Here are Wednesday’s biggest calls on Wall Street:
TD Cowen reiterates Nvidia as outperform
Cowen said it’s standing by its outperform rating on the stock.
“Not time to overthink it, NVIDIA continues to lead from the front across all important AI verticals, China restrictions notwithstanding. Reiterate Outperform & Top Pick, $500 PT.”
Oppenheimer naming Nasdaq a top pick
Oppenheimer named the exchange company a top pick and said investors will need patience but that it sees “stable earnings growth” over time.
“Our thesis is NDAQ will generate higher recurring revenue, which should support both stable earnings growth and multiple expansion longer term.”
TD Cowen reiterates Advanced Micro Devices as outperform
TD said it’s bullish on AMD’s future in generative AI. The firm raised its price target to $135 per share from $115.
“That said, we believe investor focus post earnings will again turn longer-term to AMD’s strong Datacenter prospects, including a crystallizing AI strategy supported by stronger hardware/software roadmaps. Outperform, PT raised to $135.”
Baird names Foot Locker a bearish fresh pick
Baird said it sees a “negative trading setup ahead” for the shoe company.
“While the stock is -29% year-to-date following the FQ1 earnings reset, we see a negative trading setup ahead of cycling difficult late July/August comparisons, given FL’s heightened EPS sensitivity.”
Loop upgrades TJX Companies to buy from hold
Loop said recent checks give the firm “confidence to increase sales and earnings estimates” for TJX.
“We are raising our rating from Hold to Buy and increasing our PT from $75 to $95 on TJX following store checks that gave us the confidence to increase sales and earnings estimates.”
Citi adds a positive catalyst watch on General Motors
Citi said it sees “ample upside” for share of the automaker.
“Opening a 30-day Upside Catalyst Watch. Consensus estimates have risen, but we continue to see ample upside from strong NA pricing. Another beat/raise should move the stock higher off the current ~5.8x consensus P/E and with GM having underperformed Ford YTD.”
Citi downgrades JPMorgan to neutral from buy
Citi downgraded the stock mainly on valuation.
“JPM has been a top performer YTD as the market shifted towards higher quality names following the regional bank turmoil in March/April and at current levels of ~2x TBV and ~10.5x 2024 EPS, we believe the premium valuation has returned and we move to the sidelines.”
Atlantic Equities downgrades Coinbase to neutral from outperform
Atlantic Equities downgraded the stock mainly on valuation.
“Our 2Q23 net revenue for Coinbase falls on incremental headwinds to interest income. We are downgrading Coinbase to Neutral while raising our target price to $80, following the strong rally in the shares.”
JPMorgan upgrades Holley to overweight from neutral
JPMorgan said in its upgrade of the automotive aftermarket products company that it sees margin upside.
“We rate HLLY Overweight given (1) topline upside in 2023/2024 considering conservative guidance, the Sniper 2.0 release, and potential upside from reducing past-dues, (2) margin upside as HLLY recaptures elevated costs manufacturing & distribution costs.”
Bank of America upgrades DraftKings to buy from neutral
Bank of America upgraded the fantasy sports company to due to a margin inflection.
“We upgrade DraftKings to Buy from Neutral as accelerating product and revenue momentum are on the cusp of driving an inflection in margins and profitability.”
Baird reiterates Amazon as outperform
Baird said its checks show that Amazon’s Prime Day is “off to a good start.”
“Based on our field checks and third party data, we believe Amazon Prime Days are off to a good start — a nice change of pace in an e-commerce market under some pressure since vaccines unleashed a return to in-store shopping and revenge travel.”
Citi reiterates Tesla as neutral
Citi said it’s “neutral to slightly negative” on Tesla heading into earnings next week. The firm did, however, raise its price target to $278 per share from $215.
“The bear case into Q2 argues that stretched valuation (vs. Tech) leaves the stock vulnerable going into a quarter that will again be impacted by price cuts, with any margin shortfall or even just unimpressive numbers possibly dampening sentiment.”
Raymond James upgrades SunPower to strong buy from outperform
Raymond James said investors should buy the dip in shares of the solar company.
“Upgrading SunPower from Outperform to Strong Buy, following what we view as the stock’s excessive weakness due to the company’s overweight to the California market.”
UBS reiterates Netflix as buy
UBS raised its price target on the stock to $525 per share from $390 and said it’s bullish on paid sharing for Netflix.
“We are raising estimates following positive data on paid sharing. Checks on engagement, downloads & search interest were all constructive for the newly launched paid sharing markets.”
Bank of America upgrades Stellantis to buy from neutral
Bank of America said in its upgrade of the European automaker that it sees valuation upside.
“However, we believe Stellantis can weather the storm, and having already de-rated by 40% vs. 2016-19 levels, that the market is already pricing for worse.”
Morgan Stanley upgrades Lazard to overweight from equal weight
Morgan Stanley said deal making is likely to heat up for the investment bank.
“Lower volatility + recovering markets point to an M&A inflection in 2024. Earnings prints are likely murky over the coming quarters, but expect investors to focus increasingly on pipeline & green shoots as a new M&A cycle begins.”
DA Davidson downgrades Redfin to underperform from neutral
DA downgraded the stock mainly on valuation.
“RDFN shares are up ~260% thus far in CY′23 and up ~47% over the past month, making RDFN the top performing name in our broader Prop Tech coverage by a wide margin.”
Bank of America downgrades Cisco to neutral from buy
Bank of America said in its downgrade of Cisco that consensus estimates are too high.
“We reduce our estimates to reflect our concerns over the near-term trends, maintain our $56 PO, yet downgrade our rating from Buy to Neutral.”
Baird upgrades SEE to outperform from neutral
Baird said that shares have “de-risked” for the company formerly known as Sealed Air
“Following substantial underperformance in the shares over the past 15 months, our view is that a lowering of 2023 earnings expectations is already the baseline assumption on the Street—noting also that irrespective of a tough 2Q earnings report, volume optics will improve substantially 3Q onward, with $4 earnings power for Sealed Air still realistic.”
UBS upgrades AstraZeneca to buy from neutral
UBS said the biopharma company has attractive “growth at a reasonable price.”
“At 15x ’24E PE we now view this as a valuation that doesn’t fairly reflect the growth potential. We believe investors can gain access to a sector-leading pipeline and growth at a reasonable price.”
