Here are Tuesday’s biggest calls on Wall Street: Mizuho initiated Las Vegas Sands as buy Mizuho said it sees a “compelling return on capital opportunity” for the casino and hotel company. “Our thesis has three drivers: (1) Visitation in Macau is recovering, with LVS highly levered to a mass market recovery, (2) Strategic investments in Macau and Singapore are not reflected in Street estimates, and (3) A compelling return on capital opportunity.” Bernstein reiterates Chipotle as outperform Bernstein raised its price target on the stock to $3,200 per share from $2,800. “We expect benefits investments made by Chipotle recently to strengthen the employment value proposition, attracting and retaining better talent to result in better store operations, leading the brand to reach the new Average Unit Volume target of $4M.” Mizuho initiates DraftKings as buy Mizuho said in its initiation of DraftKings that it sees “upside to revenue growth.” “Underappreciated Operating Leverage: Initiate at Buy, $58 PT.” Mizuho initiates MGM as buy Mizuho said MGM shares are “fundamentally misvalued.” “Multiple Avenues for Value Creation: Initiate at Buy, $61 PT.” Mizuho initiates Carnival as buy Mizuho said Carnival is a top pick at the firm. “Value on the Horizon: Initiate at Buy + Top Pick, $21 PT.” CFRA reiterates Nvidia as buy CFRA said it’s standing by its buy rating on the stock. “We don’t expect NVDA’s revenue to let up any time soon, as we expect data center spending to again increase in 2025 after a massive jump in 2024, with the Blackwell Platform paving the way for higher revenue in the year ahead.” Morgan Stanley upgrades Seagate to overweight from equal weight Morgan Stanley said in its upgrade of the stock that it’s an “attractive multiyear earnings story.” “A cyclical recovery, tech leadership, and the potential for Gen AI-related demand means STX is entering a period of structurally stronger gross margins, with our new bottom-up analysis showing earnings power 25-30% greater than previously estimated.” Goldman Sachs upgrades Nasdaq to buy from neutral Goldman said it sees “multiple expansion” for shares of the stock exchange company. “We upgrade NDAQ to Buy from Neutral with a $73 12-month price target, implying 18% upside from current levels.” UBS reiterates Levi’s as buy UBS said it’s standing by its buy rating on shares of Levi’s heading into earnings next week. “We anticipate the company delivers a small 1Q24 beat and maintains its $1.15 to $1.25 FY24 EPS guidance.” JPMorgan reiterates Taiwan Semiconductor as overweight JPMorgan said it’s standing by its overweight rating on shares of Taiwan Semiconductor. “All roads in AI semis lead here.” Wells Fargo reiterates Gap as overweight Wells raised its price target on the stock to $32 per share from $25. “We remain bullish on GPS. Yesterday, we hosted GPS CEO, Richard Dickson and CFO, Katrina O’Connell for investor meetings. We believe the turnaround is working, Old Navy and Gap confidence is growing and the margin story should continue to play out. Mizuho reiterates Micron as buy Mizuho raised its price target on the stock to $130 per share from $124. “HBM [high bandwidth memory] traction could be a key driver of MU DRAM revenue as the HBM market grows to ~$17.5B.” Bernstein reiterates Tesla as underperform Bernstein lowered its price target on the stock to $120 per share from $150. ” Tesla’s stock price remains high on almost every valuation metric compared to both traditional and higher-growth auto OEMs, [original equipment manufacturers] and also looks expensive relative to its reduced growth expectations when measured against tech comps. Bernstein reiterates Amazon as a top pick Bernstein said it’s sticking with its top pick status on the e-commerce giant. ” Amazon continues to be our top pick on the thesis that they will continue to deliver OI and FCF inflection, and in 4Q management gave us all the pieces to de-risk it.” Citi initiates Evergy as buy Citi said it’s bullish on the regulated electric utility company. ” Evergy is a pure play electric utility formed through the merger of Westar and Great Plains Energy in 2018 and operating in Kansas and Missouri with a rate base of ~$18.6B.” Baird adds Semtech to the fresh picks list Baird said the semiconductor manufacturer is a “hidden AI gem.” “We believe Semtech is very well positioned with the upcoming ramp of new AI platforms as one of two players in the space qualified for high-density copper interconnect.” Jefferies upgrades Clorox to hold from underperform Jefferies said it likes the company’s exit from several LatAm countries. ” Clorox’ s exit from Argentina (2% of sales), Uruguay and Paraguay is a long-term positive.” Bank of America adds Spotify to the US1 list Bank of America added the stock to its US1 list but removed Netflix. “We are adding Spotify Technology (SPOT) to the US 1 List. We are removing Netflix Inc (NFLX). NFLX remains Buy-rated.” Jefferies initiates Nutrien as buy Jefferies said it sees a ‘favorable risk/reward” for shares of the fertilizer and ag company. “We initiate coverage of Nutrien with a Buy rating, $62 price target.” Morgan Stanley upgrades Invivyd to overweight from equal weight Morgan Stanley upgraded the biotech company after it received emergency use authorization for its Covid antibody drug. “Invivyd clears significant hurdle after receiving emergency use authorization for Pemgarda.” Evercore ISI upgrades PagSeguro to outperform from in line Evercore said it sees “multiple tailwinds” for the Brazilian financial services company. “We are upgrading PAGS to Outperform from In Line with a $18 target price.” TD Cowen reiterates Apple as outperform TD said it’s sticking with its outperform rating on shares of Apple but that its checks show China demand is slowing. “We note that softer China demand and signs of discounting could be a moderate headwind.” New Street initiates Reddit as neutral New Street initiated the social news website and forum company with a neutral and says the stock’s valuation is full right now. “We begin rating RDDT shares with a Neutral rating, and our $54 price target is unchanged. We’ll maintain our upside and downside valuations in the model, but they move to the back burner post trading commencement.”
