(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A major U.S. bank and a legacy tech name were the focus of some of Tuesday’s biggest analyst calls. Compass Point downgraded Wells Fargo to neutral after a strong start to 2024. On a more positive note, Morgan Stanley resumed coverage of Cisco Systems with an overweight rating, calling for solid gains ahead. Check out the latest calls and chatter below. All times ET. 6:15 a.m.: Goldman Sachs cuts Tesla price target and estimates Goldman Sachs is trimming its forecasts on Tesla after the company missed Wall Street estimates for first-quarter deliveries. The firm reiterated a neutral rating on the electric vehicle stock and lowered its price target to $175 per share from $190, or about 1.1% upside from Monday’s $172.98. Goldman also cut its 2024, 2025 and 2026 earnings per share forecast to $1.90, $3.25 and $4.45 from $2.15, $3.80 and $5. “We maintain our Neutral rating on the stock, with our positive view of Tesla’s long-term growth potential and position in the market offset by what we believe is full valuation and weaker near-term fundamentals,” analyst Mark Delaney said. “Key downside risks to our view relate to potentially larger vehicle price reductions than we expect, increased competition in EVs, delays with products/capabilities like FSD [full self-driving]/the third generation platform/4680, key person risk, the internal control environment, margins, and operational risks associated with Tesla’s high degree of vertical integration,” he added. Tesla shares have struggled in 2024, dropping 30.4%. That makes them the second worst-performing S & P 500 stock for the year. — Brian Evans 5:52 a.m.: Morgan Stanley says Cisco will jump 20% Morgan Stanley sees ‘too much value to remain on the sidelines’ on Cisco Systems , as shares trade at a steep discount compared to the S & P 500. The firm resumed coverage of the legacy tech company with an overweight rating and a $58 per share price target. Morgan Stanley’s forecast implies more than 20% upside from Monday’s close. “Given end-market growth, we see Cisco with double digit overall shareholder return potential, making valuation discount too harsh,” analyst said. Marshall’s bull case, which takes shares to $72, is supported by stronger growth thanks to Cisco’s acquisition of software company Splunk in March. “On paper, there is a lot that Splunk could do to shore up the observability and security portfolios of Cisco, and initial checks are relatively positive,” the analyst added. Cisco has pulled back roughly 5% in 2024. — Brian Evans 5:52 a.m.: Compass Point downgrades Wells Fargo It’s time to book profits on shares of Wells Fargo, according to research firm Compass Point. Analyst David Rochester downgraded the U.S. banking giant to neutral from buy. He reiterated his $64 price target on the stock, implying upside of 10.7%. Wells Fargo shares have been on fire in 2024, surging 17.4%. Over the past year, the stock has popped more than 52%. WFC YTD mountain WFC year to date “While we continue to see a number of key potential positives to the story over the next year … we see the valuation as reflecting these catalysts much more appropriately currently following the material relative strength in the shares YTD, and the risk/reward as more balanced over the next year as we finally move into a period of declining interest rates in 2H24/1H25,” Rochester said. Additionally, he sees “greater risk to the achievement of our price target as the Fed rate cutting cycle begin.” Shares were flat in the premarket following the downgrade. — Fred Imbert
