Pro Recap: Wall Street Analysts' Top Takeaways

Robinhood

What happened?

On Monday, Barclays upgraded Robinhood Markets Inc (NASDAQ:HOOD) to Overweight with a $49 price target.

TLDR:

Barclays upgraded Robinhood citing strategic roadmap. Market conditions expected to benefit HOOD persist.

Full Story:

Barclays is more positive on Robinhood, noting growing confidence in the company's long-term roadmap, which presents a unique opportunity for product and geographic expansion. The Tier 1 bank highlighted the favorable conditions benefitting HOOD throughout 2024, such as higher-for-longer interest rates and constructive equity markets, expected to persist or improve, especially in cryptocurrency. The analyst noted that Robinhood is well-positioned for future growth.

Overweight at Barclays means “The stock is expected to outperform the unweighted expected total return of the industry coverage universe over a 12-month investment horizon.”

Applied Optoelectronics

What happened?

On Tuesday, B. Riley downgraded Applied Opt (NASDAQ:AAOI) to Sell with a $14 price target.

TLDR:

B. Riley downgraded AAOI over 400G adoption concerns. Analysts suggested an overextended rally due to NVIDIA's unbundling.

Full Story:

B. Riley downgraded AAOI due to concerns over a slowdown in 400G technology adoption. The analysts expressed skepticism about AAOI reaching its $100M quarterly revenue target without major qualifications for 800G products from hyperscalers. They noted discrepancies in U.S. optical companies' performance, suggesting these could stem from NVIDIA platform unbundling. Despite strong share performance, the potential growth might not match investors' expectations.

Sell at B. Riley means “We expect ‘Sell’ rated stocks to have a below-average risk-adjusted total return over the next 12 months.”

Monolithic Power

What happened?

On Wednesday, Citi initiated coverage on Monolithic Power Systems Inc (NASDAQ:MPWR) at Buy with a $700 price target.

TLDR:

Citi sees MPWR sell-off as an investor opportunity. Analysts target $700 amid sales growth potential.

Full Story:

Citi noted that MPWR's stock experienced a 40% sell-off due to losing share at Nvidia, reducing its premium to the SOX index. Analysts highlighted this sell-off as an opportunity, believing that MPWR could maintain sales growth above 20%. They set a price target of $700, aligned with previous trading ranges.

Buy at Citi means “Buy (1) ETR of 15% or more.”

Palantir Technologies

What happened?

On Thursday, Baird initiated coverage on Palantir Technologies Inc (NASDAQ:PLTR) at neutral with a $70 price target.

TLDR:

Baird optimistic about Palantir's AI-driven growth but advises caution due to valuation concerns.

Full Story:

Baird expressed optimism about Palantir's growth, citing its AIP platform's boost in commercial growth. They noted a potential for AI applications to drive future value but advised caution due to its strong year-to-date performance and current valuation.

Neutral at Baird means “Expected to perform in line with the broader U.S. equity market over the next 12 months.”

Spotify

What happened?

On Friday, Inderes initiated Spotify Technology SA (NYSE:SPOT) at Reduce with a $470 price target.

TLDR:

Inderes cautious on Spotify valuation despite profitability. Analysts seek better risk/reward.

Full Story:

Inderes noted Spotify's successful transition to profitability and strong user growth, but expressed caution about high current valuation multiples. They indicated that while long-term prospects seem positive, a more favorable risk/reward balance is needed before investment.

Reduce at Inderes means “The expected shareholder return of the share is weak.”