Here are Tuesday’s biggest calls on Wall Street:
Mizuho reiterates Tesla as buy
Mizuho said it’s standing by its buy rating heading into the company’s analyst day on March 1.
“Maintain Buy Rating onTSLAas we see xEV/ADAS (electric vehicle/advanced driver assistance systems) growing at a secular 20-30% ’22-’30 CAGR and TSLA in a leadership position.”
Barclays reiterates Apple as equal weight
Barclays said low growth in the App Store is the “new norm” for Apple.
“The App Store is the largest revenue contributor in Services (33% by our estimates). While only 6% of total revenues, we estimate App Store at 11% of totalAAPLgross profit.
Goldman Sachs downgrades Arconic to sell from neutral
Goldman said it sees demand uncertainty for Arconic.
“Downgrade to Sell as near-term European demand uncertainty and delayed growth investments moderate the path for EBITDA inflection.”
Morgan Stand reiterates Dick’s as overweight
Morgan Stanley said it’s standing by its overweight rating heading into Dick’s earnings on March 7.
“Lack of visibility on post-reversion floor means N-T stock path could be choppy; L-T we believeDKScan sustain its sales/margin gains and the stock is undervalued.”
Evercore ISI downgrades FuboTV to in line from outperform
Evercore said in its downgrade of the streaming subscription service company that shares are likely to remain volatile.
“FUBO reported a Beat almost across the board, on Revenue, EBITDA, Subscribers, and ARPU in Q4 as the company benefited from the World Cup in addition to healthy NFL and political ad seasons, efficient marketing spend, and improving churn rates.”
BMO initiates Structure Therapeutics as outperform
BMO said in its initiation of the biopharma company that it sees significant advancement in the obesity therapeutics market.
“Recent advancement in Obesity therapeutics is not a fad, but marks a significant shift in treatment of a widespread metabolic disease. We see this as a sea change, andStructure Therapeuticsappears well positioned to succeed in this market.”
Bank of America names Alphabet, Apple, Microsoft and Meta as top A.I. picks
Bank of America said that Alphabet, Apple, Microsoft and Meta were its top picks in artificial intelligence.
“Microsoft– OpenAI ChatGPT integration into Bing search engine;Alphabet– Google search ecosystem, DeepMind Sparrow LLM, Bard AI chatbot;Meta– LLaMA large language model, GPU enabled AI research supercluster;Apple– iOS licensing for default search engine (Google vs Microsoft).”
Credit Suisse upgrades Celsius Holdings to outperform from neutral
Credit Suisse said the energy drink company has long-term growth potential.
“Every beverage player cited energy strength in December quarter results, including Coke, PepsiCo, Keurig, as well as Coke bottlers CCEP and CCH.Celsiusis in the strongest sub-segment of energy.”
Bank of America downgrades Dish to underperform from buy
Bank of America said it sees inflationary pressure for the satellite TV company.
“The second half of our DISH thesis assesses the company’s free cash flow and financing needs. We expect declining EBITDA due to adverse pay TV trends, higher marketing expenses and inflationary pressure.”
Piper Sandler initiates Clean Energy Fuels as overweight
Piper said in its initiation of the renewable natural gas company that it sees attractive upside.
“For OPAL andCLNE, the implied valuation of only their upstream RNG businesses exceeds that of the entire current corporate Enterprise Value (EV), despite the upstream business only representing 75%/45% of 2025 EBITDA, respectively, suggesting material upside potential from continued consolidation in the RNG space.”
Citi downgrades Dick’s to neutral from buy
Citi downgradedDick’sahead of earnings next week and said it sees weak gross margins.
“We are downgrading shares from Buy to Neutral ahead of 4Q EPS on 3/7 (BMO). While we expect an EPS beat ($2.98 vs cons $2.90) driven by stronger sales, we anticipate weaker GM (gross margins) vs. consensus.”
Wells Fargo reiterates Snowflake as buy
Wells said it’s standing by its overweight rating heading into earnings Wednesday.
“While the growth debate is likely to persist in the NT, we viewSNOWas a high-quality co investors ultimately intend to come back to for longer.”
Bernstein reiterates Costco as outperform
Bernstein said it’s bullish heading into Costco earnings next week.
“We continue to expect strong results fromCostcointo Q2 23 earnings, which will be reported on Thursday, March 2.”
Wells Fargo reiterates Goldman Sachs as overweight
Wells says it’s staying bullish on the stock heading into Goldman’s investor day Tuesday.
“The big question is the degree to which GS can evolve its business model. Regulators continue to punishGoldman’s business model requiring more capital (on a percentage basis) than for any other large bank.”
Evercore ISI adds Abbott Labs to the tactical outperform list
Evercore said investors should buy the dip in shares ofAbbott.
“With the recent pullbacks, we are adding both ABT & EW to our TAP (tactical, actionable, positioning) Outperform list.”
Argus upgrades Airbnb to buy from hold
Argus said in its upgrade of the stock that demand should remain “strong.”
“We expect demand forAirbnbrentals to remain strong in the U.S., driven by longer stays and growth in urban markets.”
Morgan Stanley names Tencent Music Entertainment a research tactical idea
Morgan Stanley said shares of the China music company are compelling and likely to rise.
“TME has corrected 9% in the last one month. Our 4Q22 EPADS estimate is 4% above consensus (TME is due to report 4Q22 results on March 21) and our 2023-24 EPADS estimates are 5-9% above consensus, driven by strong music revenue growth.”
Deutsche Bank reiterates Salesforce as buy
Deutsche Bank said it’s standing by shares ofSalesforceheading into earnings on Wednesday.
“While the equity narrative has been dominated by activist demands for greater profitability and a leveraged recap (see our note, Unlocking Value, Leverage is a Key), the fundamentals appear to remain challenging, based on our field checks.”
Comments