(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A major U.S. bank and a home goods company were among the companies being talked about by analyst on Wednesday. Goldman Sachs downgraded Morgan Stanley to neutral from buy. Meanwhile, Jefferies upgraded Williams-Sonoma to buy from hold. Check out the latest calls and chatter below. All times ET. 6:33 a.m.: Citi upgrades Charter Communications Citi thinks Charter Communications’ more attractive valuation and retention of Affordable Connectivity Program customers are catalysts to watch moving forward. The firm upgraded the telecommunications company to neutral from sell and left its $350 per share price target unchanged. Citi’s forecast implies more than 8% upside from Tuesday’s close. “Valuation has receded to an EV/EBITDA of ~6.4x, the core broadband operating environment for 3Q seems stable with prior commentary, and ACP retention seems to be going better than expected for the category,” analyst Michael Rollins said. “Charter is likely to remain in an ex-growth environment for revenue with ongoing headwinds for broadband and video volume, while Charter has room to moderately improve EBITDA generation on a multi-year basis from the combination of product mix shift, pricing actions, & efficiency programs,” the analyst added. Charter Communications stock has pulled back nearly 17% in 2024. — Brian Evans 6:12 a.m.: Bank of America downgrades Novartis Bank of America is moving to the sidelines on Novartis as less catalysts for growth are apparent going forward. “Our prior Buy thesis, predicated on both expected EPS beats and underappreciated PIII data catalysts, has unfolded as anticipated,” analyst Graham Parry said. The firm downgraded the Swiss pharmaceutical company to hold from buy and lowered its price target to $130 per share from $135. BofA’s forecast implies more than 11% upside from Tuesday’s close. “Although our 2028 EPS is still c16% ahead of consensus, we now see less scope for earnings outperformance 2024/2025,” the analyst added. Parry added that potential headwinds moving forward include a slowdown in the company’s beat and raises evident in recent quarterly results. Novartis stock has added nearly 16% in 2024. — Brian Evans 5:51 a.m.: Jefferies upgrades William-Sonoma Jefferies thinks William-Sonoma’s improving margins and expanding market share will lead to gains ahead. The firm upgraded the home furnishings stock to buy from hold and increased its price target to $156 per share to $148. Jefferies’ new forecast implies more than 19% upside from Tuesday’s close. Analyst Jonathan Matuszewski noted that William-Sonoma maintains “hidden gems” in its portfolio, including its West Elm and Emerging Brands labels, as well as its business-to-business membership program. The analyst also pointed to a potential tailwind from a housing market recovery in 2025. “These ‘gems’ in WSM’s portfolio are showing outsized growth irrespective of subdued housing turnover, and we’re optimistic on their medium-term trajectory,” Matuszewski said. He added that about 75% of homeowners have a mortgage rate of less than 5%, “so we don’t anticipate a sharp turnover uptick, but remember, buyers of new construction spend ~5.7x that of non-moving owners, buyers of existing construction spend ~2.9x that of nonmoving owners, and elevated spend continues into Year 2 of ownership,” the analyst added. William-Sonoma stock has added more than 29% in 2024. WSM YTD mountain WSM year to date — Brian Evans 5:51 a.m.: Goldman Sachs downgrades Morgan Stanley Investors should stay on the sidelines when it comes to Morgan Stanley , according to Goldman Sachs. Analyst Richard Ramsden downgraded the bank to neutral from buy. His price target of $105, down from $122, implies upside of just 8.7% from Tuesday’s close. “MS has a best-in-class investment bank, which has taken notable share over the past decade, and a leading wealth management platform, both of which have contributed to strong return improvement. However, as we move further into the investment banking cycle, we see other names as more likely to benefit,” Ramsden said. “We also see 3% downside risk to MS’ 2025E wealth [net interest income] and 40bps of wealth margin downside vs. the Street, largely driven by continued, albeit slowing cash sorting and pressure on asset yields when rates come down,” he added. Morgan Stanley shares have risen just 3.6% year to date. Over the past six months, it’s up 11.1%. MS YTD mountain MS year to date — Fred Imbert
