Here are the biggest calls on Wall Street on Wednesday:
Evercore ISI adds Cisco to the tactical outperform list
Evercore says the company is well positioned heading into earnings next week.
“We think CSCO is positioned to report Oct-qtr results that are inline to likely modestly ahead of street expectations and provide a Jan-qtr and FY23 guide that should bracket current street expectations.”
JPMorgan downgrades Porch Group to neutral from overweight
JPMorgan says the housing market is weighing on shares of the online home improvement company.
“Porch Groupresults missed consensus estimates across revenue & Adj. EBITDA and mgmt lowered its 2022 outlook.”
Barclays initiates Logitech as overweight
Barclays said in its initiation of the tech company that it’s undervalued.
“We initiate coverage ofLOGIat OW and see it as the most underappreciated player in the space, with easier compares and a replacement cycle on the horizon led by gaming.”
Raymond James downgrades RealReal to market perform from outperform
Raymond James said in its downgrade of the online and brick and mortar retail company that it has “limited visibility.”
“With the environment becoming more challenging,REALis implementing changes to its consignment model to create a stronger foundation as it works towards breakeven profitability.”
SocGen downgrades AbbVie to hold from buy
SocGen said in its downgrade of the biopharma company that it sees weaker top-line growth.
“We are cutting our 2022-32 non-GAAP EPS forecasts by up to 11% given the more challenging conditions faced byAbbVie’s blood cancer and aesthetics (Botox) franchises.”
Bernstein reiterates Apple as market perform
Bernstein says Apple consensus estimates are “too high.”
“On net, we see risk—reward onAppleas neutral to modestly negative. Following two strong years, we don’t expect Apple to grow revenues in FY 23, iPhone 14 strength remains a wildcard, and consensus estimates appear too high.”
Evercore ISI upgrades Kroger to outperform from in line
Evercore said in its upgrade of the stock that it sees “high teen upside.”
“We are upgrading KR from In Line to Outperform, and raising our Base Case to $56 (13.5x CY23) for high teen upside.”
Bank of America downgrades Tyson Foods to underperform from neutral
Bank of America said in its downgrade ofTysonthat it sees worsening beef trends.
“Beef packer margins in FY23 should be under significant pressure vs FY20-FY22 as lower cattle availability due to drought pushes up the price of cattle, while wholesale beef prices have normalized and the consumer wallet remains pressured.”
Bank of America downgrades Dominion to underperform from buy
Bank of America said in its double downgrade of the energy company that it sees a “deeper than expected EPS reset.”
“We downgrade Dominion to Underperform from Buy despite the 10%+ relative underperformance YTD as we see another deeper than expected EPS reset forthcoming from the latest business review.”
JPMorgan downgrades International Flavors to neutral from overweight
JPMorgan said in its downgrade of the chemical industry company that it sees weakening sales.
“One argument for owning IFF at this juncture is that the shares have underperformed by such a large percentage year to date and over the past year that to exit would be to leave at the bottom.”
Wedbush reiterates Tesla as outperform
Wedbush says it’s concerned about company founder Elon Musk selling shares of Tesla.
“For Musk who multiple times over the past year has said he is ‘done sellingTeslastock’ yet again loses more credibility with investors and his loyalists in a boy who cried wolf moment. Musk is the most important part of the Tesla story by a wide margin and every move he makes has a major impact on Tesla stock.”
Credit Suisse reiterates AMC as underperform
Credit Suisse kept its underperform rating on the stock after its earnings report on Tuesday and says box office receipts continue to be detrimental to AMC.
“For AMC’s profitability to improve materially enough to bring debt leverage down to a reasonable level for most equity investors would require a rebound in 2023 box office significantly beyond what we are expecting.”
Morgan Stanley reiterates Disney as outperform
Morgan Stanley says it’s standing by shares ofDisneyafter the company’s disappointing earnings report on Tuesday.
“The FY23 guidance came in below expectations. This is primarily a function of margin pressure at legacy TV networks, with lower F4Q Parks & Streaming results also contributing.
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