Recent analyst actions include notable rating changes for Nvidia (NASDAQ:NVDA), IonQ, Inc(NYSE:IONQ), General Mills (NYSE:GIS), and Marathon Petroleum (NYSE:MPC). Seeking Alpha analysts placed upgrades on both NVDA and IONQ while also tagging shares of GIS and MPC with downgrades.
Upgrades
Nvidia Corporation (NASDAQ:NVDA): Upgrade by Bram de Haas. The analyst cites NVDA’s dominant position in the AI infrastructure buildout and its landmark strategic partnership with OpenAI as key factors strengthening its market leadership.
- “Nvidia is an undisputed beneficiary in the short term. The extent of its dominance are a bit less certain in the medium to long term. It isn’t necessarily the hardware investment with the most upside. Earnings are directly tied to the accelerating capital expenditures of the entire industry. It is probably beneficial to Nvidia if the race towards better AI models continues at the current rapid pace.”
IonQ, Inc. (NYSE:IONQ): Upgrade from Underperform/Sell to Outperform/Buy by Hunting Alpha. The analyst cites reasonably priced M&A activity driving revenue growth, ample liquidity providing a 5.5-year funding runway, and compelling technical indicators showing strong momentum.
- “IonQ is relying on a lot of M&A to generate revenue growth. But that’s okay because the acquisition seems reasonably priced and the new CFO seems adept at M&A… Despite 30% higher costs expected, IonQ’s balance sheet is in a very healthy position, as it has ample liquidity that gives it funding runway for more than 5 years… Overall, I have succumbed to the FOMO and have bought a small position in IONQ in my portfolio. I intend to quit this bet if the momentum fails and probably if the revenue execution disappoints as well.”
Downgrades
General Mills, Inc. (NYSE:GIS): Downgrade Buy to Hold by Dividend Collection Agency. The analyst notes ongoing macro headwinds and cash flow pressures as key concerns, particularly highlighting that the free cash flow payout ratio exceeded 100% last quarter, raising questions about dividend sustainability.
- “While General Mills seems to present a long-term buying opportunity at the moment, the challenge to cover the dividend with free cash flow keeps me cautious. Moreover, if forced to cut the dividend to speed up their turnaround, I suspect more downside is likely. However, due to available cash on their balance sheet, expected cost savings, and frequent share repurchases, I do think the dividend will remain safe near term.”
Marathon Petroleum Corporation (NYSE:MPC): Downgrade recommendation by Fishtown Capital. After a 50% total return in nine months, the analyst believes Marathon’s refining assets have been significantly revalued and the stock is no longer a bargain at current levels.
- “As shares approach $200, I think it’s time to get more cautious. In the short term, retracing back to $175-180 seems more likely to me than shares running past $220. Longer term, I still think Marathon is positioned well and is a great way to get MPLX exposure without directly owning it and dealing with a K-1.”