Notable analyst calls this week: Carvana, Devon Energy and Palantir among top picks

The S&P500 (SP500) closed in the green on Friday, after investors witnessed the comeback of Donald Trump as U.S. president, while digesting earnings from important companies including Moderna and Qualcomm.

For the week, Nasdaq (COMP:IND) gained nearly 6%, while Dow (DJI) advanced about 5%.

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

Berkshire Hathaway downgraded following Q3 results

CFRA downgraded Berkshire Hathaway (NYSE:BRK.B) B shares to Hold from Buy after the Warren Buffett-built conglomerate turned in weak Q3 operating earnings.

CFRA analyst Catherine Seifert said that the stock lacks a near-term catalyst and cut PT to $495 from $525.

“We applaud results at GEICO, but our view is tempered by the Q3 adverse claim development in the Primary Group and the lack of meaningful commercial lines and reinsurance top-line growth, Seifert wrote.

BofA bullish on Charter Communications, expects subscriber trends to improve

Bank of America upgraded Charter Communications (NASDAQ:CHTR) to Buy and set PT to $450, after the company topped revenue and profit estimates in its third quarter earnings report.

The brokerage noted the company’s ACP headwinds are largely behind and wireless growth remained strong, and expects broadband subscriber trends to improve as it continues to capture market share.

BofA expects 2024 broadband net loss of 400k subs vs. prior outlook of 490k on revenue growth of 0.8%, EBITDA growth of 3.1%, and FCF of $4.35B.

Morgan Stanley says Carvana’s Q3 results were stronger than expected, upgrades rating

Morgan Stanley upgraded Carvana (NYSE:CVNA) to Equalweight from Underweight, with analyst Adam Jones saying that the company’s Q3 results were “far stronger than expected,” with increased profitability that “really took us by surprise.”

Jones, who set a PT of $260 for the stock, sees Q3 results making a strong case for the company to have achieved “escape velocity” on profitable growth being more than a temporary phenomenon, and generating enough positive free cash flow to a level that supports self-financing while providing the opportunity to pay down $5.6B debt over time.

Devon Energy, Enphase downgraded by Truist and Jefferies

Truist downgraded Devon Energy (NYSE:DVN) to Hold from Buy with a $43 PT, trimmed from $49, after its quarterly earnings report.

Truist analysts said that while Devon continues to maintain its quarterly dividend and recently stepped up its stock repurchases, the total dividend yield is now a fraction of what it once was, and the company seems hesitant to guarantee a minimum total shareholder payout ratio.

Meanwhile, Jefferies downgraded Enphase Energy (NASDAQ:ENPH) to Underperform from Hold with a $61 price target, slashed from $93, as analyst Julien Dumoulin-Smith sees “a difficult set-up driven by growing uncertainty on residential solar following the election outcome, ongoing pressure from Tesla exacerbated by ENPH maintaining elevated prices, and a market shift favoring value over quality.”

SolarEdge downgraded as Piper analysts believe ‘radical cost reduction’ needed

Piper Sandler analyst Kashy Harrison downgraded SolarEdge Technologies (NASDAQ:SEDG) to Underweight from Neutral with a $9 price target, slashed from $17, believing “radical cost reductions are required for survival.”

Recently, the company reported a Q3 loss of $1.21B. There is also concern that the new Trump administration will weaken support for the solar industry.

Upstart’s positive results impressed Wall Street analysts

Upstart Holdings (NASDAQ:UPST) was upgraded to Overweight from Neutral by Piper Sandler analyst Arvind Ramnani, after the AI lending marketplace issued strong guidance for Q4.

Ramnani said Upstart’s attributed Q3’s performance to the company’s improved lending model and lower interest rates.

Citi also upgraded Upstart to Buy, while J.P. Morgan’s Reginald Smith upped the stock to Neutral from Underweight. Reginald said the company “is seemingly out of the woods, and we are increasingly encouraged by the company’s committed capital base and improving credit performance and approval rates.”

Jefferies downgraded Palantir Technologies (NYSE:PLTR) to Underperform from Hold and set a PT of $28, citing unsustainable valuation.

JPMorgan Chase (NYSE:JPM) was downgraded by Baird to Underperform as analyst David George sees limited upside potential at the stock’s current valuation, even though he agrees that the bank is “best-in-class.”

Cantor Fitzgerald has upgraded Sarepta Therapeutics (NASDAQ:SRPT) to overweight from neutral, signaling that the company’s growth could be higher than the Street is estimating and citing the pharma’s pipeline.

Snowflake (NYSE:SNOW) was upgraded by Monness to Buy from Neutral with a $140 price target, with analysts saying that the company has accelerated the pace of innovation this year and this ramp up will begin to bear fruit over the next 12 to 18 months.