Image Source: PixabayWhat has Wall Street been buzzing about this week? Here are the top 5 buy calls and the top 5 sell calls made by Wall Street’s best analysts during the trading week of Nov. 11-15, 2024. First, here are the top 5 buy calls of the week.
1. Nvidia Initiated With a Buy at Redburn Atlantic
Redburn Atlantic initiated coverage of Nvidia (NVDA) with a Buy rating and a price target of $178.The firm says accelerated computing is further helping to lower the cost of compute as Moore’s law and Dennard scaling slow. The artificial intelligence coding capabilities developed in the first wave of AI will enable the second wave of accelerated compute by facilitating the update of the foundational software used in general-purpose compute, Redburn tells investors in a research note.Although the adoption of accelerated compute will not be linear, the firm’s analysis concludes that the drivers are structural in nature.
2. Wedbush Upgrades Pinterest to Outperform, Says Reaction Post Q3 is “Overdone”
Wedbush upgraded Pinterest (PINS) to Outperform from Neutral with a $38 price target. The firm thinks the company is executing well against its user engagement and monetization strategies, and that it remains on pace to deliver growth and profits in line with its multi-year guidance framework.Wedbush believes the reaction post Q3 results is “overdone,” with shares trading for 11.6-times its 2026 adjusted EBITDA estimate for a business that is set to grow adjusted EBITDA at a 27% CAGR over the next three years.
3. Leerink Upgrades Bristol to Outperform after AbbVie Schizophrenia Failure
Leerink upgraded Bristol Myers (BMY) to Outperform from Market Perform with a price target of $73, up from $55. The firm expects “upward pressure” on Cobenfy and milvexian consensus expectations to drive stock outperformance from recent levels.In the wake of AbbVie’s (ABBV) emraclidine pivotal Phase 2 trial failures, Leerink no longer anticipates that competing product to launch in 2026. As such, it significantly boosted its long-term Cobenfy projections, including 2030 sales up 36% from $4.2 billion to $5.7 billion.The firm sees the potential for peak Cobenfy sales of over $10 billion if it succeeds in additional indications. Leerink also increased its milvexian sales projections after further contemplating the positive trial update announced on Bristol’s Q3 call.
4. Twilio Upgraded to Overweight at Wells Fargo, to Buy at Monness Crespi
Wells Fargo upgraded Twilio (TWLO) to Overweight from Equal Weight with a price target of $120, up from $80. The firm views Twilio as a derivative call on artificial intelligence agents, front office, and digital transferring given its positioning as a “pick-and-shovel” in the build cycle. This is further supported by Twilio’s development mindshare and re-focused efforts on capturing the independent software vendors channel, including its AI natives, the firm tells investors in a research note.Wells expects to see AI agents drive increase volumes over multiple years, which, in combination with potential improvement in cyclical exposures and mix-shift to margin accretive channels, should drive sustained growth for Twilio.In addition, Monness Crespi upgraded Twilio to Buy from Neutral with a price target of $135. Few software companies have experienced a “fall from grace as spectacular as Twilio,” with the stock down 79% from its peak and holding the lowest enterprise-value-to-revenue multiple among the analyst’s coverage, the analyst tells investors. However, heading into 2025, the firm believes Twilio is on course to extend its recovery and argues that the stock’s valuation remains attractive.
5. Campbell Upgraded to Overweight at Piper Sandler on Improving Volumes, Valuation
Piper Sandler upgraded Campbell (CPB) to Overweight from Neutral with a price target of $56, up from $47. The firm cites the better long-term growth expectations with the company’s Rao’s brand, as well as its improving U.S. retail sales and volume trends. The stock’s 15% pull-back since mid-September also presents a good buying opportunity, as Piper views Campbell as “one of the better-positioned large-cap food names.”Next, here are the top 5 sell calls of the week.
1. Starbucks Downgraded to Sell at Redburn Atlantic
Redburn Atlantic downgraded Starbucks (SBUX) to Sell from Neutral with a price target of $77, down from $84. The firm models a return to comp growth in fiscal 2025 under new CEO Brian Niccol, but it questions what level of comp growth the business can sustain.Redburn’s chief concern is the cost Starbucks must incur to deliver this recovery, the analyst tells investors in a research note. With shares trading above a 20-year average valuation multiple, “there is little room for error,” the firm contends.
2. Airbnb Downgraded to Reduce at Phillip Securities
Phillip Securities downgraded Airbnb (ABNB) to Reduce from Neutral with an unchanged price target of $120. The firm says the stock’s valuation remains “expensive” following the recent share price performance. Airbnb’s valuation seems “quite full,” as the company trades significant premium to the market and rivals like Booking Holdings and Expedia, Phillip Securities tells investors in a research note.
3. Caterpillar Downgraded to Underperform at Evercore ISI
Evercore ISI downgraded Caterpillar (CAT) to Underperform from In Line with a price target of $365, up from $321. The firm adjusted ratings in the machinery sector, saying a Trump win requires less caution but not broad bullishness, with the current starting point challenging.Evercore favors small-caps and domestic oriented stories over global players “with less compelling valuations.” The firm says Trump’s policies “undoubtedly will have wildcard implications hard to handicap in one’s models.”
4. Exane Downgrades RH to Underperform on Growing Liquidity Concerns
Exane BNP Paribas downgraded RH (RH) to Underperform from Neutral with a price target of $253, down from $274. The company’s leverage and liquidity shorten the timeframe for it to deliver results, the firm tells investors in a research note. Exane says RH exited Q2 with a seven-times leverage ratio, making liquidity a “growing concern.”Limited free cash flow, declining return on invested capital, and increased capital intensity shorten the timeframe for RH to deliver, contends the firm. Exane believes its concerns on capital structure and RH’s limited cash flow could curtail gallery openings. Recently trading at a “high multiple,” the stock’s risk/reward skews negative with significant downside to consensus estimates, says the firm.
5. BofA Double Downgrades Hims & Hers on Amazon Competition
BofA downgraded Hims & Hers (HIMS) to Underperform from Buy with a price target of $18, down from $32. Amazon (AMZN) launched a cash-pay telehealth service and treatment offering that could compete directly with Hims & Hers, the analyst tells investors.The firm says Amazon is offering Prime Members access to low-price care across 30-plus conditions, including men’s hair loss, eyelash growth, anti-aging, erectile dysfunction, and motion sickness. BofA notes Hims & Hers generates 80%-plus gross margins from its core hair loss and erectile dysfunction markets. The firm now has less confidence in the company’s margin and growth trajectory due the pending Amazon competition.More By This Author:What Wall Street Experts Are Saying About Disney Ahead Of EarningsHere’s What Wall Street Experts Are Saying About Cisco Ahead Of EarningsHere’s What Wall Street Is Saying About Home Depot, Lowe’s Ahead Of Earnings
