Here are the biggest calls on Wall Street on Wednesday:
Morgan Stanley reiterates Apple as overweight
Morgan Stanley said the tech giant remains underowned among large-cap institutional investors.
“However, Apple’s underownership spread remains among the widest (behind MSFT) in our large cap technology coverage, a reflection of 1) the significant weighting Apple has in market indices, and 2) concerns about slowing growth as consumers pull back on spending for technology goods following the pandemic.”
Piper Sandler reiterates Nvidia as overweight
Piper said it’s bullish on the stock heading into earnings Wednesday after the bell.
“Overall, we are bullish going into the January quarter results and April quarter guide for NVDA.”
Bernstein reiterates Tesla as underperform
Bernstein said it remains skeptical that Tesla’s investor day on March 1 will be a key catalyst for the stock.
“We believe that the most important issue for Tesla going into its analyst day is the status of its next-gen, lower cost vehicle platform.”
MoffettNathanson reiterates Meta as outperform
Moffett said it’s intrigued by Meta’s strategy of a “combination of slowing top-line growth and increasing expenses.”
“Nevertheless, there appears to be growing conviction that the spike in CAPEX tied to the emergence of short-form video content powered by AI might start to level off – as the company has promised – in the near term.”
Bank of America reiterates Coinbase as underperform
Bank of America said it sees too many headwinds for Coinbase shares after the company’s earnings report Tuesday.
“Overall, the boost from higher rates to interest income is helping stabilize the top line (albeit representing lower quality revenue) while OpEx controls have helped stem losses. That said, we think COIN continues to face meaningful headwinds (regulatory, competitive, lack of revenue diversity) that keep us cautious.”
DA Davidson upgrades Shopify to buy from hold
DA Davidson said shares of the e-commerce platform for online stores have a compelling entry point.
“We are upgrading shares of Shopify to BUY from Neutral, as we believe the >20% selloff post earnings has created an attractive entry point.”
Morgan Stanley reiterates Home Depot and Walmart as overweight
Morgan Stanley said it’s standing by its overweight ratings on shares of Home Depot and Walmart after the company’s reported earnings on Tuesday. The firm did lower its price target on shares of Home Depot to $340 per share from $360. Morgan Stanley also trimmed its price target on Walmart to $160 per share from $161.
“Between WMT/HD,a few parallels (wage investments, inventory progress) but more contrasts (guidance conservatism, tone on consumer, traffic/ticket).”
Evercore ISI downgrading Occidental Petroleum to underperform from in line
Evercore said in its downgrade of Occidental that it sees too many negative catalysts for the stock.
“Pref redemption quells shareholder return. Overhang should persist over near/mid-term. Less crude leverage than perceived.”
UBS downgrades Logitech to sell from neutral
UBS said it’s concerned about reduced visibility for the multinational computer company.
“We did various industry analysis and expert calls and conclude the environment for Logitech is getting incrementally tougher.”
Loop reiterates Pinterest as buy
Loop says the bullish thesis for Pinterest shares “remains intact.”
“We think Pinterest is demonstrating its differentiation against entertainment-driven social media platforms.”
Goldman Sachs reiterates Palo Alto Networks as buy
Goldman said it’s standing by its buy rating on the stock after Palo Alto’s earnings report on Tuesday. The bank added that it sees a “breadth of growth drivers” across “cloud and A.I.”
“Palo Alto’s results and commentary illustrate the breadth of its platform, with several new large deal and product cycle disclosures.”
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