Notable analyst calls this week: Okta, Nvidia and Twilio among top picks

The S&P500 (SP500) closed in the red on Friday, as investors digested October core consumer and producer price index readings, while assessing Fed chair Jerome Powell’s caution on rate cuts.

For the week, Nasdaq (COMP:IND) and Dow (DJI) about 1%.

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

Okta downgraded to Hold on lingering headwinds

Okta (NASDAQ:OKTA) was downgraded to Hold from Buy by Deutsche Bank, saying that headwinds will linger into next year.

“While not an explicit call on F3Q results, feedback on Okta has been more mixed of late, and we think the path to realizing value here may still be several quarters away, perhaps making it more interesting deeper into next year,” said Deutsche Bank analyst Brad Zelnick.

The brokerage also lowered PT to $85 from $115.

Twilio in focus after upgrade by Monness, Wells Fargo

Twilio (NYSE:TWLO) was upgraded by Monness to Buy from Neutral with a $135 price target. Heading into 2025, the brokerage thinks Twilio is on course to extend this recovery, and the stock’s valuation remains attractive.

Wells Fargo also upgraded Twilio to Overweight from Equal Weight on new build cycle. The analysts believe Twilio can serve as a pick-and-shovel play for the next wave of AI-native front office and communications-powered generative AI applications.

Meanwhile, Wells Fargo downgraded Sprinklr (NYSE:CXM) to Underweight from Equal Weight and lowered PT to $6 from $8, while Five9 (NASDAQ:FIVN) was downgraded to Equal Weight from Overweight and reduced PT to $40 from $55.

Nvidia receives several PT hikes ahead of quarterly results

Nvidia (NASDAQ:NVDA) was in the spotlight as Piper Sandler named the semiconductor giant its top large-cap pick due to its “dominant positioning” in the artificial intelligence accelerator market.

Similarly, Redburn also shared the same views on Nvidia and initiated with Buy and PT of $178.

Mizuho upped its PT on the semiconductor giant, ahead of results, with analyst Vijay Rakesh saying that Nvidia should report in-line guidance for the January quarter, adding that the company’s opportunities in the sovereign market are likely to start ramping next year and account for roughly $10B in sales.

Jefferies analyst Blayne Curtis upped PT to $185 from $150 and maintained his Buy rating on the belief that a “similar story” should play out this quarter, where Nvidia tops estimates and raises its revenue guidance by roughly $2B.

The company’s PT was also hiked by HSBC analyst Frank Lee, Oppenheimer, Susquehanna, Wedbush Securities and Raymond James.

Inseego upgraded by Roth MKM on balance sheet recap, core product growth

Roth MKM raised rating for Inseego (NASDAQ:INSG) to Buy, given the company’s complete balance sheet recapitalization, strong core product growth, and pedigree of management.

The brokerage also raised its PT to $15 from $13. Eyeing the company’s latest quarterly earnings, the investment services firm noted that the 3Q24 results and 4Q24 guidance reflected the transition from a pending Telematics business sale to discontinued operations.

Aerovironment cut to Hold by Jefferies

Aerovironment (NASDAQ:AVAV) was downgraded by Jefferies to Hold from Buy with a $240 price target, saying the stock’s recent run-up likely limits valuation upside and investors should wait for any fading of the “post-Trump bump.”

Jefferies analyst Greg Konrad sees risks remaining tied to expected budget volatility, even though Aerovironment’s fundamentals remain strong and awards support positive earnings momentum.

However, Konrad sees valuation limiting near-term upside for the shares, but his long-term view is bullish on the stock.

Morgan Stanley raised its price target for Zoom Video Communications (NASDAQ:ZM) to $86 from $68, but kept his Equal-Weight rating, ahead of its third-quarter earnings report later this month.

Spire Global (NYSE:SPIR) was upgraded by Craig-Hallum to Buy from Hold with a $20 PT, raised from $8. The brokerage called sale of the maritime business a “tremendous positive” given the deal’s price point, pending elimination of debt overhang, and pivot to focus on higher-growth areas.

J.P. Morgan downgraded Nerdy (NYSE:NRDY) to Underweight from Neutral, following the company’s warnings that active members is expected to decline in the fourth quarter, while older, lower-frequency customers with lower retention will continue to pressure customer growth metrics.

Angi (NASDAQ:ANGI) was downgraded by Goldman Sachs to Neutral from Buy, while shaving 23% off its target price to $2.50, on expectation of further revenue deterioration.