Here are the biggest calls on Wall Street on Tuesday: MoffettNathanson upgrades Warner Bros Discovery to buy from neutral The firm says it’s bullish on the company’s assets and in M & A possibilities. “This greater stability sweetens the desirability of the company’s assets and mounting pressure on management to take transformative action could mean WBD will do more than its part to keep M & A bankers busy. For both reasons, we now see significant upside to current equity values.” Evercore ISI reiterates Dell as outperform The firm says Dell has many “self-help levers” and is a top idea in 2025. ” DELL remains our top pick in the IT Hardware space given their leadership position in AI servers, exposure to x86 servers, storage, and enterprise PCs, and self-help levers.” UBS reiterates Nvidia as buy UBS says it’s standing by the stock. “NVDA has essentially tread water since last earnings, in part due to supply chain noise and concerns around the ramp of Blackwell server racks. We remain confident that NVDA will deliver strong FQ4 (Jan) results and FQ1 (Apr) guidance and investor concerns around a near term ‘air-pocket’ are overblown.” Jefferies downgrades Mondelez to hold from buy Jefferies said in its downgrade of the food products company that it has concerns about cocoa. “Our work and knowledge base on cocoa makes us more cautious on MDLZ than we were in ’24, given higher likelihood of structural supply issues that limits safety stock and shorter-duration buying needs that keep prices elevated for longer.” Piper Sandler reiterates Tesla as overweight Piper says Tesla remains a top idea at the firm. “Regarding our views on the stock, TSLA is still our #1 buy-and-hold idea, and accordingly, we’re boosting our price target to $500 (up from $315).” Morgan Stanley upgrades Tencent Music Entertainment to overweight from equal weight Morgan Stanley said in its upgrade of Tencent that the China music company has a “defensive nature.” “We see emerging value from its resilient operations and defensive nature vs. recent share price underperformance.” Jefferies downgrades Apple to underperform from hold Jefferies says it’s concerned about weak iPhone demand for Apple. “Our concern about weak demand for iPhone has materialized.” Citi initiates Curtiss-Wright as buy Citi says the aviation company has “consistent cash conversion” and “nuclear optionality.” “We initiate coverage of CW with a Buy rating and a 12-month price target of $410.” JMP initiates Roku as market outperform JMP says the company is well positioned for ad spending in connected TV. “We initiate coverage of Roku and The Trade Desk at Market Outperform and establish $95 and $150 price targets, respectively, as we believe both companies are well-positioned to benefit from the $166B of linear TV ad spend shifting to connected TV.” UBS initiates Penumbra as buy UBS says the medical device company is well positioned. “We initiate coverage of PEN with a Buy rating and a $305PT as we see the company’s ongoing new product launch cycle delivering clear line of sight into top and bottom-line upside drivers over the near-to-medium term.” Citi upgrading Northrop Grumman and RTX to buy from neutral Citi upgraded several aerospace and defense stocks and says they have an intriguing valuation. “We upgrade NOC to Buy on compelling valuation given the roughly 15% sell off since the US Presidential election in November and our view that investors have become too cautious on the outlook for defense spending. We also upgrade RTX to Buy on growing confidence in the outlook for revenue, cash flow, and risks associated with the GTF [geared turbofan], as well as compelling valuation on more normalized fundamentals.” Loop downgrades Apple to hold from buy The firm says it’s concerned about decreasing iPhone demand for Apple. “Downgrading to Hold With Material Demand Reductions Ahead of iPhone 17.” Morgan Stanley names Seagate a top pick The firm says the company is a new IT hardware top idea. “Elevating STX to Top Pick as we have gained greater comfort in the HDD [hard disk drive] demand outlook amidst transitory near-term supply issues and still view Street gross margins as too conservative.” Morgan Stanley upgrades Qorvo to overweight from equal weight Morgan Stanley says it sees “earnings power” for the wireless semis company. ” QRVO has struggled to achieve margin targets, but activist influence could inject some urgency – we see the potential for $9.50+ in sustained earnings power if fundamental changes result.” Morgan Stanley upgrades Ulta to overweight from equal weight The firm says the stock’s valuation is compelling. ” ULTA remains a strong, durable business in a dynamic and attractive category.” Morgan Stanley upgrades O’Reilly Automotive to overweight from equal weight Morgan Stanley says the stock is “best in class.” “Following two years of deceleration in Auto Parts aftermarket demand, we believe cyclical headwinds will abate in ’25. Longer term, the industry remains healthy, and ORLY is the best in- class operator reliably gaining market share and accruing profit margins.” Morgan Stanley upgrades Wingstop and Texas Roadhouse to overweight from equal weight Morgan Stanley says both restaurants stocks are well positioned in 2025. “Upgrading WING to OW (comps slowing and well known, but LT drivers intact in our view) and TXRH to OW (quality steak operators still advantaged, above St EPS).” Morgan Stanley downgrades Harley-Davidson to equal weight from overweight The firm says it sees too many negative catalysts for Harley. “We no longer have conviction in this as ongoing secular declines in motorcycle demand and challenging touring compares limit visibility to margin expansion in ’25.” Morgan Stanley upgrades Urban Outfitters to overweight from equal weight The firm says it sees “valuation expansion” for Urban Outfitters. “We left the fiscal 4Q25 pre-announcement & subsequent mgmt. meeting incrementally positive.” Deutsche Bank upgrades General Motors to buy from hold The firm says it’s bullish on the automaker ahead of earnings later this month. “Heading into earnings season, we upgrade GM from Hold to Buy given its recent strategic moves (China, Cruise), consistent track record of execution, and aggressive share buyback trajectory.” JPMorgan adds a positive catalyst watch on Qualcomm and Logitech The firm says it’s bullish on both stocks ahead of earnings. “Heading into the earnings print, we are placing Qualcomm and Logitech on Positive Catalyst Watch in anticipation of upsides…” Bank of America reiterates Amazon as buy Bank of America says it’s sticking with the stock ahead of earnings. “While AWS growth and Retail margin expectations have increased, we think AI-driven Cloud growth remains a top sector opportunity, while Retail Margin expansion can continue to drive outsized profit growth vs. peers. Amazon is also relatively well positioned for impact of US$ appreciation, which aids Cloud margins.”
