Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley Reiterates Nio While He’s Overweight Morgan Stanley said it believes shares of the electric vehicle company will start to gain ground. “With positive sector sentiment, investors are inclined to seize opportunities on laggards, like NIO, to play catch-up. , we are also looking for laggards like NIO to gain traction on improving monthly sales (KeyBanc reiterates that Nvdia is overweight (target at $550) – Basically best positioned as we see an uptrend demand across the supply chain for generative AI servers.” Morgan Stanley Reiterates Microsoft as Overweight Morgan Stanley reiterated Microsoft as a top pick and said it has “compelling positioning.” “Our CIO survey shows stable, but moderate, IT budget growth expectations for CY23. However, Microsoft seems particularly well aligned on several key emerging themes. demand through consumer revenue, Microsoft is our top pick Usage % Including Tesla and non-Tesla vehicles, the Supercharger network could contribute up to $5.2 billion to $15.7 billion of revenue by 2030 and add $0.15-0.45 to full-year EPS using our load scenarios to outperform the stock with a view to generating earnings next week.” Our Q2 survey suggests that NFLX remains the No. 1 choice for viewing in the living room, while TikTok and IG have won on mobile. Reiterate outperformance and 500 PT.” UBS launches Commercial Metals as a buy UBS said the metals company has an attractive valuation. high margins and an attractive valuation.” Piper Sandler shifts Zillow to an overweight from neutral Piper said he likes the stock’s optionality. initiatives, and (3) a dip in the housing macro with sequential improvements expected through 24″. Read more about this call here. Wells Fargo Names Amazon a Top Pick Wells has added Amazon to its pick list of signature and said he saw a positive risk “AWS expectations on the buy side are rising ahead of print, I think 2Q:23 ‘bar’ is now in line with Street growth +10% YoY annual vs. 8% two weeks ago.” Evercore ISI Names Uber a Top Pick Evercore named Uber a top pick over Meta and said it has strong growth prospects. “UBER has the one of the strongest growth prospects among the companies we cover and faces a series of potential “value catalysts” – achieving GAAP profitability in H2, initiating capital returns, possibly also in H2, and S & Inclusion P 500.” Evercore ISI adds tactical underperformance on Netflix Evercore added tactical underperformance on the stock ahead of its earnings next week and says it is concerned about “high expectations ” of the market. “Our TAP underperformance on NFLX is based on our concern that market expectations have gotten very high in print, especially in terms of under-additions.” Argus upgrades Generac to buy pending Argus said the battery backup company was benefiting from cost-cutting efforts. “Moving to BUY. Generac benefited from stronger than expected growth in commercial and industrial activity, as well as cost reduction efforts.” Canaccord Launches Newell Brands as Buyer Canaccord said at its launch of Newell that better days are ahead for the consumer goods company. “After a well telegraphed ugly H1 2023, driven by retailer destocking and consumer pinched after one-off demand in 2021, we believe better days are ahead with new management at the helm and a reasonable strategy that we believe , will revive modest top line growth , improve profitability and cash flow and reduce leverage.” Citi opens positive catalyst watch on Hewlett Packard Citi added a positive catalyst watch on the stock and says it is gaining market share in PCs. “From a supplier perspective, HP Inc (#2, at 22% share) and Apple (#4, at 9% share) each gained market share year-over-year in the quarter, capturing +3 points and +2 points, respectively. These preliminary PC results suggest upside potential for PC segment revenue from HPQ and AAPL. We open a positive watch for HPQ, as these preliminary results suggest upside potential for PC segment revenue. July Quarter PC. Wolfe upgrades Vale to outperform peers Wolfe said he likes the mining company’s free cash flow. “We are upgrading VALE to Outperform as we see cost support for ore prices at $95-100/t and given its strong FCF/payment profile.” Jefferies launches Toast as a buyer Jefferies said the restaurant technology platform’s profitability is expected to “benchmark positively in 2023” “TOST has grown rapidly through market share gains and expanding its software product portfolio.” Jefferies upgrades JPMorgan to buy pending Jefferies said the banking giant is “the best of its category”. “While JPM has been a recent winner, we are upgrading the stock to Buy given a stable earnings outlook, top-notch ROE profile, conservative booking history and better revenue diversity. .” Learn more about this call here. Bank of America raises 3M from underperforming to neutral Bank of America said it sees a more “balanced” risk/reward ratio for the stock. “We are upgrading 3M to Neutral (from Underperform), reflecting near-term catalysts balanced by ongoing legal risks with potentially severe financial impact.” Bank of America upgrades US Bancorp to buy from a neutral third party Bank of America said the bank’s stock was undervalued. “We are raising our rating on US Bancorp (USB) from Neutral to Buy. We believe investors’ focus on building capital has diverted attention from what is among the highest quality franchises in the US banking industry. .” Evercore ISI downgrades JetBlue for underperforming Evercore downgraded the airline due to its valuation and concerns over some recent negative catalysts. “JBLU downgraded to underweight. JBLU up 37% in a month following a clearly negative fundamental result (loss of the decision of the North East Alliance). Although there will be twists along the way, we believe the Spirit acquisition will eventually happen as JBLU’s premium is paying for Spirit continues to grow (while SAVE’s fundamentals continue to moderate).” KeyBanc Reiterates Key Overweight Apple raised its price target on the stock to $200 per share from $180 and said it maintained its overweight rating but had short-term concerns.”Our concern is two-fold: 1) Key first-party data insights show that indexed spending for June was +23% m/m versus the three-year average of +2% m/m, and that our June data was better than the historical average . for F3Q, our KFLD shows -15% q/q, worse than the three-year historical average of -9% q/q; and 2) we believe the AAPL (US carriers) indirect channel will be weak, with US rates upgrading to all-time lows.” Goldman Sachs Reiterates T-Mobile as Top Pick Goldman said T- Mobile is “the company’s top overall choice in large-cap telecommunications and cable. “The key catalysts we see in 2023 include: 1) sustained postpaid phone network additions (2.9 million vs. 3, 1 million in 2022), even as industry growth slows, due to continued market share gains in underpenetrated segments (rural, corporate), 2) sustained core adjusted EBITDA growth as merger synergies are approaching normal pace.” Read more about that call here. TD Cowen Reiterates Target as Outperformer The company lowered its price target on Target to $166 per share from $200, but said it was maintaining its outperformance rating. “We are most concerned about the continued shift from goods to services and student loan headwinds which may lead to a gradual decline in the short term; at the same time, fierce price competition, negative margin composition, Downtrends and tougher food comparisons amid disinflation are additional factors to watch.” Truist upgrades Scotts Miracle-Gro to buy pending Truist said in his Scotts upgrade that the hangover pandemic was over. “First, we believe the post-pandemic reversion of the U.S. consumer segment is finally complete. We expect results to be more predictable/manageable going forward.” Bank of America Reiterates American Express as Top Pick Bank of America said it was optimistic the credit card company would turn a profit later this month. “AXP is our top pick in the industry because of its super-premium, high-income cardholder base, which is better protected against inflationary pressures.” Learn more about this call here.
Tuesday’s biggest analyst calls include Nvidia & Apple
By xjs53
