Investing.com — Here is your Pro Recap of the top takeaways from Wall Street analysts for 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 for growth; valuation concerns persist.
What’s the full story? Loop summarized that Netflix is exceptionally well-positioned, projecting over 30M new subscribers this year, second only to the 2020 pandemic surge. Revenue returned to mid-teen growth, and operating margins are expected to rise by 600bps in 2024, with management consistently upgrading guidance over the past four quarters. A significant Q4 subscriber increase was anticipated due to high-profile events like the Paul/Tyson match and NFL Christmas games featuring Beyoncé.
Co-CEO Ted Sarandos expressed strong optimism about the 2025 content lineup, calling it possibly their strongest since starting original programming. Despite not raising its most popular U.S. pricing tier in almost three years, Netflix remains competitively priced. However, due to historically high valuation multiples, Loop cut Netflix to Hold noting shares are near fair value.
Hold at 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 $515 price target.
*TLDR: Mizuho upgrades Tesla, sees significant valuation upside. Price target raised to $515.
What’s the full story? Mizuho’s upgrade comes on the wave of idiosyncratic tailwinds over the coming four years. The firm notes that loosening Autonomous Driving regulatory frameworks provide more FSD/Robotaxi valuation upside, the new Trump administration policies position Tesla better with a lower EV cost structure compared to peers, and TSLA is set to outgrow global light vehicle production with a more profitable EV roadmap featuring the low-cost Model Q/Cybercab in 2026-2027.
Mizuho’s SOTP valuation implied approximately $1.8 trillion for Tesla, with core autos, energy, and other segments at around $711 billion, FSD and Robotaxi at $614 billion with upside to $896 billion, and humanoid robots at $472 billion with potential to reach $740 billion. Consequently, Mizuho raised its price target to $515 from $230, aligning with its valuation, driven by positive recalibration with the new administration and FSD/Robotaxi optimism, despite near-term challenges from EU tariffs and EV credit repeals.
Outperform at Mizuho means “The stock’s total return is expected to outperform the unweighted, expected total return of the analyst’s industry coverage universe over the next 12 months. “
Citizens Financial
What happened? On Wednesday, Raymond (NS:) James double upgraded Citizens Financial Group Inc (NYSE:) to Strong Buy with a $55 price target.
*TLDR: Raymond James bullish on CFG, boosting NIM/NII. Profits expected to rise.
What’s the full story? Raymond James reports that headwinds from received-fixed swaps are expected to subside, boosting CFG’s net interest margin (NIM) and net interest income (NII). The firm anticipates an increase in capital markets fees, outperforming current expectations as the environment becomes more favorable for mergers and acquisitions (M&A) and capital raising. The private banking initiative is projected to see accelerating profitability, while credit concerns appear benign with metrics likely to improve due to contracting rates and a declining contribution from the run-off portfolio.
As a result, the analysts are incrementally bullish on CFG shares, citing the discounted valuation as an attractive entry point for a bank well-positioned to improve its profitability and earnings per share (EPS) growth going forward.
Strong Buy at 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 initiated Oklo Inc (NYSE:) at Outperform with a $26 price target.
*TLDR: Wedbush highlighted Oklo’s strong position. AI-driven demand boosts Oklo’s prospects.
What’s 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 100MW, will operate for over 10 years before refueling.
Oklo’s project pipeline was 93% ahead of its 2027 deployment plan, with data centers accounting for a significant portion of its power under letters of intent.
The analysts highlighted Oklo’s unique build, own, and operate business model, selling power directly to customers under long-term contracts for recurring revenues and regulatory streamlining. Despite being in the pre-revenue stage, Oklo planned to accelerate additional revenue streams, including recycling, following its acquisition of Atomic Alchemy.
The AI revolution and growing demand for clean energy put Oklo in a strong position to capitalize on this elevated demand.
Outperform at Wedbush means “Expect the total return of the stock to outperform relative to the median total return of the analyst’s (or the analyst’s team) coverage universe over the next 6-12 months.
PBF Energy
What happened? On Friday, TD Cowen downgraded PBF Energy Inc (NYSE:) to Sell with a $20 price target.
*TLDR: TD Cowen noted PBF’s weak refining performance. West Coast exposure viewed as a detriment.
What’s the full story? TD Cowen noted that PBF has shown peer-low refining results per barrel over the past 1.5 years, due to its high-cost refining system and weak light/heavy differentials. The analysts noted that PBF’s significant West Coast exposure could be a detriment through 2025, given increasing renewable diesel imports and continued gasoline demand destruction. TDC is valuing PBF based on a 50/50 NPV of FCF to 2026 at a 10% yield and NPV of EBITDA at 6x, with 2026 as a terminal mid-cycle year.
The valuation incorporated $1/bbl lower cracks than the strip in 2025, $1/bbl higher in 2026, and normalized heavy/light differentials. TD Cowen also highlighted that PBF was currently trading at 5.5x EV/EBITDA in 2026, accounting for changes in capital structure, consistent with the historical trading range, despite limited FCF generation.
Sell at TD Cowen means “The stock is expected to achieve a total return of -10% or below over the next 12 months.”
