Wall Street experienced a flurry of notable calls on Tuesday, with analysts and institutions weighing in on key stocks. These assessments provide valuable insights into the market’s current trends and investment opportunities. Here’s a roundup of some of the most significant calls made by analysts:
1. UBS Downgrades ChargePoint (CHPT) to Neutral
UBS expressed caution regarding the growth outlook for the electric vehicle (EV) charging company, ChargePoint (CHPT). Despite being a leader in Level 2 charging ports in the U.S., with 44% of the publicly accessible installed base, UBS cited concerns about the correlation between ChargePoint’s revenue and EV deliveries and sales.
2. JPMorgan Reiterates Apple (AAPL) as Overweight
JPMorgan reiterated its bullish stance on Apple (AAPL), emphasizing that delivery lead times have stabilized after moderating for several weeks. The tech giant appears to have supply meeting demand, boding well for its iPhone segment.
3. Citi Reiterates Nvidia (NVDA) as Buy
Citi maintained its buy rating on Nvidia (NVDA), highlighting the company’s robust demand, particularly from cloud service providers (CSPs), sovereign AI clouds, and various other customer segments. Nvidia continues to expand its reach across diverse industries.
4. Wells Fargo Downgrades Booz Allen Hamilton (BAH) to Equal Weight
Wells Fargo advised investors to wait for a more favorable entry point for the defense contractor, Booz Allen Hamilton (BAH), despite foreseeing industry-leading growth in the coming years. Valuation concerns led to this downgrade.
5. Bernstein Initiates Confluent (CFLT) as Outperform
Bernstein initiated coverage on Confluent (CFLT) with an outperform rating, citing an attractive revenue story driven by cloud adoption. Confluent is well-positioned in the software industry, with a competitive edge over hyper scalers and new entrants.
6. Raymond James Upgrades Crocs (CROX) to Strong Buy
Raymond James sees an attractive entry point for the shoe company, Crocs (CROX), despite recent gains. The stock’s low price-to-earnings ratio and expectations of moderate revenue growth make it an appealing investment.
7. HSBC Initiates Estee Lauder (EL) as Buy
HSBC expressed bullish sentiment towards Estee Lauder (EL), initiating coverage with a buy rating. The analysis considers fundamental factors and explores potential scenarios for succession planning and mergers and acquisitions (M&A).
8. Jefferies Upgrades Affirm (AFRM)
Jefferies upgraded Affirm (AFRM), noting the stabilization of the cost of capital and improved credit performance. The buy now, pay later (BNPL) company has shown resilience, and adoption rates continue to grow.
9. RBC Upgrades Boeing (BA)
RBC upgraded Boeing (BA) to outperform, citing improved free-cash flow prospects. Strong demand and an improving outlook for the Boeing 737 MAX contribute to this positive assessment.
10. Evercore ISI Reiterates Rivian (RIVN) as Outperform
Evercore ISI reiterated its outperform rating for Rivian (RIVN), emphasizing the company’s brand, scale economics, and vertical integration. Recent comments by management regarding future gross margin improvements further support this outlook.
These Wall Street calls provide valuable guidance for investors as they navigate the dynamic landscape of the stock market. Keep an eye on these stocks, identified by their ticker symbols, as they continue to be influenced by the latest developments and analyst assessments.
