Wall Street Ratings Roundup Monday: Nvidia, Micron, Ferrari and More in Focus
0xBroomberg
Wall Street firms released a wave of ratings Monday. Micron's price target jumped over 127% to $1,500, and Morgan Stanley upgraded Ferrari to overweight — the two moves point to an AI-memory demand surge and a luxury-brand valuation reset, respectively.
Micron's target more than doubled — what did the analyst see?
TD Cowen kept Micron at buy and raised the target from $660 to $1,500 — a hike of over 127%.
The key driver: earnings forecasts well above consensus. May-quarter EPS is projected at $23 vs. the Street's $20; August quarter at $27 vs. $24.
This means → the analyst believes the market is still underpricing Micron's earnings power, and the call aligns with the firm's April field research — not a desk estimate, but ground-checked data.
Morgan Stanley upgraded Ferrari — what is the logic?
Morgan Stanley moved Ferrari from "equal-weight" to "overweight," lifting the target from $388 to $438.
The thesis: the earlier valuation pullback over-discounted brand risk. Channel checks show fundamentals intact; used-car residual values are bottoming.
In plain terms = the market was too pessimistic — Ferrari's brand was never really damaged. The new Luce model is already priced in, and the wealth effect plus the product pipeline still support a re-rating.
Two space-launch companies upgraded at once — why?
KeyBanc raised both Rocket Lab and Firefly Aerospace from "sector-weight" to "overweight."
The immediate catalyst: heightened market attention from a potential SpaceX IPO. The deeper logic is a supply-demand mismatch — current launch capacity falls far short of satellite deployment needs.
This means → even if SpaceX's Starship succeeds fully, KeyBanc's supply-demand model shows the market needs over a decade to reach equilibrium — opening tens of billions of dollars in potential annual revenue for mid-class rockets like Neutron and Eclipse.
Any other new calls in semis and AI?
Morgan Stanley initiated Onto Innovation at "overweight," seeing upside to earnings estimates for this semiconductor process-control equipment maker — a company focused on inspection and metrology in chip manufacturing.
Needham initiated Ceva at "buy" with a $55 target, implying a 70× P/E on 2027 estimated EPS. This reflects the premium the market is willing to pay for AI-linked IP-licensing plays.
Finance, payroll, bitcoin mining — how about the rest?
Goldman Sachs reinstated 3M at "buy": undervalued, improving organic growth, and upside from liability resolution.
Baird named Capital One a top pick, arguing the market is over-indexing on consumer-weakness narratives and missing the bank's capital strength and earnings flexibility.
Citi upgraded Paychex from "neutral" to "buy," expecting Paycor acquisition synergies to accelerate FY27 organic revenue growth; BofA initiated bitcoin miner TeraWulf at "buy" (target $34), citing dual tailwinds from data-center demand.
Were any names downgraded?
Citi cut several trucking stocks: Old Dominion downgraded to "sell"; C.H. Robinson, SAIA, and KNX all cut to "neutral."
In plain terms = Citi sees industry optimism as fully priced in — several of these stocks sit near all-time highs, and the risk-reward for chasing further upside looks poor.
Content is for reference only, not financial advice.