Here are Tuesday’s biggest calls on Wall Street:
Piper said it likes both beverage giants in 2025.
“We favor KO but also see opportunity in PEP pullback. We consider KO best positioned for sustainable growth and share gains, given its leading global brands and execution.”
Truist said in an initiation note that it’s bullish on several banking giants.
“At current prices, we see particular value in BAC, WFC and C (all rated Buy), expecting each to show improving efficiency and ROTCE via self-help and cyclical levers.”
HSBC said it sees an attractive entry point for the stock.
“After rallying from September through most of November 2024, bank stocks have pulled back, offering selective opportunities to add exposure to companies with double-digit plus EPS growth and material ROE/ROTCE expansion potential at attractive valuations. We upgrade Bank of America and Truist to Buy.”
Redburn said it’s turning bullish on the company’s streaming profit opportunity.
“After years of cord-cutting pressures, Disney is finally at a point where streaming profit growth will more than offset linear TV declines.”
Bernstein said investors should buy shares of top pick Walmart despite its valuation.
“WMT is expensive but we don’t believe that consensus EPS represents its true earnings power. In our upside scenario, we expect WMT to turn a profit in its US e-commerce business on a fully loaded, unsubsidized basis by FY30, which represents a 53c EPS benefit.”
Needham said the connected TV company is a best idea in 2025.
“ROKU is our top stock pick for 2025. For media stocks, we think the two most important upside valuation drivers in 2025 will be connected TV (CTV) ad growth, and industry consolidation. Roku benefits from both, we believe.”
The firm said the turnaround is on for shares of the online car company.
“After CVNA’s remarkable turnaround last year, we see the controversial pullback as an opportunity & we upgrade to Outperform & set a $280 PT based on 28x our newly established EV/’26 EBITDA.”
The firm said it’s worried about too much “bad news.”
“Despite the steady melt-up in Apple shares over the past few months, there has actually been a steady drumbeat of bad news.”
The firm said a recovery is underway for the company.
“For the first time ever, we are upgrading Lululemon to Outperform. ... .After a tough year of growth deceleration and multiple compression, we believe the Americas business has bottomed and is now set up for a modest recovery.”
UBS said the stock is a top pick in 2025.
“Our top large cap pick is Dell (DELL - Buy rated / PT $158) as the company should be a winner in the AI server market relative to peer HPE across Tier 2 Cloud and Enterprise markets driving at least 10% ISG [information services group] revenue growth next year.”
BTIG said the healthcare tech company is “disruptive.”
“We are initiating coverage of Hims & Hers Health (HIMS) with a Buy rating.”
Wells said it sees an attractive entry point.
“SNOW shares appear more favorably positioned heading into 2025, potentially set to benefit from a budding product cycle, a possible rotation towards software (large-cap, liquid, AI/data play), and a more attractive entry point with recent pullback from highs.”
Bank of America said in its downgrade of Tesla that the growth drivers are already priced in.
“Since our upgrade in April 2024, news flow and investor sentiment have shifted more positively. Catalysts around future growth drivers have been more fully recognized.”
UBS calls the banking giant an “overlooked” winner in 2025.
“In the post-election landscape of de-regulation and higher for longer, BAC has been largely left out of the conversation.”
The firm said it’s bullish on both stocks heading into earnings in early February.
“With UBER, we have a stock that has materially underperformed intra-quarter – UBER has had the largest sell-off in the group since the Q3 prints. ... With GOOGL, our TAP call is based on our belief that Street Search, YouTube and Google Cloud estimates appear reasonable to mildly conservative.”
The firm said it’s sticking with its buy rating following the Nvidia CEO’s presentation at CES on Monday night.
“Product and partnership announcements from Nvidia are often difficult to translate into forecasts; that said, we believe today’s string of announcements, at a minimum, highlights the company’s ability to innovate at industry-leading speed across hardware and software as well as its robust partner and customer eco-system.”
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