Analysts downgrade Tesla and AMD, name Salesforce top pick for 2025

by MarketNewsData

From Investing.com: 2025-01-12 03:53:33

This week, BofA downgraded Tesla to Neutral but raised the price target to $490, citing high execution risks. Analysts see Tesla’s robotaxi service as a huge opportunity, potentially worth $420 billion in the US alone. BofA projects significant growth for Tesla’s Full Self-Driving technology, with potential catalysts including a low-cost model launch and robotaxi rollout by 2025.

HSBC downgraded AMD to Reduce from Buy, slashing the price target to $110. Concerns over AMD’s AI GPU roadmap and competition with Nvidia led to the downgrade. HSBC expects challenges for AMD in the AI GPU market and lowered revenue projections for FY25. The downgrade also reflects worries about AMD’s slowing momentum in client business.

Needham & Company named Salesforce its top pick for 2025, raising the price target to $400. The firm is optimistic about Salesforce’s Agentforce strategy and strong AI focus. Salesforce’s AI-driven sales reps are expected to boost bookings in the second half of the year. Needham sees Salesforce’s valuation as attractive, trading at 24x FY26 free cash flow estimates.

Evercore ISI believes 2025 will be the pivotal year for widespread AI adoption. While enthusiasm for AI is high, actual implementation has lagged. AI capabilities have advanced significantly, moving beyond chatbots to automating complex tasks. Evercore sees key players in the AI ecosystem driving corporate adoption as businesses view AI as essential to staying competitive.

Deutsche Bank downgraded Adobe to Hold from Buy, citing concerns over the monetization of its generative AI technology. Analysts expect Adobe’s stock to remain range-bound until clearer financial benefits from AI are demonstrated. Adobe’s annual net new recurring revenue has decelerated, prompting the downgrade despite confidence in eventual success with AI monetization efforts.



Read more at Investing.com: Tesla, AMD, Adobe downgraded; Salesforce top pick for 2025 By Investing.com

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