Here are the biggest calls on Wall Street on Tuesday:
Morgan Stanley reiterates Tesla as overweight
Morgan Stanley made the case in a note to investors that Elon Musk needs Tesla “more than ever before.”
“As investors question if the CEO’s commitment is less or more, we believe Elon needs Tesla more than ever before.”
Raymond James initiates Caesars Entertainment at strong buy and Penn at outperform
Raymond James named Caesars Entertainment a top idea, saying it sees improved “digital profitability and higher leverage.” The firm also began coverage of Penn Entertainment, saying its shares are undervalued.
“We are initiating coverage of three U.S. gaming operators: Boyd Gaming Corporation (BYD), Caesars Entertainment, Inc. (CZR), and PENN Entertainment, Inc. (PENN).”
Baird downgrades Toast to neutral from outperform
Baird downgraded the restaurant payment company and said the risk/reward is more balanced.
“We love the story, as Toast is the fastest grower in our coverage yet [but] with the big run in recent months, we now view risk/reward as balanced.”
Citi initiates Ferrovial at buy
Citi said it’s bullish on shares of the Dutch infrastructure and transportation company.
“We initiate coverage of Ferrovial’s U.S. listing (FER) with a Buy rating and TP of $48/share.”
Evercore ISI reiterates Nvidia as outperform
Evercore said investors should buy the stock ahead of earnings on Wednesday.
“We suggest buying NVDA into its [latest] earnings report scheduled for May 22nd after the market close.”
Piper Sandler downgrades Sunnova to neutral from overweight
Piper sees too many negative catalysts ahead for Sunnova.
“Earnings was a sideshow for NOVA due to concerns surrounding liquidity and looming maturities.”
Redburn Atlantic Equities upgrades Disney to neutral from sell
Redburn upgraded the theme park operator mainly due to valuation.
″[T]he Disney share price (and forward valuation) has almost caught up with our unchanged caution on streaming prospects, so we lift our Sell to Neutral.”
Citi reiterates Dell as buy
Citi raised its price target on the stock by 36% to $170 per share from $125.
“We are raising our estimates and target price on greater conviction in Dell’s ability to gain market share in a growing AI [total addressable market].”
Barclays upgrades HP to equal weight from underweight
Barclays said in its upgrade of the stock that it sees “unit stabilization.”
“HPQ. We are changing our rating to Equal Weight from Underweight with no changes to estimates. We are using a higher multiple as we believe unit stabilization and some hope around AI PCs will support the shares at these levels.”
Argus upgrades Brinker to buy from hold
Argus said it sees EPS growth accelerating “to a double-digit rate over the next three years.”
“Our rating on Brinker International Inc. (NYSE: EAT) is now BUY, raised from HOLD.”
Morgan Stanley reiterates Apple as overweight
Morgan Stanley said its checks show accelerating App Store growth ahead of expectations for Apple.
“App Store net rev growth has accelerated 3pts M/M to +11.7% Y/Y in May [month to date].”
Morgan Stanley names Taiwan Semiconductor a catalyst-driven idea
Morgan Stanley said TSM is a likely beneficiary of a solid Nvidia earnings report on Wednesday.
“We would expect TSMC’s share price to rise if NVDA’s guidance were to beat expectations.”
Citi opens a positive catalyst watch on Gap
Citi said it’s bullish on the clothing retailer ahead of earnings on May 30.
“With sentiment more mixed on GPS recently, we believe the risk/reward is favorable into 1Q EPS.”
Morgan Stanley upgrades Global-e Online to overweight from equal weight
Morgan Stanley said in its upgrade of Global-e Online that it’s bullish on the direct-to-consumer global e-commerce company.
“We are optimistic that the company will be able to execute on the planned 2H24 acceleration, achieve faster-than-modeled GAAP profitability, and continue to be a key enabler of cross border eCommerce.”
Bank of America initiates Lenz Therapeutics at buy
Bank of America is bullish on shares of the eyedrop treatment biotech company.
“We initiate Lenz Therapeutics (LENZ) with a Buy rating and a $31/shr PO based on our risk-adjusted [discounted cash flow.]”
Deutsche Bank initiates Rubrik at buy
Deutsche said the company is the “cyber resilience market leader.”
“Rubrik’s leading the charge in redefining and expanding the Backup & Recovery Software market in the face of pernicious ransomware attacks that are crippling businesses with a more modern cloud-based approach focused on cyber resilience.”
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