Wall Street firms lift calls on Nvidia, Airbnb and SpaceX in broad Friday ratings wave

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Highlights

Morgan Stanley names Nvidia a top pick, citing strengths amid land, power, financing and component constraints favoring its AI and data center positioning.
KeyBanc upgrades Airbnb to overweight on durable core growth, emerging hotel revenue, and accelerating benefits from artificial intelligence adoption.
RBC downgrades Northrop Grumman to sector weight and lowers its price target due to a more cautious outlook for defense sector demand.

Friday analyst actions across sectors

As reported by CNBC, major Wall Street firms are publishing a wide range of research calls on Friday, spanning asset managers, chipmakers, banks, consumer platforms and defense contractors.

Among the most prominent moves, Morgan Stanley names Nvidia a top pick and says recent developments in land, power, financing and component constraints play to the company’s strengths. KeyBanc upgrades Airbnb to overweight, arguing that core growth remains durable, hotels are becoming a second growth engine and the company stands to benefit from artificial intelligence.

Wells Fargo initiates BlackRock as overweight, calling the asset manager an industry leader with accelerating operational momentum, and also starts Interactive Brokers and Design Therapeutics at overweight. Evercore ISI reiterates SpaceX as outperform, saying the company’s broader AI story remains underappreciated, while Bank of America reiterates Apple as buy after citing year-over-year App Store revenue growth based on SensorTower developer revenue data.

Other positive calls include RBC initiations on Allegro Microsystems and Onto Innovation at outperform, JPMorgan initiations on Graham Corp. and Sable Offshore at overweight, and Daiwa’s upgrade of Hewlett Packard Enterprise to outperform from neutral after a networking investor event in California. Citi reiterates buy ratings on Netflix and Strategy, while Bernstein initiates Forgent Power Solutions at outperform and reiterates Nike at outperform after its earnings release.

Sector implications and notable shifts

Several of the calls point to continued investor focus on AI infrastructure, semiconductors and digital platforms, with Nvidia, Allegro Microsystems, Onto Innovation and Hewlett Packard Enterprise all tied to themes around data centers, networking or chip demand. Analysts also highlight company-specific catalysts such as margin expansion at Graham Corp., earnings upside at Alerus Financial and product momentum at Airbnb.

In healthcare and biotech, Needham initiates LB Pharmaceuticals at buy, Morgan Stanley starts Enliven Therapeutics at overweight and Rothschild & Co Redburn upgrades Abbott Laboratories to buy on improved visibility in medical devices. Consumer and industrial names also see support, including Roth’s buy initiation on Suja Life and RBC’s upgrade of Arxis to outperform on potential merger and acquisition upside.

Not every move is positive. RBC downgrades Northrop Grumman to sector weight from overweight and cuts its price target, citing a more cautious view on the defense backdrop. That downgrade stands out against a session otherwise dominated by upbeat recommendations and buy-the-dip arguments, including Mizuho’s upgrade of Arko Petroleum and Freedom Capital’s upgrade of Cerebras.

In our earlier article on U.S. equity and bond fund flows through September 30, we noted that investor appetite for stocks stayed resilient as AI optimism helped offset concerns about elevated Treasury yields. The report highlighted continued net inflows into U.S. equity and bond funds, alongside notable outflows from sector funds—especially technology—and sizeable money market redemptions as investors adjusted cash allocations.

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