Street Calls of the Week By Investing.com

Investing.com — Here’s your professional summary of Wall Street analysts’ top takeaways over the past week.

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netflix

What happened? On Monday, Loop Capital downgraded Netflix (NASDAQ 🙂 to Hold with a $950 price target.

*TLDR: Netflix is ​​poised to grow; Valuation concerns persist.

What is the full story? Loop summarized that Netflix is ​​exceptionally well positioned and projects more than 30 million new subscribers this year, second only to the pandemic surge of 2020. Revenue is back to growing in the mid-teens and operating margins are expected to increase 600 basis points in 2024, and management has steadily improved its guidance over the past four quarters. A significant increase in subscribers was anticipated in the fourth quarter due to high-profile events such as the Paul/Tyson game and the NFL Christmas games with Beyoncé.

Co-CEO Ted Sarandos expressed strong optimism about the 2025 content lineup, calling it possibly the strongest since original programming began. Despite not increasing its most popular price tier in the United States in almost three years, Netflix remains competitively priced. However, due to historically high valuation multiples, Loop downgraded Netflix to Hold and noted that the stock is close to fair value.

Hold on Loop Capital means “The stock is expected to perform in line with the market or its peer stocks over the next 12 months.”

tesla

What happened? On Tuesday, Mizuho (NYSE 🙂 upgraded Tesla Inc (NASDAQ 🙂 to Outperform with a price target of $515.

*TLDR: Mizuho upgrades Tesla and sees major valuation improvement. The price target was raised to $515.

What is the full story? Mizuho’s upgrade comes amid a wave of idiosyncratic tailwinds over the next four years. Firm notes that easing autonomous driving regulatory frameworks provides further upside in FSD/Robotaxi valuation, new Trump administration policies better position Tesla with lower EV cost structure compared to peers , and TSLA is ready to surpass global light vehicle production with a more cost-effective electric vehicle. roadmap introducing low-cost Model Q/Cybercab in 2026-2027.

Mizuho’s SOTP valuation implied approximately $1.8 trillion for Tesla, with core auto, energy and other segments at around $711 billion, FSD and Robotaxi at $614 billion up by $896 billion. dollars, and humanoid robots at $472 billion with the potential to reach $740 billion. Consequently, Mizuho raised its price target to $515 from $230, aligning with its valuation, driven by a positive recalibration with the new management and FSD/Robotaxi optimism, despite near-term challenges from EU tariffs and repeals of credits for electric vehicles.

Outperforming Mizuho means that “the stock’s total return is expected to exceed the expected, unweighted total return of the analyst’s industry coverage universe over the next 12 months.” “

Financial Citizens

What happened? On Wednesday, raimon (NS:) James double updated Citizens Financial Group Inc (NYSE 🙂 to Strong Buy with a $55 price target.

*TLDR: Raymond James is bullish on CFG, boosting NIM/NII. Profits are expected to increase.

What is the full story? Raymond James reports that headwinds from received-fixed swaps are expected to ease, boosting CFG’s net interest margin (NIM) and net interest income (NII). The firm anticipates an increase in capital markets fees, exceeding current expectations as the environment becomes more favorable for mergers and acquisitions (M&A) and capital raising. The private banking initiative is expected to see an acceleration in profitability, while credit concerns appear benign and metrics are likely to improve due to contraction in rates and a declining contribution from the liquidation book.

As a result, analysts are increasingly bullish on CFG stock, citing the discounted valuation as an attractive entry point for a bank well positioned to improve its profitability and earnings per share (EPS) growth in the future.

Strong Buy on Raymond James means “The security is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six to 12 months. “

Oklo Inc.

What happened? On Thursday, Wedbush listed Oklo Inc (NYSE 🙂) on Outperform with a price target of $26.

*TLDR: Wedbush highlighted Oklo’s strong position. AI-driven demand boosts Oklo’s prospects.

What is the full story? Wedbush noted that Oklo, a Santa Clara-based SMR manufacturer founded in 2013, aimed to develop its first small modular reactor by 2027. Backed by Sam Altman, Oklo’s Aurora microreactor, scalable to 100 MW, will operate for more than 10 years before refueling.

Oklo’s pipeline was 93% ahead of its 2027 deployment plan, with data centers representing a significant portion of its energy according to letters of intent.

Analysts highlighted Oklo’s unique business model to build, own and operate, selling power directly to customers under long-term contracts for recurring revenue and regulatory rationalization. Despite being in the pre-revenue stage, Oklo planned to accelerate additional revenue streams, including recycling, following the acquisition of Atomic Alchemy.

The AI ​​revolution and growing demand for clean energy puts Oklo in a strong position to capitalize on this elevated demand.

Outperforming Wedbush means “expecting the stock’s total return to exceed the average total return of the analyst’s (or analyst team’s) coverage universe over the next 6 to 12 months.

PBF Energy

What happened? On Friday, TD Cowen downgraded PBF Energy Inc (NYSE 🙂 to Sell with a $20 price target.

*TLDR: TD Cowen highlighted PBF’s weak refining performance. Exposure to the west coast is considered a detriment.

What is the full story? TD Cowen noted that PBF has shown poor refining results per barrel compared to its peers over the past 1.5 years, due to its high-cost refining system and weak light/heavy differentials. Analysts noted that PBF’s significant exposure to the West Coast could be detrimental through 2025, given growing imports of renewable diesel and continued destruction of gasoline demand. TDC is pricing PBF based on a 50/50 NPV of FCF through 2026 with a 10% yield and a 6x NPV of EBITDA, with 2026 as the terminal mid-cycle year.

The valuation incorporated spreads $1/bbl lower than the band in 2025, $1/bbl higher in 2026, and normalized spreads between heavy and light. TD Cowen also highlighted that PBF was currently trading at 5.5x EV/EBITDA in 2026, representing changes to capital structure, in line with historical trading range, despite limited FCF generation.

Sell ​​on TD Cowen means “The stock is expected to achieve a total return of -10% or less over the next 12 months.”