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 Dec. 9-13, 2024. First, here is a look at the top 5 buy calls of the week.
1. PayPal Upgraded to Buy at BofA amid Increased Turnaround Progress
BofA upgraded PayPal (PYPL) to Buy from Neutral with a price target of $103, up from $86. PayPal is demonstrating increased turnaround progress just over a year after C-level management change, the firm tells investors.BofA sees potential 2025 acceleration in underlying transaction profit growth, argues that recent holiday season e-commerce spending data points have been “encouraging,” and doesn’t think potential modest improvement in branded TPV growth is priced in, the firm added.
2. Reddit Initiated With an Overweight at Wells Fargo
Wells Fargo initiated coverage of Reddit (RDDT) with an Overweight rating and a $206 price target. The firm says that while the 91% post-Q3 earnings share outperformance reflects optimism following a strong print and guidance, it sees 33% upside to Street 2026 EBITDA estimates on advertising monetization upside.As such, it believes the shares are likely to outperform on continued positive estimate revisions. The market has yet to fully appreciate Reddit’s near-term monetization improvement opportunity despite the recent stock performance, Wells tells investors in a research note. The firm estimates 60% of Reddit engagement is monetizable, after excluding time spent on functions/content that disallow ad placements.
3. KeyBanc Upgrades Charter with Broadband Trends Improving
KeyBanc upgraded Charter (CHTR) to Overweight from Sector Weight with a $500 price target. The stock is well off its lows, but it can continue to work higher as broadband subscriber trends improve — primarily as a function of lapping the Affordable Connectivity Program, continued growth in rural areas, and underlying subscriber declines being mostly stable, the firm tells investors in a research note.In addition, Charter’s cost efficiencies can continue to drive modest EBITDA growth in 2025, while its capital spending peaks next year and declines thereafter. KeyBanc believes Charter has the ability to produce nearly $8 billion in free cash flow in fiscal 2027, making shares “look very attractive.”
4. Comcast Upgraded to Buy at Seaport Research
Seaport Research analyst David Joyce upgraded Comcast (CMCSA) to Buy from Neutral with a $46 price target. The firm cites valuation for the upgrade, viewing the recent weakness in the shares as overdone.A deal with Warner Bros. Discovery (WBD) should be “construed positively” for both companies and serves to make Comcast “appear constructive” on supporting the broader linear industry ahead of its Cable Networks spin-off later in 2025, Seaport tells investors in a research note.
5. Autodesk Initiated With an Outperform at Macquarie
Macquarie initiated coverage of Autodesk (ADSK) with an Outperform rating and a $380 price target. Autodesk has a strong franchise, starting with its leading position in Architecture, Engineering & Construction design software, and Macquarie likes the potential for traction in downstream construction, free cash flow growth, and margin improvements, the firm tells investors in a research note.Macquarie also likes Autodesk’s secular opportunity in downstream pre-construction and construction markets that it views as still largely greenfield.Next, here are the top 5 sell calls of the week.
1. eBay Downgraded to Underperform at Jefferies
Jefferies downgraded eBay (EBAY) to Underperform from Hold with a price target of $52, down from $60. The firm sees decelerating advertising revenue combining with increased marketing investments for “sluggish” profit growth and downside to consensus estimates for eBay. In addition, a recent slowdown in China eliminates a key tailwind to growth and further increases risk to numbers, Jefferies tells investors in a research note.
2. Wells Downgrades Hershey to Sell on “Historic” Earnings Pressure
Wells Fargo downgraded Hershey (HSY) to Underweight from Equal Weight with a price target of $160, down from $175. The firm says Hershey “is on the precipice of historic” earnings pressure in 2025 and into 2026 from higher cocoa prices. Street earrings estimates need to come down substantially, Wells tells investors in a research note.The firm says that while it is unclear if the surge in cocoa prices over the past five weeks will prove durable, as of right now, the company is looking at nearly mid-teens cocoa inflation in 2026 on top of what’s coming in 2025.
3. UiPath Initiated With a Sell at UBS
UBS initiated coverage of UiPath (PATH) with a Sell rating and a $14 price target. The firm sees an increasingly competitive backdrop against large tech incumbents with significant resources, as well as the potential for increased pressure from AI startups to automate tasks and business processes. Another factor is the tougher selling environment, which has resulted in flat total customer growth since late 2022.In addition, there has been no significant evidence of stabilizing net retention rates among UiPath’s existing customers or considerable execution improvement from recent reorganization efforts, UBS adds. The firm is modeling net new ARR growth below the Street in calendar 2025 and 2026 as competitive headwinds get stronger.
4. Travelers Downgraded to Underweight at Wells Fargo
Wells Fargo downgraded Travelers (TRV) to Underweight from Equal Weight with a price target of $217, down from $256. The firm sees potential further general liability reserve additions, tougher margin comps in 2025, and an “overall cautiousness” within the commercial lines space given elevated loss cost trends. It views Travelers shares as “more than fully valued,” saying the company should see margin and reserve volatility in 2025.
5. Centene Downgraded to Underperform at Jefferies
Jefferies downgraded Centene (CNC) to Underperform from Hold with a price target of $52, down from $68. After analysis of Affordable Care Act Exchange data, the firm sees potential for “Redetermination 2.0,” as the Centers for Medicare and Medicaid Services tightens oversight and enhanced subsidies expire.Health insurance exchange market growth should be under “intense” enrollment and margin pressure as “over-enrollment” is cleansed from the rolls, Wells tells investors in a research note. The firm cites these concerns for the downgrade of Centene.More By This Author:Jinxin Technology, ZSpace Make Public DebutsWall Street’s Top 10 Stock Calls This Week – Saturday, Dec. 7Here’s What Wall Street Experts Are Saying About Salesforce Ahead Of Earnings
