Here are Tuesday’s biggest calls on Wall Street:
Baird reiterates Apple as outperform
Baird raised its price target on the stock to $204 per share from $180 and said it’s bullish heading into earnings Thursday.
“We expect solid FQ3 results, though the focus will quickly be the next iPhone cycle, and historically AAPL outperforms mildly from August to mid- September.
Cantor Fitzgerald downgrades Rivian to neutral from buy
Cantor downgraded the stock on rising competition and on valuation.
“We are increasing our 12-month PT on Rivian (RIVN) to $29 (from $27), but we are downgrading it to Neutral (from OW) based on valuation given the recent outperformance in the share price (stock is up ~50% YTD), and on increased competition.”
Morgan Stanley reiterates Tesla as equal weight
Morgan Stanley said in its annual ask the interns survey that Tesla favorability fell.
“Tesla’s desirability among the interns fell significantly YoY to 14%, below Mercedes at 20%.”
Barclays upgrades Gap and Tapestry to overweight from equal weight
Barclays upgraded several retailers on Tuesday and said sales-to-inventory growth is getting better.
“We are upgrading each of AEO, BBWI, GPS, and TPR given their improving sales-to-inventory growth metrics, as well as company-specific drivers to return to growth in 2024 despite what we expect could be lowered top-line sales guidance for 2H23.
RBC upgrades ResMed to outperform from sector perform from outperform
RBC said it sees an attractive risk/reward for the medical device company.
“We expect RMD to deliver strong rev growth, but earnings to slightly miss consensus. Nonetheless, we expect RMD to report a robust result with strong CF generation and a positive outlook.”
Morgan Stanley reiterates PayPal as overweight
Morgan Stanley said it’s bullish heading into PayPal earnings on Wednesday.
“PYPL has essentially recovered to the levels last seen heading into its 1Q23 earnings on the back of improving consumer sentiment and better eComm data points.”
Oppenheimer reiterates Target as outperform
Oppenheimer said investors should buy the dip ahead of Target earnings later this month.
“For longer-term players, we would continue to take advantage of dips and a currently depressed valuation. We continue to anticipate a multiyear margin recovery.”
Canaccord reiterates Coinbase as buy
Canaccord raised its price target on the stock to $140 per share from $70 and said the crypto company is gaining “material momentum.”
“While Coinbase remains a crypto lightning rod in many respects, we cannot [help] but see the company gaining material momentum across a variety of different fronts, with some of them happening in just the last few weeks.”
KBW downgrades SoFi to underperform from market perform
KBW downgraded the stock mainly on valuation.
“We are moving our rating on SOFI to Underperform from Market Perform after the impressive run in the shares (+142% since mid-May trough), as we believe valuation has overshot the fundamental earnings outlook.”
Citi downgrades Estee Lauder to neutral from buy
Citi said the recovery path is too uncertain for the cosmetics company.
“Importantly, while we think the market is braced for a low initial FY24 guidance, we worry continued weakness in results may lead investors to question the ‘normalized earnings power’ of EL for FY25.”
Citi reiterates Amazon as buy
Citi is staying bullish heading into Amazon earnings on Thursday.
“While the focus is on AWS growth in 2Q and QTD—though expectations appear to be coming down following Azure’s 2Q23 result—we’ll be listening for progress with AWS’ GenAI offering, a key catalyst and one that we believe is increasingly coming into focus as Bedrock gains scale and functionality.”
Bank of America reiterates DraftKings as buy
Bank of America is bullish heading into earnings later this week.
“But we think DKNG will continue to strike a balance between growth and progress on profitability going forward. Reiterate Buy and $35 PO on DKNG’s growth and cost inflection.”
Bank of America reiterates DoorDash as buy
Bank of America is bullish heading into DoorDash earnings on Wednesday. The firm raised its price target to $95 per share from $82.
“Food delivery has remained resilient despite the tough consumer Internet backdrop, and though comps get tough in 4Q, we have yet to see cracks in the growth trajectory.”
Bank of America reiterates Take-Two as buy
Bank of America said it sees an attractive risk/reward heading into earnings next week.
“Positive quarterly results for mobile, a recurring business, may be extrapolated to FY25 & beyond, raising both TTWO’s multiple & estimates.”
Bernstein reiterates Anheuser-Busch InBev as outperform
Bernstein said it’s standing by shares of Anheuser heading into earnings later this week.
“Expecting solid revenue from price-mix but margins will be under pressure from US de-leverage.”
Atlantic Equities upgrades Goldman Sachs to neutral from underweight
Atlantic Equities said it sees some positive catalysts starting to emerge for the investment bank.
“Despite the weak reported numbers in Q2 - EPS -60% YoY - there were some encouraging signs for Goldman.”
Morgan Stanley reiterates Ford as overweight
Morgan Stanley said it’s standing by its overweight rating, but that the company needs an electric vehicle strategy change soon.
“We estimate Ford’s EV business (Model e) will burn roughly $50k/unit of cash this year and, without a strategy pivot, could get even worse before it gets better. Our OW assumes a material change in EV strategy. And soon.”
Argus reiterates Meta as buy
Argus raised its price target on the stock to $375 per share from $353 and says the company’s cutting efforts are working.
“Meta is benefiting from deep cost cuts earlier this year, though significant Reality Labs losses continue. We give management kudos for rapidly delivering Threads, a Twitter competitor, as it looks to take share amid Twitter’s self-inflicted wounds.”
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