Here are the biggest calls on Wall Street on Friday:
Wells Fargo downgrades Enphase Energy to equal weight from overweight
Wells said in its downgrade of the solar inverter energy company that Enphase’s “Europe strength [is] more than offset by U.S. weakness.”
“While growth in Europe remains robust and valuation has come down, an accelerating U.S. market slowdown in Q4 & 2024 could continue to weigh on shares.”
Morgan Stanley reiterates Apple as overweight
Morgan Stanley said it’s staying bullish going into Apple earnings next week.
“Heading into another week of earnings, we expect strong results from AAPL (beat and raise).”
Deutsche Bank downgrades Southwest Airlines to hold from buy
Deutsche downgraded the Dallas-based airline after its earnings report on Thursday and said it’s concerned about declining profits.
“Lowering rating on LUV shares from Buy to Hold on earnings forecast cut and limited share price upside as the company optimizes its post-Covid network.”
Jefferies upgrades Xpeng to buy from hold
Jefferies said in its upgrade of the China electric vehicle company that it’s bullish on its recently announced partnership with Volkswagen.
“VW announced to take a 4.99% stake in Xpeng to form a technical partnership, marking the start of China OEMs exporting technologies to foreign players. The partnership will help Xpeng to increase its brand image globally and tech service fee in our view, will likely become its new rev stream longer term.”
Wedbush initiates Palantir as outperform
Wedbush said the data-driven intelligence company is best positioned for the shift to AI.
“We believe Palantir has built an AI fortress that is unmatched and poised to be a major player in this AI Revolution over the next decade.”
Citi reiterates T-Mobile as a top pick
Citi said the stock remains a top pick after its robust earnings report on Thursday.
“Net-net, we believe T-Mobile continues to deliver favorable financial growth, while retaining flexibility to repurchase shares at an elevated pace.”
Bank of America upgrades First Solar to buy from neutral
Bank of America said in its upgrade of the solar company that it sees numerous positive catalysts ahead.
“We expect FSLR will continue to outperform as the company has locked-in double-digit annual earnings growth through decade end. FSLR’s leading U.S. solar manufacturing footprint supports its status as greatest beneficiary of [Inflation Reduction Act].”
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TD Cowen reiterates Skechers as a top idea
TD Cowen said it’s standing by Skechers as a best idea after the company’s earnings report on Thursday.
“The brand continues to resonate globally with new comfort technology, leading value, and new marketing campaigns with a wide range of influencers.”
Bank of America reiterates Bill Holdings as a top pick
Bank of America said the software billing company is on a rapid growth trajectory.
“With a path back to sustained low 40s growth, we reiterate our Buy rating and view BILL as a top pick.”
JPMorgan upgrades New York Community Bank to overweight from neutral
JPMorgan said in its upgrade of the regional bank after its earnings report that it sees a “very attractive” risk/reward for New York Community Bank.
“To this end, with the stock increasing only 5% in response to the quarter, we find an even more attractive valuation post the quarter.”
JPMorgan reiterates Roku as overweight
JPMorgan raised its price target on the stock to $95 per share from $90 and says it’s staying bullish on Roku after its earnings report on Thursday.
“Roku reported a 2Q beat across revenue/profit, guided 3Q ahead of the Street, and reiterated its commitment to delivering positive Adj. EBITDA in 2024.”
Stifel upgrades Crocs to buy from hold
Stifel said in its upgrade of the shoe company that it likes its product diversification.
“Profit pool diversification, improved balance sheet optionality, and a very forgiving valuation increase our confidence in risk adjusted return prospects for CROX shares.”
Bank of America reiterates Deckers as buy
Bank of America said it expects sales of Deckers HOKA brand will double by 2026.
“We expect HOKA will double over the next three years and reach $3bn in sales by F26. Growth drivers include continued penetration in wholesale, international, product newness and a continued push into lifestyle.”
JPMorgan reiterates Eli Lilly as overweight
JPMorgan said it’s bullish on Eli Lilly heading into earnings on August 8 thanks to its diabetes and obesity treatment.
“And looking beyond 2023, we remain well above consensus on LLY’s incretin franchise and estimate peak sales of $40bn+ for the portfolio.”
Morgan Stanley reiterates Ford as overweight
Morgan Stanley stood by its overweight rating on shares of Ford after the vehicle maker’s earnings report on Thursday.
“Solid 2Q beat and upped FY guide driven by strong margin and cash flows from Blue and Pro.”
