Here are some stocks to watch on Wall Street on Wednesday: Deutsche Bank upgrades ArcelorMittal to Buy from Hold Deutsche Bank said the steel company has upside potential. “Cycle weakness is forcing bulls to face reality at ArcelorMittal and we expect a tough second half. However, we believe risks are better understood at these levels and upside potential (based on a return to the mid-cycle) is large.” Morgan Stanley reiterates Overweight on Tesla The firm said it maintained its overweight rating on Tesla shares. “At this point, Tesla’s ultimate role (direct or indirect) in the national security/government end market is unclear. However, over time, the underlying technology, systems and supporting supply chain that Tesla has popularized could expand beyond consumer markets.” Morgan Stanley reiterates Overweight on Ambarella Morgan Stanley said it supports the semiconductor stock following the earnings report. “AMBA delivers strong quarter and outlook, and expects IoT to drive near-term growth as it weathers inventory correction.”UBS reiterates neutral rating on AppleUBS said it sees “elevated risks” to Apple’s September iPhone launch. “The iPhone 16 is scheduled for release on September 9th, and, consistent with last year’s launch, iPhone market share in August ’24 should be below the 15% recorded in July ’24.”Baird upgrades AeroVironment to Outperform from NeutralBaird said it is bullish on the unmanned aerial vehicle maker’s stock. “AVAV manufactures small UAS (screwless aircraft systems) and energy-efficient technology for a range of industries and government organizations.”HSBC upgrades Moderna to Hold from ReduceHSBC said it sees “low risk” on the biotech company. “Moderna’s mRNA cancer vaccine has advanced to late-stage clinical trials, putting it ahead of the competition in this field. With multiple indications in development, we see low risk for the asset.” Citi downgrades Gannett to sell from neutral Citi said Wall Street was placing too much value on the media company’s refinancing deal earlier this week. “On Aug. 26, Gannett agreed to a major refinancing that extended maturities and reduced potential dilution associated with the company’s convertible notes. Shares rose 17% on the news. We think it was a prudent transaction, but we believe the Street is placing too much value on the transaction.” Wells Fargo rates Thermo Fisher Overweight Wells said it was bullish on shares of the life sciences and clinical research company. “TMO’s industry-leading breadth, scale, and diversification will likely position the company to outperform as end markets recover in 2025.” Redburn Atlantic Equities re-rated Crowdstrike to Sell Redburn said the market is “overpricing growth.” “While Crowdstrike is viewed as a big winner in generative AI (Gen-AI), the market may be overestimating future growth.” BTIG recommends Fiserv as a buy BTIG said it is bullish on the fintech company’s shares. “We believe accelerating investments in Fiserv’s platform over the past three years position the company to sustain HSD/LDD (high single-digit/low double-digit) growth over the next few years. At the same time, cash flow should grow more rapidly as operating margins expand and capital spending stabilizes.” Citi recommends General Motors as a buy Citi said the automaker remains its top pick. “GM remains our top pick due to strong execution and CMD (Chevrolet Motor Division) in October, and we see this as an increasingly likely catalyst given the strong third quarter trends so far and Cruise’s recent pivot toward a ride-sharing partnership (Uber).” Wolf reaffirms McDonald’s as a peer Wolf said his firm’s research found McDonald’s is tapping into excitement among adults with its nostalgia marketing campaign. “Our social media research suggests that McDonald’s’ recent nostalgia marketing campaign in the US tapped into consumer excitement and drove them into restaurants.” Citi raises Delek Logistics Partners rating to Buy from Neutral Citi said it sees a number of positive catalysts for the pipeline transportation company. “We are upgrading DKL to Buy from Neutral and raising our price target to $45 from $44. DKL recently issued a series of strategic updates that improve its outlook, but we do not believe the market has fully digested the impact of these transactions and we believe this represents an attractive entry point.” JP Morgan Restates Overweight on Supermicro JP Morgan said reports suggesting accounting manipulation were overdone. “However, upon digging into the details of the report, we believe there is limited evidence of accounting fraud beyond the SEC’s revisiting of the 2020 charges and limited new information regarding existing known business relationships with affiliates owned by SMCI’s founding brothers.” Bank of America Recommends Buy on Vista Energy Bank of America said it was bullish on shares of the Argentine oil and gas company. “We have initiated coverage of Vista Energy with a buy recommendation and a PO of $70/ADR, suggesting upside potential of about 35%.” Wells Fargo Reiterates Overweight on NVIDIA Wells said after an industry conference that he is bullish on NVIDIA’s Blackwell chips. The company will also release earnings after the close on Wednesday. “This is the world’s largest GPU (graphics processing unit) with advances in AI and accelerated computing. This is focused on delivering compute power for demanding real-time performance and scalability.” Wolf reiterates that Meta is outperforming. Wolf said he is bullish on Meta’s open AI model, Llama. “There has been a lot of attention on the very near-term benefits of Meta’s recent AI investments, namely continued solid growth in advertising revenue. But we believe the secret to this recent success, and more importantly, the sustainability of success, is Meta’s Llama model.”
