Here are Thursday's biggest analyst calls: Nvidia, Tesla, Salesforce, AppLovin, Broadcom, Netflix, Southwest & more

Analyst ratings and price target adjustments reflect varied outlooks across sectors: Salesforce faces downgrades from RBC due to the Informatica acquisition, while Bank of America remains bullish on its market position; AppLovin gains favor at Citi, potentially joining the S&P 500; and Deutsche Bank expresses confidence in Broadcom and GE Aerospace, raising GE's price target ahead of its investor day, while Jefferies takes a more cautious stance on GE Vernova. Other notable calls include downgrades for Aspen Aerogels, Starbucks, and Cleveland-Cliffs, and upgrades for Southwest, Clarivate, and Tenet Healthcare, indicating shifting sentiments based on company-specific developments and broader market conditions.

Analysis

Wall Street analysts present a varied outlook across several key sectors, with notable divergence on Salesforce (CRM); RBC downgraded CRM to Sector Perform, cutting its price target significantly to $275 from $420 due to the $8 billion Informatica acquisition, while Bank of America maintained a Buy, emphasizing CRM's position in a $200 billion market. Confidence remains high for select technology and semiconductor firms: Citi designated AppLovin (APP) a Top Pick, anticipating S&P 500 inclusion by June 2025 and revenue acceleration from new tools, Bank of America reiterated Nvidia (NVDA) as a Top Pick with a price target increase to $180, and Deutsche Bank expressed bullishness on Broadcom (AVGO) ahead of earnings, highlighting AI growth and VMWare synergies. In industrials, GE Aerospace (GE) saw its price target raised to $300 by Deutsche Bank with expectations of upward guidance revisions, whereas GE Vernova (GEV) was downgraded by Jefferies on valuation concerns. Significant downgrades affected Aspen Aerogels (ASPN), with Barclays citing EV tax credit phase-outs and a 20% cut to its 2026E EBITDA, Starbucks (SBUX), downgraded by TD Cowen due to "deteriorating value perceptions" and labor cost impacts, and Cleveland-Cliffs (CLF), downgraded by Jefferies following a less favorable US steel outlook. Conversely, upgrades included Southwest (LUV) by Deutsche Bank, driven by board changes and strategic growth initiatives, and Tenet Healthcare (THC) by Wells Fargo, praising its portfolio rationalization and USPI growth strategy.

Key Decisions for Investors

• Investors should critically assess the strategic rationale and financial implications of Salesforce's $8 billion Informatica acquisition, given the divergent analyst views and RBC's material price target reduction from $420 to $275.
• Consider overweighting exposure to semiconductor firms like Nvidia and Broadcom, which are benefiting from strong AI-driven demand and market expansion, while exercising caution with companies like Aspen Aerogels facing headwinds from shifts in EV subsidies and GM's EV production slowdown.
• Monitor valuation levels even for companies with positive operational narratives, as exemplified by GE Vernova's downgrade by Jefferies, and identify potential catalysts such as AppLovin's prospective S&P 500 inclusion or GE Aerospace's upcoming investor day for guidance updates.
• Re-evaluate holdings in companies like Starbucks, where TD Cowen cited concerns about "deteriorating value perceptions" and unconsidered labor investments, and Cleveland-Cliffs, which Jefferies noted is most leveraged to a less positive US steel pricing outlook.