Here are Friday's biggest analyst calls: Apple, Amazon, Broadcom, Bowlero, Microsoft, Rivian and more
Here are Friday's biggest calls on Wall Street. Bank of America reiterates Broadcom as buy Bank of America raised its price target on the stock to $950 per share from $800 after Broadcom's earnings report Thursday. The firm said it's an "underappreciated AI portfolio" story. "Our new PO of $950 (from $800) represents 21x CY24E EV/FCF as AI accelerates company growth potential. In a bull case scenario where AVGO can grow AI exposure to ~25% of sales we see incremental $2bn/$3 upside to our sales/EPS estimates." Read more about this call here. B. Riley FBR initiates Bowlero as buy B. Riley said shares of the bowling company are attractive. "We believe Bowlero is well positioned to continue to take market share from a fragmented and 'old school' bowling industry with a management team that has a proven track record of value creation from acquisition conversions." Piper Sandler downgrades Dollar General to neutral from overweight Piper downgraded the stock after a disappointing earnings report Thursday. "After maintaining an OW rating on DG shares for > 10 years, we are downgrading shares to Neutral on somewhat inexplicable sales/comp weakness, lack of conviction for a near term rebound, and concerns that guidance wasn't reduced enough." Atlantic Equities downgrades Warner Music to neutral from overweight Atlantic Equities downgraded Warner Music on slowing growth and artificial intelligence concerns. "Over the past six months, there have been two key developments 1) loss of streaming share means recorded music streaming revenues are growing slower than expected, and 2) the rapid development of AI-created music is placing a major cloud over the whole sector." Morgan Stanley reiterates Apple as overweight Morgan Stanley raised its price target on the stock to $190 per share from $185 and said it's bullish on the company's opportunity in augmented and virtual reality. "AR/VR is < 1% of revs but AR/VR has the potential to become Apple's next $20B+ compute platform; PT to $190." Wells Fargo reiterates Broadcom as overweight Wells Fargo raised its price target on the stock to $800 per share from $600 after the company's robust earnings report Thursday. "Broadcom delivered above-consensus results and guidance as AI spending drives semiconductor revenue higher; now representing 15% of semiconductor business & expected to grow to 25% in F2024." JPMorgan downgrades Valvoline to neutral from overweight JPMorgan downgraded the stock mainly on valuation. "Longer-term share multiple risk in Valvoline is likely to stem from long-term growth expectations for electric vehicles." JPMorgan downgrades Xcel Energy to neutral from overweight JPMorgan downgraded the energy company due to rising regulatory risks. "Overall, XEL remains an attractive regulated story with exposure to energy transition themes across generation and transmission, which underpins an extended growth runway into the next decade. However, the company currently carries a top +13.5% P/E premium across our regulated coverage, which leaves little room for the regulatory risk now highlighted by the commissions order." Read more about this call here. Bank of America reiterates Five Below as buy Bank of America said the discount retailer has "recession resilience." "Underappreciated name with long-term growth potential We reiterate our Buy rating as we continue to believe in FIVE's long-term growth potential." Bank of America upgrades Surgery Partners to buy from neutral Bank of America said the health care company has "favorable long-term tailwinds." "We are upgrading Surgery Partners (SGRY) to Buy from Neutral given the favorable long-term tailwinds for ambulatory surgery centers (ASCs), and the near-term lift from volume normalization." Stifel upgrades FibroGen to buy from hold Stifel said it's bullish on shares of the biotechnology company. " FibroGen focuses on the development of two potential first-in-class drug candidates. Lead product, Pamrevlumab, is an anti-CTGF mAb that targets various fibrotic diseases." Goldman Sachs downgrades Ginkgo Bioworks to sell from neutral Goldman said it sees a "softening end demand market" for the biotech company. "While we believe the end market shift towards Biopharma and Agriculture is a sound long term strategy, we believe the macro environment and the softening spend we are seeing in the biopharma end market may result in slower new program growth for DNA. " JPMorgan reiterates Amazon as overweight JPMorgan Chase said it's standing by Amazon as a best idea. "We estimate AMZNs share of US e-commerce increased +119bps Y/Y to 40.9% in 1Q, the third consecutive quarter in which AMZNs share has increased more than 100bps Y/Y." Evercore ISI reiterates Microsoft as outperform Evercore ISI raised its price target on the stock to $400 per share from $337 and said it's getting more bullish on the company's AI opportunity. "We believe the infusion of AI across Microsoft's product portfolio represents a potential ~$100bn incremental revenue uplift in 2027 based on our 'bull case' scenario." Morgan Stanley upgrades The Trade Desk to overweight from equal weight Morgan Stanley said the ad tech company is "best in class." " TTD is driving and benefiting from growth in CTV and retail media advertising." Read more about this call here. Barclays reiterates Rivian as overweight Barclays said it sees "clear opportunity ahead" for the stock. "Yesterday we visited RIVN' s plant in Normal, IL, meeting with Frank Klein (COO), Tim Fallon (VP, Manufacturing), Tim Bei (VP, Strategic Finance and IR), and Derek Mulvey (Director, Strategic Finance and IR). Our clear takeaway is that RIVN has moved past the many challenges / fire fights which deeply challenged operations in 2022." Citi opens a positive catalyst watch on Frontier Citi said it's bullish on the discount carrier getting takeoff and landing slots at LaGuardia Airport. "The combination of the stock's ytd underperformance, lower fuel and now the possibility of the carrier obtaining Spirit Airlines' LaGuardia Airport takeoff/landing slots and gates, leads Citi to open a positive, 90-day Catalyst Watch on the shares of Buy-rated Frontier. " Bank of America reiterates Lululemon as buy Bank of America said Lululemon is a "best-in-class growth story." "We reiterate our Buy after a beat and raise quarter, which stands out after a difficult 1Q reporting season for peers."