Wednesday's Biggest Analyst Calls: Nvidia, Netflix, Apple, Charles Schwab, Meta, Microsoft, Disney & More

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Here are Wednesday’s biggest calls on Wall Street:

Bank of America’s Outlook on Netflix
Bank of America maintained its "Buy" rating for Netflix, raising its price target to $1,175 from $1,000 after the company reported its earnings on Tuesday. The bank’s analysts believe the company’s future is bright, citing strong subscriber and earnings momentum. With the integration of advertising and live opportunities, Bank of America’s updated price target reflects roughly 32 times its increased CY26E EBITDA projection.

Wells Fargo’s Upgrade for Charles Schwab
Wells Fargo upgraded Charles Schwab to "Overweight" from "Equal Weight," asserting that the bull case will prevail following solid earnings. Previously, Wells Fargo had expected the stock to remain range-bound due to the ongoing bull/bear debate, but after a strong earnings report, the bearish case now seems weaker, reinforcing the potential for growth.

Barclays’ Upgrade for Netflix
Barclays upgraded Netflix to "Equal Weight" from "Underweight" after the company’s earnings report. The firm noted that Netflix’s strong subscriber growth, which defies previous growth expectations, had disproven its hypothesis of growth mean reversion. While growth is expected to slow in 2025, the current operating momentum could lead to further upside, prompting the upgrade.

Wells Fargo’s Upgrade for 3M
Wells Fargo upgraded 3M to "Overweight" from "Equal Weight," noting the company’s rising margins. The firm believes the company’s significant margin expansion efforts in the face of uncertainty in industrial recovery are attractive. Wells Fargo also highlighted 3M’s cash usage and buybacks as a positive sign of confidence in its operations.

UBS Stands By McDonald's
UBS reiterated its "Buy" rating for McDonald’s ahead of its earnings report in February. Although the company may experience pressure on same-store sales due to E. coli impacts in Q4 2024, UBS remains optimistic about McDonald’s 2025 outlook, citing multiple sales drivers that should support positive trends for the year.

Evercore ISI’s Optimistic View of UPS
Evercore ISI initiated a tactical "Outperform" rating for UPS, with improving data points for the stock. The firm believes that, with reduced risk of missed earnings, UPS stock could see a reversal of its underperformance since mid-2023. Evercore also noted that a meet/in-line outcome for Q4 2024 and FY25 guidance could trigger short-covering.

Bernstein Upgrades Darden Restaurants
Bernstein upgraded Darden Restaurants, the parent company of Olive Garden and other chains, to "Outperform" from "Market Perform." The analysts pointed to margin expansion driven by improvements in its core middle-income consumer segment, the rollout of UberDirect with marketing support, and operational efficiencies.

Jefferies Remains Bullish on Meta and Microsoft
Jefferies reaffirmed its "Buy" rating on Meta ahead of its Jan. 29 earnings report, citing the company’s ability to sustain double-digit revenue growth through AI investments, higher engagement, and increasing advertiser efficiency. Jefferies also maintained its "Buy" rating for Microsoft, expecting strong execution and highlighting the company’s leadership in GenAI as a major growth factor.

Citi Resumes Coverage on Disney
Citi resumed coverage of Disney with a "Buy" rating and a $125 target price. While the firm noted that Wall Street’s adjusted earnings per share estimates might be a bit high, it still views Disney as having an attractive risk/reward profile at current levels.

Barclays Downgrades Apple
Barclays downgraded Apple to "Equal Weight" from "Overweight," anticipating a "mixed" earnings report for the company on January 30. The firm expects in-line or slightly weaker results for Q4, with growth in Services and Macs partially offsetting weaker iPhone sales.

Loop Upgrades Nordson to Buy
Loop upgraded Nordson, a manufacturer of adhesives, to "Buy" from "Hold" and raised its price target to $280 per share. Loop highlighted the expected improvement in organic sales growth for FY25, supported by key customer activity, which should lead to positive estimate revisions.

JPMorgan Initiates Coverage on Sun Country
JPMorgan initiated coverage on Sun Country Airlines with an "Overweight" rating, describing the low-cost carrier as "underappreciated." The firm pointed to the airline’s sizable Charter and Cargo operations, which generate roughly a third of its revenue, as important differentiators in the industry.

KeyBanc’s Stance on Nvidia
KeyBanc reiterated its "Overweight" rating for Nvidia, expecting in-line to stronger results for the company, with a positive outlook for the stock in the upcoming earnings report later this quarter.

Roth MKM Downgrades Reddit

Roth MKM downgraded Reddit to "Neutral" from "Buy," citing concerns over valuation. The firm believes the near-term risk/reward for the stock is fairly balanced at current levels.

Needham Upgrades Cerence
Needham upgraded Cerence, an auto software solutions company, to "Buy" from "Hold," citing the company’s pricing power. Needham expects new large language model-based voice assistants to drive higher pricing per unit (PPU) in the future.

Barclays Downgrades Ford
Barclays downgraded Ford to "Equal Weight" from "Overweight," citing uncertainty about the company’s cost improvement path. Despite appreciating Ford’s transformation efforts, Barclays believes volume headwinds and price normalization in 2025 will negatively affect earnings.

Benchmark Upgrades Seagate
Benchmark upgraded Seagate to "Buy" from "Hold" following earnings. The firm expects strong demand from the cloud and AI sectors to drive growth in the second half of 2025 and beyond.

Wedbush Maintains Positive Outlook on Tesla
Wedbush reiterated its "Outperform" rating on Tesla, raising its price target from $515 to $550. The firm expressed growing confidence in Tesla’s demand story for 2025 and its leadership in the autonomous vehicle space.

Morgan Stanley’s Outlook on Microsoft
Morgan Stanley maintained its "Overweight" rating on Microsoft, although it lowered its price target to $540 from $548. The firm sees the company’s positioning for the GenAI opportunity and its compelling valuation as offering an attractive entry point despite concerns.

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