Here are Friday’s biggest calls on Wall Street: Evercore ISI reiterates Nvidia as outperform “We continue to view NVDA as our top Tectonic Shift in Computing pick, with a full-stack ecosystem that positions it to capture 70-80% of the value created in the parallel processing era.” Piper Sandler upgrades Chewy to overweight from neutral “While top line trends are likely still muted, CHWY appears to be at a profitability inflection point aided by both gross margin expansion (mix shift to higher margin revenue streams, well controlled discounting—2Q24 below last year’s levels on average, according to our checks) and SG & A leverage (automation and efficiency gains).” JMP upgrades Warby Parker to market outperform from market perform “We are raising our top- and bottom-line estimates to reflect our company and industry analysis, and we see upside to shares as near-term industry volatility subsides and WRBY continues to expand its holistic vision care offering and increase in-network coverage.” RBC Capital Markets upgrades Westlake to outperform from sector perform “We upgrade WLK to Outperform from Sector Perform on: 1) PEM earnings at trough; 2) continued strong HIP performance; and 3) strong capital deployment into M & A.” JPMorgan downgrades Peloton to neutral from overweight “Following Thursday’s +35% appreciation (vs. SPX -1%) we are moving from Overweight to Neutral rated as PTON’s return to growth in CF Subs & Revenue remains challenging, & visibility is limited given secular & macro pressures.” Bank of America reiterates Uber as buy “Given Cruise’s recent service disruption and limited early details on the Uber/Cruise partnership, we think an expanded partnership with Waymo (possible) or new partnership with Tesla (not expected near-term) would be a bigger near-term positive for Uber’s stock.” Nomura upgrades Bilibili to buy from neutral “We think this significant discount for BILI is no longer warranted as BILI’s financial outlook looks brighter now thanks to its strengthening gaming and ads business.” Wells Fargo reiterates Burlington Stores as top pick “We reiterate BURL as our “Top Pick” and see a highly visible growth/margin bull case unfolding in real time. The combination of 1) comp acceleration and 2) margin unlocks should be powerful, and we raise 2Q/FY numbers above Street. PT to $325.” Wells Fargo upgrades BJ’s Wholesale Club to overweight from equal weight “Margin investment is the right strategic shift despite n/t pain, and supplements robust member gains. MFI should provide more firepower. Valuation is tricky, but comp ramp/return to algo in ’25 point to upside.” Goldman Sachs downgrades Bill.com to neutral from buy “Given the higher levels of investments and the lower valuation support over the near term, we are downgrading shares to Neutral, and reducing our price target to $54.” Guggenheim upgrades Roku to buy from neutral “We expect investor enthusiasm for the ROKU story to grow into 3Q earnings in November as the company makes progress toward broadening video inventory advertising sales via third-party demand=side platforms and improved home screen monetization.”
