Here are Monday’s biggest calls on Wall Street: Citi reiterates Roblox as buy Citi raised its price target on the stock to $82 per share from $63 ahead of earnings later this week. “Since 3Q24 earnings, Roblox’s equity has appreciated from $42 to $70 a share due, primarily, to ~34% bookings growth in the quarter. We believe new experiences played a role in driving the bookings growth.” Baird downgrades CrowdStrike to neutral from outperform The firm downgraded the cyber stock on valuation. “Current large-cap multiples embed historically wide premiums, reflecting some market dislocation. We see balanced risk/reward near-term and prefer to wait for more attractive entry points. Downgrading large-cap cohort (NET, CRWD , FTNT) to Neutral on valuation.” Piper Sandler downgrades Constellation Brands to neutral from overweight Piper said it sees tariff headwinds for the stock. “We downgrade STZ to Neutral, as President Trump has followed through on his pledge to impose 25% tariffs on all Mexican imports, which came into effect on 2/1/25. The duration of these tariffs is not yet clear, but for modeling purposes, we assume for now that they last for at least about one quarter.” KeyBanc upgrades Zillow to overweight from sector weight KeyBanc said the online housing company is well positioned. “Coupled with high incremental margins and a disciplined investment framework, we believe Zillow is poised for outsized margin expansion.” Morgan Stanley downgrades U.S. Steel to equal weight from overweight Morgan Stanley downgraded the stock on valuation and tariff concerns. “We expect steel prices to improve in 2025 on the back of new protectionist trade measures promised by the Trump administration and modest steel demand growth of 1.6%, as suggested by our bottom-up analysis. We are downgrading X to EW as the stock now trades near our standalone valuation of $39/sh.” Bernstein reiterates Nvidia as outperform Bernstein said it sees little impact from tariffs on stocks like Nvidia right now. “Overall we continue to see little direct impact to our space or coverage from potential tariff increases on Mexico, Canada, and China; rather indirect effects, as well as escalation remain the larger potential worry as overall semiconductor imports (from all countries) might be large enough to be affected by more broad-based actions should the new administration feel so inclined.” Redburn Atlantic Equities upgrades Dexcom to buy from neutral Redburn said the glucose management systems company is well positioned. “Dexcom is set to benefit from structural growth in the continuous glucose monitoring (CGM) market, supporting a 16% revenue CAGR FY24-27E as it expands into the underpenetrated Type 2 non-insulin segment.” Wedbush initiates Tower Semiconductor as outperform The firm said it’s bullish on the semiconductor company. “We are initiating coverage of TSEM with an OUTPERFORM rating and a target price of $60.” UBS upgrades Caterpillar to neutral from sell UBS said it sees more balanced risk/reward. “We upgrade CAT from Sell to Neutral. After two consecutive quarterly EBIT misses, expectations for CAT have reset lower. With a reasonable initial 2025 outlook, we believe risk/reward is now balanced.” Raymond James upgrades Booz Allen Hamilton to outperform from market perform The firm said in its upgrade of Booz Allen Hamilton that the defense contractor is well positioned to withstand tariffs. “We also like the current timing to revisit DOGE impaired names as we believe the ‘what if’ DOGE investors will change to ‘what if’ Tariff investors as they look to move away from tariff exposed names.” Loop downgraded FedEx to hold from buy Loop said “don’t buy transports” in a trade war. “In our own little corner of the world, our initial reaction is to downgrade Canadian Pacific KC from Buy to Sell, Canadian National from Hold to Sell, Union Pacific from Hold to Sell, and FedEx, CSX, Norfolk Southern, and GXO Logistics from Buy to Hold.” Goldman Sachs adds Bank of America to the conviction list The firm added the stock to its top ideas list. “We add Alnylam (ALNY), Bank of America (BAC), and Raymond James (RJF) to the US Conviction List, while removing Citigroup (C), Conagra Brands (CAG), and Vulcan Materials (VMC).” Bank of America reiterates Apple as buy Bank of America said the tariffs are “manageable” for Apple right now. “Maintain Buy on stable cash flows, earnings resiliency & potential beneficiary of AI use on edge devices.” Barclays reiterates Tesla as equal weight Barclays said it’s sticking with its equal weight rating on Tesla . “We remain EW as we expect the stock to eventually track fundamentals, yet for now narrative is most critical.” Bank of America initiates Talen Energy as buy The firm said it’s bullish on the energy company’s datacenter and nuclear opportunity. “We initiate coverage of Talen Energy (TLN) with a Buy rating and a $253 PO.” Morgan Stanley reiterates Amazon as outperform The firm said it’s bullish on Amazon’s logistics opportunity with robotics ” AMZN has developed 6 new significant warehouse robots in the past 3 years (now covering almost every stage of fulfillment), bringing automation front and center.” Oppenheimer reiterates Uber as a top pick Oppenheimer said the stock is best positioned ahead of earnings later this week. “Reiterating UBER as our best idea heading into 4Q results as investor concerns regarding Robotaxi have created an attractive buying opportunity, though we acknowledge headline risk around Robotaxi news.” Wedbush upgrades Tempur Sealy to outperform from neutral Wedbush upgraded the mattress stock following its approval of a merger with Mattress Firm. “Friday evening, Judge Eskridge denied the FTC from blocking the pending merger of Tempur-Sealy and Mattress Firm (MFRM)—clearing what is likely the last major hurdle preventing a tie up of the country’s largest mattress manufacturer and specialty mattress retailer.”
