On Friday, several notable calls from major financial institutions provided insights into market sentiment and projected growth opportunities for various companies.
Guggenheim upgraded General Electric’s Vernova division from neutral to buy, establishing a price target of $910. The firm emphasized that the market may be underestimating Vernova’s ability to generate cash and return capital, while also indicating potential for improved margins in the electrification segment.
Bank of America reiterated its buy rating on Apple, citing the company’s strong performance following recent earnings. The bank highlighted three key factors for its bullish stance: the better-than-expected global iPhone upgrade trends, rising gross margins despite commodity pressures, and the anticipated launch of an AI-enabled Siri in 2026.
Morgan Stanley maintained an overweight rating on Western Digital, boosting its price target from $260 to $306. The firm noted strong demand and pricing momentum, which they believe the market is currently undervaluing, leading to favorable impacts on margins and earnings per share.
Deutsche Bank confirmed its buy rating on Tesla, although it reduced its price target from $500 to $480. The analysts noted that Tesla’s increased capital expenditures and ambitions to venture into chip manufacturing signify a shift toward diversifying beyond traditional automotive services.
BMO raised Southwest Airlines’ rating from market perform to outperform, forecasting earnings growth. Analysts pointed to potential recovery in domestic travel conditions and increased corporate travel, both of which they believe are not fully accounted for in current management outlooks.
Raymond James upgraded both Valley National Bank and Sandisk from market perform to outperform. The firm expressed optimism regarding Valley National’s loan growth and set a price target of $15, indicating a strategic shift to growth after defensive measures in the past two years. For Sandisk, despite acknowledging a delayed upgrade, analysts set a target price of $725, suggesting renewed positive momentum.
Citi upgraded Spotify from neutral to buy, citing several positive catalysts including attractive valuation and beatable consensus estimates. The firm expressed confidence that these factors would benefit Spotify’s stock moving forward.
Bernstein reiterated its outperform rating on Netflix, advising investors to be patient as the Warner Bros. Discovery process evolves. The firm indicated that expected margin revisions and potential acquisitions may alleviate near-term engagement challenges for Netflix.
Wells Fargo held an overweight rating on Advanced Micro Devices, setting a price target of $345 ahead of upcoming earnings, positioning AMD as a top pick.
UBS upgraded Royalty Pharma to buy from neutral, increasing its price target from $38 to $49. UBS analysts noted a series of appealing royalty deals that could significantly enhance growth potential for the biopharma company.
Wolfe upgraded Broadcom to outperform from peer perform, citing multiple positive catalysts ahead, and set a target price of $400. Meanwhile, they reiterated Nvidia as a favored investment in the semiconductor sector for 2026, maintaining its outperform stance.
These ratings from various analysts reflect a combination of optimism and caution across different sectors, highlighting both growth potentials and challenges as companies navigate the evolving market landscape.
