Here are Friday's biggest analyst calls: Nvidia, Apple, Sunrun, Wynn, Snowflake, Carnival, Costco and more
Here are Friday's biggest calls on Wall Street: Bernstein initiates Howmet Aerospace as outperform Bernstein said it's bullish on shares of the aerospace company. "We initiate on Howmet Aerospace ( HWM) at Outperform with a target of $67. We see more upside for Howmet even after outperformance by the stock in 2023." Bank of America reiterates Nvidia as buy Bank of America said it's standing by its buy rating on the stock. "In our view NVDA's solid FCF generation creates optionality in addressing these concerns, and in helping to expand its trading multiple back to its historical median 35x-40x." Stifel upgrades Elanco to buy from hold Stifel said in its upgrade of Elanco that the "party is just getting started" for the animal health company. "In fact, we believe the party is just getting started, and should last several years." Jefferies initiates IBM as hold Jefferies said "upside is capped" for IBM shares. "However, IBM is growing revenue below its software peers while operating at lower margins." UBS upgrades Boot Barn to buy from neutral UBS said the stock is underappreciated. " BOOT is a growth company but we think the market is valuing it otherwise. We think this changes by EOY [end of year]." JPMorgan upgrades Kymera to overweight from neutral JPMorgan said the biotech company has "best in class" pipeline potential. "Notwithstanding their early stage, we come away from Kymera's R & D Day highly encouraged by its pipeline expansion initiatives, offering best-in-class potential with oral medicines across a wide breadth of inflammatory disease indication." RBC initiates Snowflake as outperform RBC said it's bullish on the long-term growth opportunity. "We initiate on SNOW with an OP rating and $230 PT as we are bullish on their LT growth opportunity and think upside to consensus estimates seems likely." KBW reiterates Coinbase as underperform KBW said an SEC approval of a spot bitcoin exchange-traded fund is too uncertain for Coinbase shares. "Implications for COIN : Direct Revenue Opportunity from Spot ETF Approval is Modest, but Indirect Impacts Are Harder to Measure." Stifel names Wynn, Royal Caribbean and Bowlero top picks Stifel said owning these three stocks will allow investors to "to capture the Macau/LV Strip/cruise upside opportunity." "Our top three ideas ( > $2B market cap) for 2024 are Wynn Resorts, Limited (WYNN), Royal Caribbean Group ( RCL ), and Bowlero Corporation (BOWL)." Bank of America reiterates Sunrun as buy Bank of America said it's standing by shares of the solar company. "After doubling since early November on growth optimism, the next bogey will likely be read-throughs to RUN' s sustainable cash generation target of $200-$500Mn by year-end 2024, with contributions from adders that could accelerate tender of convertibles." Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's standing by Apple after survey checks show App Store growth. "Dec Q App Store growth (+10% Y/Y) outpaced our forecast by 6 pts and implies 160bps of upside vs. our Services forecast." UBS names Boeing a top pick UBS said it likes Boeing shares in 2024. "see a 4Q FCF beat and in-line 2024 guidance of $5-7bn, the potential for a positive update on China delivery timing, and further discussion of MAX rates above 50/mo reflecting strong demand." BTIG downgrades PayPal to neutral from buy BTIG said in its downgrade of the stock that it's concerned about consistent revenue growth. "Following our recent assumption of coverage of PYPL, we are downgrading the stock to Neutral as we see the process of returning the company to consistent and profitable revenue growth as a multiyear initiative, rather than a FY24 story." Needham adds On Holding to the conviction list Needham said it's bullish on the shoe company. "We highlight ONON as our Top Pick for '24 and add it to the Needham Conviction List." Deutsche Bank reiterates Costco as buy Deutsche Bank said its survey checks show Costco remains "best in class." "61% of our respondents with club memberships are members of COST. In addition, the retailer is often the second choice among members with more than one membership." Bank of America initiates Knife River as buy Bank of America said the construction materials company is undervalued. "While KNF's shares are up 70% since the spin-off, it continues to trade at a discount to peers/recent transaction in the space." Jefferies downgrades Palantir to underperform from hold Jefferies said the stock is "overhyped AI." " PLTR – Overhyped on AI, Downgrade to Underperform." Barclays upgrades Leidos Holdings to overweight from equal weight Barclays said it sees accelerating growth for the engineering company. "Trading near its historical trough discount to peers, we expect recent bookings strength along with CEO change and reorganization to reaccelerate growth." Stephens reiterates Chipotle as overweight Stephens said the stock is a top pick in 2024. "We are reiterating our favorable stance on Chipotle Mexican Grill and naming CMG shares as our Best Idea for 2024." Bank of America names Salesforce, Microsoft and ServiceNow as top picks Bank of America said in a note Friday that Salesforce, Microsoft and ServiceNow were top ideas in 2024. " CRM – Enduring mid-teen revenue growth and margin expansion from sales productivity efforts. … MSFT – AI expected to drive incremental growth in core Azure and Office franchises, ongoing margin/FCF growth from scale. … NOW – Best-in-class growth likely to move higher with AI and ongoing consolidation of the large IT & custom apps markets." Bank of America names Exxon and Chevron top picks Bank of America said it likes the oil giants in 2024. "With tailwinds from recent M & A we see 'big oil' with some of the greatest risk adj value, led by XOM & CVX." Needham names DoorDash a top pick Needham said the stock is a top idea in 2024. " DASH has performed well post pandemic with frequency including DashPass adoption driving bookings growth." Wells Fargo upgrades Carnival to overweight from equal weight Wells Fargo said the cruise company is a favorite idea in 2024. " CCL : demand solid w/ 2/3 FY24 business on books, material 2x deleveraging in FY24, and we like here on its 10% pullback post F4Q report." Oppenheimer downgrades McDonald's to perform from outperform Oppenheimer said it sees a lack of catalysts for McDonald's shares right now. "Following outsized double-digit EPS revisions in '23, we are unable to identify another round of catalysts to the consensus model." UBS reiterates CrowdStrike as buy UBS said the cyber company is a top pick. "We are reiterating our Buy rating and increasing our PT to $300, and view that CRWD as still one of the best positioned stocks in cyber."