Here are Friday’s biggest calls on Wall Street:
Cantor Fitzgerald upgrades Rivian to buy from hold
Cantor said it sees an attractive entry point for investors.
“Upgrading Rivian to Overweight on Valuation. We Expect Strong Demand to Continue into 2024.”
Stifel upgrades Old Dominion to buy from hold
Stifel said in its upgrade of the stock that it’s a “secular grower.”
“In 3Q23, Old Dominion offset market softness with better operating efficiency, leading to a healthy EPS beat—8% and 6% ahead of our estimate and Consensus, respectively. The company has consistently demonstrated industry-leading execution, margins, and growth for more than two decades. And we’ve said it before: ‘buy Old Dominion when you can.’”
JPMorgan initiates TKO Group as overweight
JPMorgan said the WWE and UFC combo company is a “sports champion.”
“TKO offers investors ownership of UFC and WWE, the leading MMA and professional wrestling promotions.”
Bank of America downgrades Hasbro to neutral from buy
Bank of America downgraded the toymaker after its earnings report on Thursday.
“HAS did report very strong 3Q WOTC [Wizards segment] revenue (+38% YoY vs. consensus +26%), but unfortunately its Consumer Products (CP) sales declined 19% YoY, well below our -13% estimate and consensus -5%.”
Morgan Stanley upgrades ResMed to overweight from equal weight
Morgan Stanley said the sleep apnea solutions company is still a winner despite the growth of obesity drugs.
“We upgrade to OW from EW - Deep dive suggests RMD can still grow while GLP- 1 proliferates.”
Piper Sandler downgrades Enphase Energy to neutral from overweight
Piper said it has no visibility on the solar stock.
“Given limited visibility and a full valuation given no near-term growth, we are throwing in the towel and downgrading ENPH to Neutral (PT to $75/sh). We look for confirmation of revenue stability and declining US resi financing costs to get more constructive on the name.”
JPMorgan upgrades Yelp to neutral from overweight
JPMorgan upgraded the stock ahead of earnings next week.
“We are upgrading Yelp to Neutral ahead of 3Q earnings on 11/2 AMC. Yelp has navigated the challenging ad market better than most of its peers, with nine straight quarters of double-digit% revenue growth.”
HSBC upgrades Intel to hold from sell
HSBC upgraded Intel after its earnings report on Thursday.
“Upgrade to Hold: Improving PC outlook and execution despite ongoing uncertainty over datacentre recovery.”
Guggenheim initiates Idacorp as buy
Guggenheim said the electricity company has numerous positive catalysts.
“We are initiating coverage of IDACORP, Inc. (IDA) with a BUY rating, primarily based on key drivers and catalysts which we do not believe are already reflected in the shares despite current valuation levels.”
Raymond James initiates Roblox as strong buy
Raymond James said it sees a compelling entry point for the stock.
“We see a number of encouraging factors positioning Roblox for long-term growth, with an attractive entry point following 2Q23 results.”
Deutsche Bank initiates Griffon as buy
Deutsche said in its initiation of the diversified management and holding company that it likes the company’s wide array of strong brands.
“With a winding history that dates back to the 60′s, Griffon Corp started as a fledgling pioneer within the avionics industry, but fast-forward to today and the company is a singularly-focused portfolio of strong brands spanning two segments we expect to drive significant value for shareholders over the coming years.”
TD Cowen downgrades Southwest to market perform from outperform
TD downgraded the stock after its “tough” earnings report on Thursday.
“Southwest reported adjusted 3Q profit that was better than our forecast but below consensus. Revenue of $6.25 billion was below estimates. Management is focused on improving results and to that end will reduce capacity growth.”
TD Cowen downgrades Hershey to market perform from outperform
TD downgraded the stock after its earnings report and said it sees too many head winds for Hershey.
“The company’s 3Q results exceeded our estimates, but management lowered 4Q and warned of more headwinds than tailwinds ahead. We lower 2024 EPS growth to 5% to reflect higher probability of a guidance reduction from management’s initial 7-8%.”
BMO upgrades Merck to outperform from market perform
BMO said in its upgrade of Merck that it sees “pipeline success.”
“Upgrading to Outperform, Revised Target of $132. Following another strong quarter and strengthening narrative around growth we’re upgrading shares.”
Citi opening a positive catalyst watch on DraftKings
Citi said it’s bullish on the stock ahead of its investor day in mid November.
“Given trends to date, we see scope for DraftKings to raise its longterm Adj. EBITDA target at its upcoming Investor Day (11/14/23) and believe this upside may not be fully reflected in the firm’s equity. As such, we would be buyers of DKNG heading into the firm’s Investor Day and are opening a 30-day positive catalyst watch.”
Wells Fargo downgrades Datadog to equal weight from overweight
Wells said in its downgrade of the cloud software company that 2024 estimates are too aggressive.
“We are downgrading shares of DDOG to EW and lowering our PT to $95. Cost optimization trends are still ongoing and FY24 estimates look high, offset by potential share gains related to Cisco/Splunk acquisition and new AI-based solutions.
JPMorgan downgrades Regions Financial to neutral from overweight
JPMorgan said in its downgrade of the bank holding company that it sees too many negative catalysts.
“We are downgrading Regions Financial to Neutral from Overweight to reflect the impact of faster catch-up in deposit betas.”
Goldman Sachs reiterates Amazon as buy
Goldman said the stock remains attractive after its earnings report Thursday.
“While some questions will remain about the linear vs volatile nature of the global consumer and a need for better visibility into a sustained AWS revenue reacceleration, we see this earnings report as confirmatory that AMZN’s risk/reward from current levels remains skewed heavily in a positive direction looking forward.”
Deutsche Bank downgrades Frontier to hold from buy
Deutsche downgraded the airline mainly on valuation.
“With its share price trading in the vicinity of what we consider to be fair value (i.e., last close of $4.19), we believe ULCC shares no longer warrant a Buy rating, and therefore are downgrading the stock to Hold.”
Bank of America reiterates Apple as neutral
Bank of America said it’s standing by its neutral rating on the stock.
“We maintain our Neutral rating on Apple as positives of new products are offset by the risk of a weaker consumer.”
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