Nvidia, Microsoft, Alphabet and more

Here are Friday’s biggest calls on Wall Street: Bank of America reiterates Alphabet as buy Bank of America said it is sticking with its buy rating on Alphabet following earnings Thursday. “The quarter beat expectations across all major business lines, supporting a narrative change: Google is a beneficiary of AI. Search is still not without disruption risk, but we remain constructive on Google infrastructure, data and distribution advantages.” Deutsche Bank reiterates Snap as buy Deutsche Bank said it is sticking with its buy rating on the stock following earnings on Thursday. ” Snap delivered a much-needed beat, and positive forward outlook, which now adds to our conviction that the ad platform rebuild is gradually bearing fruit.” Goldman Sachs reiterates Microsoft as buy Goldman Sachs said it likes the company’s “margin stability” following earnings on Thursday. “We reiterate our Buy rating and raise our 12-month PT to $515 (from $450 prior) as we see Microsoft offering a unique growth profile at their scale, with the ability to grow both top-line and EPS by double-digits in FY25.” Goldman Sachs reiterates Intel as sell Goldman Sachs said it is standing by its sell rating on Intel shares following earnings Thursday. “Maintain Sell as AI prioritization continues to weigh on traditional server demand.” Seaport initiates Hims & Hers as buy Seaport said it is bullish on shares of the telehealth company. “We are initiating coverage of HIMS with a Buy rating and $23 PT. Our positive fundamental thesis is based on: 1) Large TAM across key verticals, including sexual health, dermatology, weight loss, mental health; 2) Leading Online Health Brand with strong marketing execution…” Maxim reiterates Apple as hold Maxim said it is sticking with its hold rating on Apple heading into earnings on May 2. “Our focus is on the following: 1) iPhone sales, given the over-reliance on the product, 52.3% of FY23 net sales; 2) China revenues, also given the elevated exposure, 18.9% in FY23; 3) China supply chain dependence, we expect diversification over time…” Barclays upgrades Enphase Energy to overweight from equal weight Barclays said in its upgrade of Enphase that it sees an attractive entry point for shares of the solar company. “We think current levels provide a reasonable entry point as destocking is completed by the end of 2Q and demand is set to increase from trough levels as we move through the year.” Benchmark upgrades Western Digital to buy from hold Benchmark upgrades Western Digital following the company’s “major upside” earnings report. “Higher Flash Prices and Nearline Drive Sales Drive Major Upside Results, Moving to Buy with $85 Target.” Bank of America upgrades Sonic Automotive to buy from underperform Bank of America said the auto company is turning a corner. “We upgrade Sonic to Buy from Underperform following the company’s 1Q:24 earnings results as the key reasons underpinning our prior Underperform rating are now inflecting positively.” Bank of America downgrades Hertz to underperform from neutral Bank of America said it sees too many negative catalysts for the car rental company. “Liquidity is also an increasing concern among investors as HTZ has an older fleet that will need to be refreshed at a time when used vehicles are dropping and new vehicle prices are softening only modestly.” Bank of America reiterates Nvidia as buy Bank of America said Nvidia remains a top idea at the firm. “We remain bullish on vendors serving the cloud infra market including NVDA, AVGO, MRVL, AMD, MU and their associated supply chain of semicap equipment and design tool (EDA) suppliers.” Stifel downgrades Caterpillar to hold from buy Stifel downgraded the stock following earnings on Thursday. “We continue to be impressed with the structural improvements CAT has made, including the margin and free cash flow profile, and believe CAT is well positioned to benefit. Shares traded down 7% vs 1% across the broader markets. We still see a reasonable risk/reward profile, but are lowering our rating to Hold.” Raymond James upgrades Kratos to strong buy from outperform Raymond James said the defense company is seeing accelerating demand. “While the consumables in Israel and the recently passed Supplemental Security Aid package will benefit KTOS, we believe we are in the very early stages of a generational upgrade to Air Defense systems globally.” Stifel downgrades Knight-Swift Transportation to hold from buy Stifel downgraded the transportation company following earnings. ” Knight reported 1Q24 adjusted EPS of $0.12—consistent with the pre-release guide-down. That guide-down was mainly driven by the unexpected duration of softness in the freight market.” Morgan Stanley downgrades Mobileye to underweight from equal weight Morgan Stanley said the autonomous vehicle parts company is a victim of the electric vehicle slowdown. ” MBLY’s leadership in computer vision creates option value for new content growth. However, a surprise slowdown in EV adoption limits the TAM through 2030 amidst aggressive competition.” Morgan Stanley upgrades EPAM Systems to equal weight from underweight Morgan Stanley said the valuation is looking more reasonable for shares of the software company. “We upgrade EPAM to EW as expectations and valuation appear more reasonable, while maintaining our Cautious view on the broader IT Services industry.” Loop upgrades Compass Materials to buy from hold Loop said shares look reasonably attractive at current levels for the mining company. “We are upgrading our rating on shares of Compass Minerals/CMP from Hold to Buy. The rating change reflects primarily a view on valuation, if looking beyond the current fundamentals and negativity, and assuming some normalization will be forthcoming in business trends, EBITDA, and investor sentiment.” Piper Sandler upgrades Citizens Financial to overweight from neutral Piper Sandler upgraded the regional bank and said shares are “very attractive.” “We feel more comfortable with CFG’s N-T NII [near term net interest income] progression, we like the longer-term opportunity here, we believe the solid capital base provides optionality to support earnings should loan growth not pan out as hoped, and we consider the valuation very attractive.” Wells Fargo upgrades Visteon to equal weight from underweight Wells Fargo upgraded the auto electronics supplier mainly on valuation. ” VC: The Price Is Getting Right; Upgrade to Equal Weight.” JPMorgan upgrades Dow to overweight from neutral JPMorgan said the chemical company is poised to outperform. “We upgrade Dow to Overweight from Neutral. Dow is capable of outperforming because it is a beneficiary of higher oil prices, it has a durable 5% dividend yield, its value is sensitive to acceleration in global economic activity, and its downside risk is cushioned by the existence of global political tensions.” Bank of America downgrades Teledyne to neutral from buy Bank of America said in its downgrade of the industrial tech conglomerate that it sees “limited upside” right now. “Despite improvements in the overall industrials macro-environment, TDY will be on the sidelines for a while due to their delayed position in the value chain. Thus, we are downgrading to a Neutral (from a Buy) and cutting our PO to $400 (from $490).” HSBC upgrades Snap to buy from hold HSBC said it sees an “ad market recovery” for shares of the social media company. “Upgrade to Buy: 1Q24: Ad market recovery and improved platform drive gains for Snap.”