To The Moon

Here are Tuesday’s biggest analyst calls:

Bank of America reiterates Nvidia as buy

The bank is feeling even more bullish on the stock after meeting with Nvidia management at the Bank of America Global AI conference.

“The discussion increases our confidence in $NVDA(NVDA)$’s ability to sustain its growth momentum, benefiting from rising adoption of accelerated servers/generative AI rollouts that are still only in the first 10-15% of their adoption phase in the $1Tn installed base of cloud/enterprise data centers.”

Monness Crespi Hardt downgrades Oracle to neutral from buy

Monness downgraded Oracle after its earnings report on Monday, mainly on valuation.

“In our view, $Oracle(ORCL)$ represents a high-quality tech company with the opportunity to participate in a compelling cloud transformation; however, valuation has become less compelling, sentiment overly optimistic, trends at Cerner rocky, and we believe the darkest days of this downturn are ahead of us.”

RBC reiterates Tesla as outperform

RBC said in a note on Tuesday that the automaker’s full self driving technology remains the “key” for $Tesla(TSLA)$.

“A key component of value should come from FSD [full self driving] and ultimately, autonomy in general.”

Morgan Stanley reiterates Walmart as overweight

Morgan Stanley said its latest survey checks show $Walmart(WMT)$+ continues to gain traction with consumers.

“Latest survey implies ~21m Walmart+ members, near record high. Further analysis of membership fee disclosures suggests actual Walmart+ membership could be ~35% below our survey, mainly due to user response error, pointing to ~13.5m members.”

Wolfe upgrades CVS to outperform from peer perform

Wolfe said in its upgrade of the drug store chain, insurer and pharmacy benefit manager that the stock is at a turning point.

“We view $CVS(CVS)$ as a business that has the potential to inflect over the next 6-12 months as macro challenges facing the company’s Retail business potentially get reflected in more reasonable guidance and focus shifts to self-improvement potential in [Medicare Advantage] and value-based care business becomes [a] more significant part of total allowing for greater visibility on #s and multiple expansion.”

Berenberg initiates Block as buy

Berenberg said in its initiation of the company formerly known as Square that the stock has reached an “inflection point.”

“Block’s improving outlook for profitability reflects significant operating leverage.”

TD Cowen initiates Endeavor as outperform

TD said in its initiation of the media company that it’s underappreciated.

“We view $EDR(EDR)$ positioning as a conglomerate, with strong ROIC [return on invested capital] profile and ability to grow FCF at 15% 5-yr CAGR benefiting from multi-year tailwinds across its portfolio of diverse sports/live event assets.”

Mizuho reiterates Coinbase as underperform

Mizuho said shares of $Coinbase(COIN)$ are overvalued especially as retail crypto trading fades.

“With retail accounting for 95% of trading revenue, we worry that the YTD rise in COIN’s stock is unsustainable.”

Bank of America upgrades Cintas to buy from neutral

Bank of America said the uniform company is “best in breed.”

“As our confidence builds about a potential U.S. economic soft landing, we upgrade $Cintas(CTAS)$’ shares opportunistically to Buy from Neutral.”

B. Riley initiates Guess as buy

Riley said in its initiation of the clothing company that it has “significant upside potential.”

“$GES(GES)$ has beaten and raised its guidance in the last two quarters.”

Bernstein initiates GitLab as outperform

Bernstein said the development software company has a “structurally durable setup.”

“Investment options are limited in this attractive investment thesis, and $GitLab(GTLB)$ is among the leaders: there are only a few developer tool companies at scale and with a strong enough competitive durability, and we believe GitLab is amongst them.”

Citi upgrades BRP Inc. to buy from neutral

Citi said in it upgrade of the Canadian ATV and snowmobile maker that shares are attractive at current levels.

“Coming out of our most recent round of ORV [off road vehicles] channel checks, 2Q earnings, the August doldrums, and our deep dive on powersports inventories, we are upgrading $BRP(BRP)$ from Neutral to Buy and upping our price target from $111 to $128.”

Goldman Sachs upgrades Geron to buy from neutral

Goldman said in its upgrade of $Geron(GERN)$ that investors should buy the dip in shares of the biotech company.

“Thus, we see the recent pullback in shares as presenting a buying opportunity for the stock.

Bank of America reiterates Disney as buy

Bank of America is bullish on $Disney(DIS)$’s carriage agreement with cable company Charter.

“DIS+ is in the very early days on their ad-supported streaming launch, so there is limited subscriber overlap within both customer bases. Therefore, this wholesale agreement with CHTR can be an effective way to scale DIS+ distribution.

Barclays reiterates Alphabet and Meta as overweight

Barclays said in a note on Tuesday that $Meta(META)$ & $Alphabet(GOOGL)$ are best positioned for AI.

“The best companies in AI are likely to have a combination of: 1) distribution advantages, 2) strong technical AI prowess, 3) the resources to invest aggressively, and 4) a willingness to ship and execute.”

Truist downgrades Enphase to hold from buy

Truist downgraded the stock on residential weakness and valuation.

“As a result, we reset our group valuations driving us to downgrade shares of $ENPH(ENPH)$ to Hold from Buy, as we see shares remaining rangebound on potential for U.S. resi weakness extending into 2024.”

BMO reiterates Adobe as outperform

BMO said the stock is a long-term AI “opportunity.”

“We remain confident that generative AI can help $Adobe(ADBE)$ grow net new ARR [annual recurring revenue] over the next several years, which should support durable mid- to low-teens revenue growth.”

Morgan Stanley reiterates Exxon as overweight

Morgan Stanley said $Exxon(XOM)$ is a top pick right now and that it likes stocks with strong and improving free-cash flow.

“Against that backdrop, we remain focused on rate of change trends (both on cash return and capital efficiency) and generally prefer stocks with (1) strong and/or improving FCF; and (2) scale and asset diversity.”