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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 Oct. 2-6. First, let's start with the top 5 buy calls of the week.

Rivian Automotive Upgraded to Outperform at Evercore ISI Ahead of "Round 2"

Evercore ISI upgraded Rivian Automotive (RIVN) to Outperform from In Line with a price target of $35, up from $30.

"Who is the next Tesla?" This is the "simple, yet vexing, question constantly asked by investors," the firm stated. While Evercore "hates that question," the firm posits that "a better question would be" to ask what are the key similarities that have made Tesla and BYD responsible for greater than 40% of global NEV sales, and concludes that the answers include brand, scale economics, and vertical integration.

In that context, the firm argues that outside of Tesla (TSLA) and BYD (BYDDY), Rivian is "the only OEM showing increased evidence" of meeting all three criteria. Of the three criteria, the two the firm focused on for its upgrade are escape brand velocity of R1S, with the R2 to further expand with an SUV, and a path to 15%-20% gross margins, says Evercore, which further notes that the company has executed on both cost and delivery targets.

The firm, which sees the R1 plus R2 setting up Rivian's "round 2," would be buyers at current levels and expects "solid" production and deliveries to be reported for Q3.

Nvidia Upgraded to Conviction Buy from Buy at Goldman Sachs

Goldman Sachs added Nvidia (NVDA) to the firm's Conviction List and keeps a Buy rating on the shares with a $605 price target. The firm expects the company to maintain its status as the accelerated computing industry standard for the foreseeable future, given its competitive moat and the urgency with which customers are developing and deploying increasingly complex artificial intelligence models.

Susquehanna Upgrades FedEx on Long-Term Upside Opportunity

Susquehanna recently upgraded their outlook for FedEx (FDX) from Neutral to Positive.

Susquehanna's look at 25 years of FedEx volumes versus share performance suggests investors buying the volume declines seen in recent quarters typically do well over the next 12 months on both an absolute and market-relative basis. Susquehanna adds that the company's fiscal 2024 guidance fully absorbs both the return of incentive comp and the unwind of pandemic pricing in international export parcel.

HP Inc. Double Upgraded to Buy at BofA with Free Cash Flow Bottoming

BofA upgraded HP Inc. (HPQ) to Buy from Underperform with a price target of $33, up from $25, based on its expectation of the company achieving a bottom in free cash flow in FY23 and driving subsequent growth from an improving PC outlook and lower restructuring costs.

The firm forecasts growth in overall operating profit through a combination of print projects such as large tanks, instant ink, graphics, and 3D printing, and tight cost controls. The firm foresees the resumption of capital return as free cash flow normalizes.

Johnson & Johnson Initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Johnson & Johnson (JNJ) with an Outperform rating and a $178 price target. The company has unlocked potential with its value-accretive consumer separation earlier this year, positioning it uniquely as the only global healthcare company with Pharma and MedTech under a single portfolio, the firm tells investors in a research note.

The exclusive focus on innovation and enhanced productivity creates an opportunity for higher revenue and margins while still leaving room for Johnson & Johnson to monetize its retained 9.5% stake in the consumer asset, the firm states. RBC further adds that Johnson & Johnson shares are attractively valued with 1.5- to 2.0-times leverage to EPS while returning 60% of free cash flow to shareholders.

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

WK Kellogg Initiated with a Sell at Goldman Sachs

Goldman Sachs initiated coverage of WK Kellogg (KLG) with a Sell rating and a price target of $11 after the completed separation of Kellogg's North American cereal business. There is a meaningful margin expansion opportunity for the company, as it appears to be under-earning its potential based on various benchmarking measures, the firm tells investors in a research note.

Goldman adds, however, that while it sees near-term margin expansion potential on favorable input costs, the company's productivity programs are likely to be back-end weighted in FY26 and partially predicated on a manufacturing network rationalization that is currently impeded by the plant closure moratorium that it entered into with its unions in late 2021.

B&G Foods Downgraded to Underweight at Piper as Retail Sales Trends Lag

Piper Sandler downgraded B&G Foods (BGS) to Underweight from Neutral with a price target of $8, down from $14, telling investors that U.S. measured retail sales trends are running behind its expectations for Q3. The firm recognizes the company faces EPS dilution from higher interest expense and share count dilution, Piper tells investors.

Carrier Global Downgraded to Underperform from Neutral at BofA

BofA downgraded Carrier Global (CARR) to Underperform from Neutral with a price target of $55, down from $62. The firm cites the valuation re-rating that has already been seen post the Viessmann deal announcement, increasingly negative datapoints on Europe's heat pump demand, and concerns about the U.S. commercial HVAC market as reasons for the downgrade.

Bread Financial Downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs downgraded Bread Financial (BFH) to Sell from Neutral with a price target of $32, down from $44. The company's pretax pre-provision earnings could be softer than expected, and the focus is likely to be on the trajectory of its credit losses, which could be elevated into 2024 and lead to downside to consensus estimates, the firm tells investors in a research note. Goldman sees Bread's earnings per share down to $6.50 in 2024.

Zebra Technologies Initiated with an Underperform at Exane BNP Paribas

Bearish on the name, Exane BNP Paribas initiated coverage of Zebra Technologies (ZBRA) with an Underperform rating and $183 price target.

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