Recent analyst actions highlight notable movements within the tech and aerospace sectors, with changes in ratings for QuantumScape (NYSE:QS) and Broadcom (NASDAQ:AVGO). QuantumScape’s advancements in solid-state battery technology have captured analysts’ attention, prompting an upgrade due to its promising partnership with VW Group. Similarly, Broadcom’s massive deal with OpenAI boosts its AI market opportunity, leading to increased optimism from analysts.
Conversely, Intel (NASDAQ:INTC) faces challenges with limited demand visibility and increasing competition, resulting in a downgraded outlook. Additionally, GE Aerospace (NYSE:GE), despite its robust growth, encounters valuation concerns, prompting a cautious reassessment of its stock rating.
Upgrades
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QuantumScape Corporation (NYSE:QS): Upgrade Hold to Buy by Bay Area Ideas. The analyst is optimistic about QuantumScape’s solid-state battery technology, which promises higher energy density and faster charging. The partnership with VW Group is seen as a pivotal move towards commercialization.
“The EV revolution is going to need solid-state batteries to power the next wave of adoption, and QuantumScape’s approach likely offers a viable path forward. … With revenues coming in soon, the evaluation of the stock’s valuation will likely become easier.”
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Broadcom Inc. (NASDAQ:AVGO): Upgrade Hold to Buy by Stone Fox Capital. Analysts are encouraged by Broadcom’s deal with OpenAI, potentially adding significant annual revenues despite flat share performance.
“Broadcom announced a surprise mega partnership with OpenAI to produce custom XPUs and networking equipment for AI data centers. … The OpenAI partnership could add $40–$50 billion in annual revenues for AVGO.”
Downgrades
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Intel Corporation (NASDAQ:INTC): Downgrade Buy to Hold by Summit Research. The analyst emphasizes execution risks and competitive pressures within the AI and semiconductor sectors, raising concerns over Intel’s growth prospects.
“Despite the headline double beat, a deeper dive into Intel’s latest earnings results confirms that its execution risks remain elevated, blighted by the rapid cadence of rival advancements.”
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GE Aerospace (NYSE:GE): Downgrade Buy to Hold by Dhierin Bechai. The analyst notes strong business execution but highlights concerns over the stock’s valuation and limited upside potential.
“I am definitely bullish on GE Aerospace’s execution. However, from a valuation point of view, I can no longer maintain my buy rating. Perhaps, it is a nice buy and hold, but in the years ahead there simply is no fundamentally supported upside unless we see significant upticks in the peer group valuation and/or the company’s performance beyond what we currently have modeled.”