Here are Monday’s biggest calls on Wall Street:
Morgan Stanley reiterates Apple as overweight
Morgan Stanley said it’s sticking with its overweight rating after Apple’s quarterly 10-Q report.
“Balance sheet inventory growth reflects Apple’s strategic component prepurchases, which we believe will help support sequentially expanding gross margins into F1H24.”
DA Davidson reiterates Amazon as buy
DA said it’s standing by its buy rating after the company’s earnings report last week.
“On last Thursday’s 2Q23 earnings call, CEO, President, and Director, Andy Jassy, provided, what we considered to be, the clearest and most overt description of his vision for the future of Amazon over the course of nearly 15 minutes.”
Wells Fargo upgrades DraftKings to overweight from equal weight
Wells upgraded the stock after its earnings report last week and said the “bull thesis is playing out.”
“We learned a lot last week: DKNG is capturing share, capitalizing on an improved product, and limiting opex growth.”
UBS upgrades DaVita to buy from neutral
UBS said the kidney and dialysis stock is underappreciated.
“Further, our differentiated view that DVA will resume share repurchase in 4Q should serve as a positive catalyst and an accelerant to 2024 EPS not reflected in consensus estimates.”
UBS reiterates Meta as buy
UBS said it’s bullish heading into the Meta Connect event in September.
“We expect Meta to introduce genAI consumer chatbots across WhatsApp, Instagram and Facebook by the end of next month at the Meta Connect event.”
Bank of America reiterates Nvidia as buy
Bank of America said it’s standing by its buy rating ahead of earnings later this month.
“Maintain Buy, top sector pick and $550 PO on NVDA ahead of its F2Q (Jul) earnings call given its dominant position and multi-year runway in transforming the $1Tn+ in traditional global data centers to AI/accelerated compute.”
Morgan Stanley upgrades Laureate to overweight from equal weight
Morgan Stanley said the education company is a beneficiary of nearshoring.
“We believe Laureate should benefit directly and indirectly from nearshoring, but it might incur some expansion CAPEX. We raise enrollment estimates and upgrade the stock to Overweight.”
Raymond James upgrades EchoStar to strong buy from outperform
Raymond James said the satellite company is very well positioned.
“We are upgrading EchoStar to Strong Buy, from Outperform, as we think the company is positioned very well at a critical juncture for the U.S. Satellite industry, driven by significant capacity being brought online with the Jupiter 3 satellite, a very strong balance sheet with $1.7B in cash and -$0.2B in net debt, and significant fallow S-Band spectrum holdings.”
Morgan Stanley reiterates Palo Alto Networks as overweight
Morgan Stanley said the company has a “differentiated” and “disruptive” platform.
“Palo Alto Networks offers a disruptive platform, well positioned to address the evolving threat landscape.”
Redburn upgrades United Airlines to buy from neutral
Redburn said it likes the airline’s international exposure.
“We upgrade United to Buy (target price $80) owing to our preference for international and our more positive view on the impact of fewer narrow-body deliveries on both capex and growth over the coming years.”
UBS upgrade Wayfair to buy from neutral
UBS said it sees a favorable “intermediate term” set up for Wayfair.
“While sentiment on the stock has improved lately, we believe the market will be surprised by the degree of profit upside that W is likely to generate in the coming periods.”
UBS upgrades PG&E to buy from neutral
UBS said in its upgrade of the utility company that it sees numerous positive catalysts ahead.
“We upgrade PCG to Buy, with five drivers: 1) Top quartile EPS growth of 9%; 2) Improving credit metrics; 3) Better wildfire risk mitigation; 4) A 25% group P/ E discount based on our $1.49 in ’25 and 5) Several catalysts.”
Guggenheim upgrades Fortinet to buy from neutral
Guggenheim said the cybersecurity company has a wide moat.
“While we recognize Fortinet faces several headwinds heading into the second half of the year, we do not believe the company is structurally impaired, nor do we believe its competitive positioning has deteriorated.”
UBS reiterates Berkshire Hathaway as buy
UBS said it’s standing by its buy rating on shares of Berkshire after its earnings report Saturday. The firm raised its price target on the stock to $621,591 from $608,000 on Class A shares.
“Insurance outperformed with strong underwriting results driven largely by reserve releases and lower than expected catastrophe losses, as well as better than expected NII (net interest income).
Morgan Stanley reiterates Cinemark as overweight
Morgan Stanley said it’s standing by its overweight rating on Cinemark as the success of “Barbie” and “Oppenheimer” has “squashed” the theatrical bear case.
“Conviction in studios and consumers embracing theatrical has been further reinforced by the Barbenheimer summer. At the same time, the ongoing dual labor strikes have created new uncertainty over the slate. Balancing the permanence of the good news with the transience of the bad news keeps us OW.”
Truist upgrades Camping World to buy from neutral
Truist said in its upgrade of the RV company that it sees a compelling entry point.
“We are upgrading CWH shares to Buy & raising our 12-mo PT to $35 (from $28). In our opinion, the recent post 2Q pullback, combined with now de-risked 2H expectations, an airing of its modified capital allocation framework, and - what we believe could be - material upside to ’24 Street ests., presents a more compelling entry point for investors.”
Piper Sandler upgrades Monster Beverage to overweight from neutral
Piper said the beverage stock is well positioned.
“We remain bullish on the energy drink category specifically, especially with no private label presence, and expect MNST to continue to be well-positioned, and the Monster brand (~90% of sales) has very strong brand equity.”
Morgan Stanley upgrades Curtiss-Wright to overweight from equal weight
Morgan Stanley said in its upgrade of the aerospace and defense company that it’s a “premium asset in a scarce pool.”
“The Pivot to Growth continues and endmarket demand remains robust, positioning CW for underappreciated topline expansion.”
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