Wall Street Raises Apple, Micron Price Targets as Buy Ratings Spread

Wall Street is growing more bullish on major technology stocks ahead of U.S. corporate earnings. Buy calls are also spreading to financial, healthcare and commodities shares, driven by expectations for improving results and undervaluation.

CNBC reported on October 7 that Yorkville Ives initiated coverage of Apple and Nvidia with outperform ratings on both. The firm set price targets of $400 for Apple and $300 for Nvidia, citing Apple’s growth potential from an expanding ecosystem and Nvidia’s competitive advantage.

Views also improved on semiconductor stocks including Micron and Marvell Technology. DA Davidson maintained its buy rating on Micron after meeting with management and raised its price target to $3,000 from $2,100. TD Cowen upgraded Marvell to buy from hold, saying its interconnect technology business should drive growth and that concerns about customer concentration and profitability in its custom XPU business have eased.

Optimism across the broader tech sector also held up. Evercore ISI upgraded NetApp to outperform, saying its growth outlook leaves room for further upside, and set a $300 price target. UBS, however, kept its neutral rating on Tesla. It raised its price target slightly to $391 from $385 and said expectations for the company’s long-term businesses could support the stock more than near-term earnings.

In financials, growth prospects and a recovery in mergers and acquisitions drew attention. UBS initiated Invesco with a buy rating and a $41 price target, saying the market is underestimating the durability of its growth. KBW upgraded Moelis & Co. to outperform on expectations that a pickup in M&A deals valued below $10 billion would benefit the firm. PJT Partners, by contrast, was downgraded because of a gap between deal activity indicators and actual closing data.

In healthcare, Cantor Fitzgerald raised its earnings outlook for Humana and lifted its price target to $460 from $300. It also upgraded the stock to overweight from neutral. Barclays initiated Abbott Laboratories at overweight, citing the company’s diversified business base and product-development capabilities.

Some analysts also viewed recent share-price weakness as a buying opportunity. Citi upgraded online betting company Flutter Entertainment to buy, citing a positive outlook for its U.S. business. Transportation company XPO also won a buy rating after its stock decline, based on the potential for market-share gains and improved pricing power.

In commodities, Morgan Stanley upgraded both Gold Fields and Nexa Resources to overweight. The bank said this year’s weakness in Gold Fields shares offered an investment opportunity. For zinc and copper producer Nexa Resources, it cited a stock price that remains low relative to earnings prospects and a high free-cash-flow yield.