Here are Tuesday's biggest analyst calls: Bank of America reiterates Nvidia as buy The bank is feeling even more bullish on the stock after meeting with Nvidia management at the Bank of America Global AI Conference. "The discussion increases our confidence in NVDA' s ability to sustain its growth momentum, benefiting from rising adoption of accelerated servers/generative AI rollouts that are still only in the first 10-15% of their adoption phase in the $1Tn installed base of cloud/enterprise data centers." Monness Crespi Hardt downgrades Oracle to neutral from buy Monness downgraded Oracle after its earnings report Monday, mainly on valuation. "In our view, Oracle represents a high-quality tech company with the opportunity to participate in a compelling cloud transformation; however, valuation has become less compelling, sentiment overly optimistic, trends at Cerner rocky, and we believe the darkest days of this downturn are ahead of us." RBC reiterates Tesla as outperform RBC said in a note Tuesday that the automaker's full self-driving technology remains the "key" for Tesla. "A key component of value should come from FSD [full self driving] and ultimately, autonomy in general." Morgan Stanley reiterates Walmart as overweight Morgan Stanley said its latest survey checks show Walmart+ continues to gain traction with consumers. "Latest survey implies ~21m Walmart + members, near record high. Further analysis of membership fee disclosures suggests actual Walmart+ membership could be ~35% below our survey, mainly due to user response error, pointing to ~13.5m members." Wolfe upgrades CVS to outperform from peer perform Wolfe said in its upgrade of the drug store chain, insurer and pharmacy benefit manager that the stock is at a turning point. "We view CVS as a business that has the potential to inflect over the next 6-12 months as macro challenges facing the company's Retail business potentially get reflected in more reasonable guidance and focus shifts to self-improvement potential in [Medicare Advantage] and value-based care business becomes [a] more significant part of total allowing for greater visibility on #s and multiple expansion." Read more about this call here. Berenberg initiates Block as buy Berenberg said in its initiation of the company formerly known as Square that the stock has reached an "inflection point." "Block's improving outlook for profitability reflects significant operating leverage." TD Cowen initiates Endeavor as outperform TD Cowen said in its initiation of the media company that it's underappreciated. "We view EDR positioning as a conglomerate, with strong ROIC [return on invested capital] profile and ability to grow FCF at 15% 5-yr CAGR benefiting from multi-year tailwinds across its portfolio of diverse sports/live event assets." Mizuho reiterates Coinbase as underperform Mizuho said shares of Coinbase are overvalued especially as retail crypto trading fades. "With retail accounting for 95% of trading revenue, we worry that the YTD rise in COIN's stock is unsustainable." Bank of America upgrades Cintas to buy from neutral Bank of America said the uniform company is "best in breed." "As our confidence builds about a potential U.S. economic soft landing, we upgrade Cintas ' shares opportunistically to Buy from Neutral." B. Riley initiates Guess as buy B. Riley said in its initiation of the clothing company that it has "significant upside potential." "GES has beaten and raised its guidance in the last two quarters." Bernstein initiates GitLab as outperform Bernstein said the development software company has a "structurally durable setup." "Investment options are limited in this attractive investment thesis, and GitLab is among the leaders: there are only a few developer tool companies at scale and with a strong enough competitive durability, and we believe GitLab is amongst them." Read more about this call here. Citi upgrades BRP Inc. to buy from neutral Citi said in its upgrade of the Canadian ATV and snowmobile maker that shares are attractive at current levels. "Coming out of our most recent round of ORV [off road vehicles] channel checks, 2Q earnings, the August doldrums, and our deep dive on powersports inventories, we are upgrading BRP from Neutral to Buy and upping our price target from $111 to $128." Goldman Sachs upgrades Geron to buy from neutral Goldman Sachs said in its upgrade of Geron that investors should buy the dip in shares of the biotechnology company. "Thus, we see the recent pullback in shares as presenting a buying opportunity for the stock." Read more about this call here. Bank of America reiterates Disney as buy Bank of America is bullish on Disney's carriage agreement with cable company Charter. "DIS+ is in the very early days on their ad-supported streaming launch, so there is limited subscriber overlap within both customer bases. Therefore, this wholesale agreement with CHTR can be an effective way to scale DIS+ distribution." Barclays reiterates Alphabet and Meta as overweight Barclays said in a note Tuesday that Meta and Alphabet are best positioned for artificial intelligence. "The best companies in AI are likely to have a combination of: 1) distribution advantages, 2) strong technical AI prowess, 3) the resources to invest aggressively, and 4) a willingness to ship and execute." Truist downgrades Enphase to hold from buy Truist downgraded the stock on residential weakness and valuation. "As a result, we reset our group valuations driving us to downgrade shares of ENPH to Hold from Buy, as we see shares remaining rangebound on potential for U.S. resi weakness extending into 2024." BMO reiterates Adobe as outperform BMO said the stock is a long-term AI "opportunity." "We remain confident that generative AI can help Adobe grow net new ARR [annual recurring revenue] over the next several years, which should support durable mid- to low-teens revenue growth." Morgan Stanley reiterates Exxon as overweight Morgan Stanley said Exxon is a top pick right now and that it likes stocks with strong and improving free-cash flow. "Against that backdrop, we remain focused on rate of change trends (both on cash return and capital efficiency) and generally prefer stocks with (1) strong and/or improving FCF; and (2) scale and asset diversity."
