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Equities

Analyst Calls: Nvidia, Apple Lead; Cheesecake Factory Upgraded

Wall Street Analysts Highlight Growth in Tech and Biotech, with Key Calls on Nvidia, Apple, and Apogee Therapeutics

By Alex P. Chase

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5/10, 08:53 EDT
Apple Inc.
Dominion Energy, Inc.
Lear Corporation
3M Company
Nike, Inc.
NVIDIA Corporation
Planet Fitness, Inc.
Palantir Technologies Inc.
Warner Bros. Discovery, Inc. - Series A
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Key Takeaway

  • Bernstein sees Nvidia's datacenter market potential as "enormous and still early," reiterating an outperform rating.
  • Citi upgrades Cheesecake Factory to buy, citing a "derisked unit growth outlook" and appeal to higher-income customers.
  • Wedbush maintains Apple's outperform rating, anticipating an AI strategy reveal that could start a supercycle with new iPads and iPhone 16.

Analyst Ratings Impact

Wall Street analysts have made several significant calls affecting various sectors, including technology, dining, fitness, and biotechnology. Bernstein reiterated Nvidia's outperform rating, emphasizing the vast and still untapped potential of the datacenter market. "The datacenter opportunity is enormous, and still early, with material upside still possible," Bernstein analysts noted, highlighting the growth prospects for Nvidia. Similarly, Citi upgraded Cheesecake Factory to buy from neutral, citing a "derisked unit growth outlook" and the company's appeal to higher-income customers.

Sector-Specific Upgrades and Downgrades

In the technology sector, Wedbush maintained an outperform rating on Apple, anticipating the unveiling of its AI strategy at the upcoming Worldwide Developers Conference. This move is expected to kickstart an AI-driven supercycle, beginning with a new iPad lineup and then the iPhone 16. On the other hand, Wells Fargo downgraded Cerence to equal weight from overweight due to a slower sales outlook, reflecting the challenges within the AI software market.

Biotech and Energy Sectors See Movement

Bank of America initiated coverage on Apogee Therapeutics with a buy rating, recognizing its potential in developing treatments for atopic dermatitis, asthma, and COPD. In the energy sector, Bank of America upgraded Dominion to neutral from underperform, acknowledging the company's successful restructuring and strategy simplification efforts. These ratings reflect analysts' views on the companies' future growth prospects and market positioning.

Street Views

  • Bernstein on Nvidia (Bullish on Nvidia):

    "The datacenter opportunity is enormous, and still early, with material upside still possible."

  • Citi on Cheesecake Factory (Bullish on Cheesecake Factory):

    "CAKE skews to a higher income customer than the average casual diner, and, particularly for lower-income customers, visits skew more towards occasions."

  • Wedbush on Apple (Bullish on Apple):

    "We look forward to the WWDC [Worldwide Developers Conference] next month, where we believe Apple is set to unveil its long awaited AI strategy to its golden installed base and developer community at WWDC which begins an AI-driven supercycle starting with a new iPad lineup and then the iPhone 16 this Fall."

  • Bank of America on Palantir (Bullish on Palantir):

    "In our view, it’s paramount the government support further investments in AI and spur competition. Additionally, we see PLTR as primed to meet the increased demand and advance AI-enabled products further."

  • Mizuho upgrades Squarespace (Bullish on Squarespace):

    "We upgrade Squarespace to a Buy with a $50 PT as we believe the company can deliver significant upside to consensus estimates."

  • Wells Fargo downgrades Cerence (Neutral on Cerence):

    "We downgrade CRNC from OW to EW on the lower sales outlook. CRNC revised 2025 targets again, now ~35% below original ’22 targets."

  • Stifel downgrades Planet Fitness (Neutralon Planet Fitness): > "Despite the solid 1Q results and the upcoming price increase, we have decided to move to the sidelines, downgrading to Hold.”

  • KeyBank upgrades Warner Brothers Discovery(**Bullish **on Warner Brothers Discovery): > "For one of first times in while ,we are actually bringing our ests.slightly higher"

  • HSBC upgrades 3M(** Bulllish **on 3M) :> "Upgrade Buy lift TP $115;3M remains quality company trading attractive valuations,in our view"

  • TD Cowen upgrades Dutch Brothers(** Bulllish **on Dutch Brothers) :> "In our view Dutch Bros.demonstrating traction turnaround leads us believe sets up beat & raise year"

  • Morgan Stanley upgrades TPG(** Bulllish **on TPG) :> We see attractive entry point high quality,capital light business model >80% fee-related earnings mix

  • Raymond James Upgrades HBT Financial( **bullish **HBT Financial)> We upgrading shares HBT Outperform establishing $23 price target following meetings management left us bullish shares centered around disciplined credit culture prospects incremental M&A activity

  • Bank Of America Upgrades Bumble( **bullsih *On Bumble)> We upgrading Bumble(BMBL)Buy confident now that Bumble can meet exceed Street expectations which believe will drive multiple expansion

  • Bank Of America Upgrades Dominion( Neutral On Dominion)> We raising rating Dominion Energy(D) Neutral Underperform.This rating upgrade follows D's completion lengthy business review restructuring process early March seen company shed non-core assets fortify balance sheet de-risk offshore wind project simplify strategy

  • Morgan Stanley Upgrades Lear (Overweight On Lear ) Adapting EV Recession ,Upgrading LEA Overweight

  • Barclays Upgradess Relay Therapeutics (Overweight On Relay Therapeutics ) upgrade RLAY OW EW based upon :attractive catalyst path including high impact data update breast cancer ;where positive risk/reward -see detailed analysis data preview attractive valuation

  • Oppenheimer Uprades Array (Outperfrom On Array ) With ARRY delivering solid Q results strong bookings reiterating guidance upgrade OP introducing PT

  • Guggenheim Reiterates Nike(Buy On Nike )
    believe company remains focused scaling newness innovation making investments reach full potential opportunity drive long term profitable growth remain rated