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Always pay close attention to upgrades and downgrades from firms.
Perhaps they’re seeing favorable industry trends that are impacting a covered stock. Maybe the financial health of a stock based on earnings or guidance is improving. Or, perhaps, they liked what they heard in a meeting with management. Whatever the case, it’s a good idea to look into the reasoning for a price upgrade.
Just don’t ever use their opinion as your sole reason for buying a stock.
That’s because there’s no such thing as a perfect analyst. Two, do your due diligence with technical and fundamental analysis. After all, the last thing you want to do is buy into a stock that’s become excessively overbought. Third, look at how other firms rate the same stock.
Here are four to pay close attention to today.
Morgan Stanley Just Reiterated its Overweight Rating on Nvidia
Morgan Stanley is still bullish on Nvidia, noting, “Our thoughts on the stock: We remain positive on the short- and long-term outlook here, and while the market is more optimistic now vs. 3-6 months ago, we still see the stock climbing a wall of worry from here,” as quoted by CNBC.
As we noted just yesterday, Cantor Fitzgerald just raised its price target on Nvidia by $60 to $300 a share, with an overweight rating. The firm believes that artificial intelligence is still in the early innings and could be a substantial driver of Nvidia’s growth moving forward.
TD Cowen Reiterated its Buy Rating on Advanced Micro Devices
After a substantial move on its OpenAI deal, TD Cowen raised its price target on AMD to $270 from $195. “After the landmark deal with OpenAI sent shares up 64% on the week, and with its 11/11 analyst day coming, the beat/raise we expect is unlikely to be a major catalyst,” said the firm, as quoted by CNBC.
Analysts at Piper Sandler just raised their price target on AMD to $24`0 with an overweight rating. “In exchange, OpenAI will receive 160M warrants for AMD stock as specific milestones are achieved over the next five years,” added Piper Sandler.
Citi Just Reiterated a Buy Rating on Oracle
Citi just raised its price target on Oracle to $415 from $395 a share with a buy rating.
According to the firm, as quoted by CNBC, “After a historic Q1, ORCL shares have traded off 10%+ from recent highs on concerns around quality of backlog, profitability concerns following a slew of press reports and broader AI bubble/circularity concerns.”
Analysts at Baird also initiated coverage of ORCL with an outperform rating with a price target of $365 a share, citing ORCL’s strong position in the AI story. Analysts at Mizuho reiterated an outperform rating on the stock with a price target of $350. They noted the stock’s decline is a buy opportunity as ORCL fell from about $345 to a low of $270.53.
Macquarie Just Upgraded Baidu to an Outperform Rating
Macquarie said it sees “hidden value” in the internet services company, according to CNBC. “We see Baidu pivoting towards more diversified revenue streams, with positive option value arising from both AI cloud and robotaxis.”
At the moment, the stock is seeing some profit taking after rallying from about $85 to $150. Once it starts to show signs of bottoming out again, it’s a solid addition to AI investments.
Must Read Spotlight: Robinhood Warning
The market is ripping higher - and most investors think that's good news.
It's not.
Because underneath the surface, the rules of the system are being rewritten.
And the gap between those who understand what's happening... and those who don't... is about to explode.
Take Robinhood (HOOD).
My team's system flagged it before it surged more than 71%.
Not because of earnings. Not because of hype. But mostly because the tools Robinhood is now using are changing how the entire market works.
It's one reason why I believe we're already in the early stages of a massive financial reset, one that will create a new class of millionaires, while millions of others get completely left behind. (It's already happening, too. Over 600,000 millionaires were created last year alone.)
I just recorded a public briefing that explains what's really happening, and what I believe is coming next.
One Wall Street CEO recently said we're facing a violent reset
If you think this market feels off...
If you're wondering why some people are getting rich while everyone else is falling behind...
You need to see this now.
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Written by Ian Cooper