Wednesday’s top stock calls like Nvidia

Here are Wednesday’s biggest calls on Wall Street: Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it’s sticking with its overweight rating on Tesla but says it’s only a matter of time before others automakers begin to take advantage of AI also. “In our view, as Tesla becomes more clearly ‘linked’ to AI, we believe it would only be a matter of time before investors asked the question: “Can single-digit-PE companies like GM or Ford have some cards in their hand on the AI theme?” Piper Sandler reiterates Nvidia as overweight Piper said “fundamentals remain intact” heading into Nvidia earnings on Wednesday afternoon. “Our take: Even if there is weakness from some unforeseen force in the NT [near term], we see limited stock weakness as investors want to keep or add to positions for 2H Blackwell growth.” Morgan Stanley reiterates Meta as overweight Morgan Stanley said that, as users adopt the company’s Reels product it becomes a “monetization opportunity.” “META: Further Reels Adoption Remains Positive Signal for Monetization Opportunity.” Morgan Stanley reiterates Dell as a top pick Morgan Stanley said Dell remains a favorite name at the firm. “Within the PC OEM [original equipment manufacturer] and ODM [original design manufacturer] landscape we see Lenovo and Dell as best-positioned for AI PCs, with each company the ‘Top Pick’ in our respective Greater China Tech Hardware and US IT Hardware coverages.” JMP reiterates Coinbase as market outperform JMP said “political tides” are shifting which is a positive for shares of Coinbase. “Political tides appear to be shifting for digital assets, a significant catalyst for Coinbase and others if sustained; we reiterate our Market Outperform rating and $320 price target.” Oppenheimer reiterates Costco as outperform Oppenheimer said it’s bullish heading into Costco earnings on May 30. “We are maintaining our Outperform rating and lifting our PT to $850 from $805.” Bank of America reiterates Alphabet as buy Bank of America said it’s sticking with its buy rating after the company’s annual Marketing Live event. “We remain constructive on growing Gen-AI integration across the Google ecosystem that can help drive higher usage and incremental ad spend. Maintain Buy.” Oppenheimer reiterates Chipotle as outperform Oppenheimer raised its price target on the stock to $3,485 per share from $3,300. ” CMG’s relative menu pricing vs. competition has improved since our October-’23 study, highlighting its robust price/value as an ongoing traffic driver.” Goldman Sachs upgrades Shopify to buy from neutral Goldman said it sees a compelling entry point for shares of Shopify. “We upgrade Shopify from Neutral to Buy with 30% upside to our updated 12-month price target of $74.” Piper Sandler upgrades Kraft Heinz to overweight from neutral Piper said it has “better visibility” for the food products company. “We upgrade to OW with incrementally better visibility on KHC’s upside in Foodservice, helped by its new innovation in time-saving (and labor-saving) dispensers, which we expect can drive incremental revenues within existing relationships and some incremental distribution.” Morgan Stanley reiterates McDonald’s as overweight Morgan Stanley said it’s standing by the fast-food chain. “We remain OW the shares – near term pain still possible, but on a relative basis we still think MCD can execute in a more competitive environment.” Benchmark reiterates Brunswick as buy UBS said it’s bullish on shares of the marine company. “We are initiating coverage on Brunswick Corporation (BC) with a Buy and $100 price target. UBS initiates JFrog as buy UBS said it likes the software company’s margin expansion. “We initiate coverage of JFrog with a Buy rating, 1) seeing a path to durable 20%+ topline growth, 2) high 30s SaaS [software as a service] growth, and 3) continued margin expansion.” UBS initiates Elastic as buy UBS said it’s bullish on shares of the software as a service search company. “We initiate coverage on Elastic with a Buy rating and $135 price target. Rosenblatt reiterates Atlanta Braves Holdings as buy Rosenblatt said it’s sticking with its buy rating despite reports that the sports company is for sale. “We maintain a merger-driven price target for Atlanta Braves Holdings, despite a brush-back pitch from John Malone to Sportico on May 17 talking down sale speculation.” Deutsche Bank initiates Waste Management as buy Deutsche said it’s bullish on shares of the waste management company ” WM’s industry leading capabilities enable it to deliver solid, predictable results.” Morgan Stanley downgrades Box to equal weight from overweight Morgan Stanley said it sees too many negative catalysts ahead for the cloud company. “We step to the sidelines given lack of near-term catalysts, prolonged macro challenges impacting Box’s seat-based model, continued FX headwinds pressuring growth, and constant competitive overhang – all making NT multiple-expansion and positive estimate revisions less likely.” Oppenheimer downgrades Generac to perform from outperform Oppenheimer downgraded Generac mainly on valuation. “We are moving to a Perform rating from Outperform, with shares having breached our $145 PT.” Morgan Stanley downgrades International Flavors to equal weight from overweight Morgan Stanley said in its downgrade of International Flavors that it sees “limited upside” for the fragrance and flavors company. “Move to Equal-weight as there is now limited upside to our $100 Price Target and we are no longer materially ahead of FY24 Adj EBITDA consensus and guidance. Jefferies upgrades Prudential and Lincoln National to buy from hold Jefferies said it’s getting more bullish on several insurance stocks on Wednesday. “We feel PRU should appeal to large cap investors, while LNC should attract those focused on deep value opportunities / turnaround stories. Both Buy ratings are contra-consensus.” Needham upgrades Stryker to buy from hold Needham said it sees “significant margin improvement” for the medtech company. “We expect new product launches combined with SYK’s capital equipment backlog to allow it to deliver upside to consensus revenue estimates and overcome any potential recon market slowdown.” Morgan Stanley reiterates Ferrari as overweight Morgan Stanley said it’s standing by its overweight rating on the automaker. “As we discussed in our ‘Lessons from Luxury’ note earlier this month, we believe RACE clearly displays the attributes to be valued as a luxury company rather than as an automotive OEM – and at the high-end of luxury peers.” Goldman Sachs reiterates Microsoft as buy Goldman said it’s sticking with its buy rating on the tech giant following day 1 of it’s Microsoft Build conference. “After attending Microsoft Build Day 1, we leave increasingly constructive that MSFT continues to be in an industry-leading position that can shape the adoption of GenAI across the tech stack.” Bank of America downgrades Garmin to underperform from neutral Bank of America said in its downgrade of Garmin that the watch tech company has a valuation that’s “too rich.” “Until we see a case for the aggressive 2025E consensus EPS target, valuation appears too rich with potential downside in the near-term.” Bank of America reiterates Goldman Sachs as buy Bank of America says the “run not done” yet on shares of the investment banking giant. The firm raised its price target on Goldman to a street high $525 per share from $478. “Our conversations indicate investor appetite to add exposure to the stock on any pullbacks. Raise PO to $525 (from $478) on higher assigned multiples driven by re-rating in market multiples and increased probability for upside to our EPS forecast.”