Here are Tuesday’s biggest calls on Wall Street:
Jefferies reiterates Apple as buy
Jefferies said it’s expecting a “quiet quarter” when the company reports earnings Aug. 3.
“After June in which Apple set out its long term vision of computing, this earnings call will bring us back to the reality of iPhone and services being the two most important drivers of the stock.”
Wells Fargo reiterates Netflix as overweight
Wells said it’s bullish heading into the company’s earnings report Wednesday.
“We’re raising #s into the print for NFLX, but also note very high buyside expectations. We actually think investors would buy a pullback on the LT outlook in the event NFLX has ST pressure on the print (de ja vue). We remain Overweight.”
Jefferies reiterates Alphabet as buy
Jefferies said it’s bullish heading into Alphabet earnings next week.
“We believe GOOGL could work into 2H even after a 41% YTD gain, thanks to: improved ad checks in Q2 and advertiser outlook for 2H; 10% easier gross rev comps in Q2 and continued easing in Q3 & Q4.”
Truist reiterates McDonald’s as buy
Truist said it sees same-store sales momentum due to the Grimace birthday meal.
“We believe MCD US SSS momentum is being driven by strong marketing (including the successful ‘Grimace Birthday Meal’ launched 6/12, which went viral on social media) and strong operations as staffing improves. We are increasing ests. and our PT to $335, from $327.”
Argus upgrades Carnival to buy from hold
Argus said that increased marketing spend should increase revenue for the cruise operator.
“In addition, the company is making its fleet more efficient. Over the past three years, Carnival has disposed of 20 older, less fuel-efficient ships and replaced them with a dozen higher-yielding ships.”
Piper Sandler resumes Dave & Buster’s as outperform
After a change in analyst coverage, Piper resumed coverage of the stock and says its attractive.
“We are assuming coverage of PLAY with an Overweight rating and a PT of $56. Said price target equates to ~23% upside to current share price levels, which we view as attractive at this time.”
Bernstein upgrades UnitedHealth to outperform from market perform
Bernstein said the health care giant’s stock is attractive.
“We believe that most of those concerns are priced into the stock today and current valuation undervalues the LT growth prospects of the UNH businesses.”
Goldman Sachs reiterates Warner Brothers Discovery as a top pick
Goldman said the media company’s stock remains attractive.
“While we expect investors to continue to debate the long-term outlook for traditional media companies, we see the risk/reward skew for WBD as most attractive vs. its peer group with key execution catalysts (merger milestones, Max relaunch, improved franchise management) largely within management’s control.”
Truist downgrades Norwegian to hold from buy
Truist downgraded the stock mainly on valuation.
“Becoming more ‘Neutral’ on the cruise stocks and downgrading NCLH to Hold from Buy; we see the conflict with the stocks/sector today not with “is cruise demand recovering?” rather how much of that recovery is already priced-in?”
Citi opens a positive catalyst watch on Polaris
Citi opened a positive catalyst watch on the boats and automotive motorsports company and said it’s bullish heading into earnings next week.
“We are opening a 30-day catalyst watch for PII based on a 2Q beat. Our confidence in this respect is a combination of retail swinging to positive territory, the continuation of strong shipments throughout 2Q, and the relative outperformance of higher end product vs. lower end product.”
Bank of America reiterates Nvidia as buy
Bank of America raised its price target on the stock to $550 per share from $500 and said the company remains a top pick.
“The next few quarters could see greater dispersion among chip stocks based on real vs. overstated/perceived AI benefits: (1) Within accelerators, NVDA can hold its dominance (75-80%+ share).”
Roth MKM names Uber a top second half pick
Roth MKM said it’s bullish on the stock in the second half.
“Despite UBER’s +90% YTD performance, we reiterate our Buy rating on the shares given accelerating FCF generation ahead along with potential non-fundamental catalysts (S&P 500 addition, stock buybacks, corp. dev. actions).”
Bank of America downgrades Lumentum to neutral from buy
Bank of America called the stock an “overstated” AI beneficiary.
“Downgrade COHR, MTSI to Neutral from Buy, and LITE to Underperform from Neutral, on sluggish telco capex, stretched valuation and overstated AI benefit.”
Morgan Stanley names American Express a top pick
Morgan Stanley said it’s bullish heading into American Express earnings later this week.
“Looking ahead to 2Q earnings, we like AXP given strong T&E (travel & entertainment) spend should continue to benefit results.”
Read more about this call here.
Evercore ISI upgrades Pinterest to outperform from market perform
Evercore said it sees an ad spending recovery that will help Pinterest.
“First, we see clear evidence of Digital Ad spend stabilizing as we move further away from the trough levels of late ’22, with increasing tentative evidence of an H2 recovery.
Bank of America adds Marvell to the US 1 list
Bank of America added the semiconductor company to its top picks list.
“We are adding Marvell Technology Inc. to the US 1 list, and removing Global Foundries Inc. (GFS). GFS remains Buy-rated.
Deutsche Bank adds a catalyst call buy on Sherwin-Williams
Deutsche said it’s bullish heading into the company’s earnings report next week.
“Initiating a Catalyst Call Buy on Sherwin Williams as we believe the company is well positioned for a beat and raise this quarter.”
JPMorgan reiterates Amazon as overweight
JPMorgan said the e-commerce giant is its top pick heading into earnings.
“AMZN remains our Best Idea & we continue to expect AWS reacceleration in 2H (albeit modest), continued Retail margin expansion, & Y/Y decline in capex , which collectively should drive significant FCF inflection this year.”
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