Here are Thursday’s biggest calls on Wall Street:
TD Cowen upgrades Meta to outperform from market perform
TD Cowen said it sees further share gains ahead for Meta.
“We upgrade META to Outperform and raise our PT to $345. Despite share gains since late ’22, we expect further share upside given (i) Consensus est’s are likely too low; we raised our ’23-’28 est’s off our positive 2Q ad check & potential monetization upside from Reels & other surfaces long-term.”
TD Cowen reiterates Amazon as outperform
TD said it’s bullish heading into Amazon earnings later this month.
“We expect 2Q23 revenue of $132.8BN, +9.6% y/y and 1.1% above consensus, driven by accelerating eCommere rev and elevated adv revenue growth, while AWS rev deceleration continues amid optimizations.”
Stifel initiates Clean Energy Fuels as buy
Stifel said the nat gas distribution company is best-in-class.
“We are initiating coverage of Clean Energy Fuels Corp. with a Buy rating and a $6.00 target price. In short, we are increasingly constructive on the macro environment for dairy renewable natural gas (dRNG) and view CLNE as the best vehicle to express a bullish view on the vertical.”
TD Cowen reiterates Alphabet as outperform
TD raised its price target on the stock to $140 per share from $130 and says it sees better Google search growth.
“Our 2Q Digital ad expert check call on 7/10 implies ongoing US consumer strength propelled GOOG 2Q23 Search spend growth higher q/q despite macro fears.”
Barclays downgrades Coinbase to underweight from equal weight
Barclays said it sees few near-term catalysts for Coinbase.
“COIN has surprised on revenues and costs in the past few quarters, but with volumes and USDC market cap depressed, regulatory overhang likely to last for some time, and a significant recent run-up in shares, we see few near-term drivers, particularly from a fundamental perspective.”
JPMorgan downgrades Carvana to underweight from neutral
JPMorgan said the used car company’s valuation is disconnected from fundamentals.
“We are moving to Underweight from Neutral and reinstate a $10 PT on CVNA shares as we believe valuation has once again disconnected materially from fundamentals.”
Morgan Stanley reiterates Spotify as overweight
Morgan Stanley raised its price target on the stock to $185 per share from $170 and says it’s a “show-me” story.
“Both shares are show-me stories from here, with Spotify expected to raise prices and move toward operating income profits and WMG to show its artist roster can deliver improving market share trends.”
Morgan Stanley names Cboe a top pick
Morgan Stanley named the Cboe company as a top pick and says the stock’s valuation is attractive.
“Stay selective, prefer CBOE (elevate to Top Pick) and TW for unique growth levers & attractive valuation with more limited downside risk.”
Morgan Stanley downgrades SoFi to underweight from equal weight
Morgan Stanley said the stock is “mispriced for bank profitability.”
“We previously valued SOFI on a growth-adj. basis, given strong growth well above most banks/consumer lenders. But as SOFI looks increasingly like a bank, we believe it needs to be valued more like a bank.”
Deutsche Bank reiterates Microsoft as buy
Deutsche said the stock is “set up nicely” heading into earnings later this month.
“Microsoft is set to report F4Q23 results post-close on July 25th; we anticipate a relatively inline print with revenue growth easing slightly sequentially to +9% y/y @cc on continued, albeit slowing Azure deceleration as optimization and budget pressures linger, as well as declines in high-margin Windows.”
BMO upgrades Pilgrim’s Pride to outperform from market perform
BMO said in its upgrade of Pilgrim’s Pride that it sees a more attractive risk/reward for the poultry producer.
“Our upgrade reflects our view that a greater set of potential catalysts has shifted risk/reward more favorably.”
JPMorgan reiterates Netflix as overweight
JPMorgan raised its price target on the stock heading into earnings to $495 per share from $470.
“Heading into 2Q earnings on Wednesday, 7/19, we remain bullish on NFLX.”
Bank of America reiterates Tesla as neutral
Bank of America said it’s standing by its neutral rating heading into earnings next week.
“For TSLA, we modestly lower our 2Q:23 estimate, as we assume a lower gross margin to provide cushion for announced price cuts across its Model 3/Y and Model S/X vehicles and as TSLA’s total deliveries were slightly lower than our prior forecast.”
Credit Suisse upgrades China equities to overweight from neutral
Credit Suisse said in its upgrade of Chinese equities that valuations are at attractive levels.
“We find Chinese equities have lagged excess liquidity. Chinese equities are (incorrectly, in our view) discounting a 5-point fall in China PMIs versus global PMIs. Valuations (P/E relatives and versus corporate bond yields) are at historically attractive levels.”
Northcoast upgrades Domino’s to buy from neutral
Northcoast said it sees a more robust outlook for the stock.
“Given our stronger outlook, we are raising our rating to BUY from NEUTRAL, and setting
a price target of $430. We base our valuation on historical P/E multiples, noting that Domino’s has been trading at a discount, pressured by lackluster sales, profits and development growth.”
Bank of America reiterates Disney as buy
Bank of America said it’s standing by its buy rating on Disney after the company announced a contract extension with CEO Robert Iger.
“Near-term catalysts include: (1) additional updates on the strategic outlook for DIS with a very positive message likely at the Analyst event in September, (2) continued robust theme park demand and (3) sports betting optionality at ESPN.”
Oppenheimer reiterates Microsoft as outperform
Oppenheimer raised its price target on the stock to $410 per share from $330 and says it’s well positioned.
“We believe that Microsoft will improve on its already dominant enterprise IT position, as the only player with an integrated/AI platform, three actually, and with the key wholesale marketplace through Teams/Azure.”
BMO reiterates Chevron as outperform
BMO said in a note on Thursday that it likes the oil and gas giant’s capital return.
“We prefer CVX among integrateds given higher oil torque, greater capital return, and 2H/2024 Permian/major project driven growth.”
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