Calls of the day: 8th July 2024

The latest upgrades on downgrades form Wall Street.

[.custom-color]Tesla[.custom-color] was upgraded to Buy from Hold by China Renaissance. Several factors contributed to this reevaluation, including the 'substantial expansion' of Tesla's energy storage business in Q2, improving fundamentals in car sales, and new initiatives such as Full-Self Driving, Robotaxi, and the company’s robotics segments.

[.custom-color]Lloyds Bank[.custom-color] was upgraded to Outperform status by Exane BNP with a £0.72 price target, representing a 22% upside over the current share price. It now ranks Lloyds as its top UK banking stock (taking the top spot from NatWest). They believe the majority of the Labour party will provide stability for UK equity investors, allowing Lloyds to refocus on operations rather than staying out of the headlines.

[.custom-color-downgrade]Nvidia[.custom-color-downgrade] received a rare downgrade from New Street Research analyst Pierre Ferragu, who revised the price target to $282. Ferragu believes the base case for Nvidia is already reflected in the share price, and a higher valuation 'will only materialize in a bull case, in which the outlook beyond 2025 increases materially,' a scenario they are not convinced will play out yet. However, the firm maintains that the 'quality of the franchise is nevertheless intact' and may consider buying Nvidia if the price drops. They view AMD and TSMC as the most attractive AI plays currently.

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