Here are the biggest calls on Wall Street on Wednesday:
Wells Fargo upgrades Hexcel Corporation to overweight from equal weight
Wells said the composite materials company is being “unfairly punished,” and it has limited 737 exposure.
“We are upgrading HXL to Overweight as we see upside to numbers, less 737 MAX risk vs peers and a stock unfairly punished for its CEO transition.”
Baird upgrades Old Dominion to outperform from neutral
Baird upgraded the trucking company following its latest earnings report.
“Upgrading ODFL to Outperform, remain opportunistic buyers.”
Bank of America reiterates Apple as buy
Bank of America is sticking with its buy rating on shares of Apple after its Tuesday iPad event.
“Beyond the impressive hardware, what we liked includes: 1) Apple continues to innovate on its own silicon 2) advanced Neural Engine in the M4 chip will allow for AI enabled functionality like isolating subjects from their background in 4-K video using Apple’s Final Cut Pro, and detecting documents and using AI to rearrange frames and remove shadows in an image...”
Morgan Stanley reiterates Nike as overweight
Morgan Stanley said Nike shares losses are overdone.
“NKE has gained the most share in the global sportswear category of any brand in our analysis on both a y/y & vs. ’19 basis.”
Citi reiterates Reddit as buy
Citi said it’s standing by its buy rating following the company’s earnings report on Tuesday.
“And as Reddit builds out its ad stack, we look for Search (1B+ monthly queries) and video monetization to potentially begin in ’24, creating a medium-term catalyst for growth.”
Barclays reiterates Disney as overweight
Barclays said the selloff in Disney following its earnings is overdone.
“We believe concerns with respect to theme park operating income growth are overdone and misses some of the nuances behind the guidance framework.”
Bank of America reiterates Rivian as buy
Bank of America said it’s standing by the electric-vehicle maker following earnings on Tuesday.
“RIVN still in right place/time with right product/strategy.”
Rosenblatt downgrades Nasdaq to neutral from buy
Rosenblatt said in its downgrade of Nasdaq that the “flywheel is in need of some repair.”
“Further, market data revenue is likely to remain pressured by the aforementioned market share loss and tighter regulation, while investors we talk to seem more confused than ever about a complicated business. Broadly, the flywheel is in need of some repair.”
JPMorgan upgrades International Flavors to overweight from neutral
JPMorgan upgraded the health, fragrance and scent company and said it sees upside in the year ahead.
“We rate IFF Overweight for year-ahead performance.”
Baird upgrades Datadog to outperform from neutral
Baird said investors should buy the dip in shares of Datadog.
“Buyers on weakness. Following weakness yesterday and YTD underperformance, coupled with improving optimization and consumption trends, we are raising our rating from Neutral to Outperform.”
Raymond James upgrades Nutanix to outperform from market perform
Raymond James said it’s bullish on shares of the cloud-computing company.
“We have gained a better appreciation for Nutanix’s opportunity to gain share from VMware following its acquisition by Broadcom. Broadcom’s efforts to improve growth and performance for VMware have led to bundling and higher than expected price hikes, which will lead some customers to seek alternatives in certain instances from Nutanix.”
Morgan Stanley upgrades Energizer to equal weight from underweight
Morgan Stanley said in its upgrade of the Energizer that business fundamentals are improving for the battery company.
“Upgrade to EW From UW as Valuation Looks Reasonable After Stock Underperformance and Fundamentals Should Improve From Here.”
Roth MKM downgrades Shoals to neutral from buy
Roth downgraded the solar company following earnings.
“SHLS delivered a mixed Q1, weak Q2 outlook and lowered its recently issued 2024 guide.”
Bank of America initiates Sutro as buy
Bank of America said it’s bullish on shares of the biotech company.
“We initiate coverage of Sutro (STRO) with a Buy rating and $12 PO.”
Goldman Sachs downgrades ZoomInfo to sell from neutral
Goldman said trends are weakening for the software information company.
“We downgrade ZI to Sell (from Neutral) and lower our PT to $12 from $19.50.”
Barclays downgrades Victoria’s Secret to underweight from equal weight
Barclays says the lingerie company is losing market share.
“We downgrade shares of VSCO to Underweight based on: 1) expectation of sustained negative comps through 2024; 2) YTD elevated promotions persist despite cleaner inventory; and 3) margin and EPS risk coupled with valuation multiple contraction.”
Deutsche Bank upgrades Boston Beer to hold from sell
Deutsche upgraded the stock mainly owing to valuation.
“However, we are also less pessimistic about SAM’s ability to better manage the full [profit and loss]—noting that 1Q24 trends were objectively better than expected, with shipments & depletions, revenue, gross margin, operating profit, and EPS all topping expectations.”
Bank of America reiterates Nvidia and Micron as buy
Bank of America said it’s sticking with buy ratings on both Nvidia and Micron.
“Broadly speaking beneficiaries of AI PC adoption include INTC, AMD, ARM, NVDA and likely memory vendors such as MU as AI-enabled devices will likely get memory spec upgrades, nicely complementing memory industry’s strong AU-leverage in the data center.”
Stephens upgrades Redfin to overweight from equal weight
Stephens sees several positive catalysts ahead for the real estate company.
“We are upgrading shares of RDFN to OW from EW and raising our PT to $9 (from $8).”
Bank of America reiterates Madison Square Garden Entertainment as buy
Bank of America said the sports team and arena owner could benefit from a Knicks and Rangers playoff run.
“MSGE’s solid market position will continue to help the company benefit from demand for live music/entertainment events.”
Barclays reiterates Block as overweight
Barclays said it believes the stock is likely to be added to the S&P 500 Index.
“We see SQ’s inclusion in the S&P 500 as increasingly likely – and a potential catalyst.”
UBS reiterates Ferrari as buy
UBS sees a “compelling entry point” for shares of Ferrari following earnings on Tuesday.
“Defensive equity story in a sector context; Reiterate Buy.”
