Recent analyst actions includes Nvidia (NVDA) and Snowflake (SNOW) receiving upgrades due to robust growth trajectories, while Air Products and Chemicals (APD) and Tesla (TSLA) faced downgrades based on strategic and valuation concerns.
Upgrades
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Nvidia (NVDA): Upgrade to Buy by Beth Kindig. The analyst emphasizes Nvidia’s unparalleled revenue growth trajectory, driven by the company’s innovative AI-centric strategies and market-leading GPU architectures.
“Nvidia’s Q3 results showed the company’s GPU momentum return, delivering a substantial data center beat… More importantly, Nvidia’s guide pointed to this momentum continuing into the fourth quarter, implying that data center revenue could be on track to increase another $8 billion QoQ for 15% growth.”
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Snowflake (SNOW): Upgrade to Speculative Buy by JR Research. The analyst highlights SNOW’s strategic positioning with its AI-ready data platform and robust growth metrics, despite valuation challenges, as factors supporting this positive outlook.
“Well, I think we can generally agree that Snowflake’s product revenue momentum hasn’t disappointed…For a consumption-based pricing model, I believe it corroborates the narrative that the advancement of AI models have worked remarkably well to bolster Snowflake’s thesis in the eyes of the market, as compared to SaaS peers like Salesforce that’s still struggling to convince otherwise.”
Downgrades
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Air Products and Chemicals (APD): Downgrade to Sell by Seeking Profits. The analyst cites strategic uncertainty and capital allocation challenges, with prolonged project risks undermining future free cash flow prospects.
“With a shifting strategy, it is difficult to see where this company will be in several years, leading to increasing frustration from shareholders…With free cash flow years out and the company still taking large project risks, much of the promised change does not appear to be happening. This makes it very difficult for me to see a reason to jump into APD shares, especially when the valuation is not cheap.”
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Tesla (TSLA): Downgrade to Hold by Oliver Rodzianko. Despite long-term bullish sentiments, the analyst warns about Tesla’s current overvaluation and the potential for near-term volatility affecting stock performance.
“It’s healthy to lay out reality so that Tesla investors understand they are buying a heavily sentiment-driven equity… If, for some reason, the market decided to begin valuing Tesla like other companies, it would reduce in value by 4x in a full de-rating.”