Analysts on Wall Street are buzzing about Apple and DoorDash, with bullish calls from Raymond James and Redburn Atlantic respectively. Meanwhile, other stocks are seeing mixed sentiment.
Apple Gets a Boost
Raymond James has increased its price target on Apple to $250, indicating a potential 15% upside from Thursday's closing price. Analyst Srini Pajjuri reiterated his "outperform" rating, citing Apple as a "more stable AI play for volatile times". Pajjuri expects Apple's upcoming AI features to drive a multi-year iPhone upgrade cycle, with early signs already emerging in supply chain conversations. Apple's shares are up nearly 13% for the year, but have seen a slight dip in the past week.
DoorDash is the Darling of Food Delivery
Redburn Atlantic has initiated coverage on DoorDash with a "buy" rating and a price target of $170, implying a potential 68% upside from Thursday's close. Analyst James Cordwell believes DoorDash is the clear winner in the food delivery space, expecting "winner-takes-most" dynamics to play out in the sector. While DoorDash's first-quarter adjusted EBITDA came in line with expectations, Cordwell believes the company's strategy will ultimately be rewarded. DoorDash shares are up just 1.9% in 2024.
Mixed Signals for Other Stocks
While Apple and DoorDash are seeing positive momentum, other stocks are facing a more mixed outlook.
Crowdstrike: Barclays has reduced its price target on Crowdstrike by 30% to $285, citing concerns about the ongoing fallout from the recent IT outage. While Barclays still maintains an "overweight" rating, the analyst believes the stock "could get worse before better".
Duolingo: Bank of America has upgraded its rating on Duolingo to "buy", citing its strong growth in the internet sector and opportunities for user and revenue growth, especially in Asia. However, the stock has been volatile this year, dropping 31% after its first-quarter earnings.
Southwest Airlines: Deutsche Bank has downgraded its rating on Southwest Airlines to "hold" following disappointing second-quarter results. The analyst is concerned about margin pressure and believes the US market will remain oversupplied for the next few months.
NXP Semiconductors: Bank of America remains bullish on NXP Semiconductors despite a second-quarter earnings miss and disappointing forward outlook. The analyst expects the company's automotive segment to rebound in the second half of the year.
Harley-Davidson: Bank of America has reiterated its "buy" rating on Harley-Davidson after strong second-quarter earnings. The analyst expects continued strong retail trends and a multi-year upgrade cycle for the company's new touring lineup.
WW International: Morgan Stanley has downgraded its rating on WW International to "equal weight" due to concerns about the growing popularity of obesity medication and flatlining growth in its clinical segment.
These are just some of the highlights from Friday's analyst calls and Wall Street chatter. Investors should continue to monitor these developments closely for potential market-moving news.