Here are Wednesday’s biggest calls on Wall Street: Bernstein reiterates Nvidia as outperform Bernstein said it’s sticking with Nvidia following its presentation at the Consumer Electronics Show in Las Vegas. “But the announcements made, spanning across gaming automotive (with Toyota announced as a new AV partner), robotics and physical AI, and even new compact AI developer workstation were enough for us at this point.” Wells Fargo upgrades Northrop Grumman to overweight from equal weight Wells Fargo said it has an attractive defense portfolio. ” NOC supplied less material to Ukraine vs peers, and should be less impacted as the conflict hopefully draws to a close. FCF likely doubles through 2028 on lower investment, better pension and less R & D tax hit.” Wells Fargo RPM to overweight from equal weight Wells said it sees “resilient volume growth” for the chemical manufacturer. “We are upgrading RPM to OW from EW as the company is well positioned to generate positive EBIT growth in FY25 despite very weak demand and stronger growth in FY26.” Deutsche Bank downgrades Adobe to hold from buy Deutsche said it’s waiting for more “more tangible evidence of AI monetization.” “We downgrade Adobe to Hold-rated as we expect the stock to remain range-bound until the company displays more tangible evidence of AI monetization.” Goldman Sachs upgrades Travelers to buy from neutral The firm said it’s bullish on the insurance company in 2025. “We think TRV is the best positioned amongst peers to beat 2025 expectations for a combination of commercial lines underlying profitability and net investment income, with an improving personal lines business as the kicker.” KeyBanc upgrades Winnebago to overweight from sector weight KeyBanc said the RV company’s stock has an attractive valuation “Additionally, we upgrade WGO to OW herein via attractive valuation against the cleanest leisure vehicle end market dynamics (RVs), in our view.” Gordon Haskett upgrades Shake Shack to buy from hold The firm said shares of the burger chain are “compelling.” “We view SHAK shares as increasingly compelling given: Concept-specific market share and margin expansion drivers which could prove current 2025 Street estimates conservative.” Barclays initiates Levi Strauss as overweight Barclays said Levi Strauss is best positioned for sales growth in denim. “We believe organic sales in 2025 should accelerate driven by wholesale normalization, growth in women’s and tops, and newness in denim.” Barclays upgrades Tapestry to overweight from equal weight Barclays upgraded the owner of brands like Kate Spade and said it sees market share gains “We upgrade shares of TPR to Overweight from Equal Weight based on: 1) brand positioning poised to gain market share, 2) disciplined management of inventory…” HSBC downgrades Advanced Micro Devices to reduce from buy The firm said it sees a “less competitive AI roadmap” for AMD. “We see additional downside as we now believe its AI GPU [graphic processing unit] roadmap is less competitive than we previously thought. Hence, we believe AMD wouldn’t be able to penetrate the AI GPU market as much as we had earlier anticipated.” Bernstein upgrades L3 Harris Technologies to outperform from market perform The firm sees an attractive entry point for the defense company. “We upgrade L3Harris to Outperform after a sharp post-election pullback, which hit defense stocks across the board. We lower our target to $267.” Bank of America upgrades Ferguson to buy from underperform The firm said in its double upgrade of Ferguson that shares are compelling for the plumbing supply company. “We see 1/ an attractive entry point into a long term growth compounder, 2/ potential for higher US inflation that could support pricing and margin from H2-25 [second half 2025], 3/ a realistic consensus that has been reset quickly post Q1..” Evercore ISI upgrades Allstate to outperform from in line Evercore said the insurance company is undervalued. “We upgrade ALL to Outperform as we believe there is a disconnect with the valuation at a 10x P/E and what we think will be a turn in PIF [policies in force] growth as soon as 4Q24 but most likely 1Q25.” TD Cowen upgrades Coca-Cola to buy from hold The firm said Coca-Cola is executing “at the top of its game.” “We upgrade to Buy and reiterate our PT of $75. We raise our FY25 organic sales growth estimate to +6.0%, which is at the high-end of KO’s long-term algo.” Barclays upgrades RH to overweight from equal weight Barclays said it sees improving sales for RH. “While this stock has moved up meaningfully in the last few months on the Q3 sales inflection, this is a longer-term call. We see sales ramping based on product, pricing and in- stock levels, along with incremental margin opportunities in 2025, with optionality from an improvement in housing.” Goldman Sachs reiterates Netflix as neutral Goldman said it’s sticking with its neutral rating ahead of earnings later this month. “With recent key live events being stimulative of user engagement and sign-ups, we continue to see an attractive advertising opportunity with live events continuing to contribute to Netflix’s advertising over time.” Morgan Stanley upgrades NetEase to overweight from equal weight Morgan Stanley said the China tech gaming company is poised for a 2025 turnaround. “Upgrading NetEase as PC games have become growth engine.” UBS upgrades PulteGroup to buy from neutral The homebuilder has “best in class” margins, according to the firm. “We view PHM’s gross margins and return on equity (ROE) as positioned to continue leading peers, while its current customer mix of roughly 40% first-time, 40% move-up and 20% active adult supports profitability and provides some diversification in an evolving homebuying market.” UBS upgrades Novo Nordisk to buy from neutral UBS said the biopharma company is a top GLP beneficiary. ” Novo remains the most exciting growth story in European pharma and is well placed to continue to benefit from the high demand for GLP-1 medications near-term.” Wolfe upgrades UPS to outperform from peer perform The firm said it sees a margin inflection. ” UPS has materially lagged FDX, our broader Transport Index and the S & P 500 over the past 2.5 years as U.S. package margins have declined materially the past couple of years. But we expect U.S. margins to inflect positive y/y in C25, which historically leads to much better performance for the stock.” Mizuho upgrades Twilio to outperform from neutral Mizuho upgraded Twilio ahead of the cloud communications company’s investor day later this month. “While the shares appreciated ~50% in 2024 (vs. Nasdaq ~30%), we believe that greater clarity on the drivers of the top-line stabilization and acceleration opportunity, along with a refreshed mid-term growth outlook, and margin and FCF upside, will support share outperformance.” Jefferies upgrades GE Healthcare to buy from hold Jefferies said it sees a compelling entry point for the stock. ” GEHC has pulled back and now trades at just 17-18x ’25 EPS, below its avg., peers, and well off recent highs of ~20x.” Citi upgrades Carvana to buy from neutral Citi said in its upgrade of Carvana that profitability is expanding. “We are upgrading shares of Carvana to Buy/High Risk and raising our TP to $277 as we believe Carvana is ramping inventory to meet growing demand and is doing so more efficiently.” Deutsche Bank reiterates AT & T as buy The firm said AT & T is a top idea in 2025. “We expect healthy 5-6% annual FCF growth over the next 6 years.”
