Here are Friday’s biggest calls on Wall Street:
Morgan Stanley reiterates Tesla as overweight
Morgan Stanley said it’s standing by Tesla but there has been “no place to hide.”
“While in the land of EV pure-plays, there has been no place to hide.”
Bank of America reiterates Nvidia as buy
Bank of America said it’s standing by the stock heading into earnings next week but that a pullback is possible.
“We reiterate Buy/top pick ahead of NVDA Feb-21 earnings but won’t be surprised to see a notable but brief pullback after the recent parabolic run-up in the stock.”
Loop initiates Nvidia as buy
Loop initiated Nvidia with a Street-high price target of $1,200 per share.
“Initiating Buy and $1200 PT (63% appreciation) as we believe not only is there material upside to Street estimates in CY2024/FY2025 & CY2025/FY2026 but that we are at the front end of a 3 - 5 year GPU compute & Gen AI foundational build across Hyperscale.”
Bank of America reiterates Meta as buy
Bank of America said it’s bullish on Meta after it added the Broadcom CEO to its board of directors.
“On February 14, Meta announced that it has added Broadcom CEO Hock Tan to its board of directors.”
Barclays reiterates Netflix as equal weight
Barclays said it’s standing by its equal weight rating on the stock and that growth could “slow substantially going forward.”
“Netflix core growth excluding the impact of paid sharing may have been quite weak last year.”
KBW upgrades Coinbase to market perform from underperform
KBW upgraded Coinbase after its earnings report Thursday.
“Solid revenue beat in the quarter on retail engagement ultimately being much stronger than expected towards year-end.”
Oppenheimer downgrades Roku to perform from outperform
Oppenheimer downgraded the stock following earnings on Thursday and said shares are poised to be range-bound.
“We are downgrading ROKU to Perform from Outperform and removing our $100 price target as we see the stock range-bound until the company sustainably delivers high-teens Platform revenue growth.”
Wells Fargo initiates Super Micro as equal weight
Wells Fargo said the tech company is an artificial intelligence beneficiary but that the stock is fairly valued right now.
“We expect Supermicro’s building-block portfolio breadth and engineering-first culture will continue to position the company as a first-to-mkt leader on next-gen. accelerated-compute architectures.”
Daiwa downgrades Arm to neutral from outperform
Daiwa downgraded the semis company mainly on valuation.
“Above expectation 3Q sent stock skyrocketing >60%, >130% vs launch. With Softbank/others owning >90%, could keep share price elevated. Very positive on Arm’s positioning, but look for a better re-entry point.”
Morgan Stanley reiterates Eli Lilly as overweight
Morgan Stanley raised its price target on the stock to $950 per share from $805 and says it can be the first $1 trillion company.
“Reiterate OW rating on LLY as we see upside to 2025+ estimates (and refresh our Bull scenario, which hinges on LLY’s oral GLP-1) and make the case for why the stock continues to deserve a premium P/E multiple on outer-year estimates vs. historical Pharma stocks.”
Guggenheim downgrades SunPower to sell from neutral
Guggenheim said it remains concerned about the solar company’s financials.
“We are downgrading our investment recommendation from Neutral to Sell with a $1 PT following SPWR’s announcement of a rescue financing package yesterday.”
Oppenheimer downgrades Nike to perform from outperform
Oppenheimer said it’s concerned the next several quarters for Nike look “sluggish.”
“That said, as we re-examine closely the nearer-term outlook for NKE, we come away increasingly concerned that over the next several quarters that top-line trends at the enterprise are likely to remain sluggish, and below algo, given a combination of underlying, spotty consumer demand, lulls in product innovation, and modest competitive incursions, in select categories.”
Baird upgrades UPS to outperform from neutral
Baird said in its upgrade of UPS that the risk/reward is too attractive to ignore.
“Consistent with this view and following the most recent pullback, we are upgrading UPS to Outperform and like the risk/reward.”
Raymond James downgrades Carvana to underperform from market perform
Raymond James downgraded the stock mainly on valuation.
“We are downgrading CVNA to an Underperform from a Market Perform rating. To be clear, our downgrade is not a call on upcoming 4Q23 results slated for Thursday, February 22nd, but on the recent stock performance.”
Raymond James upgrades Wayfair to strong buy from market perform
Raymond James said it sees a “refreshed setup” for shares of Wayfair.
“Our more constructive stance stems from two main points: 1) after a challenging period for the U.S furniture industry following COVID, we believe demand trends are nearing the bottom, with adjusted. U.S. furniture sales likely near 2015/2016 levels in 2023; and 2) management’s recent cost-cutting initiatives will enable Wayfair to grow EBITDA meaningfully as demand returns.”
JPMorgan downgrades Bloom Energy to neutral from overweight
JPMorgan downgraded Bloom Energy following its earnings report.
“BE reported 4Q results below expectations. FY24 operating margin guidance aligned with our expectations though the revenue outlook was well below consensus and closer to expectations we have heard from recent bearish buyside conversations.”