The most talked-about and influential research calls on Wall Street are now in one place. Here are today’s research calls investors need to know, as compiled by The Fly.
Main calls:
New Street downgrades Nvidia (NVDA) New Street has a Neutral rating on the stock, upgrading it to Neutral from Buy with a one-year price target of $135. The firm says the stock “is fully valued for the base case.” The stock’s upside will only materialize in a bullish scenario, in which the outlook beyond 2025 increases materially, and New Street doesn’t yet have conviction that this scenario plays out, the analyst told investors in a research note. The firm says “the quality of the franchise is nonetheless intact” and that it would be a buyer of Nvidia again, “but only if there is prolonged weakness.” Among artificial intelligence stocks, New Street considers AMD (AMD) and TSMC (TSM) as the most attractive, the firm noted.
China Renaissance has modernized Tesla (TSLA) Tesla decided to upgrade its rating from Hold to Buy with a price target of $282.13, up from $151.31. The analyst upgraded his estimates to reflect the “substantial expansion” of Tesla’s energy storage business in the second quarter. The firm sees “re-rating opportunities” for the stock from the improving electric vehicle business and new products from the company’s Full-Self Driving, Robotaxi and robot segments.
Raymond James downgrades Spirit Airlines (TO SAFEGUARD) The firm gave the airline an underperform rating, a sell-equivalent rating, without a price target. The downgrade reflects a slightly weaker fuel outlook and weaker pricing trends, the analyst told investors in a research note. The firm said the budget airline setup in the third quarter is “clear as mud” given “rapid market and product changes and potential headwinds.” Risks are highest at Frontier and Spirit despite “already weak stock price and investor sentiment,” Raymond James added. The firm doesn’t think a bankruptcy filing is a foregone conclusion for Spirit and said GTF engine compensation has been good. However, it doesn’t fully offset the earnings impacts from grounded aircraft, which is a materially bigger problem for Spirit than any other U.S. airline and is expected to worsen in 2025, the firm added.
Raymond James downgrades Frontier Group (CHLC) The firm sees market performance as underperforming most U.S. peers on both an absolute and price basis. The downgrade reflects a slightly weaker fuel outlook and weaker pricing trends, the analyst told investors in a research note. The firm says the budget airline landscape in the third quarter is “clear as mud” given “rapid market and product changes” and potential headwinds. Risks are highest at Frontier and Spirit despite “already weak stock price and investor sentiment,” Raymond James added. The firm says that despite network changes aimed at improving operations, Frontier’s completion factor is below most U.S. peers on both an absolute and year-over-year basis. Raymond views the airline’s August schedule adjustments as a “band-aid” to its long-term concerns about Frontier’s planned growth with 240-seat A321s.
Exane BNP Paribas upgrades Lloyds Banking (EQUAL) from Neutral to Outperform with a target price of 72 GBp. The analyst replaced NatWest Group (Person) Lloyds being the firm’s top pick for UK banks. The confirmation of a Labour Party majority adds visibility for equity investors, the analyst tells investors in a research note. The firm believes banks will largely stay out of the political headlines in the coming weeks, which is a good thing. The focus can now turn to improving operational trends, according to Exane.
