Analysts’ ratings are shifting, major stock upgrades and downgrades—Apple now leads Citi’s AI picks, Tesla sees a new buy rating, and Foot Locker gets a positive outlook. How will these changes impact your portfolio?
Apple (NASDAQ: AAPL): Citi has now placed Apple as its top AI pick going into 2025, ahead of Nvidia and Arista Networks. The upcoming iPhone 16 launch on September 9 is expected to showcase significant AI-driven features, driving further optimism. This upgrade comes as Apple shares have surged by 38% since April 19, primarily fueled by AI enthusiasm.
J.M. Smucker (NYSE: SJM): Citi has lowered its price target for J.M. Smucker from $138 to $136, citing “uneven messaging” from management. The stock has already taken a hit, falling 5% after the company reduced its full-year earnings guidance to $9.60-$10 per share, down from the previous estimate of $9.80-$10.20 per share.
Foot Locker (NYSE: FL): Barclays has upgraded Foot Locker to a “buy” rating from “hold.” The analysts believe the retailer is beginning to see a fundamental recovery that could lead to earnings and margin growth over the next 12 to 18 months. This marks a positive shift for Foot Locker, which has faced challenges in recent years.
Tesla (NASDAQ: TSLA): William Blair has initiated coverage of Tesla with a “buy” rating, highlighting the underappreciated potential of Tesla Energy. The firm emphasized the significance of Tesla’s energy storage products, such as the Megapack and Powerwall, which could become more prominent as the demand for electric vehicles stabilizes.
Abercrombie & Fitch (NYSE: ANF): JPMorgan has added Abercrombie & Fitch to its “analyst focus list” following a significant pullback in its stock price after the retailer reported strong quarterly earnings. Despite a 17% drop in share price due to concerns about an “increasingly uncertain environment,” the firm maintains its overweight rating with a $194 price target.
These updates reflect the dynamic nature of the market as analysts adjust their expectations in response to evolving business strategies and market conditions.
