Here are some stocks to watch on Wall Street on Wednesday: Stifel recommends buying Penumbra Stifel said it is bullish on the medical device company’s stock. “We also believe PEN is well-positioned as one of the few medical technology companies with positive free cash flow and high growth.” HSBC recommends buying KKR HSBC said the private equity firm is well-positioned. “We recommend buying KKR & Co and cover it with a $148 price target. We believe the market is underpricing the company’s significant earnings growth prospects.” Bernstein reiterates Apple to outperform Bernstein urged investors to remain calm, citing concerns about declining iPhone demand for Apple. “There is concern among investors about slower lead/wait times for the new iPhones and the possibility of related declines in order volumes.” Bank of America recommends buying FedEx Bank of America lowered its price target to $345 from $347 a share but said it was bullish heading into next week’s earnings. “FedEx is scheduled to report its Q1 ’25 results on Thursday (September 19th).” Morgan Stanley Reiterates Overweight on Tesla Morgan Stanley said Tesla remains its top pick at the firm. “Growing global data center emissions support the bullish thesis for Tesla Energy while highlighting existential compliance risks for auto OEMs.” BTIG Upgrades GE Healthcare to Buy from Neutral BTIG said the environment for the medical solutions and systems company’s stock is improving. “After a tough first half of ’24, where domestic developments in China hindered performance, we believe the environment for GEHC is improving.” UBS Recommends Buy on Talen Energy UBS said the energy company has “undervalued upside potential.” “Renewed Buy recommendation on TLN.” JP Morgan Reiterates Overweight on Civitas Resources JP Morgan said the carbon energy producer has the potential for significant share buybacks. “We have initiated research on Civitas Resources (CIVI) with an overweight rating and a $67 price target for Dec. 25.” Wells Fargo Reiterates Overweight on Micron Wells Fargo lowered its price target on Micron to $175 from $190 a share but is keeping the stock on hold ahead of its earnings release next week. “We are de-risking our future MU expectations, but believe concerns about entering a DRAM downcycle in 1H25 are overdone.” Barclays Upgrades VF Corporation to Overweight from Equal Weight Barclays said the owner of brands such as Vans is too attractive to ignore. “We are upgrading VFC shares to Overweight from Equal Weight as we believe the risk/reward is attractive at current levels.” Barclays Upgrades Victoria’s Secret to Equal Weight from Underweight Barclays said it sees a better balance between risk and reward. “We are raising VSCO shares because we believe the company has a good balance of risk and reward, including 1) new management with a significant impact in FY25 and 2) a low enough consensus forecast for 2H24.” Wolf Downgrades ResMed to Underperform Peers Wolf said ResMed has too many risks in his downgrade of the sleep apnea drug maker. “We believe there is a risk that Eli Lilly’s addition of an indication for obstructive sleep apnea (OSA) to its GLP-1 treatment tirzepatide will cause significant disruption/distortion in the patient funnel.” Bank of America, TJX Companies, Burlington and Ross Re-Rated to Buy Bank of America said the discount retailer is best positioned for a younger demographic. “We continue to rate BURL, ROST, and TJX as Buys. We believe these share changes indicate a long path of market share gain.” Bank of America rerates Starbucks to Buy The firm said it remains committed to holding shares of the coffee giant. “We are setting a higher relative multiple and raising our PO (offering price) to $118 from $112 previously, reflecting our increased confidence in SBUX’s execution.” Goldman Sachs recommends buying Marriott Goldman Sachs said the hotel company is a high-quality compounding manager. “MAR’s higher index for U.S. full-service, upscale and urban hotels (equivalent to upscale business and group travel) is emerging as a more later-stage focused recovery versus leisure, which has driven this recovery. So while leisure trends have stalled a bit, the business is still in recovery mode.” Needham recommends buying Super Micro Computers Needham called the data center artificial intelligence company “the coolest kid in AI.” “We initiated coverage of Supermicro (SMCI) with a buy recommendation and a $600 price target.” Guggenheim upgrades Sirius XM to buy from neutral Guggenheim said he is bullish on Sirius XM shares. “We see the company weathering near-term technical headwinds with a strong FCF outlook, capital returns and stabilizing subscriber profile.” Bank of America reiterates buy recommendations on Alphabet, Meta, Amazon and Uber. Bank of America said internet technology companies are a great way to “position more defensively.” We highlight Google, Meta, Amazon and Uber as potential beneficiaries of the sector to position more defensively during the downturn in the economic cycle.” William Blair issues NVIDIA as outperform William Blair said the company is a “leader in parallel computing.” “NVIDIA has a long and storied history of designing parallel computing systems to handle complex processing tasks.” William Blair Announces Broadcom as Outperform In announcing the stock, William Blair said the stock still has room to grow. “We see room for continued steady growth through fiscal 2025 and 2026 driven by increasing demand for custom chips, improved software monetization, a recovery in non-AI semiconductors, and accelerating growth in Ethernet AI network fabrics built on Broadcom’s networking solutions. Ethernet is just beginning to replace InfiniBand as the network of choice for AI.” JP Morgan Reiterates Roku as Overweight JP Morgan raised its price target on the stock to $90 per share from $90 per share. After a series of investor meetings, the stock rose to $80. “Roku has been clear that platform monetization is a top priority, with management reiterating its expectation that platform revenue growth will accelerate in 4Q25, driven by partnerships with third-party DSPs (demand-side platforms), home screen changes and subscriptions.” William Blair reiterated that Arm is outperforming, saying the company boasts a “best-in-class financial position.” “Arm provides critical computing IP that underpins more than $200 billion in chip value across mobile, automotive, IoT and data center markets.”
