Here are the biggest calls on Wall Street on Thursday:
Deutsche Bank resumes Nike as buy
Deutsche Bank resumed coverage of the stock and said it’s bullish.
“We believe NKE is taking bold steps to transform its business and embark on a multi-year innovation cycle that should deliver an acceleration in top-line trends and market share gains.”
Bank of America reiterates Broadcom as buy
Following Broadcom’s earnings report, Bank of America said the company has “potential to join the trillionaires club.”
“Broadcom (AVGO) reported a 4% beat on FQ2 sales, raised its FY24 sales outlook by $1bn to $51bn, and declared a 10:1 stock split.”
Citi adds Coca-Cola and Royal Caribbean to the focus list
Citi said it was refreshing its conviction ideas list and added Coca-Cola and Royal Caribbean, among others, to it.
“We refresh our highest conviction ideas. Within we highlight key points of differentiation and next catalysts. Adding: EVRG, KO, RCL, and TEAM. Removing: FHN, WMT.”
Oppenheimer names Ulta a top pick
Oppenheimer said shares of Ulta are too attractive to ignore.
“A Compelling Risk/Reward Scenario Supports Our Addition to Top Pick Ranking.”
Jefferies reiterates Microsoft as a top pick
Jefferies said in a headline note that Microsoft is a “top AI pick going for AI gold, not silver.”
“While MSFT can’t comment on other companies AI announcements, it remains enthusiastic about its partnership with OpenAI to provide cloud services. We note that MSFT is likely positioned to benefit from this deal given its profit sharing agreement with OpenAI and position as OpenAI’s cloud provider.”
Oppenheimer reiterates Nvidia as outperform
Oppenheimer said it’s sticking with its outperform rating following a meeting with company management.
“We see NVDA as best positioned in AI, benefiting from its full stack AI hardware, networking, and software solutions. Maintain Outperform and $150 target.”
Bernstein reiterates Meta as outperform
Bernstein said in a bull/bear note that it’s standing by its outperform rating on Meta.
“We like it for today, and we like it for tomorrow. Remain Outperform. PT $565.”
Goldman Sachs initiates Chipotle and Starbucks as buy
Goldman said in its initiation of Chipotle and Starbucks that the companies are compelling.
“We are less worried about a pullback in the restaurant spending or share of PCE given a still-healthy spending outlook and more lasting behavior shifts post-covid.”
Morgan Stanley initiates Goodyear Tire as equal weight
Morgan Stanley said in its initiation of the stock that “margins and cash returns remain low”
“Goodyear looks to transform the business through self-help, asset disposals and price/mix enrichment.”
Wolfe upgrades 3M to outperform from peer perform
Wolfe said in its upgrade of the stock that its valuation is “deeply discounted.”
“New CEO Bill Brown brings The Right Stuff to 3M, giving us more confidence in the medium term EPS outlook.”
Morgan Stanley downgrades Corning to equal weight from overweight
Morgan Stanley downgraded Corning mainly on valuation.
“Improved Demand Picture Reflected in Valuation; Downgrade to Equal-weight.”
TD Cowen initiates Civitas Resources as buy
TD Cowen said the carbon-neutral energy producer is “underappreciated.”
“We initiate coverage of Civitas Resources with a Buy rating and a $90/shr NAV- [net asset value] based PT.”
KeyBanc reiterates Netflix as overweight
KeyBanc raised its price target on the stock to $707 per share from $705.
“Our latest Media Survey shows several positive signs: 1) Consumers using Netflix the most improved for the second straight quarter - 40% places Netflix back toward levels that existed pre-paid-sharing. We believe this corresponds to improved content and less competitive pressure. 2) Pricing power persists - Intent to cancel remains consistent with historical levels at 23%.”
Bank of America reiterates Dell as buy
Bank of America said it sees several positive catalysts ahead for Dell.
“We see the setup into 2025 as attractive as all areas of DELL’s business could be strong in unison.”
Bank of America upgrades Kimberly-Clark to buy from underperform
Bank of America double-upgraded the home care products company and said there’s a “favorable setup” ahead.
“Upgrading KMB to Buy from Underperform; Structural Change Ahead.”
Morgan Stanley reiterates Amazon, Alphabet, Meta, Microsoft and Adobe as overweight
Morgan Stanley named several tech stocks that it said are well positioned for AI.
“GOOGL, MSFT, AMZN, META and ADBE stand out as the leaders so far.”
Morgan Stanley reiterates Colgate-Palmolive as a top pick
Morgan Stanley said it sees a “pet inflection on the horizon” for Colgate.
“Reiterate OW With a Pet Topline/Profit Inflection Ahead.”
Wells Fargo reiterates Roblox as overweight
Wells raised its price target on the stock to $41 per share from $37 and said it’s sticking with the stock.
“Roblox’s competitive positioning remains strong, unlikely to be challenged by Fortnite in the near term.”
Stephens upgrades Par Technology to overweight from equal weight
Stephens said the hardware and software solutions company has a “line of sight into profitability.”
“We are upgrading shares of PAR to OW/Vol. from EW/Vol. and raising our price target to $60 from $46.”
Barclays downgrades NextEra Energy Partners to underweight from equal weight
The firm said it sees too many negative catalysts for the stock.
“While NEP does have many advantages due to its proximity to NEE (the world’s largest renewable developer), the company’s ability to grow is highly dependent on capital-intensive dropdown acquisitions from NEER [NextEra Energy Resources].
Wedbush reiterates Tesla as outperform
Wedbush said it’s sticking with an outperform rating following a post by Elon Musk on X saying his pay package has been approved.
“It is a pop the champagne moment for Musk and Tesla shareholders as based on Elon’s X post overnight both the hot button 2018 Comp Package and Incorporation in Texas have been overwhelming[ly] approved.”
Bank of America reiterates Boeing as neutral
Bank of America raised its price target on the stock to $200 per share from $180 but said it’s sticking with its neutral rating.
“On one hand, the company has somewhat de-risked 2024e expectations after the late May announcement about burning FCF. Boeing remains uniquely positioned to the robust air traffic demand environment, with the moat that the duopoly creates. However, on the other hand, turning around operations could take time and uncertainties remain in the near future.”
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