Here are Monday's biggest calls on Wall Street: Bank of America reiterates Nvidia as buy Bank of America said shares are "compelling" at current levels. "However, we see any selloff as enhanced buying opportunity as challenges are not in demand, but in (solvable) supply that will not fundamentally derail NVDA's longer-term momentum." Mizuho reiterates Grab and Trip.
com as top picks Mizuho said the two stocks are silver linings amid a bumpy China macro. "Despite the uncertain environment, we remain positive on the pent-up demand of outbound travel, and TCOM is a top pick. .
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From that perspective, GRAB is also a top pick into the quarter. Please see below for our company summaries." Morgan Stanley reiterates Disney as overweight Morgan Stanley lowered its price target on the stock to $110 per share from $130 but said it's sticking with Disney shares.
"There are enough data points at this point to take a more cautious view of Disney's parks business in FY25. With shares off 23% since F2Q earnings in May, much of this appears priced." KeyBanc upgrades Gulfport Energy to overweight from sector weight KeyBanc said investors should buy the dip in shares of the nat gas company.
"Our outlook for natural gas has not changed since then. Nor has our positive fundamental outlook for Gulfport (the Company)." RBC upgrades Lockheed Martin to outperform from sector perform RBC said the stock's valuation is attractive.
"We are upgrading our rating on Lockheed Martin (LMT) from Sector Perform to Outperform and raising our price target to $600 (previously $500)." Morgan Stanley upgrades Prosperity Bancshares to overweight from equal weight Morgan Stanley said the regional bank has "best in class capital and growing liquidity." The firm also upgraded the midcap bank sector to attractive.
"Rating changes: Upgrading PB to Overweight from Equal-weight given strong NIM [net interest margin] expansion story coupled with best in class capital and growing liquidity." Morgan Stanley initiates MKS Instruments as overweight Morgan Stanley said the controlling and measuring device manufacturing company is well positioned. "As MKSI's semi and E & P businesses enter a cyclical recovery the company should return to its post-acquisition deleverage playbook and see outsized EPS growth.
UBS reiterates Berkshire Hathaway as buy UBS said it's sticking with shares of Berkshire Hathaway following earnings on Saturday. "Raising estimates on higher Insurance underwriting and investment income." Citi upgrades Robinhood to neutral from sell Citi sees fundamentals getting better for the online trading company.
"We are upgrading HOOD to Neutral/High Risk. HOOD finished down 12% on Friday given the potential impact from lower rates. The fundamental story has been improving in recent periods with healthy growth in deposits, margin balances, options/equities trading.
" RBC downgrades Moderna to sector perform from outperform RBC said it sees too many headwinds for Moderna shares. "Overall, with a top line that we expect is likely to stay at $3-4b for the foreseeable future and the company hesitating in aggressively reducing their costs the balance sheet no longer looks strong even at $10.8b in cash and a guide that implies $6-7b ending cash balance in 2025.
" Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's sticking with the stock following its quarterly 10-Q report. " Apple's operating margin reached a near June quarter record at 29.6%, all the more impressive given Greater China operating margins fell to a 4 year low.
" Morgan Stanley reiterates Walmart as overweight Morgan Stanley said it's sticking with its overweight rating on the stock following Walmart+ membership hitting a record high according to its survey checks. "Latest survey implies ~21.5m Walmart+ members, a record high (~14m adjusting for survey overcounting).
" Bank of America upgrades Five9 to buy from underperform Bank of America double upgraded the cloud contact center company and said shares are "compelling." "We upgrade Five9 to Buy (from Underperform) while leaving our $63 PO unchanged (54% upside potential). Our bullish view is underpinned by 1) a compelling risk/reward profile; 2) AI as a tailwind in the near and medium-term.
" Jefferies reiterates Netflix as buy Jefferies says investors should buy the dip in Netflix shares. "We are increasingly bullish on the recent 10%+ pullback in the stock, as we believe a Q4 US price hike is possible on the back of an impressive content slate." RBC upgrades Kellanova to outperform from sector perform RBC upgraded the food products company following reports of Mars interest in acquiring the company.
"Reuters recently reported that Mars might have interest in acquiring Kellanova (neither company has commented). Usually where there is smoke there is fire, but the track record of the press anticipating M & A has not always been accurate." Bernstein reiterates Boeing as outperform Bernstein lowered its price target on Boeing to $207 per share from $222 but says it's sticking with the stock.
"In assessing where Boeing currently stands, there are two competing factors. First is the deepening hole of cash, with more defense charges, rising inventories, slowing advances, and higher debt. On the other side is an outlook for improving deliveries, including the 737 production ramp, 787 production recovery, 777X certification progress, and restart of deliveries to China.
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