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Notable analyst calls this week: Apple, GM and Comcast stocks among top picks
Apr. 19, 2025 9:35 AM ET
By: Tiyashi Datta, SA News Editor
The S&P500 ( SP500) closed in the green, after the week saw earnings report from firms including Netflix and UnitedHealth, as well as brewing tension between U.S. President Donald Trump and Federal Reserve chair Jerome Powell.
For the week, both Nasdaq ( COMP:IND) and Dow ( DJI) declined over 3%.
Wall Street had a slew of upgrades and downgrades from analysts. Here are some of the major calls for the week:
Apple in focus amid Trump's tariffs scenario
KeyBanc Capital Markets upgraded Apple (NASDAQ: AAPL) to Sector Weight from Underweight, while Wedbush maintained its Outperform rating amid the Trump administration's temporary reprieve on tariffs for electronics such as smartphones.
KeyBanc analysts said the announcement of exception from tariffs on smartphones is probably the best-case scenario they could think of for Apple. However, the analysts added that they don't think Apple is fully "out of the woods" due to — growth expectations remain high looking to fiscal '26 and there is likely still a consumer spending pullback occurring.
Wedbush analyst Dan Ives and his team said they remain bullish on the long-term opportunity for Apple's flagship ecosystem and focus on its 1.5 billion iPhone and 2.4 billion iOS installed base and massive Services business for downside protection in this nervous market backdrop for tech investors.
J.P. Morgan kept its Overweight rating on Apple but lowered PT to $245 from $270.
Deutsche Bank sees problematic second half of 2025 for auto sector, downgrades GM
General Motors (NYSE: GM) was downgraded by Deutsche Bank to Hold from Buy and shaved 26% off its $58 price target, saying that the second half of 2025 will be much more problematic for the sector due to tariffs.
“Ultimately, we don’t expect OEMs to bear the full burden of these extra costs as consumers and dealers will take some of the hit and automakers also implement various mitigation strategies. On a net basis, we estimate Ford and GM could face a $4B to $7B headwind on annualized EBIT,” Deutsche Bank’s Edison Yu said.
Yu expects both Ford (NYSE: F) and General Motors will deliver solid results, but will withdraw full-year guidance as they implement tariff mitigation strategies.
PayPal, BILL Holdings downgraded on rising uncertainty in 'tariff-heavy world'
Payment company PayPal Holdings (NASDAQ: PYPL) was downgraded to Sell from Neutral by Seaport, citing rising uncertainty in a "tariff-heavy world".
"We think it's going to be a struggle for the company to meet the guidance," said the analyst Jeff Cantwell, adding, especially if the discretionary spend starts to slow.
Similarly, the brokerage downgraded BILL Holdings (NYSE: BILL) to Neutral from Buy, saying that it sees risk to the company’s prior guidance that it will accelerate core revenue growth to 20% in FY26 and that the numbers don't seem to be achievable in this evolving macro environment.
Comcast downgraded by Wells Fargo
Wells Fargo downgraded media and cable giant Comcast (NASDAQ: CMCSA) to Underweight from Equal weight, as the brokerage thinks the stock is no longer defensive as it is being pulled into a convergence investment cycle with higher mobile costs to re-accelerate broadband.
Wells Fargo cut PT for Comcast by $6 to $31, as they also see an impact on NBCU due to a weakened ad market, expect elevated sports costs for the NBA, and see no break-even at Peacock.
CFRA boosted its rating on DraftKings (NASDAQ: DKNG) to Buy from Hold as it sees the company, along with FanDuel, as one of the winners in mobile sports betting in the U.S. The firm expects DraftKings and FanDuel to maintain over 80% market share.
DuPont de Nemours (NYSE: DD) was upgraded to Overweight from Sector Weight by analysts at KeyBanc Securities, as they pointed to the chemical maker’s strong balance sheet and defensive characteristics amid economic stress.
Redburn upgraded database software provider MongoDB (NASDAQ: MDB)to Neutral from Sell, citing limited downside risk. Analyst Alexander Haissl noted that MongoDB’s valuation multiple is near all-time lows and earnings expectations have already been reset. While macro-related risks persist, Haissl said they are not specific to the company. |
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