Wednesday’s Analyst Calls: Citigroup Upgrade, Goldman Downgrades Charles Schwab


Banks and fintech stocks were the focus of Wednesday’s analyst calls, with Citigroup receiving an upgrade and Charles Schwab being downgraded by Goldman Sachs.

Wolfe Research Upgrades Citigroup and Names JPMorgan Chase a Top Pick

Wolfe Research raised its rating on Citigroup and named JPMorgan Chase a top pick, citing greater net interest income resiliency for both banks under its base case scenario.

Goldman Sachs Initiates Coverage of Nio

Goldman Sachs initiated coverage of Nio, citing early mover advantages and forecasting strong revenue growth mainly driven by volume growth, despite Nio losing market share in China’s NEV market.

Mizuho Securities Names First Solar a Top Renewable Energy Pick

Mizuho Securities named First Solar a top renewable energy pick with a buy rating, expecting resilient earnings due to locked-in volumes and average selling prices, and limited vertically integrated manufacturing capacity in the Western world.

Bernstein Sees Difficult Setup Ahead for Tesla

Bernstein expects a tough year for Tesla, anticipating lower margins, disappointing volumes, and a potential plunge of nearly 40% in its stock, driven by concerns over demand elasticity and market penetration.

KeyBanc Upgrades Verizon to Overweight

KeyBanc Capital Markets upgraded Verizon to overweight, reflecting optimism on the wireless industry and Verizon’s potential to show better postpaid phone net add performance, leading to a potential 15.7% jump in shares.

Goldman Forecasts Apple to Benefit from 2024 PC Demand Recovery

Goldman Sachs forecasts Apple to benefit from a recovery in industry PC demand in 2024, emphasizing the stock’s quality compounded with its strong track record of share gains.

Goldman Downgrades Charles Schwab on Lower Rate Outlook

Goldman Sachs downgraded Charles Schwab to neutral from buy, citing the stock’s valuation not capturing the earnings risk re-introduced by expected interest rate cuts in 2024.

KBW Cautious on Sofi Technologies

Keefe, Bruyette & Woods expressed caution on Sofi Technologies, expecting a potential loss of more than 30% due to slowing origination growth, sluggish growth in the technology segment, and limited profitability.