Notable analyst calls this week: Tesla, Netflix and Starbucks stocks among top picks
Mar. 22, 2025 9:35 AM ET
By: Tiyashi Datta, SA News Editor
 Andrii Dodonov/iStock via Getty Images
The S&P500 ( SP500) closed in the green on Friday, as traders assessed the latest U.S. economic data amid concerns over President Donald Trump's tariffs, as well as corporate earnings from heavyweight firms FedEx, Nike and Micron Technology.
For the week, Nasdaq ( COMP:IND) lost 0.7%, while Dow ( DJI) gained 0.3%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Moffett sees Netflix unlocking ‘greater profits in the years ahead’
Netflix (NASDAQ: NFLX) was upgraded by Moffett Nathanson from Neutral to Buy, saying that the streaming giant's engagement would allow it to better monetize and generate greater profits in the years ahead. The brokerage raised its PT on Netflix to $1,100.
"As Netflix builds out its ad capabilities, we believe the company will also be able to effectively ramp monetization of this unlocked incremental subscriber ad-tier TAM," said Moffett Nathanson and added that it forecast that Netflix will generate over $6 billion in advertising revenue in 2027 and almost $10 billion by 2030.
Tesla attracts bull from Cantor Fitzgerald; Lucid upgraded by MS
Tesla (NASDAQ: TSLA) was upgraded by Cantor Fitzgerald to an Overweight from Neutral, after the firm visited the company's Gigafactory and AI data centers in Austin.
Cantor sees Tesla's innovations across FSD, Robotaxi, energy storage, and Optimus Bots as foundational for long-term growth despite the near-term volatility. The brokerage forecasts Tesla's revenue to grow from $97.7 billion in FY24 to $140.8 billion by FY26, with EPS increasing from $2.60 to $4.37 during the same period.
Meanwhile, Morgan Stanley upgraded Lucid (NASDAQ: LCID) to Equal Weight from Under Weight, with the firm believing that the EV stock has the opportunity to execute an AI strategy leveraging strategic/sovereign partnerships within the context of the urgency to develop onshore manufacturing capacity for BEVs as the 'socket' for the AI 'brain'.
Argus sees buying opportunity for Starbucks, upgrades to Buy
Argus upgraded Starbucks (NASDAQ: SBUX) to Buy from Hold, as the brokerage firm thinks the recent sell-off has created a buying opportunity.
Analyst John Staszak said Starbucks' emphasis on digital improvements, brand marketing, and fewer sales promotions looks promising.
Staszak, who set a price target of $115 to the coffee chain stock, added that Starbucks’ menu simplification and store remodeling efforts will likely lead to increased customer traffic and improved same-store sales growth.
KBW upgrades Block on attractive valuation
Keefe, Bruyette & Woods upgraded Block (NYSE: XYZ) to Outperform from Market Perform, saying that the fintech stock’s recent selloff offers investors an attractive risk/reward.
XYZ is trading at 11 times KBW's 2026 estimate for adjusted EPS, analyst Vasundhara Govil wrote in a note, adding "we think the stock is attractively valued and should re-rate if management can deliver on the acceleration in gross profit."
Super Micro Computer in spotlight after JPM upgrade
Super Micro Computer (NASDAQ: SMCI) was upgraded by J.P. Morgan to Neutral from Underweight, saying that the uncertainty related to its financial filings has passed.
Analyst Samik Chatterjee, who raised his PT to $45 from $35, said a strong forecast from Nvidia should provide a boost for Super Micro, and he now estimates fiscal 2026 revenue of $39B, up from a prior view of $34B. However, he now expects gross margins to decline a bit further.
Goldman Sachs, Carlyle Group, Jefferies cut at Oppenheimer
Oppenheimer downgraded Goldman Sachs (NYSE: GS), Carlyle Group (NASDAQ: CG), and Jefferies Financial Group (NYSE: JEF) to Perform from Outperform as the anticipated M&A rebound in 2025 appears to be hobbled.
“We fear that the current uncertainty over tariffs, a fiscal 'detox,' and the general upheaval of 80 years of trade and security arrangements is likely to cause a pause in M&A activity,” the brokerage said.
Evercore said Apple (NASDAQ: AAPL) is “well positioned” to have double-digit earnings growth through 2029. The brokerage said Apple has become a “tech staple” and is likely to hit $11.50 in earnings per share by 2029 (up from an expected $7.33 this year), with “less volatility and high consistency,” when compared to other tech companies.
UBS upgraded Blackstone (NYSE: BX) to Buy from Neutral as the stock's recent 27% slump provides an entry point for a "premier alts [alternatives] platform with structural and scale advantages at a reasonable valuation."
Nvidia (NASDAQ: NVDA) was in the spotlight again as Morgan Stanley said it was “more positive” on the tech giant's trajectory after it held an analyst question and answer session at its GTC event. Analyst Joseph Moore reiterated his Overweight rating and $162 PT on Nvidia.
RTX (NYSE: RTX) was upgraded to Outperform from Neutral by Baird. They said the U.S. defense contractor is poised to benefit from its strong missile and radar products amid a surge in European defense spending. |
