Here are the biggest calls on Wall Street on Friday:
HSBC initiates Pfizer as buy
HSBC said in its initiation of the multinational biopharma company that it’s bullish on Pfizer shares.
“With management ambition to outgrow its LOE (loss of exclusivity) phase through 2025-30, the company has acquired ADC platform company Seagen, on a fair value on our calculations. This puts it in a comfortable position where it can show capital discipline for future deals.”
JPMorgan downgrades AT&T to neutral from overweight
JPMorgan downgraded the telecommunications due to “slowing growth drivers.”
“Based on recent commentary from management lowering estimates for wireless (in May and again in June) and broadband (in June), we believe AT&T is facing marginally more pressure in Mobility (from Verizon, T-Mobile, and cable) and Consumer Wireline as well as ongoing pressures in Business Wireline.”
Wells Fargo downgrades Progressive to equal weight from overweight
Wells said it has concerns about the insurance company gaining share.
“With that being said, growth pivoted and turned negative sequentially in the direct channel in June, which shows that it will be tough for PGR to grab share (outgrow others) in this environment.”
JPMorgan downgrades Alcoa to neutral from overweight
JPMorgan downgraded the stock due to weakening aluminum fundamentals.
“Downgrading AA to Neutral on Weaker Aluminum Fundamentals; Constructive Downstream on Steady Demand Growth.”
UBS upgrades Microsoft to buy from neutral
UBS said in its upgrade of the stock that shares are too attractive to ignore.
“We upgrade Microsoft shares to Buy from Neutral on evidence that Azure/AWS cloud infrastructure spend is beginning to stabilize after a significant deceleration over the past year.”
Citi adds a positive catalyst watch on Applied Materials
Citi raised its price target on the stock to $170 from $160 and said it’s well positioned.
“We maintain Buy and believe AMAT is well positioned for secular megatrends such as 3D devices.”
Bank of America reiterates Amazon as buy
Bank of America said it’s standing by its buy rating after the company’s Prime Day.
“Overall, we think Amazon had a successful Prime Day, given data suggesting unit sales potentially more than 25%, while the industry revenue growth rate was only 6% (we assume Amazon gained y/y share during the Prime Day sales period).”
Citi adds a positive catalyst watch on Texas Roadhouse
Citi opened a positive catalyst watch on shares of Texas Roadhouse and says it’s bullish heading into earnings later this month.
“Still-strong absolute and relative comp growth is expected.”
Barclays reiterates Tesla as equal weight
Barclays said it’s cautious heading into Tesla earnings next week.
“The larger focus may be on the trajectory of margins, with investor hopes that 2Q is the trough. It’s unclear how much clarity we’ll receive, as price elasticity of demand is a critical component…and thus far price cuts haven’t driven volume as much as desired.”
JPMorgan reiterates Apple as overweight
JPMorgan said recent checks show that Apple has “strong market share” in a variety of markets.
“Latest datapoints in relation to smartphone sales in US and China as well as in relation to PCs globally have continued to highlight the strong market share momentum for Apple across the different markets, even as certain markets, like smartphone sales in China and PC sales globally, are starting to show green shoots relative to a recovery following a period of headwinds.”
Morgan Stanley names Las Vegas Sands as a top pick
Morgan Stanley said the casino company is the “best way to play Macau.”
“We are designating LVS as our Top Pick as we see it being the best way to play Macau and one of the final consumer recovery stories coming out of Covid.”
Northland upgrades Plug Power to outperform from market perform
Northland said in its upgrade of the battery charging company that “momentum is building.”
“We now have confidence that the company should be able to achieve margin break even by the end of the year and generate cash flow next year. We see PLUG generating higher revenue from its electrolyzer business and achieving better margins.”
Goldman Sachs reiterates Nvidia as buy
Goldman said it’s standing by its buy rating on the stock.
“We reiterate our Buy rating on NVDA as we continue to see significant runway ahead for the company based on its robust competitive position in what is a rapidly growing (yet nascent) AI semiconductor market.”
Raymond James upgrades Pulte Group, KB Home and Lennar to outperform from market perform
Raymond James upgraded Pulte, KB Home and Lennar on Friday and says the build-up demand in single-family homes “warrants a refreshed valuation approach.”
“To that end, we have belatedly come to the realization that the magnitude of pent-up demand for single-family homes – coupled with the proven resilience of builders’ de-risked operating models – warrants a refreshed valuation approach.”
Bank of America reiterates Disney as buy
Bank of America said it’s standing by shares of Disney after CEO Robert Iger appeared on CNBC to lay out his strategic vision.
“DIS has a collection of best-in-class premiere assets (in content/IP as well as Theme Parks).”
Argus upgrades General Mills to buy from hold
Argus said in its upgrade of General Mills that it likes the company’s differentiated portfolio.
“The company is leveraging its biggest brands through promotions and new product innovation, and growing through acquisitions, including its recent purchase of TNT Crust, a manufacturer of frozen pizza crusts.”
Raymond James initiates Tidewater as strong buy.
Raymond James said the petroleum services company is poised for robust earnings and cash flow.
“Tidewater is a pioneer in the offshore supply vessel (OSV) industry and currently owns and operates the world’s largest fleet of OSVs.”
