Here are the biggest calls on Wall Street on Friday:
Oppenheimer reiterates Nvidia as a top pick
Oppenheimer says Nvidia remains a best-investment idea.
“We continue to favor structural growth for long term outperformance, but believe investors are beginning to revisit diversified analog names that have lagged YTD. Our top picks are NVDA, MPWR, MRVL and AVGO.”
Morgan Stanley reiterates Ford and General Motors at overweight
Morgan Stanley remains bullish on both automakers.
“We are bullish on F and GM. In our opinion, the key to unlocking upside potential for both Ford’s and GM’s share prices is showing significant improvement in the return on incremental invested capital (ROIIC), where we see multiple paths of improvement as we pass through the EV recession.”
Mizuho reiterates Amazon as a top pick
Mizuho is bullish heading into Amazon earnings on April 30.
“Into the print, Amazon is our top pick due to the positive e-commerce checks and accelerating [Amazon Web Services] trends.”
Canaccord downgrades Netflix to hold from buy
Canaccord downgraded Netflix following earnings on Thursday and said investors should look for better value elsewhere.
“Despite these mostly solid results and outlook, we see limited growth catalysts for the next few quarters and with the stock up ~90% over the last 12 months and up ~25% YTD, we think investors may be well served to look elsewhere for upside and are downgrading the stock to HOLD.”
Loop initiates DoorDash as buy
Loop said in its initiation of the stock that it has more earnings potential.
“We are initiating coverage of DoorDash with a Buy rating and $170 price target. We think that years of debate over viability and earnings potential of on-demand gig platforms has been settled.”
Bank of America reiterates Netflix as buy
Bank of America said it’s sticking with its buy rating on Netflix following the streamer’s earnings.
“We reiterate Buy and raise our price objective to $700 (from $650).”
Loop initiates Instacart at buy
Loop said it sees share gains for the delivery company.
“Instacart is the leader in grocery delivery in the U.S. by a wide margin and has been gaining share.”
Jefferies downgrades Ulta to hold from buy
Jefferies downgraded the stock due to increasing competition.
“The prestige makeup composition at ULTA is heavily weighted towards legacy brands (e.g Clinique, Estee, even MAC, etc), which, while they’ve been gradually losing share for years (ex. 3), diversification efforts have been unsuccessful.”
B. Riley upgrades Lam Research to buy from neutral
B. Riley is more confident about the semi-equipment company’s “revenue ramp potential.”
“In the past month, we’ve become much more confident on Memory’s 2H24-through-2026 fundamentals, and with that, LRCX’s revenue ramp potential.”
Wells Fargo upgrades First Solar to overweight from equal weight and downgrades Sunnova to equal weight from overweight
Wells said it’s “getting more defensive” in a “tough” solar market and that it’s upgrading First Solar and downgrading Sunnova.
“As the solar sector continues to struggle due to several headwinds, we’re getting more defensive with our ratings. Upgrading FSLR to OW due to relative stability & several potential catalysts. Downgrading NOVA to EW as rates may stay higher for longer.”
Edward Jones downgrades Hershey to hold from buy
Edward Jones sees too many cocoa headwinds.
“Hershey is facing headwinds from record-high cocoa prices, which we expect to limit near-term earnings growth. Hershey has highly recognizable brands and a leading position in the attractive and fast-growing confectionery category.”
Bank of America reiterates Meta as buy
Bank of America said it’s bullish heading into earnings on April 24.
“We remain positive on Meta and reiterate our thesis that Reels, Messaging, and AI-driven ad improvements are still early, and could lead to positive product surprises & revenue momentum in 2024.”
JPMorgan reiterates Coca-Cola as a top pick
JPMorgan said it’s bullish heading into Coca-Cola earnings on April 30.
“Favorable Set Up for 2024, Although More Cautious on Volumes in 1Q vs. Street; Not Expecting Guidance Raise.”
Wolfe upgrades Bank of America to outperform from peer perform
Wolfe said it sees a compelling entry point for the Charlotte, North Carolina-based national bank.
“BAC: Upgrade to OP – Underearning Firms Shouldn’t Trade at a Discount.”
Raymond James downgrades Pure Storage to outperform from strong buy
Raymond James said in its downgrade of the data storage company that it’s “less optimistic regarding Pure gaining material traction with cloud operators.”
“Pure generates nearly half its sales from subscriptions/recurring sources, which justifies a higher multiple.”
Morgan Stanley upgrades Shopify to overweight from equal weight
Morgan Stanley said market share gains are increasing for Shopify.
“Still Operating Leverage Left to Realize; Upgrading to Overweight.”
RBC initiates Inspire Medical Systems as outperform
RBC said it’s bullish on shares of the sleep solutions company.
“INSP offers a novel solution to treat patients suffering from obstructive sleep apnea (OSA) in a $16B U.S. market.”
Morgan Stanley reiterates Microsoft as overweight
Morgan Stanley said it’s bullish heading into earnings on April 25.
“Microsoft viewed as the clear beneficiary of incremental AI spend with a net 38% of CIOs expecting it to be the top AI budget share winner over the next 3 years.”
UBS reiterates Dell as a buy
UBS raised its price target on the stock to $141 per share from $113.
“While hyperscaler spend on Servers, the primary driver of the growth, is not a direct driver of Dell’s Server business, a rising tide in our view should lift all boats as AI investments broaden.”
Needham upgrades Netflix to buy from hold
Needham sees “revenue growth upside” following the company’s earnings report on Thursday.
“We raise our estimates and upgrade NFLX to Buy (from Hold) on rev growth upside as we believe: a) GenerativeAI will MOST benefit companies that are tech-first, and NFLX qualifies; b) NFLX has global scale, which maximizes the value of its data.”
Baird adds a bearish fresh pick on Columbia Sportswear
Baird said it’s negative heading into the clothing company’s earnings report on April 25.
“We expect COLM to reach low Q1 estimates (reporting April 25), but see risk of negative revisions to Q2.”
Comments