Here are Tuesday’s biggest calls on Wall Street:
Atlantic Equities names Coca-Cola as a top 2023 pick
Atlantic Equities said it sees “category momentum” for shares of the beverage giant.
“Our preferred names remain Coca-Cola and Pepsi where we see category momentum, ongoing investment and strong execution supporting elevated growth.”
JPMorgan reiterates Apple as overweight
JPMorgan cut its price target on Apple to $190 per share from $200 due to supply chain challenges concerns.
“While the rapid extension of lead times for the iPhone 14 Pro / Pro Max has slowed down and in fact began to moderate in recent weeks, it still remains elevated relative to the lead times seen prior to the COVID outbreak in Zhengzhou as we continue to see the supply shortfall continuing through year-end and impacting the typical seasonal uptick in iPhone volumes seen in Dec-Q.”
Evercore ISI reiterates Tesla as in line
Evercore lowered its price target on shares of Tesla to $200 per share from $300 on concerns about demand.
“While we continue to view TSLA as having a leading EV gross margin advantage from global scale, vertical integration, & US IRA benefits, it is impossible to ignore that investors are already well aware of these benefits but now must ALSO battle test demand assumptions for ’23-25.”
JPMorgan names Amazon as a top 2023 pick
JPMorgan said Amazon is the “most diversified mega-cap across revs/profit & has numerous large growth opportunities.”
“Retail Acceleration, Increasing Cost Discipline, & Secular Cloud Growth Drive FCF Inflection in ’23.”
Wells Fargo names Disney a top 2023 pick
Wells said it’s bullish on Robert Iger returning to lead the company.
“We think Bob Iger is returning to DIS to make big changes. Spinning ESPN/ABC is the best path forward and we see it as a reasonably probable late-’23 event. Splitting would leave remaining DIS as an attractive pureplay IP company.”
Cantor Fitzgerald initiates Rivian as buy
Cantor said the electric vehicle company has a “differentiated” offering.
“We believe RIVN benefits from a differentiated product offering, a strong backing from Amazon and a proprietary charging network. RIVN’s shares are down ~79% YTD, so we believe this could be a good entry point for new investors.”
Oppenheimer reiterates Netflix as outperform
Oppenheimer said it’s bullish on Netflix heading into next year.
“We believe NFLX stock will be driven by subs, not revenue, and data on viewership (80% of Nielsen’s Top Ten) are indicative of in-line or better subs.”
UBS names Micron and AMD top 2023 picks
UBS said the semis backdrop looks “challenging” but that it sees a “recovery” for stocks like Micron and Advanced Micro Devices.
“We expect a challenging macro backdrop to persist through much of 2023, though a China re-opening will likely provide some ballast to weakening US/Europe. Nonetheless, we are bullish on semiconductor stocks for 2023 - expecting stock momentum to really build into CQ2 and 2H:23 before the ISM likely bottoms late in the year.”
Barclays names Merck a top 2023 pick
Barclays named the biopharma company as a top pick and says the stock is “compelling.”
“After two years of selecting LLY as our preferred name, we move back to MRK given what we see as compelling combination of solid operational performance.”
Credit Suisse downgrades Home Depot to neutral from outperform
Credit Suisse downgraded Home Depot due to concerns about slowing home sales.
“Our Neutral stance in Home Improvement is partially based on both our quarterly Home improvement macro piece – and Credit Suisse Monthly Survey of Real Estate Agents in November indicating buyer traffic remains anemic despite some softening in mortgage rates.”
JPMorgan downgrades Stitch Fix to underweight from neutral
JPMorgan downgraded the stock after a “tough year.”
“SFIX has had a tough year, with shares down 82% YTD. SFIX has struggled with its transition to a Fix + Freestyle model, which has been amplified by the current macro environment and resulted in four straight qtrs of active client declines.”
JPMorgan names Bank of America a top 2023 pick
JPMorgan said it likes the stock due to a “lower share of nonprime consumer loans.”
“We prefer stocks with lower credit risk and/or other catalyst. Among bigger banks, we prefer Bank of America due to lower share of nonprime consumer loans.”
Evercore ISI names Microsoft and Snowflake top 2023 picks.
Evercore said Snowflake is its favorite “high growth” idea for 2023. The firm also says Microsoft offers both “offense and defense.”
“Our favorite ideas include: MSFT (top idea), INTU, NOW, ADBE, and WDAY with SNOW being our favorite ‘high growth’ idea for those that want to add more offense to the portfolio.”
DA Davidson reiterates Roku as buy
The firm said it’s sticking with its buy rating on shares of Roku.
“The company will likely continue to focus on the three pillars of its business model: 1) engagement, 2) monetization, and 3) scale.”
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