Here are the most notable updates from Wall Street on Wednesday:
Deutsche Bank on Nvidia: Maintains Buy Rating
Deutsche Bank remains optimistic about Nvidia, lifting its price target from $145 to $155 per share. The bank's analysts highlighted the positive shift in the macroeconomic landscape and reduced tariff-related uncertainties that previously affected the first quarter. This improved clarity gives companies better visibility into demand trends for the second half of the year, which could lead to stronger earnings for Nvidia in the upcoming quarters.
Baird on Tesla: Holds Neutral Rating
Baird kept a neutral rating on Tesla, emphasizing two significant risks: a potentially weaker full-year volume forecast and margin pressures within the company’s Energy division. As Tesla approaches its earnings report, the firm urges caution due to these concerns.
UBS on Disney: Reaffirms Buy Rating
UBS raised its price target for Disney from $120 to $138 per share while maintaining a buy recommendation. The firm expects the company’s fiscal third-quarter earnings to reflect continued strength in theme park demand and improving direct-to-consumer profitability. These factors are expected to support sustained double-digit earnings growth.
Wells Fargo on AMD: Still Overweight
Ahead of AMD’s earnings report in August, Wells Fargo raised its price target from $120 to $185. The firm is confident in AMD’s data center growth, particularly with the company's expanding rack-scale strategy, which is likely to continue delivering solid results.
Mizuho on Palantir: Upgraded to Neutral
Mizuho upgraded Palantir from underperform to neutral. The firm praised the company's strong performance across its commercial and government sectors and acknowledged that they underestimated Palantir’s momentum. There is now a high probability of revenue acceleration for the company, marking a fifth consecutive quarter of growth.
Jefferies on Amazon and Meta: Maintains Buy on Both
Jefferies reaffirmed its buy ratings for Amazon and Meta, raising Amazon’s price target from $255 to $265. The firm highlighted strong revenue figures and the potential for margin improvements in Q2. For Meta, Jefferies raised its target from $790 to $845 per share, citing the platform's ability to connect billions of users with millions of advertisers through its advanced targeting capabilities.
Guggenheim on Commvault Systems: Upgraded to Buy
Guggenheim turned bullish on Commvault Systems, raising its rating from neutral to buy and setting a $210 target. The firm highlighted improved industry checks and the company’s ability to maintain durable long-term demand drivers, suggesting about 20% upside potential.
Citi Initiates NovaGold and QXO as Buys
Citi initiated coverage on NovaGold, a precious metals company, with a buy rating and a target of $7, noting the stock’s high-risk, high-reward nature. The firm also launched coverage on QXO, a company in the building products sector, with a target of $33, praising its ability to consolidate a fragmented market.
UBS on Motorola Solutions: Starts With a Buy
UBS initiated coverage on Motorola Solutions, giving it a buy rating and an 18% upside target of $490. The firm sees the stock as an attractive investment opportunity in the communications sector.
Cantor Fitzgerald on Microsoft: Reaffirms Overweight
Cantor Fitzgerald raised Microsoft’s price target from $512 to $581, maintaining its overweight rating. The firm expects continued growth in Azure and sees Microsoft as a leader in the AI space, justifying the stock's premium valuation.
JPMorgan on GDS Holdings: Upgraded to Overweight
JPMorgan upgraded GDS Holdings to overweight, highlighting the potential positive impact of Nvidia resuming shipments of its H20 AI chips to China. This development could provide a significant boost to GDS's business prospects.
Wells Fargo on JPMorgan and Citi: Maintains Overweight on Both
Wells Fargo raised JPMorgan’s price target to $325 from $320, citing a standout performance in capital markets and continued buybacks. The firm also increased Citi’s target to $115 from $110, noting the bank’s strong growth in revenue and operational efficiency.
Citi on Wave Life Sciences: Initiates With a Buy
Citi began coverage on Wave Life Sciences, a biotech company, with a buy rating and a target of $16, expressing confidence in the company’s growth potential despite the stock’s high-risk profile.
JPMorgan on Roblox: Maintains Overweight
JPMorgan kept its overweight rating on Roblox, raising the price target from $120 to $125 due to increasing engagement on the platform.
Needham on Karooooo: Initiates With a Buy
Needham initiated coverage on Karooooo, a software company, with a buy rating and a $60 price target, believing the company is well-positioned for growth.
Citi Adds Carnival to Focus List
Citi added Carnival Corporation to its focus list, replacing Royal Caribbean. While acknowledging that Royal Caribbean is a top operator, Citi sees Carnival as offering better upside potential, given its lower valuation and growth prospects.
Bank of America on Rockwell and Centene: One Upgrade, One Downgrade
Bank of America upgraded Rockwell Automation to buy from neutral, citing the success of its turnaround plan. However, it downgraded Centene to underperform, cutting its target to $30 due to the adverse impact of legislative reforms on Medicaid and ACA-related business segments.
Morgan Stanley on AT&T and IBM
Morgan Stanley reinstated AT&T as a top pick, noting its strong fiber growth and lower tax burden. For IBM, the firm maintained an equal-weight rating but raised its price target to $253 from $233, signaling cautious optimism heading into earnings.
Deutsche Bank on RBC Bearings: Initiates With a Buy
Deutsche Bank started coverage on RBC Bearings with a buy rating, appreciating its strong operational traits that align with top-tier aerospace and defense players, despite the company’s smaller exposure to these sectors.
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