Tech

Monday's Top Analyst Upgrades: Nvidia, Microsoft, Walmart & More

Analysts upgrade Krispy Kreme, Microsoft, Nvidia, Disney, and Walmart; downgrade AMD; reiterate neutral on Apple.

By Alex P. Chase

6/10, 08:23 EDT
Apple Inc.
Advanced Micro Devices, Inc.
ARM Holdings plc
Broadcom Inc.
Walt Disney Company
DraftKings Inc.
Krispy Kreme, Inc.
Mohawk Industries, Inc.
Microsoft Corporation
NVIDIA Corporation
Pacific Gas & Electric Co.
Planet Fitness, Inc.
Tesla, Inc.
Walmart Inc.
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Key Takeaway

  • Truist upgraded Krispy Kreme to buy, citing it as "underappreciated," while New Street initiated Microsoft with a buy rating for future growth.
  • Morgan Stanley resumed Broadcom with an overweight rating due to AI growth and VMware synergies; TD Cowen raised Nvidia's price target to $140.
  • Jefferies upgraded Planet Fitness to buy, highlighting new CEO and franchisee model adjustments; JPMorgan upgraded Walmart and PG&E for strong growth prospects.

Analyst Upgrades and Downgrades

On Monday, several notable analyst calls were made on Wall Street, impacting a range of companies across various sectors. Truist upgraded Krispy Kreme to a buy from hold, citing the stock as "underappreciated." The firm stated, "Upgrading to Buy; Time to Indulge in an Underappreciated Story."

New Street initiated coverage on Microsoft with a buy rating, highlighting the company's strong positioning for future growth. "A set of high-quality franchises, well positioned to profitably grow in the low teens for years to come," the firm noted.

Morgan Stanley resumed coverage of Broadcom with an overweight rating, pointing to growth in AI and potential synergies from its acquisition of VMware. "Growth in AI, potential upside synergies from VMW, and recovery in core enterprise semis all make AVGO compelling relative to others in the 'AI winners' camp. OW, PT $1,658," the firm stated.

UBS reiterated its neutral rating on Apple, noting that interest in AI remains muted for the tech giant. "iPhone purchase intent remains soft while interest in AI is muted," UBS said.

Sector-Specific Insights

TD Cowen reiterated its buy rating on Nvidia, raising its price target to $140 from $120. The firm described Nvidia as its "best idea" following the company's stock split. "No real updates here, just model tweaks (and proving we can divide by ten). Reiterate Buy, Best Idea, and adjust (raise) our PT to $140 from $120," TD Cowen stated.

Bernstein reiterated its underperform rating on Tesla, expressing skepticism about CEO Elon Musk's $56 billion pay package. "We believe that if the pay package is rejected, the stock would likely be down (potentially 5%+) amid fears that Musk might leave Tesla," Bernstein noted.

Bernstein also reiterated its outperform rating on Disney, despite potential softness in park attendance. "Demand recovery coming out of Covid could lead to softness in attendance in '24 and potentially in '25. Given the difference in demand recovery timing between US and Int'l Parks, decline in overall demand may not be too bumpy," the firm said.

Morgan Stanley named DraftKings a top pick, despite recent tax issues in Illinois. "We add DKNG back as our Top Pick in North America Gaming & Lodging as we see positive catalysts alleviating recent pressure from the recent tax headlines," Morgan Stanley stated.

Company-Specific Developments

Jefferies upgraded Planet Fitness to buy from hold, citing several positive catalysts, including the start of a new CEO and franchisee model adjustments. "Shares have been under pressure over the past 6-9 months; however, we believe current headwinds are well understood and now there's a more visible path to improving trends ahead following 1) new CEO (Colleen) starts TODAY; 2) franchisee model adjustments," Jefferies noted.

JPMorgan upgraded PG&E to overweight from neutral, citing long-term growth prospects. "As a result, we upgrade PCG to OW and raise our PT to $22 ahead of the company’s June 12 Investor Day, which we expect to highlight these elements in providing more granularity across spend breakdown within the capital plan, outlining net customer benefits, and refreshing wildfire mitigation updates," JPMorgan stated.

