Wall Street’s Key Predictions for Thursday

Scotiabank on Microsoft

Scotiabank has initiated coverage of Microsoft Corporation (MSFT) with a “buy” rating. The firm believes that the company’s shares are well-placed to thrive, stating, “shares are poised to ‘Excel’ given Microsoft’s leading role in the AI revolution.” They have set a one-year price target of $470 per share.

Piper Sandler’s View on Tesla

Piper Sandler maintains an “overweight” rating on Tesla but has adjusted its price target from $500 to $450. The firm acknowledges the ongoing volatility and drama surrounding the stock but considers it a suitable buying opportunity.

UBS Upgrades Southwest Airlines

UBS has upgraded Southwest Airlines (LUV) from “sell” to “neutral,” citing significant changes in the airline’s business strategy that could enhance its financial performance. Despite the current challenging conditions in the airline sector, UBS sees potential for improvement.

JPMorgan Boosts Cava’s Rating

JPMorgan has upgraded Cava from “neutral” to “overweight,” encouraging investors to buy shares of the Mediterranean restaurant franchise. The firm sees considerable room for expansion in the U.S. market, along with early cash flow generation and various initiatives to enhance sales and profits.

Citi’s Positive Outlook for Coty and Boston Beer

Citi has upgraded Coty to a “buy” from “neutral,” highlighting undervalued shares and forecasted growth in the beauty sector. They also upgraded Boston Beer to “buy,” noting improving volume and revenue growth, along with potential margin recovery driven by strategic initiatives.

Piper Sandler Downgrades Rivian and Stellantis

Piper Sandler has downgraded both Rivian (RIVN) and Stellantis (STLA) to “neutral” from “overweight,” citing uncertainty over tariffs as a concern. The firm emphasizes that political uncertainties inhibit their ability to make strong recommendations for automakers, suggesting a shift in focus to used car companies instead.

Other Notable Actions

In other updates, Wells Fargo upgraded KKR to “overweight,” citing a favorable growth outlook and manageable environmental headwinds. Meanwhile, JPMorgan reiterated its “overweight” rating for Boeing following positive commentary at an investor conference, reaffirming their confidence in the company’s operational progress.