Here are Friday’s biggest calls on Wall Street:
UBS reiterates Tesla as buy
UBS said it’s recent survey checks show Tesla is “best positioned” to win the EV race.
“Despite a plethora of BEV launches, legacy mass OEMs are the relative losers in this year’s survey. In a market that is no longer supply constrained, technology and cost leadership have become more important than ever, and we think Tesla is clearly best positioned to win as it fully controls all the mission-critical levers in-house.”
Barclays reiterates Meta as overweight
Barclays said the bull case on Meta has not been unlocked yet.
“Shares have re-rated significantly in the past few months and while we think the alpha vs. GOOG and AMZN may have been realized on recent cost cuts, the bull case around how generative AI could unlock value has not.”
Bank of America reiterates Netflix as buy
Bank of America said Netflix is firing on all cylinders.
“Supported by its world-class brand, leading global subscriber base and position as a leading innovator we believe Netflix is poised to outperform driven by three main catalysts: (1) still significant subscriber runway; (2) ramping of its AVOD offering and (3) upside from password sharing crackdown.”
Citi reiterates Nvidia as buy
Citi said Nvidia is a top beneficiary of AI.
“We continue to view Generative AI as more than just hype and capture key takeaways from industry conferences and interesting case studies.”
TD Cowen downgrades Coinbase to market perform from outperform
TD Cowen said in its downgrade of Coinbase that it’s concerned about the company’s litigation with the SEC.
“We are downgrading COIN today to Underperform (3) on incremental risk to operations from the SEC Wells Notice and crypto banking crackdown. COIN appears headed for litigation against the SEC.
Atlantic Equities downgrades Block to neutral from outperform
Atlantic Equities said it’s concerned about the accusations leveled by Hindenberg Research on Thursday.
“The Hindenburg Research report allegations focused on Cash App’s predatory fees, fake user accounts, and links to criminal activity. We are less concerned about the high fees and user metrics, but a significant proportion of profits could be impacted longer term by improving risk controls to reduce illegal activity.”
Jefferies downgrades UBS to hold from buy
Jefferies said it sees too much uncertainty after the banking giant’s acquisition of Credit Suisse.
“With the acquisition of CS, UBS’ equity story takes a U-turn. Deal maths are compelling on a three-year view but risks & uncertainty are high in the next 12 months.”
Jefferies upgrades Regeneron to buy from hold
Jefferies said it’s bullish on several of the pharmaceutical company’s products.
“We’re increasing our PT to $925 & upgrading REGN from Hold to Buy.”
Citi adds a positive catalyst watch on Lululemon
Citi said it’s bullish heading into Lululemon earnings next week.
“With investors anticipating conservative F23 guidance and shares trading at 16.5x F23 EV/EBITDA (well below NKE at 25x), we believe the setup into the print is favorable. We are opening a 30-day positive Catalyst Watch.”
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