Here are some of Wall Street’s most notable predictions on Monday: Evercore ISI Reiterates Alphabet to OutperformEvercore ISI said it would continue to hold shares of the search giant. “We maintain our outperform rating on GOOGL but lower our price target to $200 from $225 as we believe the medium-term uncertainty surrounding the Department of Justice antitrust case and its resolution limits the likelihood of a material rerating in the near or medium term.”Morgan Stanley Reiterates Equal Weight on MicronMorgan Stanley lowered its price target on Micron to $100 from $140 a share. “Despite concerns, we believe Micron’s overall fundamental trajectory is still strong enough to sustain an EW.”Morgan Stanley Reiterates Overweight on TeslaMorgan Stanley said it would maintain its overweight rating heading into Tesla’s robotaxi day on October 10. “Ahead of Tesla’s highly anticipated ‘robo-taxi’ day on Oct. 10, investors are pondering the various paths to commercialization and scaling of Tesla’s self-driving car technology.” Morgan Stanley upgrades ASE Technology to overweight from equal weight In its upgrade of ASE, Morgan Stanley said the chipmaker’s shares are defensive. “Following our downgrade of memory stocks, we recommend buying quality logic semiconductor stocks with an AI perspective.” Morgan Stanley upgrades Chart Industries to overweight from equal weight Morgan Stanley said the gas-to-liquids company has “significant exposure to both the energy transition and renewables, as well as traditional energy.” “GTLS now screens more attractively based on relative revisions to our coverage, valuation and risk/reward outlook.” Evercore ISI upgrades Simon Properties to outperform from inline Evercore ISI said in its upgrade of Simon that it expects solid growth for the real estate investment trust. “Upgraded to Outperform from Inline. New PT is $172 from $160. This equates to a 10% total return including a 5% yield.” Citi Recommends Buy on Eaton Citi says the manufacturing company is in a strong position. “Given solid data center power demand growth and ETN’s ability to benefit from a diversified power management portfolio, as well as secular tailwinds across much of the portfolio, we see ETN well positioned to deliver multi-year MSD-HSD (mid-single digit to high-single digit) organic growth despite a mixed macro environment in the near term.” Wells Fargo Downgrades Colgate-Palmolive to Underweight from Equal Weight Wells Fargo says gross margin growth is slowing. “We downgrade CL to Underweight. CL’s rally has been rooted in fundamentals. However, we expect the rate of change to eventually reverse and CL’s growth to normalize to peers, which are trading at a significant valuation discount to CL’s history.” Barclays rates GE Vernova overweight Barclays sees solid earnings growth for GE Vernova shares. “The top and bottom line growth profile is excellent, with capital allocation catalysts pending.” JP Morgan rates Apple overweight JP Morgan said Apple research found consumers prefer the iPhone Pro models. “However, the mix for the Pro models, especially the Pro Max, remains favorable, and lead times are already extended compared to the base and Plus models.” Evercore ISI rates Carvana tactical trade positive Evercore ISI says the car company is best positioned for significant growth. “We believe Carvana strikes the right balance between industry-leading EBITDA margins and appetite for significant growth.” Evercore ISI Upgrades Sprouts Farmers Market to Outperform from Inline Evercore ISI upgraded the grocery chain following a series of meetings with management. “Following a constructive meeting with CEO Jack Sinclair, CFO Curtis Valentine and Head Merchant Scott Neal last weekend, we upgraded SFM to Outperform and increased our base case to $120, which reflects companion and margin levers.” BTIG Downgrades Ally Financial to Neutral from Buy BTIG said it has no near-term positives for the banking company. “We are downgrading Ally shares to Neutral from Buy and removing our $44 price target. We are reluctant to recommend investors buy Ally shares despite the stock’s 17% weekly decline as we do not expect any upside for the remainder of 2024 rather than wait until the trajectory for 2025 is clearer.” Mizuho Upgrades Ameren to Outperform from Neutral Mizuho says the utility is ready to rerate. “AEE shares currently trade at a roughly 1% P/E discount to the electric utility group and we believe the shares could be revalued to a high single-digit premium.” Wedbush Upgrades Zillow to Outperform from Neutral Wedbush says online real estate companies will benefit from low interest rates. “In addition to lower mortgage rates being a potential positive for Zillow’s core brokerage business, we see Zillow’s software and services (S&S) initiatives as increasing potential upside risk to our forecast.” Truist upgrades Builders FirstSource to Buy from Hold Truist says it expects exceptional growth for the building materials company. “BLDR’s scale and continued focus on value-add and digital products will drive faster-than-market growth, and new margin ranges should become the norm.” Melius upgrades Oracle to Buy from Hold Melius says it sees a sustainable pipeline for Oracle stock. “It may be too late to upgrade a stock that’s up 54% year to date, but we may be in the middle of a move. We see an EPS run rate of nearly $8.50 in two years, and with our biggest concerns easing, it’s hard not to attach a 25x multiple to a company that’s growing faster than Salesforce.com and Adobe.” Citi upgrades Entegris to Buy from Neutral The firm says the semiconductor supplier is on the defensive. “We believe Entegris’ wafer-start-driven business is less cyclical than the WFE (wafer fabrication equipment) market, where 75% of revenue is unit-driven. The company is well positioned to benefit from leading-edge growth in 2025.” Bank of America Buys NVIDIA Again Bank of America said it will continue to hold shares in the semiconductor giant. “Our top three sector picks remain NVDA, AVGO and KLAC, which are best positioned for HPC (high-performance computing) and increasing chip complexity.” Wells Fargo Reiterates Overweight on Coca-Cola The firm raised its price target on Coca-Cola to $78 per share from $73. “KO has emerged as the cleanest mega-cap in Staples and we believe fundamental drivers remain at reasonable relative valuation.”
