The S&P 500 (SP500) closed in the red on Friday, as investors wait for the Federal Reserve’s decision on interest rate cuts.
For the week, Nasdaq (COMP:IND) gained 1.1%, while Dow (DJI) rose 1.3%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Boeing upgraded on easing supply-chain pressure, cultural shift
Vertical Research Partners raised rating on Boeing (NYSE:BA) to Buy from Hold, pointing to easing supply chain pressures, stabilizing defense programs and progress in company culture.
Analyst Robert Stallard said the aerospace cycle has entered what could be considered the “mid-cycle,” with airline traffic growth normalizing near 5% and production bottlenecks at Boeing’s commercial aircraft unit showing signs of improvement.
“To us, this suggests adopting a more balanced aero aftermarket versus OEM stance, and so we are upgrading one of the most prominent OEM names,” he wrote.
Apple downgraded by D.A. Davidson to Neutral
D.A. Davidson downgraded Apple (NASDAQ:AAPL) to Neutral from Buy but maintained its $250 price target on the stock.
“While we were initially excited about the prospects of Apple’s role in the AI ecosystem and potential major upgrade cycle, it has become clear to us that neither of those are likely to come to fruition in the near-term,” said analysts led by Gil Luria.
The analysts noted that following recent product announcements that have left them “uninspired,” they believe that Apple may not significantly leverage AI anytime soon. They added until Apple can redefine its current products or develop compelling new ones, growth will remain constrained under the status quo.
British American Tobacco attracts bull rating from Argus
Argus upgraded British American Tobacco (NYSE:BTI) to Buy from Hold, with a PT of $62.
Analyst Christine Dooley thinks British American Tobacco’s pivot towards smokeless products over the past few years is gaining traction, and shares are now attractive at the current price.
“On a valuation basis, shares are trading below peers when comparing both price/earnings and price/sales. Technically, shares are demonstrating a bullish pattern, and the stock has outperformed the market over the past 6 months. The company is seeing a return of growth in the U.S. market, up 4%, and globally for its nicotine pouch, Velo, which is rising in popularity among young people and adults,” said Dooley.
UPS, FedEx see ratings cut from BofA
United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX) was in focus after BofA cut ratings and warned that the de minimis impact is a major factor for both companies.
BofA cut UPS (UPS) to Underperform from Neutral and slid its rating on FedEx (FDX) to Neutral from Buy to account for increased pressure on volume and costs as a result of the de minimis impacts to airfreight carriers. The brokerage lowered PT on UPS to $83 and cut the PT on FedEx to $240.
“International Priority & Economy (Export) Packages represent 17% of FedEx’s revenues and 16% of UPS’ (excludes Domestic ops in International markets; or ~1.1 mil packages/ day of FedEx’s 17 mil avg daily packages and ~1.7 mil packages/day of UPS’ 20 mil avg daily packages). The combined 2.8 mil are not all de minimis, but a sizable portion of the 4 mil daily de minimis shipments,” wrote analyst Ken Hoexter.
Nike (NYSE:NKE) and Lowe’s (NYSE:LOW) were added to Jefferies’ Franchise Picks List. Jefferies’ Franchise Picks were noted to be among the firm’s highest-conviction, buy-rated stocks across U.S. research.
Morgan Stanley upgraded Sanofi (NASDAQ:SNY) to Overweight from Equalweight as a recent phase 3 data release for amlitelimab in atopic dermatitis (eczema) indicates it could be differentiated compared to Dupixent (dupilumab). The investment bank upped its price target to $58 from $56 on the stock.
Morgan Stanley downgraded The Trade Desk (NASDAQ:TTD) to Equal weight from Overweight. The research firm expressed mounting concerns about the ad tech company’s connected TV business due to headwinds.