Here are Monday’s biggest calls on Wall Street:
Citi reiterates Roblox Corporation as buy
Citi raised its price target on the stock to $82 per share from $63 ahead of earnings later this week.
“Since 3Q24 earnings, Roblox’s equity has appreciated from $42 to $70 a share due, primarily, to ~34% bookings growth in the quarter. We believe new experiences played a role in driving the bookings growth.”
Baird downgrades CrowdStrike Holdings, Inc. to neutral from outperform
The firm downgraded the cyber stock on valuation.
“Current large-cap multiples embed historically wide premiums, reflecting some market dislocation. We see balanced risk/reward near-term and prefer to wait for more attractive entry points. Downgrading large-cap cohort (NET, CRWD, FTNT) to Neutral on valuation.”
Piper Sandler downgrades Constellation to neutral from overweight
Piper said it sees tariff headwinds for the stock.
“We downgrade STZ to Neutral, as President Trump has followed through on his pledge to impose 25% tariffs on all Mexican imports, which came into effect on 2/1/25. The duration of these tariffs is not yet clear, but for modeling purposes, we assume for now that they last for at least about one quarter.”
KeyBanc upgrades Zillow to overweight from sector weight
KeyBanc said the online housing company is well positioned.
“Coupled with high incremental margins and a disciplined investment framework, we believe Zillow is poised for outsized margin expansion.”
Morgan Stanley downgrades U.S. Steel to equal weight from overweight
Morgan Stanley downgraded the stock on valuation and tariff concerns.
“We expect steel prices to improve in 2025 on the back of new protectionist trade measures promised by the Trump administration and modest steel demand growth of 1.6%, as suggested by our bottom-up analysis. We are downgrading X to EW as the stock now trades near our standalone valuation of $39/sh.”
Bernstein reiterates NVIDIA as outperform
Bernstein said it sees little impact from tariffs on stocks like Nvidia right now.
“Overall we continue to see little direct impact to our space or coverage from potential tariff increases on Mexico, Canada, and China; rather indirect effects, as well as escalation remain the larger potential worry as overall semiconductor imports (from all countries) might be large enough to be affected by more broad-based actions should the new administration feel so inclined.”
UBS upgrades Caterpillar to neutral from sell
UBS said it sees more balanced risk/reward.
“We upgrade CAT from Sell to Neutral. After two consecutive quarterly EBIT misses, expectations for CAT have reset lower. With a reasonable initial 2025 outlook, we believe risk/reward is now balanced.”
Loop downgraded FedEx to hold from buy
Loop said “don’t buy transports” in a trade war.
“In our own little corner of the world, our initial reaction is to downgrade Canadian Pacific KC from Buy to Sell, Canadian National from Hold to Sell, Union Pacific from Hold to Sell, and FedEx, CSX, Norfolk Southern, and GXO Logistics from Buy to Hold.”
Goldman Sachs adds Bank of America to the conviction list
The firm added the stock to its top ideas list.
“We add Alnylam (ALNY), Bank of America (BAC), and Raymond James (RJF) to the US Conviction List, while removing Citigroup (C), Conagra Brands (CAG), and Vulcan Materials (VMC).”
Bank of America reiterates Apple as buy
Bank of America said the tariffs are “manageable” for Apple right now.
“Maintain Buy on stable cash flows, earnings resiliency & potential beneficiary of AI use on edge devices.”
Barclays reiterates Tesla Motors as equal weight
Barclays said it’s sticking with its equal weight rating on Tesla.
“We remain EW as we expect the stock to eventually track fundamentals, yet for now narrative is most critical.”
Morgan Stanley reiterates Amazon.com as outperform
The firm said it’s bullish on Amazon’s logistics opportunity with robotics
“AMZN has developed 6 new significant warehouse robots in the past 3 years (now covering almost every stage of fulfillment), bringing automation front and center.”
Oppenheimer reiterates Uber as a top pick
Oppenheimer said the stock is best positioned ahead of earnings later this week.
“Reiterating UBER as our best idea heading into 4Q results as investor concerns regarding Robotaxi have created an attractive buying opportunity, though we acknowledge headline risk around Robotaxi news.”
Comments