Here are Thursday’s biggest calls on Wall Street:
Bank of America reiterates Roku as buy
Bank of America said it’s bullish heading into Roku earnings on Thursday.
“In our opinion, overall, the scatter Ad market remains weak, with some verticals likely showing incremental improvement including travel, health, automotive, and quick serve restaurants, while others like M&E (media & entertainment) and financial services likely remain pressured.”
Needham reiterates Rivian as buy
Needham said it’s bullish heading into earnings Aug. 8.
“RIVN’s competitive advantages are shining brighter, with the company emerging as a demand creator when considering that the majority of its buyers have never previously purchased a pickup truck.”
Bernstein reiterates Apple as market perform
Bernstein raised its price target on the stock to $195 per share from $175 and said it’s cautious on the stock heading into earnings next week but it sees some areas of potential upside.
“We expect Apple’s FY Q3 to be largely in line on revenues - we model $81.2B vs. consensus at $81.8B, and consistent with Apple’s guidance - but see some potential upside for services amid a conservative guide and a cyclical recovery in digital advertising.”
KeyBanc reiterates Coinbase as sector weight
Key said it’s staying cautious heading into Coinbase earnings next week.
“We are relatively cautious into the print considering: 1) subdued crypto market activity characterized by persistently low volatility/low trading volume; and 2) recent stock performance.”
Morgan Stanley downgrades Carvana to underweight from equal weight
Morgan Stanley said the stock has gone too far too fast.
“We think much of the rally is deserved but the stock has run well above our increased target driving a less favorable risk-reward vs. our coverage.”
RBC upgrades Owens Corning to outperform from sector perform
RBC said “margin gains” are persisting for the roofing and insulation company.
“We are upgrading OC to Outperform from Sector Perform following strong 2Q results/3Q guide.”
Jefferies downgrades Estee Lauder to hold from buy
Jefferies said in its downgrade of the stock that it’s concerned about a delayed China recovery.
“Growing concerns around the recovery of EL’s key drivers lead us to lower est. to 10%/5% below cons. in FY24/FY25 and d/g the stock to HOLD.”
Bank of America reiterates Mattel as buy
Bank of America said it’s standing by shares of Mattel after its earnings report adding that Barbie should help drive toy sales.
“Barbie point of sale turned positive in July-to-date and mgmt. still expects Barbie gross billings will be positive this year.”
Wells Fargo reiterates IMAX as overweight
Wells said it sees an attractive slate for the remainder of 2023 and beyond for the big screen movie company.
“IMAX continues to build a differentiated biz model that allows it to withstand the ebbs & flows impacting the industry incl its unique position as the go-to brand for a prem theatrical experience, a strong pipeline of local language titles, its global footprint and its network of system sales.”
Bank of America upgrades Boeing to buy from neutral
Bank of America said the worst for Boeing is behind it.
“We are currently in the midst of the post-COVID commercial recovery with passenger demand emerging back to pre-pandemic levels. On the defense side, both domestic and international demand continues to accelerate, with investment outlays at new peak levels.”
Atlantic Equities downgrades Union Pacific to neutral from overweight
Atlantic Equities downgraded the stock after its earnings report Wednesday and said it sees “insufficient upside.”
“Union Pacific reported weak numbers with EPS, revenue and operating ratio below consensus. Revenue was impacted by lower fuel surcharge, declining accessorial revenue and weak volumes.”
Barclays upgrades Iridium to overweight from equal weight
Barclays said it sees an “attractive” risk/reward for the satellite company.
“Iridium has a unique set of assets to compete in the low bandwidth satellite data market and we see solid growth in high margin revenues.”
Bank of America downgrades RTX to neutral from buy
Bank of America downgraded the company formerly known as Raytheon and said it’s concerned about slowing margins.
“We also suspect investor patience with the hurdles facing RTX is running short, and that the narrative is now a ‘show me story.’”
Wells Fargo upgrades Meta to overweight from equal weight
Wells said it was wrong on Meta and that it was impressed by the company’s blowout earnings on Wednesday.
“We were wrong on META. Blowout 3Q revenue guide appears sustainable and ’24 OpEx/CapEx guide now largely de-risked. Ests moving meaningfully higher despite heavy Reality Labs spending. Upside AI call options emerging.”
Bank of America downgrades SunPower to underperform from neutral
The firm said in its downgrade of the stock that it sees multiple headwinds.
“With the above in mind, we downgrade shares from Neutral to Underperform. We stress that implied gross margins are particularly weak in 2Q and SPWR is now calling out higher installation costs on top of volume challenges
