Investing.com – Here’s a summary of the key takeaways from Wall Street analysts over the past week.

InvestingPro subscribers always get first dibs on market-moving AI analysts. Upgrade today!

Apple

What happened? On Monday, MoffettNathanson kicked off Apple (NASDAQ:) at Neutral with a price target of $211.

*In short: MoffettNathanson questions whether Apple’s valuation is too high and/or above fair value. The firm also has concerns about Apple’s AI potential, noting that there is “unclear data around adoption in Greater China and potential regulatory challenges.”

What is the real situation? Analysts at MoffettNathanson question whether Apple’s valuation is too high, noting that the stock price reflects an iPhone upgrade cycle that is expected to be significantly larger than the 2021/22 5G cycle. They express skepticism about this assumption, highlighting the overlooked regulatory risks associated with Apple’s contract with Google (NASDAQ:) for the default search position. While the company expects Apple to execute well on its strategy, they believe the market has already priced in this expectation. The key question remains whether the expected upgrade cycle driven by Apple Intelligence will be larger or smaller than expected.

The firm also has concerns about Apple’s future outside of AI, including unclear data on Apple’s adoption in Greater China and potential regulatory challenges that could impact Apple’s competitiveness. Despite a positive bias toward Apple’s AI strategy, MoffettNathanson concludes that current valuations suggest the market has already factored these factors in. They recommend waiting for a shock to market confidence before making further investments.

Neutral at MoffettNathanson means “Neutral recommendations are typically within 15% of fair value.”

AMD

What happened? On Tuesday, Edward Jones initiated coverage of Advanced Micro Devices (NASDAQ:) at Buy with no price target. AMD was also added to Edward Jones Stock Focus List

*In short: Analysts at Edward Jones believe AMD will see significant growth from rising demand for data center infrastructure and the integration of Xilinx’s programmable chip products, with a potential $10 billion opportunity. The firm also highlights that the recovering PC market, driven by AI-enabled PCs, could lead to continued growth, which is not yet fully reflected in AMD’s current stock price.

What is the real situation? Analysts at Edward Jones believe AMD is poised for significant growth due to several key factors. Increasing demand for data center infrastructure is expected to boost sales of AMD’s chips, particularly GPUs and CPUs. Additionally, the acquisition of Xilinx (NASDAQ: ) has introduced new programmable chip products and expanded AMD’s market reach. The analysts suggest AMD is still in the early stages of integrating and cross-selling Xilinx and AMD products, with management estimating that this opportunity could be worth up to $10 billion.

Additionally, the analysts point out that the PC market, which has started to recover, could see continued growth driven by AI-enabled PCs, potentially leading to a longer upgrade cycle. They argue that this optimism is not yet fully reflected in AMD’s current stock price, suggesting potential for further appreciation.

Buying from Edward Jones means: “We believe the valuation is attractive and the total return potential is above average relative to peers over the next 3-5 years.”

BrightView Holdings

What happened? Jefferies on Wednesday upgraded BrightView Holdings (NYSE:) to Buy with a $17 price target.

*In short: Jefferies upgrades BV to Buy from Hold, expects low single-digit revenue growth and record margins, driven by new CEO leadership and significant progress over the past 10 months. The brokerage expects margins to expand from ~11% in FY23 to over 13%, supported by cost savings, profitable growth and improved client and employee retention.

What is the real situation? Jefferies has upgraded BrightView to Buy from Hold, anticipating a return to low-single-digit percentage revenue growth and record-breaking margins. This optimism is driven by the leadership of a new CEO with an exceptional track record, who has made significant progress at BV over the past 10 months. The brokerage expects margins to expand from around 11% in FY2023 to over 13%, supported by the company’s focus on cost savings, profitable growth, and improved customer and employee retention.

The brokerage’s confidence in BV’s future performance is bolstered by the improved management team and strategic initiatives implemented under the new CEO. These efforts are expected to drive both revenue growth and margin expansion, positioning BV for strong financial performance in the years ahead.

Buy at Jefferies means: “Describes securities that we expect to deliver a total return (price appreciation plus yield) of 15% or more within a 12-month period.”

Crocodiles

What happened? On Thursday, Williams Trading upgraded Crocs (NASDAQ:) to Buy with a $163 price target.

*In short: Sidney Sweeney’s role as brand ambassador will attract younger consumers and increase HEYDUDE’s visibility, helping to boost FY24 and FY25 revenue estimates to $873 million, despite forecasts of an 8%-10% decline. The analysts emphasize a “clean marketplace” and “data-driven allocation choices” for Crocs/HEYDUDE to pressure rivals like VANS.

What is the real situation? The research team believes the addition of Sidney Sweeney as brand ambassador/global spokesperson will attract younger consumers and bring much-needed attention to the HEYDUDE brand. Williams Trading expects the agreement with Sweeney to last through at least 2025. As a result, the research team has increased their FY24 and FY25 revenue estimates for HEYDUDE from $859.5 million to $873 million, despite guidance calling for an 8% to 10% decline in FY24 revenue. They believe Crocs’ history of long-term brand marketing that delivers positive results in the short term will begin to manifest itself with HEYDUDE.

The analysts emphasize the importance of maintaining a clean marketplace and implementing a pull model for both Crocs and HEYDUDE. They stress the need for sales and merchandise teams to fully embrace data analytics for allocation and distribution decisions and to stop MAP holidays within core styles and silhouettes. Looking at the spring ’25 product lineup, the team notes that offerings are becoming increasingly focused for both brands. New products like the Crocs Echo Wave Mule and Echo Surge Sneaker, along with the return of the Bae platform clog, are expected to perform well. The introduction of the Wally and Wendy Comf and updated styles from HEYDUDE show promise, provided demand is carefully planned and allocated correctly. The increased focus on HEYDUDE could put further pressure on competitors like Vans and other canvas casual footwear brands in the near term.

Buying from Williams Trading means that “the stock’s total return (price appreciation plus dividend yield) is expected to be greater than 15% over the next 12-month investment horizon.”

Roku

What happened? On Friday, Guggenheim upgraded Roku Inc (NASDAQ:) to Buy with a price target of $75

*In short: Monetization improves. Investors are likely to realize management’s efforts to improve ad sales.

What is the real situation? Guggenheim expects investor enthusiasm for Roku to grow ahead of its third-quarter earnings in November as the company makes progress on broadening video inventory ad sales via third-party demand-driven platforms and improving home screen monetization. These progress are expected to reinforce confidence in Roku as a unique top-line acceleration story in 2025. The broker’s revised rating reflects ahead-of-consensus financial estimates for 2024 and 2025, and an attractive relative valuation based on a 15% normalized OIBDA margin, which it believes the company will achieve through revenue growth and cost management.

Despite concerns about Roku’s sluggish leadership response in the connected TV market and competitive pressure in advertising and CTV, Guggenheim believes that strengthened monetization and leadership execution by Roku Media President Charlie Collier and CFO Dan Jedda should drive growth and disciplined performance over the next three to six months. This is expected to further fuel investor enthusiasm and better position the company for long-term outperformance.

Buy at Guggenheim means: “Describes stocks that we expect to deliver a total return (price appreciation plus yield) of 10% or more within a 12-month period.”