Here are Tuesday's biggest analyst calls: Arm, Apple, Nvidia, Starbucks, CVS, Planet Fitness & more

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Here are the top Wall Street calls for Tuesday. Barclays initiated Supermicro as an overweight Barclays stated that the information technology firm is well-positioned for artificial intelligent. We believe SMCI will be well positioned, given the AI investment trends. Its superior design capabilities and strong AI partnership will allow it to gain more market share in the future. Evercore ISI upgrades CVS from in line to outperform Evercore stated in its upgrade that the drugstore chain’s stock is attractive. We are upgrading CVS shares with a new PT price of $83 (8x ’24 EBITDA and 10x P/E), as we see that operational issues have improved, along with an attractive valuation. Goldman Sachs has downgraded Lazard from neutral to sell. Goldman stated that the outlook for the investment bank is “challenging.” We believe that near-term LAZ earnings will be under pressure due to a difficult top-line trajectory, and a slower path towards margin improvement. However, we consider the valuation of LAZ as being slightly elevated. Truist upgrades Royal Caribbean from hold to buy Truist stated in its upgrade that it is seeing strength in bookings trends. It didn’t take long for us to get back onto the (bull) track: Strong forward trends plus cooled-off stocks makes us Positive on the sector, and we are upgrading RCL from Hold to Buy and CCL from Sell to Hold. Daiwa upgraded Dell from Hold to Outperform Daiwa stated that in its upgrade for Dell, “AI is beginning to kick in.” “Beginning new demand upcycle, raise rating from Neutral to Outperform.” Neutral is now Outprf. Redburn Atlantic Equities introduces Arm Holdings in a neutral manner. Redburn stated that the semiconductor company is currently overvalued. Arm’s forecast of a rapid shift in royalty rates achieved would be a significant departure from past performance trends. In light of the lackluster financial performance in FY23, and in the quarter ending June, mid-November F2Q earnings will need to demonstrate how this pivot can be delivered and sustained. JPM downgrades Planet Fitness from overweight to neutral JPM has downgraded Planet Fitness because of leadership changes and ongoing systemic challenges. The removal of Chris Rondeau, the modern founder of Planet Fitness and CEO since Jan 2013, was a clear surprise on the 15th of September, especially after we met in person on the 7th of September. TD Cowen reiterates Nvidia’s outperform TD stated that it is even more bullish after attending a conference. We came away from the event more confident about NVIDIA’s leadership in AI training, inference and the need for an integrated approach. Raymond James upgraded Rackspace Technology from Market Perform to Outperform Raymond James stated that they liked the management’s execution in their upgrade. We are upgrading our rating for shares of Rackspace from Market Perform to Outperform. The management team changed, reorganized and changed the strategic direction of the company in the past 12 months. Barclays affirms Apple’s equal weight Barclays stated that its channel checks showed iPhone 15 preorders were down from last year. We performed several channel checks on IP15 preorders in China. Overall, unit orders are down 5% from last year. The pro-mix is also 4% lower on an Y/Y comparison. Goldman Sachs confirms Micron is a buy Goldman increased its price target for Micron from $80 to $85 and said it will maintain its buy rating going into the earnings report later this month. While we have reduced our FY24 earnings and revenue estimates (which were in retrospect too aggressive), we anticipate that the combination of improved demand trends and a disciplined supply will drive higher prices, improving margins/EPS, and, ultimately, sustained stock performance over the coming quarterly. Citi initiates GE Healthcare with a buy Citi stated in its initiation that the GE spinoff has products that “are essential, and pervasive throughout the healthcare continuum.” It is unusual to begin coverage for a 125 year old IPO, with a market capitalization of $30B. Yet, here we are, launching coverage of GEHC as Buy, and an $82 TP after its spin-off by General Electric on Jan. 4, 2023. Bank of America has added Array Technologies to its US1 list. The bank said that the solar manufacturer was a “diamond-in-the rough.” In a market with ‘blue-chip’ cleantech names that have a limited view beyond 4Q let alone 2024. ARRY screens like a diamond. TD Cowen lowers Starbucks’ rating to Market Perform from Outperform TD stated that its concern about China pressures led it to downgrade the coffee giant. We point out worrisome competitive and macro pressures we expect will challenge China SSS