The most talked about and market-moving research calls on Wall Street are now in one place. Here are today’s research calls that investors need to know, compiled by The Fly.
Most common calls:
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New Street downgraded Nvidia ( NVDA ) to Neutral from Buy with a one-year price target of $135. The firm said the stock is “fully valued for the base case.” The stock’s rally would only materialize in a bull case, where the outlook increases significantly after 2025, and New Street doesn’t yet have conviction that this scenario will play out, the analyst told investors in a research note. The firm said the “quality of the franchise remains intact nonetheless” and that it would be buyers of Nvidia again, “but only on prolonged weakness.” Among artificial intelligence stocks, New Street views AMD ( AMD ) and TSMC ( TSM ) as the most attractive, the firm noted.
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China Renaissance has upgraded Tesla (TSLA) to Buy from Hold with a price target of $282.13, up from $151.31. The analyst raised estimates to reflect the “substantial expansion” of Tesla’s energy storage business in Q2. The firm sees “rerating opportunities” for the stock from an improving electric vehicle business and new products in the company’s Full-Self Driving, Robotaxi and robotics segments.
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Raymond James downgraded Spirit Airlines (SAVE) to Underperform from Market Perform, a sell-equivalent rating, without a price target. The downgrade reflects a slightly lower fuel outlook and weaker fare trends, the analyst told investors in a research note. The firm said the budget carrier setup in Q3 was “clearly as mud” given “rapid market and product changes and potential headwinds.” Risks are greatest at Frontier and Spirit, despite “already weak stock price and investor sentiment,” Raymond James added. The firm doesn’t believe a bankruptcy filing is a foregone conclusion for Spirit and said its GTF engine offset has been good. However, it doesn’t fully offset the earnings impact of aircraft on the ground, which is a materially bigger problem for Spirit than for any other U.S. airline and is expected to get worse through 2025, the firm added.
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Raymond James downgraded Frontier Group (ULCC) to Underperform from Market Perform without a price target. The downgrade reflects a slightly lower fuel outlook and weaker fare trends, the analyst told investors in a research note. The firm said the budget carrier setup in Q3 was “clear as mud” given “rapid market and product changes” and potential headwinds. Risks are greatest at Frontier and Spirit, despite “already weak stock price and investor sentiment,” Raymond James added. The firm said that despite network changes to improve operations, Frontier’s completion factor lags most U.S. peers on both an absolute and year-over-year basis. Raymond sees the airline’s August schedule changes as a “band-aid” for longer-term concerns about Frontier’s planned growth of 240-seat A321s.
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Exane BNP Paribas has upgraded Lloyds Banking (LYG) to Outperform from Neutral with a price target of GBp72. The analyst replaced NatWest Group (NWG) with Lloyds as the firm’s top pick in UK banks. Confirmation of a Labour majority increases visibility for equity investors, the analyst told investors in a research note. The firm believes banks will largely stay out of the political headlines in the coming weeks, which is welcome. The focus can now shift back to improving operational trends, Exane said.
