Here are some notable predictions from Wall Street on Tuesday:
Morgan Stanley is feeling bullish on Carvana, upgrading the stock to “overweight” from its previous “equal weight” status. They believe the recent drop in Carvana’s stock presents a unique chance for investors interested in a leading player in auto retail and fleet fulfillment.
Bank of America has upgraded Cloudflare, moving it from “underperform” to “buy.” They are encouraged by what they see as improving fundamentals for the company, noting Cloudflare’s unique approach to AI. Bank of America believes Cloudflare is positioned to become a leader in AI-as-a-Service, which could become the go-to method for enterprises looking to consume AI technologies.
JPMorgan has taken a more optimistic view on Miniso, bumping its rating to “overweight” from “neutral.” They are particularly confident about the Chinese retailer’s potential for international growth, with expectations that China’s same-store sales growth will recover and strong expansion overseas.
Morgan Stanley is maintaining its “overweight” rating on Nvidia, anticipating strong performance for its AI chip, the H20. The firm highlights China’s investment in AI as a positive factor, estimating that China could account for around 10% of Nvidia’s data center segment this coming April.
Deutsche Bank has initiated coverage on Clearway Energy with a “buy” rating, citing the company’s solid footing in the clean energy sector. They have set a 12-month price target of $38 per share, implying a 26% upside.
Baird has upgraded Pentair to “outperform” from “neutral,” highlighting the water treatment company’s potential for significant margin expansion. They describe Pentair as “best-in-class” and are optimistic about its long-term market dynamics.
Berenberg has initiated coverage on Coty with a “buy” rating, seeing several positive catalysts ahead for the beauty company. As the stock nears its historical low valuation multiples, Berenberg believes Coty is poised for an interesting turnaround.
BTIG has upgraded CrowdStrike to “buy” from “neutral,” citing two main reasons. First, they believe CrowdStrike now has better visibility on forecasts, following an IT outage last year, which happened about eight months ago.
Redburn Atlantic has initiated a “buy” rating on Marsh & McLennan, recognizing the insurance giant’s strong market presence and deep client relationships. With over $24 billion in annual revenue, Marsh & McLennan is seen as one of the best-positioned companies in the industry.
Bank of America has upgraded Alcon to “buy” from “neutral,” predicting the eyecare med tech company is on the verge of an earnings surge. They believe new product launches will drive this growth, though they note that investor expectations had previously soared too high too quickly.
Piper Sandler continues to recommend Microsoft as “overweight,” asserting that the company is well-equipped to manage economic instability, advising investors to “buy the weakness.”
The firm also reiterates its “overweight” rating on Tesla. While acknowledging some concerns, Piper Sandler believes the brand damage is overstated and that political factors are wrongly blamed for Tesla’s delivery declines in the first quarter.
Bernstein has reaffirmed its “outperform” ratings on Amazon, Walmart, and Costco. These companies are seen as well-positioned to navigate economic challenges, thanks to their defensive category mixes, relative value, and compelling membership programs.
BTIG has upgraded Capital One to “buy” from “neutral.” Even amidst questions surrounding its merger with Discover, BTIG remains optimistic about Capital One’s substantial excess capital.
Goldman Sachs stands by its “buy” recommendation for AT&T, expressing increased confidence in its bullish outlook. They see potential for double-digit annualized returns, supported by both higher Street estimates and the stock’s valuation multiple.
