Here are Friday’s biggest calls on Wall Street:
Bank of America reiterates Roblox as buy
Bank of America said it’s standing by shares of the stock heading into earnings next week.
“Moreover, RBLX January investor letter indicated that exit growth rates in ’22 would be good indicators of 2023 growth, suggesting lower volatility in buyside expectations soon.”
JPMorgan downgrades Funko to neutral from overweight
JPMorgan downgraded the pop culture toy company, noting it sees too much uncertainty.
“FNKO reported a disappointing 3Q with EPS of $0.28, well below the Street’s $0.52, with upside to sales more than offset by a gross margin miss and higher SG&A.”
JPMorgan downgrades GoPro to neutral from overweight
JPMorgan said it’s concerned about a “tough macro backdrop.”
“GoPro posted 3Q22 results slightly ahead of expectations though 4Q guide missed materially, driven by FX, and reduction in inventories at big box retailers.”
HSBC upgrades Altice USA to buy from hold
HSBC upgraded the cable company mainly on valuation.
“ATUS faces strong competition from other fibre telcos and fixed wireless access (FWA) substitution.”
Piper Sandler downgrades Atlassian to neutral from overweight
Piper said it sees a slowdown in subscription billings for the software developer.
“Atlassianis choosing to invest behind the business still, which is taking margins and cash flow estimates lower again. While this is good for the long-term of the benefit, near-to-medium-term, it presents challenges for investors.”
Piper Sandler upgrades Arista Networks to overweight from neutral
Piper said it’s getting more constructive on the networking company after its analyst day and earnings report.
“While there have been positive ‘breadcrumbs’ along the way, and we’re admittedly slightly late, following the event, we are more confident inArista’svisibility and sustainable growth trajectory and are upgrading to Overweight from Neutral and increasing PT to $164.”
UBS downgrades Teva to sell from neutral
UBS said it’s concerned about lingering litigation for the pharmaceutical company.
“We downgradeTEVAstock to Sell as we expect significant downside to near-term consensus estimates and expect a phase of uncertainty as the company experiences a transition in leadership, while litigation risk persists.”
Wells Fargo reiterates Home Depot and Lowe’s as overweight
Wells said it sees an attractive risk/reward outlook heading into the home improvement retailer’s earnings.
“HD/LOW’sQ3 results are around the corner & we see intriguing LT risk-reward, as: 1)housing market sentiment is toxic, and shares are priced for downward revisions that we don’t expect to materialize; and 2) Q3 earnings season (thus far) is rewarding quality prints that show resilience despite well expected FY23 pressures.”
BTIG initiates WeWork as buy
BTIG said it sees “opportunity” as corporation work to figure out their long-term real estate strategies.
“We are incrementally more convicted that this uncertainty could persist for years, not quarters, and that employers will continue to prioritize flexibility as they seek to determine when, where, and how their employees will utilize office space going forward.”
Cowen downgrades Twilio to market perform from outperform
Cowen said in its downgrade of the communication tools company that it sees deteriorating macro trends.
“TWLOis feeling acute pressure from a worsening macro, causing a significant cut to the growth outlook.”
Goldman Sachs upgrades Restaurant Brands to neutral from sell
Goldman upgraded the owner of Burger King and said it sees “improving trends.”
“We are upgrading shares ofQSRto Neutral (from Sell) as we see improving trends in the Tim Horton’s Canada business supported by both re-opening trends and strategic initiatives that seem to be driving momentum ahead of the macro, and are encouraged by the SSS momentum in the BK/PLK international businesses.”
Bank of America reiterates Krispy Kreme as buy
Bank of America said “brand health is strong but FX, UK, promos weigh,” heading intoKrispy Kremeearnings Nov. 15.
“We expect FX headwinds at the high end of guidance ($10-12mm impact for the year), exacerbated by lower sales growth in the UK as record heat waves, and inflation dampen demand.”
Wells Fargo reiterates Bank of America as a top pick
Wells said it has greater conviction in shares of Bank of America after a meeting with company executives.
“To us,BACis hitting the sweet spot for its positioning over the past 1, 5, and 10 years. Buy.”
Morgan Stanley reiterates Walmart as overweight
Morgan Stanley said it likes Walmart’s defensive positioning.
“We prefer defensive positioned retailersWMT,DG & AZO, and service-oriented DRVN. While valuations of the more cyclical names in our sector are optically attractive, we think ’23 EPS estimates are too high for many of them.”
Argus names Boeing a deep value idea
Argus said cash flow atBoeingis improving.
“The shares remain more than 60% below their all-time high as the company weathers the coronavirus crisis and its own internal problems.”
Cowen reiterates Coinbase as outperform
Cowen said it’s standing by shares of Coinbase after its earnings report on Thursday, noting that “liquidity and expense management remain solid.”
“Positive catalysts remain amid trading doldrums, including U.S. derivatives launch, regulatory clarity, and growing S&S revenues that hold less direct correlation to crypto prices/volatility.”
Citi upgrades Penumbra to buy from hold
Citi said investors should buy the dip in the medical device company.
“PEN’s3Q22 results were marginally better than expectations, with revenue of $213.7M surpassing consensus’s $212.3M, and expense management delivering an operating profit of $7.8M versus $1.5M.”
Jefferies reiterates Topgolf Callaway Brands as buy
Jefferies said it sees 200% upside in shares of the golf company.
“MODGis a beat & raise and record results story on repeat. Mgmt has proven itself and this is a compelling ecosystem with balanced growth, strong and rising margins, and an accelerating cash flow.”
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