To The Moon

Here are Wednesday’s biggest calls on Wall Street:

Barclays upgrades Urban Outfitters to overweight from equal weight

Barclays said sales growth is “accelerating” at Urban Outfitters.

“On the back of $URBN(URBN)$’s across-the-board solid 1Q23, we upgrade shares to Overweight based on positive inflections in our sales-to-inventory risk and inventory productivity metrics combined with positive sales growth.”

Jefferies upgrades Sherwin-Williams to buy from hold

Jefferies said it sees an attractive risk/reward for the painting company.

“$SHW(SHW)$’s risk/reward appears more balanced, particularly on a relative basis.”

Bank of America adds Arista Networks to the US1 list

Bank of America added the networking equipment company to its top picks list.

“We are adding $Arista Networks(ANET)$ and $Fortinet(FTNT)$ to the US 1 list.”

BMO upgrades Camping World Holdings to outperform from market perform

BMO said RV sales growth accelerating.

“Following our most recent round of channel checks we think lower manufacturer production levels will benefit both CWH’s New RV margins as well its Used RV retail given the greater likelihood of lean channel inventory levels during the peak summer selling months.”

Bank of America reiterates Alphabet as buy

Bank of America said it’s standing by its buy rating on the search giant.

“Bing integration in ChatGPT may close $Google(GOOGL)$’s data advantage, but we still see three important advantages for Google (data, distribution, and AI-based ad technology).

Bank of America upgrades Accolade to buy from neutral

Bank of America said the health benefits assistance company has a “steady growth engine.”

“$ACCD(ACCD)$ is a vital digital front door to employer benefits, with its core navigation/advocacy business well-supported by its ancillary virtual care (primary care / mental health) and expert second opinion businesses.”

Barclays reiterates SolarEdge as overweight

Barclays said the solar company is quickly gaining market share.

“We believe $SEDG(SEDG)$ is set to take market share in the US while ENPH is positioned to gain share in Europe on the residential side.”

Evercore ISI reiterates Procter & Gamble as outperform

Evercore said the company’s detergent brands are at inflection point.

“However, we see evidence of strengthening and increased chances for strong performance by Procter’s U.S. detergents if the economy further weakens, as a positive for $PG(PG)$ shares.

Oppenheimer reiterates Netflix as outperform

Oppenheimer raised its price target on the stock to $450 per share from $415 and said it’s bullish on the company’s password sharing crack down.

“With $Netflix(NFLX)$ now launching Paid Sharing at $7.99 per additional household stream, we are raising our target to $450 (was $415) and reiterating Outperform.”

Jefferies upgrades First Horizon to buy from hold

Jefferies said in its upgrade of the regional bank that it sees several positive catalysts ahead.

“We upgrade $FHN(FHN)$ to Buy from Hold and preview the upcoming Investor Day. Though investor days rarely deliver as meaningful catalysts, we view FHN as unique as this will be the first time mgmt. provides guidance in 17 months post TD deal break.”

Deutsche Bank reiterates ABM Industries a top pick

Deutsche said the facility management company is a “best small cap value idea.”

“$ABM(ABM)$ remains our top value pick in the space; the company operates on a flexible labor model allowing it to manage effectively in a potentially weaker environment.”

Mizuho reiterates Amazon as buy

Mizuho raised its price target on the stock to $160 from $145 and said it sees multiple expansion.

“Concurrently, we expect a multiple expansion as concerns on $AMZN(AMZN)$’s AI-market-position diminish. We are placing AMZN as a top pick for 2H23, and raising our PT from $145 to $160.”

Barclays upgrades Owens Corning to overweight from equal weight

Barclays said shares of the building products company are “compelling.”

“Our upgrade of $OC(OC)$ is not entirely based on its new construction exposure, as it has diversified away in recent years though it remains an outsized driver of earnings growth, and reflects its improved business with less volatile margins, while valuation is historically compelling.”

Bank of America reiterates Apple as neutral

Bank of America said investors should not be so quick to dismiss a mixed reality headset and that it could be “transformative” for $Apple(AAPL)$.

“Largely anticipated is also the unveil of a Mixed Reality (MR) headset, which could be transformative over time.”

Bank of America reiterates Eli Lilly as buy

Bank of America raised its price target on $Eli Lilly(LLY)$ to $500 per share from $450 and says it sees “increased revenue forecasts for tirzepatide,” the company’s obesity drug.

“While we acknowledge there’s still a lot of wood to chop for broader obesity reimbursement, based on our discussions with prescribers / patients’ interest, we think reimbursement is a ‘when, not if.’”

Evercore ISI initiates Stem as outperform

Evercore said it sees “rapid growth” for the energy storage company.

“Stem, a leading player in the energy storage market, is poised for rapid growth and expansion into new clean energy verticals such as EV charging, wind power, and hydrogen.”

Citi reiterates Peloton as buy

Citi said it’s staying bullish on exercise company for the long term.

“Yesterday, $Peloton(PTON)$ announced a reimagined brand and launched new tiered digital subscriptions that revolve around making its content accessible to anyone, anywhere which we believe can lead to greater adoption of its products and services overall.”

Citi reiterates Nvidia as buy

Citi said it’s standing by its buy rating on the stock when it reports earnings on Wednesday after the bell.

“We expect modest ‘beat and raise’ from $NVIDIA(NVDA)$ driven by accelerating Y/Y data center growth on new H100 product ramp and a shift of cloud capex spend towards generative AI.”

Guggenheim reiterates Tesla as sell

Guggenheim said the automaker continues to convert interested buyers buy negative pricing still makes 2023 a challenging year.

“EV Buyer TAM analysis suggests $TSLA(TSLA)$ converting an extremely high percentage of interested buyers.”

Truist upgrades Berry Global to buy from hold

Truist said in its upgrade of the plastics company that it has numerous ways to unlock value.

“We upgrade $BERY(BERY)$ to Buy from Hold as we believe the board and management have an increased sense of urgency regarding near-term cost savings initiatives, portfolio right-sizing, and various options to potentially unlock greater value.”

Barclays initiates RXO as overweight

Barclays said in its initiation of the transportation company that it has “large ambitions and a solid track record.”

“$RXO(RXO)$ has demonstrated an ability to outgrow peers in a competitive brokerage landscape, leading to meaningful equity upside if management even partially achieves its aggressive earnings ambitions.”

Bernstein initiates Ambev as outperform

Bernstein initiated the Brazilian brewing beverage company and said it’s “brewing up better margins.”

“We launch coverage of $Ambev(ABEV)$ with an Outperform rating based on solid volume growth from its majority EM exposure, margin expansion from input cost tailwinds and attractive valuation.

Goldman Sachs initiates Ideaya Biosciences as buy

Goldman said the biotech company “offers multiple opportunities for value inflection.”

“With additional agents in preclinical development, $IDYA(IDYA)$ is poised to become a lead player within synthetic lethality.”