Here are some of the hottest stocks on Wall Street Thursday: Bank of America Reiterates Buy Recommendation on IBM Bank of America said its “portfolio is performing” despite the company’s mixed earnings report on Wednesday. “IBM delivered mixed second quarter results with revenue and FCF beating expectations, with software and infrastructure performing well and consulting underperforming. Part of the upside was driven by strong transaction processing revenue and weakness in areas such as Red Hat.” Mizuho Reiterates Buy Recommendation on ServiceNow Mizuho raised its price target on ServiceNow to $850 from $820 following the earnings report, saying the company is “evolving into a true software AI beneficiary. Raised price target to $850.” Morgan Stanley Reiterates Overweight Recommendation on Ford Morgan Stanley said it was keeping Ford as its top pick following Wednesday’s earnings report. “With shares down 11% following Q2 earnings, Ford ranks 494th among S&P 500 stocks in terms of FY24 PE multiple.” KeyBanc Reinstates Shopify to Overweight KeyBanc resumed coverage of the business website with an overweight rating. “We resume coverage on OW with a PT of $80 based on FY24 EV/S of approximately 11.7x. Our revenue forecast is slightly below Street reflecting tough comparisons, and our margin forecast is slightly below Street due to continued penetration of Shopify Payments.” Baird Reiterates Apple to Outperform Baird said it will continue to hold the stock ahead of its earnings release on August 1. “We reaffirm our Outperform rating on AAPL and raise our price target to $240 from $200. We have recommended AAPL for years given its expanding ecosystem, growing services contribution, strong cash flow and innovation leadership. BMO Reiterates Amazon Outperform BMO said it will continue to hold Amazon shares. “We reaffirm our Outperform and top pick and raise our forecast and price target to $230 from $220.” Citi Downgrades Lululemon to Neutral from Buy Citi said it expects “further slowdown.” “We downgrade LULU to Neutral from Buy and lower our price target to $300 from $415.” After years of benefiting from strong growth in active apparel, 2024 is a year of slowing for the category, and Citi Yoga & Active Apparel Credit Card Data indicates further slowdown in Q2 QTD compared to Q1. ” Goldman Sachs Recommends Dell to Buy Goldman said it was maintaining its buy recommendation on Dell in an earnings forecast note ahead of the company’s quarterly report in late August. “We have a buy recommendation on Dell and our 12-month price target of $160 (unchanged) reflects 16.5x our NTM+1Y. [next twelve months] EPS”. Baird upgrades Roper Technologies to Outperform from Neutral Baird said investors should buy the software company low. “After shares tumbled 7% following the Q2 2024 update (S&P -2%) and muted guidance adjustments, we believe Roper is essentially valued at ‘bottom’ with ‘bottom’ estimate revisions and creates attractive risk/reward.” Morgan Stanley equates CBRE Morgan Stanley said the real estate company’s shares are “premium valuation.” “CBRE is well positioned with 1) solid double-digit growth in recurring revenue (GWS) and 2) potential for margin improvement from expense efficiencies…” Bank of America renews buy recommendation on Meta Bank of America said it is bullish heading into earnings on July 31. “We remain constructive on Meta and believe that improvements to reels, messaging and AI-driven advertising are still in their early stages and could lead to positive product surprises and revenue upside.” Bank of America reiterates CrowdStrike with a Buy recommendation. Bank of America lowered its price target to $365 per share from $400 but said it will continue to hold the stock. “We are focused on the high quality and effectiveness of CrowdStrike’s cloud-based solutions and note that this issue was related to a simple update process error and, while it caused significant disruption, did not change CrowdStrike’s technology leadership or the value of its solutions.” Susquehanna reiterates positive rating on Advanced Micro Devices. The company said it will hold the stock heading into next week’s earnings release. “AMD shares have underperformed (-1,080 bps) since the last earnings release, indicating the stock is underperforming relative to its peers.” JP Morgan named GE Burnova as its top pick. JP Morgan said the company has “electrification and power momentum.” “GEV slightly raised fiscal 24 guidance after second-quarter EBITDA beat expectations.” Bank of America Downgrades Lamb Weston to Neutral from Buy Bank of America downgraded the food processor, saying the company is experiencing “oversupply” and pricing issues. “We have downgraded Lamb Weston (LW) shares to Neutral and lowered our PO to $66 from $109.” Deutsche Bank Rerates Chipotle to Buy Deutsche Bank said it will maintain its “buy” rating after Wednesday’s earnings release. “We remain confident in the short- and long-term outlook and believe CMG represents a good balance of risk and reward given the relative valuation and the significant ~19% downgrade over the past month.” Barclays Rerates Supermicrocomputer to Overweight Barclays said it will maintain its overweight rating heading into early August earnings. “SMCI has [yesterday] AMC issued a press release and announced its June quarter financial results on August 6. [after market close], suggesting there was no pre-announcement.” Citi Downgrades SiriusXM to Sell from Neutral Citi said the streaming media company may be hit by a short squeeze. “We believe the recent price increase in SIRI shares may be the result of a short squeeze. At the same time, we believe LSXMA shares may be a more accurate indication of the value of the pro forma SiriusXM entity.” DA Davidson Upgrades Polaris to Buy from Neutral DA said he sees an attractive entry point for the outdoor terrain vehicle company’s shares. “We upgrade PII shares to Buy with a PT of $87 as the company has cautiously reset its fiscal 2024 EPS guidance and the recent sell-side downgrades have created an attractive entry point for investors.” Piper Sandler Reiterates Marvell as Overweight Piper said Marvell is well positioned heading into August earnings. “At this point, we see de-risked numbers across much of the business as end markets such as networking and storage slowly return to growth. We reiterate our OW rating.”Bank of America has a buy recommendation on Birkenstock. Bank of America said the stock “deserves a higher multiple.” “In an environment where better-than-expected earnings are becoming increasingly rare, Birkenstock’s sustained sales momentum and strong profit margins should be rewarded at higher multiples.”
Apple is the biggest stock to watch on Thursday
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