The S&P500 (SP500) closed in the green on Friday, after investors digested quarterly results from big banks and data showing consumer prices cooling down in June, bolstering bets for a September rate cut.
For the week, the Nasdaq (COMP:IND) lost 0.7%, while Dow (DJI) advanced 1%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Apple in focus after a slew of analysts’ commentary made way during the week
Needham raised its price target to $260 from $220 reiterated Buy rating, noting that Apple (NASDAQ:AAPL) is spending its capital on share buybacks instead of generative artificial intelligence infrastructure.
However, Needham analyst Laura Martin expressed concern that Apple’s revenue growth rate could be at risk in the next three years and suggested that Apple build an advertising business similar to Amazon.
Piper Sandler also upped its PT on the tech giant to $225 from $190.
“From our perspective, the excitement is warranted, as AI could be a needle mover for upgrades,” said Piper analyst Matt Farrell. Farrell noted that much of the recent good news is already “priced in.”
Meanwhile, Wedbush analyst Dan Ives, who has an Outperform rating and $275 price target on Apple, said iPhone is seeing more signs of stabilization across various market, with the brokerage believing that June will be the last negative growth quarter for China with a growth turnaround beginning in the September quarter.
The stock fell marginally during the week. Overall, it gained over 18% since the start of the year.
Tesla maintained the spotlight this week after UBS downgrade
Tesla (NASDAQ:TSLA) was downgraded to Sell from Neutral by UBS on valuation concern.
“While TSLA is investing heavily in AI and the tech is making progress, investment is costly, the pace of improvement may slow, and the payoff is long-dated,” he warned. “If market enthusiasm for AI diminishes, this may impact TSLA’s multiple,” said analyst Joseph Spak and assigned a price target of $197.
The electric vehicle giant dropped over 8% on Thursday due to a report of a possible delay in its August 8 robotaxi event. The stock has gained in 11 straight trading sessions before the downswing.
Analysts offer clues on banks as earnings kick off
Analysts throughout the week came out with a horde of commentary on what can be expected from banks, as big banks grabbed headlines with their first quarter results on Friday.
Wolfe downgraded JPMorgan Chase (NYSE:JPM) to Peer Perform from Outperform, adding “valuation appears full.” The brokerage said the banking giant is more exposed to declining NII due to heavier short end gearing as compared to its peers.
The investment firm also downgraded Raymond James Financial (NYSE:RJF) from Outperform to Peer Perform, adding it expects EPS growth to decelerate relative to peers.
KeyCorp’s (NYSE:KEY) rating was lowered by UBS to Neutral from Buy, saying lighter capital positioning could inhibit growth for the regional bank. UBS also lowered PT by $1 to $15.
Meanwhile, Piper Sandler analyst R. Scott Siefers upgraded Bank of America (NYSE:BAC) to Neutral from Underweight and said he expects second quarter NII to fall to ~$13.9B then jump to $14.5B-$14.6B by the fourth quarter this year.
Jefferies unsure about Darden’s near-term growth
Jefferies said weak traffic trends for Darden Restaurants’ (NYSE:DRI) Olive Garden brand could continue and downgraded the restaurant chain to “underperform” from “hold.”
Jefferies also cut its price target to $124 from $154, citing risk to growth in the near term.
The stock lost nearly 15% so far this year.
Microchip Technology and ON Semiconductor receives downgrade on valuation concern
ON Semiconductor (NASDAQ:ON) and Microchip Technology (NASDAQ:MCHP) got a downgrade from Morgan Stanley due to issues related to the automotive industry and valuation concerns.
Analyst Joseph Moore said Microchip’s valuation reflects “loft expectations” and lowered his rating to Equal-Weight from Overweight, while slightly tweaking his price target to $100 from a previous $102.
Similarly, Moore downgraded ON Semiconductor to Underweight from Equal-Weight and cut his price target to $65 from $70, adding that there is “limited room” for multiple expansion.
Competitive environment for music streamers worries Redburn; Jefferies has a different view
Competitive environment for the music streaming industry and structural challenges made analysts at Redburn Atlantic downgrade both Spotify (NYSE:SPOT) and Warner Music Group’s (NASDAQ:WMG) to Sell.
The equity research firm also mentioned Universal Music Group (OTCPK:UMGNF), saying that the company is “most exposed” to industry risks.
Meanwhile, Spotify is the top pick for Jefferies out of the three music streamers and the brokerage expects consistent price hikes, bundling, and gross margin expansion for the company.
Jefferies rated all three companies to Buy. Analysts view the current entry point for the Warner Music Group stock as attractive, while Universal is seen to be “better positioned over the long term” due to its experienced management team, and superior artist roster, which includes Taylor Swift, the Weeknd, and Rihanna, among others.
Microsoft’s gets PT rise ahead of quarterly results
Microsoft (NASDAQ:MSFT) shared some limelight this week, as BMO Capital Markets analyst Brian Pitz bumped PT to $500 from $465 on the tech giant ahead of quarterly results on rising expectation from its cloud business.
Earlier in the week, Argus also raised its price target on Microsoft, citing its GenAI investments both internally and externally.
Argus analyst Joseph Bonner added Microsoft is seen as one of the few technology companies that are considered a “haven” by investors in uncertain times, given its diversified assets.
Other than the companies mentioned above, there were some other analyst actions during the week, including Carvana, which was upgraded by Needham to Buy from Hold, calling it a secular growth story with a cyclical recovery kicker.
UBS and Wolfe Research raised their PT on Nvidia (NASDAQ:NVDA), noting that recent checks indicate that demand for its upcoming Blackwell line is “exceedingly robust.”
Analysts at Benchmark also raised PT more than 25% on Nvidia stock and reiterated Buy rating, saying that demand for its high-tech hardware powering the AI phenomenon shows no signs of slowing.
Jefferies called Take-Two Interactive Software (NASDAQ:TTWO) its top pick in interactive entertainment and said the video game maker has the “most visible path to its many release catalysts”, most importantly GTA VI.
Jefferies analyst James Heaney assumed coverage on Electronic Arts (NASDAQ:EA) at Buy, citing its robust pipeline. He also assumed coverage of Roblox (NYSE:RBLX) at Hold.
