Here are Tuesday’s biggest calls on Wall Street:
Barclays reiterates Apple as equal weight
Barclays said Apple advertising on its own apps is very underappreciated.
“We believe AAPL advertising on its own apps is under-appreciated. Most ad revenues are generated on the App Store, with some contribution from News and Stocks.”
Canaccord initiates Ulta as buy
Canaccord said the beauty retailer still has plenty of upside.
“With Ulta trading at ~19x FY2 PE vs. its historical 5-yr avg of ~21x and 10-yr of 24x, we believe there is still upside from current valuation as management executes their long-term growth and margin plans, driving FCF, EPS growth, store productivity, and multiple expansion.”
Bank of America upgrades Paramount to buy from neutral
Bank of America said the media company has a “unique collection of assets.”
“We upgrade shares of PARA to Buy from Neutral and raise our PO to $32 (from $24). It is our view that PARA has a unique collection of assets that would generate significant buyer interest if ever put up for sale—either in pieces or whole.”
Bank of America downgrades Fox to neutral from buy
Bank of America said it sees a lack of near-term catalysts forFox.
“While we do not project any significant near-term degradation in the fundamentals (either in advertising or affiliates revenue), we also struggle to find near term catalysts to drive shares higher from current levels.”
Wells Fargo upgrades Carnival to equal weight from underweight
Wells said it sees a more balanced risk/reward for the cruise operator.
“Risk/reward seems balanced here—CCL has minimal NT (near term) maturities/refi needs, Europe is holding up well, and FY23 EBITDA guide is reasonable.”
Stifel initiates Bowlero as buy
Stifel said the bowling company is a compelling growth story.
“In our opinion, no better words could be used to describe how we view the long-term growth story ofBOWL.”
Raymond James upgrades Ciena to strong buy from outperform
Raymond James said in its upgrade of the networking systems company that it has an “expanding” total addressable market.
“The opportunity to displace Huawei presents a long-term tailwind forCienaand its Western counterparts.
Morgan Stanley names Emerson Electric as a top pick
Morgan Stanley named the electric manufacturing company as a top pick and said it sees several positive catalysts head.
“EMR is one of the few idiosyncratic stories in Multis and becomes our new Top Pick.”
Cowen upgrades Occidental Petroleum to outperform from market perform
Cowen said in its upgrade of the stock that it sees a “favorable free cash yield” and a “superior” risk/reward.
“We are upgrading Occidental Petroleum to outperform from market perform as we see a superior risk-reward balance of superior exposure to crude pricing, capital structure shifts, captive buying support from Berkshire Hathaway, a favorable free cash yield, well productivity and a differentiated catalyst rich profile in a world of relatively homogeneity across E&Ps.”
Oppenheimer initiates Carrier as outperform
Oppenheimer said it sees a long runway for growth for the ventilation and security systems services company.
“While CARR has executed well since its 2020 spin, we see further runway for multiple levers of value creation under the company’s control, including aftermarket/digital solutions growth and productivity gains.”
Citi upgrades PagSeguro and StoneCo to buy from neutral
Citi upgraded several Brazilian payment company’s on Tuesday and said they have attractive valuations.
“Nonetheless, our preference in the Brazilian acquirers’ sector remains CIEL (on stronger short-term earnings momentum), followed by STNE(on possible restructuring and improving sentiment following management change), then PAGS(appealing valuation but still challenging short-term).”
Deutsche Bank reiterates Tesla as buy
Deutsche said it’s standing by shares of the automaker heading into its delivery numbers report this weekend.
“Teslais slated to report 1Q23 deliveries and production figures this coming weekend, and we trim our 1Q deliveries estimate lower to 416k units reflecting still the uncertain macro environment after the price cuts, as well as competitive pricing responses in China.”
Morgan Stanley reiterates Dick’s as overweight
Morgan Stanley said shares of Dick’s are undervalued.
“DKS and ASO have seen their multiples re-rate moderately in the past few months.”
Truist upgrades Array Technologies to buy from hold
Truist said the solar technology company is “turning the corner.”
“While 1Q will see seasonal weakness, we ultimately view ARRY as well positioned to deliver notable growth & FCF for FY23, while benefiting from domestic/int’l tailwinds for utility-scale solar.”
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