Here are some stocks to watch on Wall Street on Wednesday: RBC upgrades Estee Lauder to outperform from sector perform RBC said it finds risk/reward attractive: “We upgrade EL shares to outperform. We believe EPS and investor sentiment have bottomed at this point, and the risk/reward profile is tilted in our favor.” Raymond James upgrades Taylor Morrison to outperform Raymond James said it is bullish on the homebuilder’s shares: “We initiate coverage of Taylor Morrison Homes with outperform and a $75 price target, which represents an 8.3x multiple on our original 2025 EPS forecast.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it maintains its support for Tesla shares after the company’s disappointing earnings release. “No major change in outlook. Tesla is weathering the EV downturn. That’s fine.” TD Cowen Recommends Buying JFrog TD Cowen said the software company has a compelling cloud story. “Our thesis is that 1) FROG is the standard in binary management with durable competitive advantages and is mission critical, and 2) the cloud story is compelling and there is a buying opportunity after seasonal weakness.” TD Cowen upgraded Lockheed Martin to Buy from Hold. TD sees “increased visibility” as F-35 deliveries to the defense company resume. “We upgrade LMT to Buy from Hold and increase our price target to $560.” Goldman Sachs upgraded Spotify to Buy from Neutral. Goldman said it was becoming more bullish on the streaming media company following the earnings report. “Following Spotify’s Q2 2024 earnings, we are upgrading the stock to Buy from Neutral and raising our 12-month price target to $425 from $320.” Stifel upgrades AO Smith to Buy from Hold Stifel said it sees “margin tailwinds” for the hot water solutions company. “We upgrade AOS shares to Buy from Hold with a $98 price target.” JP Morgan reiterates Overweight on Alphabet JP Morgan said it will maintain its overweight rating on the stock following the earnings release. “GOOGL showed notable strength in search (up 14% YoY), cloud (up 29% YoY) and operating profits, with solid overall Q2 performance and continued offensive momentum in GenAI.” Morgan Stanley rates Biohaven Overweight Morgan Stanley said it sees “value creation” in the biotech company. “We assign an OW rating to BHVN with a $58 price target and cover rating.” Goldman Sachs upgrades Madison Square Garden Entertainment to Buy from Neutral Goldman said the arena entertainment company has a “unique” business model. “We have upgraded MSGE shares to Buy from Neutral as we believe MSGE’s recent poor performance has created an opportunity for investors to invest in a unique, pure-play venue business with an attractive financial model.” JPMorgan Adds Positive Catalyst to Apple JPMorgan said it is bullish on Apple’s earnings due on August 1. “We are setting our December 2025 price target at $265 from $245 as investors begin to look beyond fiscal ’24 and see Apple well positioned to generate more confidence from upcoming earnings releases relative to the stock price.” Jefferies Downgrades Colgate-Palmolive, Procter & Gamble to Hold from Buy Jefferies downgraded Colgate and Procter & Gamble, saying their shares had risen too quickly. “At today’s valuations, the market is paying for better top-line growth and margin expansion. We see downside risks to these expectations as consumption slows, demand elasticity weakens and prices fall.” Piper Sandler Downgrades Ulta to Neutral from Buy Piper said the shares have become “less attractive.” “After further analysis of the competitive and promotional landscape and a better understanding of potential scenarios emerging from our October investor day, we have downgraded Alta to Neutral and lowered our price target from $494 to $404.” Deutsche Bank Names Citizens Financial a Top Pick Deutsche Bank said the regional bank is its new top pick. “CFG shares have performed strongly over the past month and are now up 27% year to date versus +19% for peers.” Gordon Haskett Downgrades Five Below to Hold from Buy Gordon Haskett said he sees too much uncertainty in the stock. “Last week, Five Below surprisingly pre-announced disappointing Q2 2024 revenue results so far (resulting in a lowered Q2 2024 guidance), coupled with the resignation of longtime CEO Joel Anderson.” Morgan Stanley downgraded General Motors to equal weight from overweight Morgan Stanley said it sees the risk/reward of GM shares as more “balanced.” “The fundamental improvement in GM’s capital discipline has not been ignored by the stock market.” Seaport initiates Imax as a buy target Seaport said Imax is “committed to a turnaround in movie releases.” “We see a clear near-term opportunity as IMAX shares begin to recognize that the industry’s theatrical release schedule is beginning to normalize after last year’s strike-induced production shutdowns hampered the release cycle.” Cantor Fitzgerald downgraded Tesla to neutral from overweight Cantor downgraded Tesla following Tuesday’s earnings. “Downgraded to neutral for near-term assessment” Barclays reiterates Disney overweight Barclays said its analysis shows weakness at Universal Studios theme parks doesn’t extend to Disney’s parks. “Another thing to note is that Disney has a little better visibility into theme park trends than Universal, as Disney has a much larger hotel footprint tied to its parks, and a larger membership program that gives it advance insight into traffic.” DA Davidson upgrades Malibu Boats to buy from neutral DA said a survey of boat companies showed a “gradual increase in retail demand in June.” “We upgrade MBUU to Buy from Neutral as our latest boat industry survey reveals incremental progress in rerouting Tommy’s Boats inventory to other dealers, paving the way for improvement in FY2025, at a PT of $48.” Citi Reiterates Buy on Nvidia Citi said it was bullish on Nvidia’s Foundry AI platform, which was announced on Tuesday. “We see this news as Nvidia’s latest effort to further unlock enterprise AI, which we see as the next big frontier for the company in terms of end-market demand.”
Analysts’ top stocks for Wednesday included Tesla
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