Every Friday, analysts and firms on Wall Street make significant calls that can influence market movements and investor strategies. Let’s dive into some of the biggest calls from the latest round of predictions and updates.
Wolfe Research has decided to boost its outlook on Chewy, moving the e-commerce pet products company to an “outperform” rating from “peer perform.” The firm is optimistic about several positive developments expected by 2025, such as enhanced operational efficiency, growth in Chewy Health, the expansion of private labels, and increased advertising revenues. New price target set at $42.
Diamondback Energy also gained a nod from Wolfe Research, upgrading it to “outperform” as well. They regard Diamondback as a noteworthy option for 2025, citing its scale and strong operational track record. With its status as the largest pure-play in the Permian Exploration & Production field, a dip in its share price now offers attractive entry points for investors.
Bernstein has reaffirmed its top picks, Apple and Dell, raising Apple’s price target from $240 to $260 per share. They maintain these tech giants as prime choices heading into 2025, underlining the consistency of Apple and Dell’s performance.
Evercore ISI has adjusted its stance on Tesla, holding it steady as “in line” while raising the price target from $195 to $275 per share. They suggest that a potential second Trump presidency might reduce regulatory pressures on autonomous vehicle technologies, potentially accelerating their commercialization.
Shifting gears to the casino sector, Jefferies upgraded Las Vegas Sands to a “buy” from “hold.” They anticipate that improving market conditions in Macau could strengthen the consumer segment, thereby driving growth in the near term for the casino giant.
Microsoft remains a focus for Evercore ISI, which maintains an “outperform” rating. They predict what they call a “mini revenge trade” could unfold for Microsoft shares in 2025, noting that while the tech giant’s market cap is enormous, it hasn’t been the centerpiece of recent software rallies, suggesting room for growth.
In banking, Wolfe has turned bullish on JPMorgan, upgrading it to “outperform.” They cite conservative net interest income projections and unmatched share gains, considering it a quality choice over trusts for 2025.
Retail titan Amazon was named a top pick for 2025 by Wolfe, projecting positive moves in retail margins. They believe Amazon will benefit from advertising revenue growth, further efficiency improvements, advances in automation, and the international expansion of margins.
Raymond James saw potential in Block, upgrading it to “outperform.” They are confident about the sales momentum and the growth prospects of the payment technology company as they delved deeply into its gross payment volume metrics.
JPMorgan continues to advocate for Carvana, suggesting investors should seize the opportunity to buy the dip post a short-seller report. The report by Hindenburg Research raised concerns about Carvana’s gross profit per unit, but JPMorgan remains optimistic.
On the housing front, Wedbush upgraded PulteGroup to “outperform,” believing the recent sell-off was excessive. They see potential for recovery in the homebuilder’s stock.
For software, RBC has named Microsoft, Adobe, and Snowflake as top large-cap ideas for 2025, recommending these compounders for their platform consolidation potential while also suggesting exposure to mid-cap software companies facing some controversies.
Lastly, Wolfe has highlighted Meta as one of its top 2025 ideas. They anticipate multiple product catalysts and believe video unification is an underestimated asset in current estimates, giving a positive spin to the tech company’s evolving narrative.
Susquehanna upgraded J.B. Hunt to “positive,” signaling an end to the freight recession that has lingered for nearly three years. Despite the pricing pressures expected to weigh on earnings, they foresee brighter horizons in 2025 and movement towards mid-cycle by 2026.
Wedbush reiterated Nvidia as “outperform,” still waiting for product updates as the Consumer Electronics Show approaches. With Nvidia’s hype in data center AI, any new parts could significantly impact other gaming hardware participants, prompting a potential refresh cycle in gaming PCs.
These are just a few insights from Wall Street that could guide investment strategies as we advance towards 2025. Each decision reflects market trends, economic conditions, and individual company performance, providing a roadmap for investors navigating the financial landscape.
