US Top Rating Updates on 12/15: NVDA, T, VZ, ZM and More

HSBC analyst Frank Lee initiated coverage of $NVIDIA (NVDA.US)$ with a Reduce rating and $136 price target. The company's potential in autos and artificial intelligence software is overshadowed by a shorter term chip inventory correction and demand uncertainty, Lee tells investors in a research note. He believes earnings downside is likely not fully factored into Nvidia shares. Lee is 9% below consensus for 2024 estimates and provided further downside scenarios.

Morgan Stanley analyst Simon Flannery downgraded $AT&T (T.US)$ to Equal Weight from Overweight with a $20 price target. AT&T's sustained outperformance in 2022 has created a less attractive relative valuation, particularly versus Verizon, Flannery tells investors in a research note.

Morgan Stanley analyst Simon Flannery upgraded $Verizon (VZ.US)$ to Overweight from Equal Weight with a price target of $44, up from $41, which offers over 20% total returns. Following the stock's significant underperformance in 2022, Verizon trades at a "historically attractive valuation on an absolute and relative basis," Flannery tells investors in a research note.