OW SNPS, OW CDNS; we also favor OW NVDA, OW AMAT, OW LRCX.”
Deutsche Bank says it is sticking with the health-care company.
“We maintain our Buy rating on UNH’s shares, as even here using a trough-ish multiple on our expected 2025 trough earnings still implies meaningful upside to the shares.”
Barclays says shares of the energy company have plenty more room to run.
“Upgrade to OW from EW as we see CRC benefiting from an attractive slew of idiosyncratic catalysts over the next 12 months.”
Barclays said in its upgrade of Rockwell that the industrial company has upside.
“The valuation multiple may not expand much from the current fairly high level, but we think it can at least ‘hold steady’ as the top-line recovery takes hold.”
The investment bank says the stock remains a top pick.
“Our OW rating and $410 price target are underpinned by our belief that Tesla’s capabilities in key areas of physical AI including data, robotics, energy storage, compute, manufacturing and space/comms/networking/ infrastructure offer growth and margin opportunities that greatly exceed those of the traditional EV business, which is under pressure.”
JPMorgan says it sees several positive catalysts ahead for the chemical manufacturer.
“Why does the value of a commodity company rise? Often it is a constellation of factors. Prices for the commodity may rise, the supply/demand balance for the commodity may improve, and overall macro sentiment can be less pessimistic. We think that a number of these factors are in place for Tronox.”
JPMorgan says the water company is a “winner in the world of water.”
“We are initiating coverage of Xylem (XYL) with an Overweight rating and a YE25 PT of $148.”
Truist says its survey checks show bookings remain soft.
“In light of the trends observed in our research, post-1Q earnings we are lowering estimates and price targets for the previously noted companies on pg. 1 and lowering our investment ratings on ABNB to Sell from Hold and on PK to Hold from Buy.”
Oppenheimer said in its upgrade of Nordson that it sees several positive catalysts ahead for the adhesive manufacturer.
“We are upgrading shares to Outperform and establishing a $260 PT.”
Deutsche Bank resumed research coverage of the stock and upgraded shares of the clothing company, saying that it “checks all the boxes.”
“We are resuming coverage of Ralph Lauren (RL) with a Buy rating and $343 PT, implying 25% potential upside (including dividend yield). Few companies within our coverage fit the description of high-quality with good underlying fundamentals, pricing power, white space opportunity, and limited China sourcing – but we think RL checks all the boxes.”
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.