To The Moon

Here are Tuesday’s biggest calls on Wall Street:

Piper Sandler reiterates Meta as overweight

Piper said it’s very bullish on $Meta(META)$’s AI capabilities.

“We see a three-pronged approach with META using AI to (1) drive higher user engagement, (2) develop better, more automated advertiser tools, and (3) create an open-source AI ecosystem. Meta’s investment may have been overshadowed by the Metaverse, but AI initiatives could soon catalyze revenue share gains in ’23 & ’24.”

Jefferies adds Microsoft to the franchise picks list

Jefferies added the stock to its franchise picks list and says it’s among the names facing the least risk to AI.

“We are adding $MSFT(MSFT)$ to our Franchise Picks List and raising our PT to $400 (from $350), representing 32x P/E FY25 cons, which is a 4x turn premium to the 5-year average P/E NTM (next twelve months.).”

HSBC upgrades Chevron to buy from hold

HSBC said the oil and gas giant is attractively valued.

“We upgrade $Chevron(CVX)$ to Buy from Hold due to the shares’ underperformance and an attractive distribution yield on a par with EU majors.”

Stifel reiterates Nvidia as buy

Stifel raised its price target on the stock to $300 per share from $225 and said it’s bullish heading into earnings Wednesday.

“We are expecting strong results and outlook as $NVDA(NVDA)$’s data center GPU products continue to garner strong demand from both AI-focused and broader data center demand.”

Bank of America reiterates Advanced Micro Devices as buy

Bank of America raised its price target on the stock to $120 per share from $105 and said it’s on the “verge of another large opportunity” in AI.

“We rate $AMD(AMD)$ Neutral on a balanced risk-reward in attractive computing/artificial intelligence markets.”

JPMorgan initiates Cleveland-Cliffs and U.S. Steel as neutral

JPMorgan initiated Cleveland-Cliffs and U.S. Steel, noting it’s concerned about “worsening fundamentals.”

“While shares are broadly below recent highs, we think investors will begin to discount further worsening fundamentals as we move into the back half of the year.”

Oppenheimer reiterates Tesla as perform

Oppenheimer said the automaker will outperform near-term but it’s staying cautious.

“We remain cautious on an uncertain macro backdrop and margin expansion timing, but note shares may move higher NT as $TSLA(TSLA)$ outperforms peers in a choppy market.”

MoffettNathanson upgrades Zoom to market perform from underperform

Moffett upgraded $Zoom(ZM)$ after its earnings report and said the business “appears to be stabilizing.”

“That business appears to be stabilizing, with the expectation that the next quarter will show the first sequential growth in over seven quarters.”

Baird initiates Chimerix as outperform

Baird said in its initiation of the biotech company that it’s bullish on its “first-in-class agent” treatment for tumors.

“Initiating coverage of $Chimerix(CMRX)$ with an Outperform rating and $7 price target. Chimerix’s lead agent is a potential first-in-class agent for the treatment of H3 K27M-mutant glioma.”

Goldman Sachs upgrades Quanterix to buy from neutral

Goldman upgraded the biomarker analysis company and said it has greater operating leverage.

“While the stock is off its most recent lows, we believe there is additional discovery value in $QTRX(QTRX)$ as the market recognizes the extent to which the cost base has improved resulting in potentially greater operating leverage than the market assumes.”

Goldman Sachs upgrades Myriad Genetics to buy from neutral

Goldman said the genomic testing company has a “differentiated financial profile at a discount.”

“When we initiated on $MYGN(MYGN)$ in 2021 we stated we were waiting on further execution from the company on resetting their organic growth rate, restructuring and improving their commercial efforts and trimming the portfolio all of which they have accomplished over the last 2 years, however we do not believe this is reflected in the share price given the persistent multiple discount vs peers.”

Wells Fargo reiterates Snowflake as overweight

Wells said it’s bullish on the stock heading into earnings on Wednesday.

“While we see the FQ1 setup as now more balanced, we remain positive on $SNOW(SNOW)$’s positioning and potential for a strong 2H.”

Evercore ISI upgrades CCC Intelligent Solutions Holdings to outperform from in line

Evercore upgraded the digital workflow solutions company and said it has a “wide competitive moat.”

“We are upgrading $CCCS(CCCS)$ to Outperform and bumping our PT to $13 as we believe the risk/reward skews to the upside for investors looking for a SMID-cap name that plays in a vertical market with a wide competitive moat.”

Guggenheim reiterates Spotify as buy

Guggenheim said in a note Tuesday that $Spotify(SPOT)$ usage trends remain strong.

“We see continued strong usage trends as core to a healthy growth cycle that includes pricing power, negotiating leverage, cost control, and potential product expansion.”

Bank of America reiterates Churchill Downs as buy

Bank of America called the horse racing and gaming company “unique.”

“We believe $CHDN(CHDN)$ is a unique and idiosyncratic growth story in U.S. gaming, as we est. 16% EBITDA growth in 2024 driven by a combination of organic growth, high-return capex, and M&A. Maintain Buy & $162.50 PO.”

Goldman Sachs reiterates Workday as buy

Goldman said it’s bullish on the stock heading into earnings later this week.

“Heading into the print, we expect $Workday(WDAY)$ to maintain steady growth momentum, with revenue +16%, 24-month subscription backlog +20% and operating margin of 21.7%, largely in-line with management’s guidance.”

Bank of America initiates TopBuild as buy

Bank of America said the distributor of insulation is a “high return business.”

“TopBuild is the leading installer and specialty distributor of insulation in the US. ... Our Buy rating reflects an outlook for: 1) share gains in residential (65% of sales), 2) continued accretive M&A, 3) significant long-term growth in non-residential (35% of sales), and 4) attractive valuation, ROIC and free cash flow generation.”