Here are Monday’s biggest calls on Wall Street:
JPMorgan reiterates Amazon as the best idea
JPMorgan says it’s standing by its overweight rating on the stock.
“AMZN’s Retail revenue growth should accelerate from 1Q levels on easier comps, faster delivery speeds, & greater Prime spending. AMZN remains a Best Idea. Longer-term, we continue to believe US e-comm penetration could reach 40%+ of US adj retail sales.”
Jefferies reiterates Tesla as buy
Jefferies raised its price target on the stock to $230 per share from $180 and says it’s standing by its buy rating.
“After a harrowing H2, the Austin investor day demonstrated Tesla remains very much a ‘Day 1’ company. Lack of new product unveil does not imply major growth delays in our view.”
Goldman Sachs initiates Apple as buy
Goldman said the stock’s valuation is attractive.
“Apple’ssuccess in premier hardware design and resulting brand loyalty has led to a growing installed base of users that provide visibility into revenue growth by reducing customer churn, lowering customer acquisition costs for new product and services launches, and encouraging repeat purchases.”
JPMorgan downgrades D.R. Horton to neutral from overweight and KB Home to underweight from overweight
JPMorgan said it’s concerned about fundamentals going “sideways” for the homebuilders.
“Following a reasonably solid 4Q earnings season (relative to expectations), while we remain positive on the homebuilders for 2023, at the same time, we believe fundamentals may go sideways if not soften somewhat over the next quarter or so as the housing market absorbs the past month’s roughly 70 bps increase in mortgage rates.”
Jefferies downgrades RH to hold from buy
Jefferies said in its downgrade of RH that it’s concerned about a slowdown in luxury housing spending.
“We are downgrading to Hold given a luxury housing market that’s struggling to stabilize and corporate cuts to headcount / compensation that haven’t yet rippled across the luxury home furnishings category.”
JPMorgan upgrades Vir Biotechnology to overweight from neutral
JPMorgan said it likes the biotech company’s product pipeline.
“We rate VIR shares Overweight. Vir Biotechnology holds long-term pipeline opportunities across multiple infectious disease indications including hepatitis B, and Influenza A.”
UBS upgrades Emerson Electric to buy from neutral
UBS said the derating of the multinational engineering company is overdone.
“We are upgrading EMR back to Buy post our Jan 4 downgrade as we find the recent derating overdone.”
Wedbush downgrades Silvergate to underperform from neutral
Wedbush said in its downgrade of the crypto company that liquidation is a real possibility.
“We’re downgrading Silvergate to UNDERPERFORM from NEUTRAL as the company discontinued the Silvergate Exchange Network (SEN) on Friday. The SEN is Silvergate’s main flagship product that previously was the key attraction for depositors to bring funds to the bank, and we believe the discontinuation of the SEN could signal that Silvergate may consider winding down its operations.”
Morgan Stanley names Ferrari a top pick
Morgan Stanley said it’s making Ferrari its new top pick over Tesla.
“Reflecting our relatively bearish view on auto fundamentals we anoint as our new ‘Top Pick’ a company with the longest order backlog, greatest earnings visibility and highest pricing power of any company we cover. Ferrariain’t cheap but that’s the price for security.”
Wedbush downgrades Allbirds to neutral from outperform
Wedbush said in its downgrade of the footwear company that it’s concerned about share underperformance.
“While the company has a long potential runway for growth, we’re concerned aboutBIRD’srelative underperformance vs. other emerging footwear brands in our coverage.”
Deutsche Bank reiterates Nio as buy
Deutsche said it’s standing by shares of the China electric vehicle company.
“Being a NIO bull these days is becoming increasingly difficult. The company’s execution has been lackluster and investors are losing confidence in management’s long term vision and growing concerned about demand and cash burn.”
Baird upgrades REV Group to outperform from neutral
Baird said it sees “supply chain improvement” for the recreational vehicle company.
“REVG has missed out on the sizable Machinery rally seen over the past five months (YTD the stock declined 5% versus Machinery peers being up 25% on average) as supply chain challenges and CEO change further compressed expectations.”
JPMorgan reiterates General Electric as neutral
After a change in analyst coverage, JPMorgan said GE’s transformation continues but there’s still more “work to do.”
“We take over joint coverage of GE as it approaches the home stretch of its journey from industrial and financial conglomerate to a set of three focused companies. During this transformation, GE has reduced debt and other liabilities substantially and while there is still work to do, the outlook is easier to understand.”
Redburn upgrades Monster to buy from hold
Redburn said in its upgrade of Monster Beverage that it sees a compelling entry point.
“Near-term consensus margin estimates look conservative and longer term sales forecasts could underestimate the enormous international growth story.”
Jefferies initiates Merck as buy
Jefferies initiated the pharmaceutical company with a buy and said it has room for growth.
“Our BUY rating is based on a few reasons: 1) From a macro view, MRK has a better growth profile in terms of EPS vs its large-cap peers; 2) We think that MRK’s blockbuster drug, Keytruda, is mismodeled by the street.”
Bank of America reiterates Nvidia as buy
Bank of America said it sees numerous catalysts ahead for Nvidia shares.
“Maintain Buy, top cloud pick, $275 PO, highlight key upcoming catalysts: 1) NVDA’s flagship AI conference GTC, Mar 20-23: expands enterprise AI awareness and launches AI-as-a-service; 2) Formal launch of NVDA’s generative AI-optimized Hopper H100 at top cloud service providers.”
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