Here are Wednesday’s biggest calls on Wall Street:
Citi upgrades Advanced Micro Devices to buy from neutral
Citi upgraded the chipmaker after its better than expected earnings report.
“We are raising estimates and upgrading AMD from Neutral to Buy. We are raising our price target from $120.00 to $136.00.”
Canaccord upgrades Freshworks to buy from hold
Canaccord said things are “improving quickly” for the software company.
“In terms of valuation, with FRSH shares trading at ~7x EV/R on C2024E, the stock isn’t super cheap relative to its operating profile, but the metrics, particularly on the bottom line, are improving quickly.”
JPMorgan reiterates Coinbase as neutral
JPMorgan said it’s cautious heading into Coinbase earnings Thursday.
“Given a higher average Eth (Ethereum) token price and staking participation rate, Coinbase staking revenue is poised to push higher in 3Q23.”
Citi reiterates Home Depot as buy
Citi said it’s standing by its buy rating on the stock heading into earnings later this month.
“HD (Buy)/LOW (Neutral) – We believe the buy-side 2Q SSS bar sits at -3.5% to -4% for HD and -2.5% for LOW. We generally expect in-line results and FY guides to be maintained after both companies elected to cut on the 1Q earnings call.”
JPMorgan reiterates Apple as overweight
JPMorgan said it’s sticking with its overweight rating ahead of earnings Thursday.
“We now increasingly view Apple as an earnings compounder with the Services-led re-rating having largely played out, but the resilience has, contrary to investor perception of a product cycle company, driven greater appreciation of the diversified drivers starting earlier this year.”
Baird upgrades Oshkosh to outperform from neutral
Baird said in its upgrade of Oshkosh that the company is turning a corner.
“Signs of operating improvement are clearly emerging, more room to go.”
Susquehanna downgrades Norwegian to neutral from positive
Susquehanna said in its downgrade of the Norwegian that the turnaround is going to take time.
“While we have confidence in newly promoted CEO Harry Sommer, with the stock up ~80% YTD going into the print, a formal long-term guide likely several months away (we believe sometime in early 2024), and peer RCL potentially hitting their long-term targets sooner than expected, we’re moving to the sidelines.”
BTIG upgrades Match to buy from neutral
BTIG said the worst is behind Match and that it’s a “category leader.”
“We are upgrading MTCH to Buy ($60 PT) with the Tinder net add outlook improving, growth accelerating and estimates moving higher.”
Wolfe upgrades Charter to outperform from peer perform
Wolfe said it likes the cable giant’s “low cost value strategy.”
“We believe Charter’s ‘low cost value strategy,’ will reap returns over multiple years and warrants a higher multiple.
William Blair downgrades Bloomin’ Brands to market perform from outperform
William Blair downgraded the owner of brands such as Outback and said it’s concerned about Brazilian tax legislation.
“We are downgrading Bloomin’ to Market Perform as new Brazilian tax legislation, combined with comparisons against 53-week 2023, appears likely to create muted topline growth in 2024 (we project flat 2024 revenue inclusive of an approximate $30 million headwind from Brazilian tax legislation partly offset by accelerating Outback Steakhouse development) alongside down EPS.”
Goldman Sachs reiterates SolarEdge as buy
Goldman said it’s standing by its buy rating on SolarEdge after its earnings report on Wednesday.
“We remain Buy rated but acknowledge execution will be a key focus into 2H23 given the ongoing inconsistency in margins and now, top-line growth in the near-term.”
Bernstein reiterates Uber as a top pick
Bernstein said its standing by its outperform rating on the stock after its robust earnings report on Tuesday.
“UBER is putting up EBITDA beats almost as consistently as DJ Khaled yells ‘Another One.’”
Mizuho reiterates SoFi as buy
Mizuho raised its price target on the stock to $15 per share from $9 and says the student loan opportunity is not fully priced in.
“Following a flawless 2Q23, SOFI’s student loan opportunity from the end of the moratorium this fall is back in focus.”
Bank of America reiterates Virgin Galactic as underperform
Bank of America said it’s standing by its underperform on Virgin Galactic after its earnings report on Tuesday.
“We maintain our Underperform rating as we remain concerned regarding the long-term prospects of the space tourism market. We also remain cautious around the rapid FCF burn rate the company is undertaking in order to develop the Delta-class and next-generation mothership.”
Rosenblatt upgrades Pinterest to buy from neutral
Rosenblatt upgraded the social media company after its earnings report and said it’s turning the corner.
“In a choppy ad market, with cost-pressures galore, Pinterest is making enticing progress, laying a foundation for revenue acceleration, margin expansion and rising relevancy that can bolster the shares.”
Needham reiterates Meta as underperform
Needham said it’s standing by its underperform rating on the stock.
“We believe META must compete with TikTok for creators and users, and that this creates a structural margin headwind for META.”
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