Piper Sandler initiated an overweight rating on Palantir Technologies, citing its unique growth potential and AI dominance, despite its high valuation. Palantir's stock has surged 104% in 2025, with analysts setting a target of $170, driven by its expanding government and AI-related business. The company is viewed as a secular AI winner with strong technical ratings, though it remains extended beyond a buy point and carries high risk.
AMD shares surged nearly 10% after Piper Sandler raised its price target to $140 following AMD's 'Advancing AI' event, which showcased new server architecture and partnerships with major tech firms, with expectations of a future partnership announcement with Amazon Web Services.
Tesla shares dropped 4% following reports that Germany's SAP will no longer purchase electric cars from the company due to delivery delays and price fluctuations, as well as Piper Sandler's price target cut citing lower delivery expectations for the year. The stock hit its lowest point since May 2023, potentially losing nearly $24 billion in market capitalization. Additionally, U.S. safety regulators upgraded their probe into Tesla vehicles over power steering loss, while a report surfaced about Elon Musk's use of illegal drugs being known to several current and former Tesla and SpaceX board members. Despite the stock's decline, Tesla's forward earnings estimates still trade at a high multiple compared to its peers.
Tesla's stock fell nearly 6% after reports that German software firm SAP will no longer procure electric cars from the company, and Piper Sandler cut its stock price target due to lower delivery expectations. The decline was accelerated by Tesla's forecast of "notably lower" delivery growth for 2024, potentially leading to a $34 billion loss in market capitalization. Additionally, Piper Sandler expects slower delivery growth and more price cuts due to an aging product lineup, leading to a reduced price target for Tesla's stock.
Nvidia has taken over Advanced Micro Devices as the preferred large-cap pick by Piper Sandler, signaling a shift in investor sentiment towards Nvidia's prospects in the technology sector.
Piper Sandler analysts believe that the release of Microsoft's M365 Copilot AI assistant marks an "iPhone moment" for the company, presenting a first-mover advantage in generative AI. They predict that Microsoft AI has the potential to reach $100B+ in revenue, with rapid growth expected. Piper Sandler has an Overweight rating on Microsoft stock and a $425 price target.
High-yielding stocks have underperformed this year due to increased bond yields and a lack of outperformance by cyclical factors. However, investors can improve their returns by focusing on high-quality companies with sustainable dividends. Piper Sandler suggests using an "ability to sustain" screen, which analyzes cash flow, preferred dividends, capex, and common dividends. This approach has shown a 9% increase in returns compared to just screening for high dividend yield. Some attractive dividend payers identified by Piper Sandler include Altria, Verizon Communications, Keycorp, Truist Financial, Comerica, Boston Properties, AT&T, Simon Property, and Citizens Financial.
Analyst Harsh Kumar from Piper Sandler has reiterated his Overweight rating on Nvidia's stock and reaffirmed his $300 stock-price forecast, citing the company's proprietary suite of artificial-intelligence software tools as a reason for his confidence in the stock.
Shares of Plug Power, a fuel cell specialist, are down 3.2% after an analyst at KeyBanc Capital Markets downgraded the stock to market perform from outperform. This comes after another analyst at Piper Sandler slashed the price target on Plug Power's stock to $12 from $17. Investors are realizing that Plug Power's growth may not be as certain as previously thought, but there are other stocks to consider for those bullish on the hydrogen economy.
Piper Sandler analyst Thomas Champion recommends buying Meta Platforms, Amazon, Alphabet, and Pinterest ahead of their earnings, citing their strong long-term prospects. He has an Overweight rating on all four companies.
Piper Sandler's semi-annual survey on Gen-Z teenagers reveals that they are setting new consumer trends and spending more, which has bullish implications for a slate of Club holdings.
The FDIC has hired Piper Sandler to auction off Silicon Valley Bank after declining bids submitted by other financial institutions in a separate auction held over the weekend. Lawmakers have been pressuring federal officials to outline their long-term plans for the defunct bank since it was shut down by California officials on Friday. The decision to decline bids has frustrated some Congress members who would’ve preferred to see Silicon Valley Bank acquired. Banking regulators and Biden officials ultimately determined that emergency measures to backstop the bank’s uninsured depositors would provide more clarity and calm amid fears of a possible financial contagion.
Piper Sandler's Chief Strategist, Michael Kantrowitz, discussed the bank sell-off, commercial banks tightening lending standards, and the Fed's rate plan in an interview with CNBC's Power Lunch.
