Here are the biggest calls on Wall Street on Wednesday:
UBS upgrades Netflix to buy from neutral
UBS upgraded the streaming giant after its mixed earnings report on Tuesday and says it sees upside to subscribers and pricing power.
“We see Netflix as the main beneficiary of easing competition in DTC as peers focus on profits. We believe this will drive upside to subs/pricing power in the coming yrs while also keeping a lid on content costs, one of the biggest swing factors for profits/FCF.”
JPMorgan reiterates Apple as overweight
JPMorgan raised its price target on Apple to $190 per share from $175 and says it’s bullish heading into earnings on May 4.
“We see a divergence of the upcoming earnings print in relation to estimate revisions and share price implications, as fundamental weakness in the hardware categories, driven by a pullback in consumer spending, will drive consensus estimates lower, but the magnitude of the downward revision being limited to a couple of percentage points will reinforce positioning of the shares for resilience.”
Guggenheim reiterates Tesla as sell
Guggenheim says it’s standing by its sell rating on the stock heading into earnings on Wednesday after the bell.
“As with any quarter, investors remain focused on gross margins as both a sign of unit economics, but also TSLA exceptionalism vs. automotive peers.”
Bank of America reiterates Meta as buy
Bank of America says it likes “self-help stocks in an uncertain macro.” The firm also raised its price target to $250 per share from $230.
“While we think ’23 recession uncertainty is likely to keep a lid on sector revenue estimates, we like Meta’s revenue set up for potential acceleration aided by Reels & messaging monetization, AI/ML targeting benefits.”
Wolfe reiterates Meta as outperform
Wolfe says Meta is a top pick heading into earnings and that its valuation is compelling.
“We think 1Q results and 2Q guide should reflect relatively stable demand environment and progress on growth initiatives / cost savings.”
Wolfe reiterates Amazon as outperform
Wolfe says it’s standing by its outperform rating on the stock heading into earnings next week.
“AMZN’s 1Q results should be largely within the prior guidance ranges. Retail margins should improve nicely, but focus is on AWS growth trajectory, which we expect to decelerate.”
Bank of America reiterates Nvidia as buy
Bank of America raised its price target on the AI beneficiary to $340 per share from $310.
“Our positive view on Nvidia is based on its underappreciated transformation from a traditional PC graphics chip vendor, into a supplier into high-end gaming, enterprise graphics, cloud, accelerated computing and automotive markets.”
RBC downgrades Rivian to sector perform from outperform
RBC said in its downgrade of the electric vehicle company that it sees “limited” near term catalysts.
“RIVN is well positioned to capture market share as the industry shift towards electrification, and we continue to believe its clean-sheet approach and vertical integration will allow for higher margins at scale.”
Wedbush upgrades Western Alliance Bancorporation to outperform from neutral
Wedbush upgraded the regional bank due to rebounding deposits.
“We’re upgrading WAL to OUTPERFORM and adding it to the Wedbush Best Ideas List as deposit outflows in March have partially reversed and WAL’s higher level of insured deposits at 73% should help support deposit levels going forward, in our view.”
UBS upgrades Exxon to buy from neutral
UBS said in its upgrade of the oil and gas giant that it likes the company’s balance sheet.
“For XOM, our positive outlook is driven by high margin upstream volume growth 2%/3% above 2024/25 Consensus that are paired annual Downstream/Chemicals capacity additions, while maintaining capex at $20-25Bn/yr.”
KeyBanc initiates Peloton as sector weight
KeyBanc said in its initiation of the exercise company that there’s too much uncertainty.
“PTON has addressed NT going concern debates with necessary/timely actions taken by the McCarthy administration. However, we think the concoction of a macro turbulence, financial distress, and unproven/margin dilutive initiatives pressures the NT growth rate of the subscriber base and the brawn/uniqueness of the brand.
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