To The Moon

Here are Tuesday’s biggest calls on Wall Street:

Northcoast upgrades Costco to buy from hold

Northcoast said it sees more upside for the wholesale retailer.

“Costco’s performance for its 2QF23 (ended February 12) of $3.30 per share exceeded expectations and set the stage for a strong second semester of fiscal 2023 despite the challenges of high inflation and the reluctance of many consumers to purchase discretionary merchandise.”

Goldman Sachs initiates Arista Networks and Juniper as buy

Goldman initiated several networking equipment stocks, noting they are attractively valued.

“We initiate coverage of America’s Communications Technology stocks includingArista Networks(ANET, Buy), Juniper Networks(JNPR, Buy), Cisco Systems (CSCO, Neutral), and F5 Networks (FFIV, Neutral).”

UBS reiterates Apple as buy

UBS said its checks show App store revenue is trending flat.

“Two months into the March quarter, we estimate Apple’s App store revenue growth is trending flattish, up just ~31 bps YoY (Sensor Tower), a modest improvement relative to a ~68 bps YoY decline in Q4:22.”

Deutsche Bank downgrades Joby to sell from hold

Deutsche said it sees too many risks for the aviation company.

“We downgrade Joby from Hold to Sell, believing there are important risks being overlooked by the market and Joby’s premium valuation is too lopsided relative to peer Archer.”

UBS reiterates BJ’s as buy

UBS said it’s bullish on BJ’s heading into earnings later this week.

“We’re expecting BJ’s to report solid results in 4Q. We think BJ’s will likely close out the year on a positive note.”

Wells Fargo reiterates Bank of America as overweight

Wells said the banking giant has “tech benefits.”

“Tech benefits should help BAC show about the best 2023 spread of revenue vs. expense growth, leading to higher incremental Consumer Bank profit margins.”

Goldman Sachs reiterates Amazon as buy

Goldman said the e-commerce giant is now solidly a top pick.

“AMZN(now solidly our top pick for the remainder of 2023 from current trading levels) with debates focused on the potential slowdown in AWS, the pathway forward on NA eCommerce operating margins, the global health of the AMZN consumer & any visibility into International eCommerce loss trajectory in the coming years.”

Baird initiates bluebird bio as outperform

Baird said bluebird bio will “fly past” expectations.

“Moving forward, management appears poised to launch lovocel into the sickle cell disease market, which represents a larger orphan disease opportunity, in late 2023.”

Credit Suisse initiates Mineralys Therapeutics

Credit Suisse called the biopharma company, which develops drugs for hypertension, best in class.

“We are initiating coverage of Mineralys Therapeutics(MLYS) with an Outperform rating and a $40 target price.”

Evercore ISI initiates a tactical outperform on Vivid Seats

Evercore said it’s bullish on the seat ticketing company heading into earnings Tuesday.

“We are adding SEAT to our Tactical OP list ahead of the print. We don’t see meaningful risk to current Street estimates, and SEAT shares have traded off 9% YTD and ~18% since the company’s Q3 EPS call in November.”

Morgan Stanley initiates Hesai Group as overweight

Morgan Stanley said the lidar solutions company that is an “enabler of an autonomous future.”

“Hesai, a LiDAR solutions leader, should benefit from accelerating LiDAR adoption in China amid rising smart EV penetration, in our view, despite its nascency.”

Morgan Stanley reiterates Walmart as overweight

Morgan Stanley said its standing by shares of Walmart as the retail giant continues to sign up new members for its Walmart+.

“Latest survey points to ~18.5mWalmart+ members (~14.5% penetration), another modest tick higher. TAM inflected to nearly 30m members, a record by ~3.5m, suggesting more growth ahead.”

Loop reiterates Netflix as hold

Loop said its survey checks show that password sharing charging is increasing revenue for Netflix.

“We conducted a survey of over 500 domestic Netflix users to help gauge the impact of Netflix charging for password sharing. Charging for password sharing, and limiting the number of shared accounts, directionally increases ARPU, revenue and churn.”

Jefferies reiterates Oracle as buy

Jefferies said it sees more tailwinds than headwinds for Oracle shares.

“ORCL remains our tactical value pick in large cap software.”

Canaccord initiates Perrigo as buy

Canaccord said it’s bullish on the over-the-counter health products maker.

“We are initiating coverage of Perrigo,a consumer health company focused on selling self-care products including OTC. PRGO primarily sells private labels in the US and branded products in Europe.”

Atlantic Equities reiterates Charles Schwab as overweight

Atlantic Equities said it sees a 30% upside from growth initiatives for the financial services company.

“We believe that the substantial upside potential fromSchwab’sgrowth initiatives remains under-appreciated by the market.”

Argus upgrades DraftKings to buy from hold

Argus said it’s bullish on the sports betting company as more states legalize gambling.

“As additional states legalize online sports betting and consumers allocate more of their income to wagers, we expect DKNGs’revenue to increase to $3.1 billion in 2023 from $323 million in 2019.”

Evercore ISI upgrades Delta to outperform from in line

Evercore said it sees several positive catalysts ahead for Delta and that investors should buy the dip.

“Recent pilot contract ratification lowers Delta’s cost outlook uncertainty vs. peers. Planned June investor day at its Atlanta headquarters a good opportunity to refine financial targets and segments such as Tech Ops.”