To The Moon

Here are Wednesday biggest calls on Wall Street:

Barclays downgrades Tesla to equal weight from overweight

Barclays downgraded the stock on valuation and challenging near-term fundamentals.

“Downgrading $TSLA(TSLA)$ to EW from OW; 2) Stock performance amid recent rally too sharp relative to challenging near-term fundamentals…questions remain on margins, demand elasticity; 3) Bullish on LT opty, but LT initiatives will take time to show through.”

Goldman Sachs upgrades Petrobras to buy from neutral

Goldman said the Brazilian petroleum company has an attractive valuation.

“While some uncertainty remains (although relatively lower than earlier in the year), we see $PBR(PBR)$ trading at an undemanding valuation.”

Wolfe upgrades Spotify to outperform from peer perform

Wolfe said it sees sustainable upside for $Spotify(SPOT)$.

“As such, we believe the potential for sustained upside to Street OI estimates ahead will be a key catalyst for shares.”

BMO upgrades Adobe to outperform from market perform

BMO said it’s bullish on the company’s venture into AI.

“As discussed in our recent survey, we believe that $ADBE(ADBE)$ can capture price/mix, as well as new users, through generative AI.”

Citi initiates Everest as buy

Citi initiated coverage of the insurance company and said it’s “capitalizing on the most favorable reinsurance underwriting environment in decades.”

“We believe $RE(RE)$’s primary business is well positioned for faster growth given leverage to attractive specialty lines and international expansion.”

Bank of America reiterates FedEx as buy

Bank of America said the “structure transformation” is in progress after $FedEx(FDX)$’s earnings report Tuesday.

“Showing early progress, Ground volumes declined yet margins improved in 2H23, the first time it achieved that in its history.”

Goldman Sachs reiterates Nike as buy

Goldman said it’s standing by its buy rating heading into $Nike(NKE)$ earnings next week.

“We believe a key debate amongst investors heading into the 1Q result will center around Nike’s wholesale channel strategy and growth outlook.”

TD Cowen names Ralph Lauren a best idea

TD Cowen said it’s bullish on shares of Ralph Lauren.

“Our model and channel work suggests that Consensus estimates are underestimating management’s ability to execute toward a mid-teens EBIT margin target.”

TD Cowen names Tapestry a best idea

TD Cowen said the stock is underappreciated.

“$TPR(TPR)$’s strong direct to consumer channel (90% penetration vs. CPRI’s 70%) drives higher
service, more pricing control, and higher margins.”

TD Cowen names IAC a best idea

Cowen said the media company is undervalued.

“IAC is our best Smidcap idea for 2023, as IAC’s portfolio segments trade at a significant conglomerate discount, in our view.”

Jefferies reiterates Amazon as buy

Jefferies raised its price target on the stock to $150 per share from $135 and said it have more room to run.

“$AMZN(AMZN)$ shares are +50% YTD (vs. S&P500 +14%) as improving profitability, an AWS recovery in sight and the perception of long-term AI tailwinds have driven outperformance.”

Loop upgrades OneSpaWorld to buy from hold

Loop said shares are attractive of the spa company that services cruise ships.

“OneSpaWorld has contracts that give $OSW(OSW)$ exclusive rights to serve as the sole health and wellness services provider for nearly all major U.S. cruise lines.”

Oppenheimer reiterates Uber as outperform

Oppenheimer said it has “increased confidence in UBER’s consumer tailwinds.”

“Despite +70% YTD, $UBER(UBER)$ remains a top large-cap pick in our coverage, and we are increasing our target to $65 from $55 on higher peer valuations and increased confidence in UBER’s consumer tailwinds.”

Citi opens a positive catalyst watch on Molson Coors

Citi said the beverage maker is a beneficiary of the Bud Light controversy. The firm reiterates its long term neutral rating on the stock.

“We believe that $TAP(TAP)$ will continue to benefit from the Bud Light controversy throughout the summer, leading to upside to both top- and bottom-line estimates and raised 2023 guidance.”

JPMorgan initiates Tyler Technologies as overweight

JPMorgan said the software company is a “market leader.”

“Tyler is a domestic software provider solely focused on the public sector. Many governments are running outdated systems which are overdue to modernize: this creates a strong secular tailwind.”

Goldman Sachs reiterates Micron as buy

Goldman said it’s standing by its buy rating on the stock heading into earnings next week.

“That said, our views on 1) the overall Memory cycle predicated on demand stabilization, particularly across the PC and smartphone end-markets, and disciplined supply-side actions on the part of all participants, and 2) $Micron(MU)$’s medium- to long-term competitive position in DRAM and NAND, remain unchanged.”

Bernstein reiterates Oracle as outperform

Bernstein said Oracle is a “mini $Microsoft(MSFT)$.”

“At a high-level, In 2015 Microsoft’s story had three key pillars and one could argue Oracle has 3 similar pillars: 1) the Office Cloud Transition — Oracle is in the early days of an ERP Cloud migration; 2) a nascent growth opportunity in Azure — Oracle has OCI Gen 2; and 3) the Windows and Server& Tools Cash machine.”

Needham reiterates Disney as hold

Needham said negative sentiment continues to build for $Disney(DIS)$.

“Over the past several weeks, the tone of incoming calls about DIS has shifted distinctly negative, and sentiment has further deteriorated since CFO Christine McCarthy left last week.”

Barclays reiterates Carnival as overweight

Barclays called the cruise company a “self-help” story.

“Remain OW on Positive Earnings Revision Cycle and CCL’s Self-Help Potential.

Needham reiterates Snowflake as buy

Needham raised its price target on the stock to $216 per share from $180 and said it’s bullish on the company’s foray into AI.

“We dove into $Snowflake(SNOW)$ ahead of the company’s Summit user-event next week. In our view,
there is potential for the company to increase the size of its TAM from $248 Billion in CY26 - based on platform positioning and the unlock of new use-cases from Generative AI.”

Deutsche Bank reiterates Shopify as buy

Deutsche said it sees “meaningful upside” ahead for $Shopify(SHOP)$ shares.

“With shares +85% YTD and investors struggling to see upside from current levels, we remain Buy rated and believe a better understanding of the near term profitability potential along with longer term earnings power could help catalyze the shares.”

Citi names Workiva a top pick

Citi said the software-as-a-service company has upside.

“$WK(WK)$ is our new top pick with continued upside from ESG and potentially capital markets and a shift in valuation towards EV/FCF (enterprise value/free-cash flow) going into ’25.”

Morgan Stanley reiterates Dell as overweight

Morgan Stanley said it sees an “attractive catalyst path” for $Dell(DELL)$ shares.

“We have greater conviction in our OW thesis following meetings w/ incoming CFO Yvonne McGill & Director of IR Hall Butler.”

Morgan Stanley reiterates Apple as overweight

Morgan Stanley said it’s bullish on the company’s use of Apple TV+ to acquire further sports streaming.

“However, we view Apple TV+ and $Apple(AAPL)$’s further investments in sports streaming as a way to increase installed base loyalty and acquire new users, both of which are opportunities to further monetize the Apple user longer-term.”