Here are Tuesday’s biggest calls on Wall Street:
Piper Sandler reiterates Apple as overweight
Piper said iPhone share remains at near record levels for Apple.
“Both the 87% iPhone ownership and 88% intention to purchase an iPhone metrics are near record highs for our survey.”
Citi initiates Sarepta as buy
Citi said it’s bullish on the biotech company’s gene therapy drug getting Food and Drug Administration approval.
“SRP-9001, SRPT’s gene therapy for DMD, is set to be reviewed by an FDA Advisory Committee (AdCom) in the next few weeks, with an FDA decision expected by May 29th.”
Morgan Stanley upgrades Norfolk Southern and CSX to equal weight from underweight
Morgan Stanley upgraded several railroad stocks mainly on valuation.
“However, as relatively high-beta names amongst the Rails and given material underperformance YTD, we believe CSX and NSC could also see the strongest outperformance in any mean reversion trade later in the year.”
KeyBanc upgrades Comcast to overweight from sector weight
Key said it sees theme park growth and shareholder capital returns for Comcast.
“Lastly, CMCSA theme park investment in EPIC Universe with completion in 2025 should continue to support strong Theme Park growth, while capital intensity should move lower in 2024 and further in 2025, supporting FCF growth, and allowing CMCSA to return capital to shareholders.”
Bank of America reiterates Endeavor as buy
Bank of America said it’s bullish on Endeavor’s plan to merge WWE and UFC.
“On 4/3, EDR and WWE announced plans to merge UFC (Ultimate Fighting Championship) with WWE. As a result of the deal, UFC and WWE will form a new publicly traded company that is expected to list on the NYSE by the end of 2023.”
Loop upgrading Burlington to buy from hold
Loop said the discount retailer is a beneficiary of inflation.
“BURL’s value proposition for its lower-income consumers is obviously improved, and the company’s new signage is calling out opening price points across categories.”
UBS reiterates Apple as buy
UBS said its survey checks show a decline in App Store revenue.
“Our analysis of Apple’s App store suggests Mar-23 qtr revenue was down ~1.5% YoY with the US up ~3.1% while rest of world (ROW) was down 3.5%”
Goldman Sachs reiterates Exxon as buy
Goldman said it’s standing by its buy rating on the oil and gas giant.
“We maintain our constructive XOM view as we look at the balance of the year, where we highlight the company’s differentiated Upstream project queue (Guyana) and solid Downstream projects, including start-ups in Refining/Chemicals.”
Baird upgrades ServiceNow to overweight from neutral
Baird said it sees a favorable risk/reward balance for the software stock.
“We are upgrading NOW to Outperform due to end-market resiliency, durable growth trends, reasonable valuation.”
JPMorgan upgrades Prudential to overweight from neutral
JPMorgan said Prudential has a robust balance sheet.
“Also, we are upgrading PRU to Overweight due to the company’s superior business mix, healthy balance sheet, negative sentiment, and the stock’s significant underperformance.”
Piper Sandler upgrades Etsy to overweight from neutral
Piper said it sees “continued share gains” for the e-commerce company.
“We upgrade Etsy to Overweight as we believe that ETSY’s active buyer growth can reaccelerate over the medium-term, powering continued share gains.”
Morgan Stanley reiterates Walmart and Amazon as overweight
Morgan Stanley said that Walmart and Amazon are well positioned to “take advantage of retailers’ proprietary customer data to power their ad campaigns.”
“We see a $130bn opportunity in retail media advertising by ’25, as retailers leverage their customer data to power online ads.”
Canaccord reiterates Rivian as buy
Canaccord said it’s bullish on the electric vehicle maker continuing to gain market share.
“We believe Rivian is on its way to capturing its fair share of the EV market via a thoughtful vertically integrated strategy. We see the R1S as the family (electric) SUV of choice and likely to see accelerating growth as more vehicles hit the streets.”
Oppenheimer reiterates Chipotle as outperform
Oppenheimer said it sees an attractive risk/reward for the Mexican chain restaurant.
“CMG has been a top restaurant outperformer in 2023, with shares up +24% year-to date vs S&P’s +7%. Despite improving sentiment, we remain attracted to CMG’s risk/ reward following our updated analysis into 1Q23 earnings (4/25).”
Northcoast downgrades Boeing to sell from neutral
Northcoast said in its downgrade of Boeing that it’s concerned about alterations to the company’s aircraft production schedule.
“We are downgrading BA to a SELL rating ahead of the expected changes to commercial aircraft production schedules and resetting of consensus forecasts.”
Oppenheimer reiterates First Solar and Sunrun as outperform
Oppenheimer said Tuesday that it sees a renewables rally coming.
“We continue to prefer ENPH, SEDG, RUN, CSIQ, HASI, and FSLR as ways to play renewables growth.”
Deutsche Bank reiterates Citizens Financial and PNC as buy
Deutsche said it’s cautious on bank stocks overall, but that it likes Citizens and PNC as top picks.
“Our broader view of bank stocks remains cautious/defensive with a bias towards banks that have strong credit quality track records and are in a position to gain share in the current banking turmoil and in an economic downturn.”
Bank of America reiterates Analog Devices as buy
Bank of America said Analog Devices has “best-in-class” free-cash flow returns.
“We view valuation as compelling at 21x/19x CY23/24E EV/FCF, about 2x turns below SPX industrial peers that are generating only a third (11-12%) of ADI’s 34% FCF margins.”
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