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What has Wall Street been buzzing about this week? Here are the top 5 buy calls and the top 5 sell calls made by Wall Street's best analysts during the trading week of Sept. 30-Oct. 4, 2024. First, here are the top 5 buy calls of the week.

1. Meta Platforms Initiated With a Buy at Pivotal Research

Pivotal Research initiated coverage of Meta Platforms (META) with a Buy rating and a $780 price target. Meta is the dominant social media company in the world with 3.3 billion daily active users, the firm tells investors in a research note.

Pivotal Research sees a "strong" revenue growth outlook from increased usage, new products, better targeting, and higher prices, boosted by cost efficiencies and eventually materially declining Reality Labs losses combined "with what appears to be an attractive valuation."

2. Alphabet Initiated With a Buy at Pivotal Research

Pivotal Research initiated coverage of Alphabet (GOOG) with a Buy rating and a $215 price target.

If "the status quo holds," Alphabet appears to be in a "very strong competitive position with a deep moat" around its dominant core search business model, and an "obvious path" to leverage its global device presence, strong artificial intelligence platform, and "financial might" to increase financial incentives to handset manufacturers for default AI placement, the firm tells investors in a research note.

3. Seaport Upgrades Disney to Buy on Better Macroeconomic Outlook

Seaport Research upgraded Disney (DIS) to Buy from Neutral with a price target of $108. The firm cites "better macroeconomic underpinnings to the story" for the upgrade. Seaport sees a better macroeconomic outlook going forward and says investment sentiment on Disney is "seemingly willing to accept the current state" of the Parks demand and emergent direct-to-consumer profits "as a base from which to build."

Soft Parks data is likely temporary, and Disney+ profitability is "getting the benefit of the doubt," with recent price increases and paid sharing announcements possibly supporting further average revenue per user and subscriber growth, Seaport tells investors in a research note.

4. Gordon Haskett Upgrades Home Depot to Buy with Trends Bottoming

Gordon Haskett upgraded Home Depot (HD) to Buy from Accumulate with a $450 price target. The firm says that while its survey results suggest home improvement demand remains subdued, trends may be bottoming as interest and mortgage rates are nearing the point where respondents indicate a greater interest in reengaging in the category.

"It is very plausible that Home Improvement demand will show signs of life beginning next year," the firm tells investors in a research note. As such, Gordon Haskett finds it appropriate to increase its exposure to the home improvement vertical. Trends are not getting any worse, and the recent cut in interest rates "should be a catalyst to drive higher engagement," Gordon Haskett predicts.

5. Ford Upgraded to Buy at Goldman Sachs

Goldman Sachs upgraded Ford (F) to Buy from Neutral with a price target of $13, up from $12. There is a margin opportunity driven by the company's more profitable commercial business - Ford Pro, with mid-teens EBIT margins - and growing software and services mix, and the management's cost actions in internal combustion vehicles and EVs can help to offset industry headwinds, the firm tells investors in a research note.

The stock is down 13% year-to-date driven by cyclical concerns and higher-than-expected warranty costs in the first half of the year, and it is now trading at just 5-times the firm's expected next-12-month's EPS estimate, which is at the lower-end of the historical range of 5- to 10-times, Goldman Sachs added.

Next, here are the top 5 sell calls of the week.

1. Charter Downgraded to Underperform at Wolfe Research

Wolfe Research downgraded Charter (CHTR) to Underperform from Peer Perform with a $300 price target.

The "march to convergence is accelerating," evidenced by Verizon's (VZ) acquisition of Frontier (FYBR), T-Mobile's (TMUS) sharply raised fiber, and FWA targets and AT&T's (T) discussion of passing 45 million locations, the firm tells investors. Wolfe also reduced its 2030 industry cable sub forecasts by another 3 million, or 4%, and reflects more caution in its mid-term ARPU and margin forecasts.

2. Booz Allen Downgraded to Underweight at JPMorgan

JPMorgan downgraded Booz Allen (BAH) to Underweight from Neutral with a price target of $158, up from $154. The company has had "several quarters of exceptional growth," but that growth will normalize at a somewhat lower level, the firm tells investors in a research note.

JPMorgan views this as a potential challenge for Booz Allen's relative valuation. The firm further thinks the bar is high for the company and that the stock "could be particularly vulnerable to any indications of decelerating growth."

3. ChargePoint Downgraded to Underweight from Overweight at JPMorgan

JPMorgan double downgraded ChargePoint (CHPT) to Underweight from Overweight without a price target. The firm expects ChargePoint will continue underperforming charging peers due to its dependence on a rebound in electric vehicle adoption. Commercial customers have slowed discretionary charger purchases and fleet customers remain vehicle-constrained, JPMorgan tells investors in a research note.

The firm believes investor sentiment remains negative given concerns around ChargePoint's ability to demonstrate a sustainable profitability model that is not reliant only on cost savings from offshoring manufacturing to Asia. It notes ChargePoint's 2024 profitability target has already been delayed due to lack of visibility.

4. British American Downgraded to Underweight from Overweight at Morgan Stanley

Morgan Stanley double downgraded British American Tobacco (BTI) to Underweight from Overweight with a $33 price target. The firm is more skeptical on the company's next-generation-product growth.

Morgan Stanley no longer sees British American benefiting near-term from transitioning smokers, given the lack of regulatory enforcement against illicit disposable e-cigarettes. This will result in low-single-digit percentage declines to the company's U.S. business in fiscal 2025 and 2026, the firm tells investors in a research note.

5. Wolfspeed Downgraded to Underperform at Mizuho

Mizuho downgraded Wolfspeed (WOLF) to Underperform from Neutral with a price target of $8, down from $17. The firm is citing slower expected global EV sales in the second half of 2024 and 2025, with IHS now estimating EV sales growing just 6% in 2024 after calling for growth of 33% in January. Increasing China SiC supply up by another 50%-100% also poses a structural headwind to SiC pricing and margins, Mizuho added.

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