JPMorgan also upgraded Walmart to overweight from neutral, describing the stock as both offensive and defensive. "We are upgrading WMT to Overweight as we believe the stock adds a strong balance of defense and offense on both the top and bottom lines in a soft (to softening) consumer backdrop with a highly uncertain 2H24 ahead," the firm said.

Morgan Stanley downgraded Advanced Micro Devices (AMD) to equal weight from overweight, citing high investor expectations. "We like the AMD story, but investor expectations for the AI business still seem too high to us," Morgan Stanley noted.

Street Views

  • Truist (Bullish on Krispy Kreme):

    "Upgrading to Buy; Time to Indulge in an Underappreciated Story."

  • New Street (Bullish on Microsoft):

    "A set of high-quality franchises, well positioned to profitably grow in the low teens for years to come."

  • Morgan Stanley (Overweight on Broadcom):

    "Growth in AI, potential upside synergies from VMW, and recovery in core enterprise semis all make AVGO compelling relative to others in the ‘AI winners’ camp. OW, PT $1,658."

  • UBS (Neutral on Apple):

    "iPhone purchase intent remains soft while interest in AI is muted."

  • TD Cowen (Bullish on Nvidia):

    "No real updates here, just model tweaks (and proving we can divide by ten). Reiterate Buy, Best Idea, and adjust (raise) our PT to $140 from $120."

  • Bernstein (Underperform on Tesla):

    "We believe that if the pay package is rejected, the stock would likely be down (potentially 5%+) amid fears that Musk might leave Tesla."

  • Bernstein (Outperform on Disney):

    "Demand recovery coming out of Covid could lead to softness in attendance in ’24 and potentially in ’25. Given the difference in demand recovery timing between US and Int’l Parks, decline in overall demand may not be too bumpy."

  • Morgan Stanley (Top Pick Status for DraftKings):

    "We add DKNG back as our Top Pick in North America Gaming & Lodging as we see positive catalysts alleviating recent pressure from the recent tax headlines.."

  • Jefferies (Bullish on Planet Fitness):

    “Shares have been under pressure over the past 6–9 months; however, we believe current headwinds are well understood and now there’s a more visible path to improving trends ahead following 1) new CEO (Colleen) starts TODAY; 2) franchisee model adjustments.”

  • JPMorgan (Overweight on PG&E): > "As a result,we upgrade PCGto OWand raiseourPTto$22aheadofthecompanysJune12InvestorDaywhichweexpecttohighlighttheseelementsinprovidingmoregranularityacrossspendbreakdownwithinthecapitalplan,outliningnetcustomerbenefits,andrefreshingwildfiremitigationupdates.”

  • JPMorgan(OverweightonWalmart):> "WeareupgradingWMTtoOverweightaswebelievethestockaddsasstrongbalanceofdefenseandoffenseonboththetopandbottomlinesinasoft(tosofteningconsumerbackdropwithahighlyuncertain2H24ahead.

  • MorganStanley(EqualWeightonAdvancedMicroDevices):> "WeliketheAMDstory,butinvestorexpectationsfortheAIbusinessstillseemtoo hightous.

UBS(NeutralHoneywell)
ValuationresetgrowthdeficiencyshouldstartimproveU/GNeutral

UBS(BuyMicron)
Amidsectorwidere-ratinganythingtouchingnewC2025EPS~17.50reasonvaluationimpedemove155remainBuy

WellsFargo(Nikeoverweight)
Wellsloweredpricetargetstock115perfrom120butstickingNike shares.
BelieveNKE numbersagaincomingdown impacts tougher macro their own needed reset weigh heavily than originally thought cut numbers below Street another re-base ahead.PT115

RaymondJames(MohawkStrongBuymarket perform)
RaymondJamessaidsharesflooring company undervalued.
Upgrade shares MHK Strong Buy.

RosenblattreiteratesArm buy
RosenblattsaidlikessharesArmmuchNvidia.
Reiterate rating ARM price target180 consider top secular pick alongside NVDA.

JPMorgan(LithiaMotors overweight neutral)
JPMorgansaidauto company material de-rating