Here are Wednesday’s biggest calls on Wall Street: Wells Fargo initiates Reddit as overweight The firm said it sees several “upside drivers” for Reddit. “While post-3Q EPS share outperformance reflects optimism post a strong print and guide, we see 33% upside to street ’26 EBITDA on ad monetization upside and believe shares are likely to outperform on continued positive revisions.” Goldman Sachs reiterates Tesla as neutral Goldman raised its price target on the stock to $345 per share from $250. “While we see fundamental headwinds to the core auto business over the near to medium term, we also believe the market is taking a more forward-looking approach to Tesla, including with respect to its AI opportunity.” Goldman Sachs initiates OneStream as buy Goldman said it sees a “premium growth opportunity” for the cloud-based corporate performance management platform. “We initiate coverage of OneStream with a Buy-rating and 12-month price target of $37.” Goldman Sachs initiates Similarweb as buy Goldman said it’s bullish on the digital intelligence platform company. “We initiate coverage of Similarweb (SMWB) with a Buy rating and 12-month price target of $16.” Citi reiterates Coca-Cola as buy Citi said the beverage company is a top idea in 2025. “In this backdrop, we believe investors should think about a barbell approach with exposure to high-quality names likely to remain above peers on topline trends (with KO /CL our top Bev/HPC picks)..” Bank of America reiterates Alphabet as buy Bank of America said it’s bullish on Alphabet’s quant computing opportunity, Willow. “In a blog post yesterday, Alphabet announced two major milestones in quantum computing around its Willow quantum chip: 1) exponentially reducing the rate of errors when adding more units of computation and 2) performing a standard benchmark computation at rates much faster than existing technology.” Well Fargo initiates BioNTech as overweight The firm said “the second act post-COVID” could be even bigger for the biotech company. “We are initiating on BNTX at OW with a $170 PT based on our DCF analysis.” Morgan Stanley names Alaska Airlines a top pick The firm said the airline is its new top airline pick heading into 2025. ” ALK is our new #1 ranked Airline (up from #2 in 2024) following on from new upsized synergy targets at their recent Investor Day, and DAL moves to #2 (from #1 in 2024).” JPMorgan reiterates Boeing as overweight The firm said it’s a top idea in 2025 with better times ahead. “Favor RTX, BA in Aero and HWM among high-multiple stocks.” TD Cowen names Lam Research a top 2025 pick TD Cowen said the semis company is a top idea in 2025. “We rate LRCX Buy due to (1) Exposure to secular trends such as increasing memory content in storage, mobile and other applications; (2) Capital intensity for dep and etch products should remain healthy; and (3) Strong cash generation.” Wells Fargo reiterates Micron as overweight The firm said it’s bullish heading into earnings next week. “We’re positive on MU setup into upcoming (12/18) F1Q25 print. Expect solid MU HBM share gains + solutions portfolio execution; reaffirmation of disciplined industry dynamics to drive ‘substantial’ MU rev record in FY25.” Wells Fargo downgrades Travelers to underweight from equal weight Wells said it sees too much uncertainty for the insurance company heading into 2025. “We downgrade TRV to Underweight (from Equal Weight) on (1) potential further general liability reserve additions, (2) tougher margin comps in 2025, and (3) overall cautiousness within the commercial lines space given elevated loss cost trends.” Citi initiates Monolithic Power as buy Citi said it’s bullish on the semis company. “We initiate coverage of Monolithic Power (MPWR) with a Buy rating and a $700 price target.” Bernstein reiterates Broadcom as outperform Bernstein said it’s sticking with its outperform rating heading into Broadcom earnings on Thursday. “Overall while we do see possibility for some near-term flutters, they do look increasingly anticipated, and we think the story into the 2H and beyond still looks good.” Stifel upgrades Wolverine World Wide to buy from neutral Stifel said in its upgrade of Wolverine that it has better visibility for the footwear wholesaler. “We are upgrading shares to BUY. Following stabilization and balance shee progress across 2024, 2025 is an inflection year. Spring orders, Saucony momentum, an distribution expansion support growth visibility into 2025 shifting investor focus to multi-yea earnings power.” JPMorgan downgrades C3.ai to underweight from neutral JPMorgan said it sees “subpar growth” for the AI company. “While we understand that C3.ai is going after a massive and rapidly evolving opportunity around Artificial Intelligence, we think its uneven and subpar growth-plus-margin performance leaves a lot to be desired, and it remains a big outlier compared to a broader base of peers trading at over 10x FTM [forward twelve months] revenue.” JPMorgan reiterates Netflix as overweight The firm raised its price target on Netflix to $1,010 per share from $850. “We’re raising our 4Q & 2025 Net Adds supported by strong content, healthy organic growth, & ramping Ad Tier contribution.” Citi names Take-Two a top pick Citi said the video game maker’s shares are too attractive to ignore. “In addition, we are elevating TTWO to our top pick within our coverage universe, as we view the risk-reward compelling at prevailing levels.” Bank of America downgrades Duolingo to neutral from buy Bank of America downgraded the stock mainly on valuation. “We continue to see Duolingo as one of the highest quality and most consistent growth names within Internet and we see potential for 40% EBITDA margins (vs. 26% now) and over 20% GAAP net income margins (vs. 13% now) over the long-term.” Barclays downgrades Lennar, DR Horton, PulteGroup and KB Home to equal weight from overweight The firm said the homebuilding “utopia” is over. “As homebuilding’s utopia looks increasingly out of reach, we no longer expect builders to defy gravity, and downgrade DHI, LEN , PHM and KBH , though we upgrade TMHC on relative valuation. Bank of America upgrades Amcor to buy from underperform Bank of America said the global packaging company is a “global growth story.” “We upgrade AMCR , expecting more relative return and catalysts. … .While we have some reservations about the growth / growth synergy story, easy comparisons and other points should support this narrative in the next year.” Deutsche upgrading Frontier to buy from hold Deutsche said the discount airline can “benefit from an improving domestic backdrop.” “We are upgrading the shares of Frontier (ULCC) to Buy from Hold as we believe they are well-positioned to benefit from an improving domestic backdrop (94% of March quarter’s capacity is deployed in domestic markets).” KeyBanc reiterates Nvidia as overweight The firm said it’s sticking with its overweight rating on the stock and that checks show November notebook shipments were in line with expectations. “We view in line November shipments and 4Q expectations as neutral for PC-exposed companies. NB- [notebook] exposed companies under our coverage universe include AMD, INTC, LSCC, MPWR, MU, NVDA, ON, and SYNA.”
Wednesday’s biggest Wall Street analyst calls