Avenue Calls of the Week

Investing.com — Right here is your Professional Recap of the highest takeaways from Wall Avenue analysts for the previous week.

InvestingPro subscribers all the time get first dibs on market-moving AI analyst feedback. Improve right this moment!

Monday- US Markets Closed for Martin Luther King Jr. Day

Apple

What occurred? On Tuesday, Jefferies downgraded Apple Inc (NASDAQ:AAPL) to Underperform with a $200.75 value goal.

*TLDR: Jefferies downgrades Apple on weak iPhone gross sales. AI outlook and development targets missed.

What’s the total story? Jefferies lowers forecasts because of weak iPhone gross sales and the overall shopper electronics market, citing a decreased outlook for iPhone 17/18 because of slower AI uptake and commercialization.

Jefferies expects Apple to overlook its income development steerage of 5% for the primary quarter of fiscal 12 months 2025 and to information to solely low single-digit income development within the second quarter, additionally beneath consensus.

The AI outlook stays subdued, with trade checks suggesting delays in Apple’s superior packaging roadmap for iPhone as one other destructive signal. Jefferies’ new value goal implies a 13% draw back, resulting in this downgrade.

Ford

What occurred? On Wednesday, Barclays (LON:BARC) downgraded Ford Motor Firm (NYSE:F) to Equal-weight with an $11 value goal.

*TLDR: Barclays downgrades Ford because of 2025 headwinds. Unsure value enchancment paths anticipated.

What’s the total story? Barclays analysts acknowledge Ford’s ongoing transformation efforts, however anticipate important quantity headwinds in 2025, pushed by stock destocking and modest value normalization, which can negatively affect earnings estimates.

Whereas value discount has potential, with alternatives to slender the associated fee hole in comparison with rivals, Barclays highlights the uncertainty surrounding the trail to value enchancment. The Tier 1 desk’s 2025 EPS estimate of $1.44 falls beneath Bloomberg’s consensus of $1.63, reflecting their cautious outlook on Ford’s earnings profile.

Veeva Programs

What occurred? On Thursday, Goldman Sachs double downgraded Veeva Programs Inc (NYSE:VEEV) (NYSE:VEEV) to Promote with a $261 value goal.

*TLDR: Goldman views Veeva as entrenched however faces competitors and gradual restoration. Veeva’s underperformance anticipated relative to different protection.

What’s the total story? Goldman continues to view Veeva as deeply entrenched in its core Life Sciences buyer base, with important cross-selling potential over the subsequent decade. Nevertheless, the worldwide funding financial institution identifies a number of medium-term dangers to Veeva’s 2030 targets. These embrace competitors from Salesforce (NYSE:CRM) within the Industrial sector, which is predicted to be a persistent headwind, and a gradual elementary restoration within the Life Sciences vertical, prone to affect buyer growth and renewal offers.

Moreover, Veeva’s maturing product portfolio might pose challenges for newer product cycles to drive substantial development.

Goldman tasks that Veeva will underperform relative to different protection over the subsequent 12 months, regardless of restricted absolute draw back threat given its free money move assist and a number of quarters of underperformance. The financial institution is extra cautious on medium-term fundamentals, and its revised value goal implies a 13% draw back threat in comparison with a median 11% upside for its Purchase and Impartial-rated names.

Twilio

What occurred? On Friday, Baird upgraded Twilio Inc (NYSE:TWLO) to Outperform with a $160 value goal.

*TLDR: Baird bullish on TWLO’s income and valuation. Profitability, positive factors, and capital returns anticipated to rise.

What’s the total story? Thursday, Baird attended TWLO’s investor day, buoyed by a pre-released This autumn upside and broad-based power. The brokerage emerged extra assured in TWLO’s capability to maintain double-digit income development, anticipating additional upside to steerage and estimates.

Acknowledging latest positive factors that they had been cautious to chase, Baird now expects a possible beat-and-raise sample to drive shares greater, particularly with enhancing profitability, money move, and capital returns. Valuation remains to be deemed affordable, notably given attainable upside eventualities.