The S&P500 (SP500) closed in the red on Friday after the week saw key in-line inflation data and major tech stocks, including Nvidia, Dell, and Marvell Technology, decline following quarterly earnings reports.
For the week, Nasdaq (COMP:IND) gained marginally, while Dow (DJI) rose 0.6%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
AMD upgraded on data center, AI demand
Advanced Micro Devices (NASDAQ:AMD) was upgraded to Buy from Hold by Truist Securities due in part to elevated data center and artificial intelligence demand.
Truist also increased its price target on AMD to $213 from $173, saying that some AI hyperscale customers are now seriously considering the switch from Nvidia (NASDAQ:NVDA) to AMD for processing power.
“For the last several years, our industry contacts (component buyers/sellers) have told us that hyperscale customers deploying AI were experimenting with AMD’s technology as a ‘price check’ to NVDA, nothing more,” said Truist analyst William Stein.
American Eagle downgraded on tough current operating environment
BofA downgraded American Eagle Outfitters (NYSE:AEO) to Underperform from Neutral, as it believes the company is a long way from its earnings normalizing in the current environment.
The brokerage, which assigned a PT of $10 on the stock, believes the namesake brand of the company and its sub-brand Aerie are in tough positions to navigate tariffs.
“We think a sales recovery for both brands following the 1Q assortment issues will take time,” BofA said.
Eli Lilly upgraded after latest trial win for obesity pill
HSBC upgraded Eli Lilly (NYSE:LLY) to Hold from Reduce, noting the latest Phase 3 trial success of the U.S. pharma giant’s once-daily weight loss pill orforglipron, developed with Chugai (OTCPK:CHGCF) (OTCPK:CHGCY).
Following a head-to-head analysis between orforglipron and Novo Nordisk’s (NVO) oral diabetes medication Rybelsus, HSBC argued that ATTAIN-2 “in diabesity appears to offer a clear commercial path for filing and commercialization.” “On balance, the orfo profile seems competitive to Rybelsus in diabesity,” the analysts added.
BofA downgrades Constellation Brands on long-term alcohol consumption concerns
Bank of America downgraded Constellation Brands (NYSE:STZ) to Underperform from Neutral, saying that the bearish view is based on the potential for further downside as beer industry consumption remains soft and pressures sales, margins, and trading multiples.
Analyst Peter Galbo also warned that long-term alcohol consumption trends show no signs of improving soon and the core Hispanic demographic remains pressured. BofA assigned a price objective of $150 on the stock.
BofA Securities has upgraded Vir Biotechnology (NASDAQ:VIR) to Buy from Neutral saying that the market is underestimating the company’s phase 3 combo treatment for severe liver disease caused hepatitis delta virus. The brokerage raised its PT to $14 from $12
Prologis (NYSE:PLD) was upgraded at Scotiabank to Sector Perform from Sector Underperform and increased the price target to $114 from $100 on positive takeaways from the industrial REIT’s second-quarter results, minimal downside risk to earnings estimates, and a fairly priced valuation.
Citi initiated coverage on Lumentum Holdings (NASDAQ:LITE) with a Buy rating, expecting more upside in the stock, beyond its current 60.17% rise on a year-to-date basis.