Morgan Stanley reiterates Tesla as overweight
Morgan Stanley said it’s standing by its overweight rating on the stock heading into earnings later this week.
“Tesla should be able to eke out a decent 1Q result, but defending that 20% clean auto gross margin ‘floor’ may be a different story as ‘the world has changed’ with respect to EV demand weakening relative to EV supply.”
JPMorgan reiterates Amazon as overweight
JPMorgan said it came away “incrementally positive” from Amazon’s investor letter last week.
“Importantly, we believe Andy Jassy’s second letter as CEO provided the deepest insights yet
into his vision and strategy for AMZN as it touched virtually all key parts of the business and seemed to more directly address shareholder concerns.”
New Street downgrades Meta to neutral from buy
New Street said in its downgrade of the stock that it sees better opportunities elsewhere.
“No major change in view but we see better opportunities for upside in our coverage from here after META’s outperformance relative to the group.”
Morgan Stanley reiterates Microsoft as overweight
Morgan Stanley said the stock is “compelling” heading into earnings next week.
“At the depth of cyclical impacts (macro & cloud optimization) and ahead of a transformational secular shift (Cloud & AI), for which Microsoft consistently screens as best positioned to gain market share, we see a buying opportunity.”
Morgan Stanley reiterates Alphabet as overweight
Morgan Stanley said it’s bullish heading into Alphabet earnings next week.
“We detail expected AI-driven behavior change that we see leading to more durable multi-year e-commerce and online ad growth, and why we believe GOOGL is positioned to drive and benefit from these changes.”
Credit Suisse reiterates Netflix as neutral
Credit Suisse said it’s cautious heading into the streaming giant’s earnings report on Tuesday.
“In our discussions, almost all investors are positive on Netflix, though to varying degrees, with a focus on upside to Street revenue estimates due to password sharing monetization (including Canada believed to have gone quite well), and margin upside due to operating leverage and cost containment efforts (with particular visibility on content amort), while expecting a modest 1Q23 net add beat.”
Susquehanna upgrades Taiwan Semiconductor to positive from neutral
Susquehanna said in its upgrade of the semiconductor company that the worst case scenario is already baked in.
“Upgrading TSM to Positive as the worst-case earnings scenario is dialed into our estimates/ investors’ expectations.”
JPMorgan downgrades Dell to neutral from overweight
JPMorgan said in its downgrade of Dell that HP Inc. is better positioned right now.
“Leveraging our relative rating system, we are expressing our view in relation to the recovery in the second half of calendar 2023 to be more favorable for HPQ than DELL using our Overweight rating for HPQ and Neutral rating for DELL.”
Citi opens a negative catalyst watch on Zoom
Citi says it sees too many negative catalysts ahead for the teleconferencing company.
“We open a negative catalyst watch on Sell-rated ZM as we see negative data points piling up which could further pressure growth rates.”
Piper Sandler upgrades Enphase Energy to overweight from neutral
Piper said that it sees a favorable sales outlook for the solar company.
“We are upgrading ENPH to OW from Neutral. Our prior January downgrade was driven by concerns surrounding US [residential] based on indicators at the time. Disclosures from the publics and discussions with privates indicate that Q1 originations/sales were more favorable than we feared thereby suggesting the US is more likely to decelerate than decline during ’23.”
JPMorgan upgrades HP Inc. to overweight from neutral
JPMorgan said in its upgrade of HP Inc. that it sees “resilient revenue and margins.”
“We expect the combination of structural margin improvement in the Print segment on account of several initiatives undertaken by the company to offset some of the margin moderation in the coming quarters with easing supply, even though margin moderation should be more muted than previously feared on better supply-demand balance.”
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