Buy/Sell: Wall Street’s top 10 stock calls this week

What has Wall Street been buzzing about this week? Here are the top 5 Buy calls and the top 5 Sell calls made by Wall Street’s best analysts during the week of April 28-May 2.
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Top 5 Buy Calls:

1. Airbnb upgraded to Buy, added to “Best-of-Breed Bison” list at DA Davidson

DA Davidson upgraded Airbnb (ABNB) to Buy from Neutral with a price target of $155, down from $170. The firm is also adding Airbnb to the D.A. Davidson research team’s “Best-of-Breed Bison” initiative, which focuses on long-term best in class companies in its coverage. The firm cites four key reasons, namely the relative resilience of online leisure travel spending; the company’s spot as the category leader in alternative accommodations supply; a sustained period of extensible product/feature launches; and a “reasonable valuation” after the 23% pullback in shares in the last year.

2. AMD initiated with a Buy at Seaport Research

Seaport Research initiated coverage of AMD (AMD) with a Buy rating and $110 price target. AMD has demonstrated consistent execution for years, allowing it to pick up share and erode Intel’s (INTC) long-time dominance in PCs, the firm tells investors. AMD overtook Intel in the data center last quarter and has “a credible AI product” that competes with Nvidia (NVDA), but lacks Nvidia’s broader portfolio of software and system services, Seaport added.

3. Qualcomm reinstated with an Overweight at JPMorgan

JPMorgan reinstated coverage of Qualcomm (QCOM) with an Overweight rating and price target of $185, down from $195, following a period of restriction. While there are near-term concerns around the pull-forward of smartphone demand, both from the channel as well as by consumer upgrades, JPMorgan remains convinced around the long-term opportunity Qualcomm in relation to a re-rating stemming from a successful diversification from smartphone revenues. The firm says Qualcomm has “robust” smartphone revenues and has scaled its internet of things as well as its autos pipeline, with “strong growth drivers helping the company stand out in relation to trends relative to smartphone supplier pure plays.”

4. Qorvo upgraded to Buy from Hold at Benchmark

Benchmark upgraded Qorvo (QRVO) to Buy from Hold with a $95 price target. Qorvo turned in a “solid” March quarter performance and “gave an equally encouraging June period outlook,” the firm tells investors. Benchmark believes the company is executing well on its margin enhancement initiatives and is further encouraged by what is claimed to be a greater than 10% dollar content increase in Apple’s fall product line up plus significant content increases in Samsung’s (SSNLF) new upcoming Z Flip & Z Fold models.

5. Boeing upgraded to Outperform from Market Perform at Bernstein

Bernstein upgraded Boeing (BA) to Outperform from Market Perform with a price target of $218, up from $181. Boeing is now “making the progress it needed for the growth trajectory” expected before the Alaska door plug accident in January 2024, the firm tells investors in a research note. Bernstein believes that after high Federal Aviation Administration scrutiny, Boeing Commercial Airplanes “should be on a much firmer path than in 2023.” The firm points out the company’s new 787 guidance was above our expectations, as it is expected to move to seven per month before year-end, with quality and heat exchanger supply issues resolved.

Top 5 Sell Calls:

1. Jefferies cuts Apple to Underperform on expected tariff downside

Jefferies downgraded Apple (AAPL) to Underperform from Hold with a price target of $170.62, up from $167.88. The March quarter was in line with expectations and management indicated limited pull in for fiscal Q2, but guided only low-single to mid-single digit revenue growth and estimated a $900M tariff impact in the next quarter, the firm tells investors. Jefferies estimates that implies 7M iPhone P/PM shipments from China, good enough for U.S. demand in the June quarter, but the product gross margin is already under pressure and the firm believes tariff impacts will expand over time to create more earnings downside.

2. Nvidia initiated with a Sell at Seaport Research

Seaport Research initiated coverage of Nvidia (NVDA) with a Sell rating and $100 price target. Nvidia is one of the leading beneficiaries of the current AI spending boom, but its prospects are “well understood and largely priced into the stock,” the firm argues. With upside appearing “fully understood,” the bias is towards the downside with concerns about geopolitics, supply chains missteps, deployment delays, and growing scrutiny for AI spending by customers, Seaport tells investors.

3. Texas Instruments initiated with a Sell at Seaport Research

Seaport Research initiated coverage of Texas Instruments (TXN) with a Sell rating and $130 price target. Outside of China EVs, industrial markets in most markets have not really recovered or began restocking of semis and given that interest rates and recession fears appear to have put a brake on cyclical recovery, the firm sees a prolonged downturn in analog semis.

4. Intel initiated with a Sell at Seaport Research

Seaport Research initiated coverage of Intel (INTC) with a Sell rating and $18 price target. Intel lost its manufacturing edge years ago, and this has caused its products to struggle against competitors’ as the company is losing share in PCs to AMD and losing share in data center CPU to AMD and internal semis, the firm tells investors. The company has “no AI strategy” and has seen massive data center spend shifted to Nvidia, adds Seaport, which sees Intel “fighting to survive.”

5. Coinbase downgraded to Sell from Buy at Compass Point

Compass Point downgraded Coinbase (COIN) to Sell from Buy with an $180 price target as the firm transferred coverage of the stock. Compass is cautious heading into Q1 results on May 8 and also concerned about second half performance as growth comes from lower margin institutional segments. Shares have reacted negatively to the company’s three most recent earnings results, and the firm expects this streak to continue after “disappointing” Q1 results and Q2-to-date commentary.