Here’s the biggest voice on Wall Street on Monday: Morgan Stanley launches Onto Innovation as overweight The company said the semiconductor company has upside room versus consensus. “We believe there is room for upside to street estimates as well as multiple reratings for ONTO, a process control SPE (special purpose entity) company driven by three drivers and involved in both the back and front ends…” Needham launches Ceva as acquisition Needham said IP solutions for the semiconductor industry benefit from AI. “We rate coverage on CEVA, Inc. (ticker: CEVA) as Buy, with a price target of $55, representing a P/E of 70x estimated 2027 EPS. ” UBS embarks on acquisition of Jade Biosciences UBS said the biotech company has best-in-class potential. “We also believe the FDA is becoming more amenable to accepting shorter, i.e. 12-month, eGFR kidney function data for full approval, which should help JADE accelerate enrollment in important studies.” JPMorgan establishes Esco Technologies as Overweight JPMorgan said the industrial company offers differentiated services. “We initiate coverage on Esko Technologies (E SE) with an Overweight rating and a December 2027 price target of $420, implying upside potential of ~33% from current levels.” Baird Names Capital One New Contender Baird said the stock has many positive catalysts ahead. “From our perspective, COF stock represents one of the best ideas in our coverage, as market participants continue to focus on the story of potentially weak consumer and increased DFS investment spending, while perhaps overlooking the stock’s pedestrian valuation, COF’s enviable capital position, and earnings flexibility.” Bank of America begins acquisition of TeraWulf The company said Bitcoin miners are also data center beneficiaries. “We initiate coverage of TeraWulf (WULF) with a price target (PO) of $34 and a buy rating based on 9.5x EV/earnings.” Morgan Stanley Upgrades Ferrari from Equal Weight to Overweight Morgan Stanley upgraded the stock and raised its price target from $388 to $438 per share. “We believe this downgrade overestimates the brand risk. Our research shows that Ferrari is intact, outstanding balances have bottomed out, Luce is priced in, and wealth creation and pipeline optionality support a re-rating.” Read more. Citi upgrades Paychex to acquire from neutral position Citi said the company is well-positioned for growth. “Led by the recent spike in booking growth and anniversary/synergies from the Paycor acquisition, we expect PAYX organic revenue growth to accelerate in FY27.” Jefferies upgrades Hawkeye 360 to buy from hold Jefferies said it buys the aerospace company’s dip. “Hawk stock is down 25% since June 1 (-2% vs. S&P) and we upgrade it from Hold to Buy as it now has 43% upside potential against $34 PT.” KeyBank upgrades Rocket Lab and Firefly Aerospace from sector weight to overweight Key said both space stocks are benefiting from SpaceX’s IPO. “There are not enough rockets to meet the demand for spacecraft/satellites that want to go into orbit. Our demand/supply model shows that it will take more than a decade to reach equilibrium. This means that much of the SPCX’s launch capacity will be used internally and Falcon 9 will sink as Starship advances, so Starship will never be fully successful.” This presents an opportunity for future medium-sized launch vehicles (e.g., RKLB’s Neutron, FLY’s EcLise) that could reach tens of billions of dollars in annual revenue over the next few years.” Mr. Ross said the mortgage lender was in a good position and started Better Home and Finance. “We believe Better is structurally positioned to be a low-cost winner as it transitions from a circular, direct-to-consumer mortgage provider to an AI-native origination platform with distribution partners. We believe its unique AI-native Tinman system, strong partnerships with Credit Karma and ChatGPT, and improved unit economics give it a clear advantage over traditional lenders.” TD Cowen Reiterates Buy on Micron TD Cowen raised Micron’s price target from $660 to $1,500 ahead of earnings. “MayQ EPS is expected to be $23 (St. $20) and AugQ $27 (St. $24), broadly in line with the April local survey.” Read more. Citi downgrades Old Dominion from sell-neutral to buy-neutral and C.H. Robinson from buy-neutral to neutral The company downgraded multiple trucking companies on Monday, saying it was already pricing in optimism. “Based on this analysis, we change ODFL to Sell. We also downgrade SAIA, KNX, and CHRW to Neutral, as it is becoming increasingly difficult to identify meaningful upside on fundamentals. With many trucking stocks near all-time highs, we believe the increased optimism is reflected in the stock prices.” ” Goldman Sachs reinstates 3M, Goldman restores coverage of 3M, upgrades 3M, claims its stock is undervalued. “The bottom line is that we see MMM as an interesting self-help story with improved organic growth and potential upside from a debt resolution deal at a cheap valuation.” Goldman Sachs acquires Lincoln International, Goldman says the investment firm is experiencing “robust” growth. “We initiate coverage on independent investment bank (IBank) Lincoln International (L CLN) with a buy rating and a 12-month price target of $27.50, suggesting 12% upside.” Baird Downgrades Roku from Outperform to Neutral on Valuation Baird downgrades Roku. “We are downgrading it to a neutral rating and removing it from Best Ideas. We are moving it to the sidelines given the less attractive risk/reward following recent results.” CLSA launches Coupang with better performance than CLSA said the sell-off in Asian tech companies has gone too far. “In our view, Coupang’s recent corrections following the data breach appear to be overkill.” BTIG initiated its acquisition of ICU Medical, saying the medical technology company was at a “cash flow inflection point.” “We enter coverage on ICU Medical (ICUI) with a buy rating and a price target of $170. ICU Medical is a pure-play infusion therapy company operating in one of the most structurally defensive markets in the healthcare industry.” Canaccord begins acquisition of Twist Biosciences The company said the biotech company has a lot of upside potential. “We are initiating coverage on Twisted Biosciences (TWST) with a buy rating and a 12-month price target of $90.” Compass Point has initiated Brookdale Senior Living as it acquires Compass, saying the senior housing real estate company is firing on all cylinders. “We are launching Brookdale Senior Living (B KD) with Buy at $22 PT…” Melius reiterated NVIDIA, saying NVIDIA is on a “collision course” with Alphabet. “Although AI agents for digital workers are still in their infancy, physical AI will also be huge. This category should be useful in many of the areas we cover, from AI semi to cloud. This category is right in the hands of Nvidia, which has a full-stack infrastructure including software and world models to accelerate enterprise adoption, and will collide with GOOGL.” Truist upgrades Datadog to buy from hold Truist said it expects several positive catalysts to come. “We are upgrading DDOG to Buy. While the rating is consensus, it is foundational work that points to a higher path to differentiating our call. Our recent fieldwork has revealed significant incremental positives.”
