TD Cowen and CLSA both initiated SpaceX at buy on Tuesday, while Citi reiterated Nvidia as a buy after Monday's buyback announcement. Deutsche Bank upgraded Netflix and Bank of America stayed bullish on Apple, and JPMorgan cut PepsiCo to neutral on North America trends.
TD Cowen initiated coverage of SpaceX with a buy rating. According to TD Cowen: "mammoth AI and space opportunity". The firm expects SpaceX's terrestrial AI compute leasing, with customers including Google and Anthropic, to become the company's fastest-growing revenue stream and the majority of overall SpaceX revenue by 1Q27.
SpaceX draws a second buy call
CLSA also initiated SpaceX at buy, arguing Starship's launch-cost economics feed self-reinforcing revenue and cash flows across the company's connectivity and AI businesses. The firm said SpaceX AI's offering is unique globally and may help revive American manufacturing, according to the note.
Nvidia buyback and Apple's AI edge back bullish reiterations
Citi reiterated Nvidia as a buy after the company's buyback announcement on Monday, saying the expanded program reinforces Nvidia's view that strong AI-driven free cash flow growth can support both strategic investments and shareholder returns.
Bank of America reiterated Apple as a buy, saying concerns about Apple losing search-discovery and referral revenue are overdone and calling Apple an eventual winner of AI at the edge.
Netflix upgraded, PepsiCo and Kroger move in opposite directions
Deutsche Bank upgraded Netflix to buy from hold, while lowering its price target to $95 from $100, citing lower operating income and free-cash-flow estimates after the company's second-quarter earnings. Melius, meanwhile, upgraded Kroger to buy from hold, pointing to a disconnect between the grocer's earnings growth and its valuation.
JPMorgan cut its rating on PepsiCo to neutral from overweight, saying trends in North America have likely continued to underperform management's expectations once non-recurring tailwinds are excluded. Bernstein, meanwhile, initiated AutoZone at outperform on do-it-for-me-driven growth potential elsewhere in the stock market.
Goldman Sachs also reinstated coverage of Baker Hughes at buy, setting a 12-month price target of $71 that implies 23% upside from current levels.
Source: CNBC
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