Wall Street Analysts Make Big Calls: Upgrades, Downgrades, and Initiations

by Arthur Herring
in *AR, Action, News
on 20 November 2023

Wall Street analysts are always on the lookout for opportunities to make bold calls on stocks. In a recent wave of reports, several high-profile companies have been given new ratings by various analyst firms. Let’s take a closer look at some of these notable calls and the rationale behind them.

ChargePoint, a leading electric vehicle charging network provider, has been downgraded by Wolfe Research from “outperform” to “peer perform.” The firm cited significant uncertainty in the medium-term, leading to a resetting of revenue and gross margin expectations.

On the other hand, Jefferies has upgraded Six Flags Entertainment Corporation from “hold” to “buy” due to its merger with Cedar Fair, which is expected to increase value for Six Flags shareholders.

Raymond James has reiterated its “strong buy” rating for Nvidia, a leading semiconductor company. The firm anticipates another strong quarter and expects a revenue beat, despite some mixed trends in 3Q Cloud capex and recent China export controls.

Stifel has initiated coverage on Mach Natural Resources with a “buy” rating. The firm believes that Mach Natural Resources offers a highly differentiated investment proposition, with a leading dividend yield and a strategic roll-up and return of capital strategy in the Lower 48 basin.

Wells Fargo is bullish on Arm, a semiconductor stock, and has initiated coverage with an “overweight” rating. Wells Fargo highlights Arm’s continuous momentum as a leading innovator in RISC-based compute, projecting future market share growth.

Bernstein remains skeptical about Tesla’s performance and maintains its “underperform” rating. The firm points out that EV growth may be slowing, and questions whether mass-market consumers are ready to fully embrace electric vehicles.

JPMorgan has reconfirmed Apple as an “overweight” stock, but notes that iPhone lead times are moderating. This suggests a potential decline in demand for Apple’s flagship product.

BTIG initiated coverage on Global Payments with a “buy” rating, emphasizing the company’s infrastructure that enables billions of transactions annually and its attractive valuation.

Morgan Stanley downgraded Chegg to “underweight” due to long-term challenges from competing educational AI platforms. The firm expects negative consensus revisions for the company’s earnings in the future.

Deutsche Bank upgraded Boeing to a “buy” rating, as the aerospace giant’s improved performance and increasing aircraft deliveries provide a strong investment case.

These are just a few examples of the recent calls made by Wall Street analysts. The stock market is constantly evolving, and these recommendations can serve as useful insights for investors seeking guidance. However, it is important for individual investors to conduct their own due diligence and make informed decisions based on their investment goals and risk tolerance.

FAQ:

1. What rating did Wolfe Research give to ChargePoint?
Wolfe Research downgraded ChargePoint from “outperform” to “peer perform.”

2. What is the rationale behind Jefferies’ upgrade of Six Flags Entertainment Corporation?
Jefferies upgraded Six Flags Entertainment Corporation from “hold” to “buy” due to its merger with Cedar Fair, which is expected to increase value for Six Flags shareholders.

3. What is Raymond James’ rating for Nvidia?
Raymond James has reiterated its “strong buy” rating for Nvidia, a leading semiconductor company.

4. Why did Stifel initiate coverage on Mach Natural Resources with a “buy” rating?
Stifel believes that Mach Natural Resources offers a highly differentiated investment proposition, with a leading dividend yield and a strategic roll-up and return of capital strategy in the Lower 48 basin.

5. What is Wells Fargo’s rating for Arm?
Wells Fargo is bullish on Arm and has initiated coverage with an “overweight” rating.

6. What rating does Bernstein maintain for Tesla?
Bernstein remains skeptical about Tesla’s performance and maintains its “underperform” rating.

7. What has JPMorgan reconfirmed about Apple as a stock?
JPMorgan has reconfirmed Apple as an “overweight” stock.

8. Why did BTIG initiate coverage on Global Payments with a “buy” rating?
BTIG initiated coverage on Global Payments with a “buy” rating, emphasizing the company’s infrastructure that enables billions of transactions annually and its attractive valuation.

9. Why did Morgan Stanley downgrade Chegg?
Morgan Stanley downgraded Chegg to “underweight” due to long-term challenges from competing educational AI platforms.

10. What rating did Deutsche Bank give to Boeing?
Deutsche Bank upgraded Boeing to a “buy” rating due to the aerospace giant’s improved performance and increasing aircraft deliveries.

Definitions:

– Analyst: An individual who studies and evaluates financial information to provide recommendations on stocks and other financial instruments.
– Downgrade: A negative change in the rating or recommendation given to a stock, indicating a decrease in potential value or performance.
– Upgrade: A positive change in the rating or recommendation given to a stock, indicating an increase in potential value or performance.
– Reiterated: To affirm or maintain a previously given rating or recommendation.
– Initiating coverage: The act of providing an initial rating or recommendation for a stock or company.
– Overweight: A rating or recommendation indicating that a stock is expected to outperform or have above-average potential returns.
– Underweight: A rating or recommendation indicating that a stock is expected to underperform or have below-average potential returns.
– RISC-based compute: Refers to Reduced Instruction Set Computing, which is a type of computer architecture that emphasizes simplicity and efficiency in the execution of instructions.
– Dividend yield: The dividend income generated by an investment compared to its market value, expressed as a percentage.