Notable analyst calls this week: Amazon, Microsoft and American Express among top picks

All the three major indexes closed Friday with their fifth consecutive week of gains. For the week, Nasdaq (COMP:IND) gained 1.1%, while Dow (DJI) advanced 1.2% and S&P 500 (SP500) climbed 1.1% higher.

Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:

Amazon receives downgrade from Wells Fargo on near-term pressure

Wells Fargo cut rating on Amazon.com (NASDAQ:AMZN) to Equal Weight from Overweight, saying that the e-commerce giant has been “a consistent positive revision story” but now see several factors pressure revisions in the near term.

The brokerage, which cut PT to $183 from $225, said among main headwinds are the company’s investment in Project Kuiper, the anticipated FBA fee pressure, and moderating advertising operating income contribution. Wells Fargo also warned that margin expansion could be capped in the first half of 2025.

Barclays downgrades Netflix; Piper raises rating

Barclays downgraded Netflix (NASDAQ:NFLX) to Underweight from Equal Weight, with the brokerage raising concerns that its valuation is “out of sync” with its probable growth path.

Meanwhile, Piper Sandler upgraded the streaming giant to Overweight from Neutral and said that its prior stance was centered around valuation, but now it suggests “the company is expensive for a reason.”

Microsoft downgraded by Oppenheimer ahead of Q1 results

Oppenheimer downgraded Microsoft (NASDAQ:MSFT) to Perform from Outperform, citing concerns that revenue and earnings estimates on Wall Street are “too high.”

“OpenAI losses are the primary concern and could be in the $2B-$3B range in FY25, which we were not previously modelling,” said analyst Timothy Horan.

Meanwhile, Wells Fargo maintained its Overweight rating on Microsoft and kept its $515 price target, saying the tech giant’s first quarter results are tough to predict, given the company’s significant intra-quarter model reset.

Jefferies says iPhone expectations are ‘too high’, downgrades Apple

Apple was in focus as Jefferies downgraded the tech giant Hold from Buy, citing iPhone expectations that are “too high.”

“The high expectations for iPhone 16/17 are premature, in our view,” noted analyst Edison Le and set a PT of $205. Lee further said the expectations of 5% to 10% unit growth for the iPhone are “unlikely to be met,” due to a “lack of material new features and limited AI coverage.”

American Express downgraded by Jefferies, HSBC and BTIG

American Express (NYSE:AXP) received some downgrades this week. J.P. Morgan downgraded the credit card giant to Neutral from Overweight, while BTIG and HSBC downgraded it to Sell.

“While we continue to view AXP as a relative safe haven from deteriorating labor markets with attractive near-term growth prospects, we believe this is fully reflected in the current multiple, which limits outperformance,” said JPM analyst Richard Shane.

Barclays concerned about DuPont amid breakup plans

DuPont de Nemours (NYSE:DD) was downgraded to Underweight from Equal Weight by Barclays, saying that the chemical maker faces greater business uncertainty, limited support to its share price from buybacks and a full valuation amid its breakup plans.

Other than the companies mentioned above, there were other analysts’ actions includes UBS downgrading The Hershey Company (NYSE:HSY) to Neutral from Buy due to continued input cost pressures coupled with an “uncertain/challenging” demand backdrop.

Moody’s downgrades Volkswagen on deteriorating landscape and operational challenges

The weakening trend in Volkswagen’s (OTCPK:VWAGY), (OTCPK:VWAPY) operating performance compounded by the deterioration in the auto landscape led Moody’s to downgrade the outlook for Germany’s largest automaker to negative from stable.

Affirm upgraded at Wells Fargo on eComm checkout share, palatable valuation case

Affirm Holdings (NASDAQ:AFRM) was upgraded at Wells Fargo, citing the payment network company has “demonstrated its right to win incremental eComm checkout share” and the “valuation case has finally become palatable”.

Qualcomm (NASDAQ:QCOM) and Synaptics (NASDAQ:SYNA) were downgraded by KeyBanc Capital Markets after the research firm concluded what it called a “mixed” supply chain check in the semiconductor space.

Bernstein upgraded Humana (NYSE:HUM) to Outperform from Market Perform, citing upcoming catalysts, an improving sector outlook and arguing that risk inherent in its business is reflected in the stock price.

Argus boosted rating on McDonald’s (NYSE:MCD) to Buy from Hold, saying value menus, digital initiatives, and effective loyalty programs are all benefiting the fast-food chain.