Analysts are intrested in these 5 stocks: ( (NU) ), ( (AMAT) ), ( (OKLO) ), ( (NVAX) ) and ( (SNOW) ). Here is a breakdown of their recent ratings and the rationale behind them.
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Nu Holdings has recently caught the attention of analysts, with Gustavo Schroden from Citi Research upgrading the stock to a ‘Buy’ with a target price of $18. The bank’s ability to navigate and accelerate in key portfolios while maintaining solid asset quality has been highlighted as a key strength. Despite macroeconomic concerns, Nubank’s earnings momentum is expected to accelerate, driven by dynamics in Brazil, Mexico, and Colombia. The bank’s efficiency and disciplined approach to expenses support its return on equity, which is projected to remain stable at around 29% for the coming years. However, potential risks include economic deterioration in Brazil and delayed interest rate cuts, which could impact loan growth.
Applied Materials has faced a downgrade from analyst Louis Miscioscia at Daiwa Capital Markets, moving from ‘Outperform’ to ‘Hold’ with a revised target price of $170. The downgrade comes amid slower demand from China and weaker-than-expected leading-edge demand, impacting sales. Despite a good quarterly report, the guidance was weak, with several challenges ahead, including waiting for China license approvals and non-linear demand from leading-edge technologies. However, there are positives, such as strong DRAM performance and AI/cloud cap demand, which could eventually drive leading-edge demand.
Oklo Inc. has initiated coverage with a ‘Hold’ rating and a target price of $65, as reported by analyst Jon Windham. The company is poised to deploy its first commercial small modular reactor (SMR) in the U.S., with pre-construction activities expected to begin in the second half of 2025. Oklo’s potential for a broader U.S. nuclear infrastructure build-out is promising, with a substantial total addressable market and profit potential. However, the early-stage nature of SMR technology and risks inherent in nuclear project development pose challenges. Oklo’s existing backlog represents significant revenue and EBITDA potential, but successful commercialization remains a substantial risk.
Novavax has been downgraded to ‘Sell’ by analyst Alec Stranahan, with a price objective of $7. The company’s growth outlook is uncertain despite solid execution, with challenges in the commercialization of the Nuvaxovid COVID-19 vaccine and the higher burden of proof for pivotal trials under the new FDA framework. Long-term revenue estimates for Nuvaxovid are not seen as outlandish, but near-term revenue is expected to slow. The platform’s value is uncertain, and partnerships could pose an upside risk. Novavax has been successful in trimming operating expenses, but the high cost and burden of proof for trials remain concerns.
Snowflake has been upgraded to ‘Buy’ by analyst Bradley Sills, with a price objective of $240. The company is making strides as a unified analytics and AI data platform, with momentum in its data warehouse and emerging AI businesses. Positive web activity and channel feedback suggest improving demand trends, with customers increasingly investing in AI tech stacks. A survey of Snowflake customers indicates spend acceleration, driven by AI and data storage offerings. Snowflake’s transition to a data and AI platform is gaining traction, with over 50% of respondents utilizing its services for AI workloads.