To The Moon

Here are the biggest calls on Wall Street on Thursday:

Goldman Sachs reiterates Tesla as buy

Goldman says Tesla’s earnings report on Wednesday was a “negative” but that it’s standing by the stock. The firm did lower its price target to $185 per share from $210.

“We believe the report was an incremental negative, with the company’s pricing actions pressuring the automotive gross margin excluding credits by more than we had expected.”

Bernstein reiterates Tesla as underperform

Bernstein called Tesla’s first-quarter earnings on Wednesday “disappointing.”

“The company missed materially on auto gross margins (18.3% vs. 21.1%), contributing to an EPS and FCF miss. We lower our EPS to $2.79 from $3.54 and see potential downside, as our model assumes no further cuts.”

Bank of America reiterates Amazon as buy

Bank of America says it’s standing by Amazon heading into earnings next week.

“Recession risk clouds the revenue outlook (especially for AWS), but with an investment cycle ending (see shareholder letter), Online retail share gains, and a large cloud opportunity ahead, we continue to like the stock on depressed valuation vs. history.”

UBS downgrades Sea Limited to neutral from buy

UBS said in its downgrade of the Singapore-based tech conglomerate that it sees a lack of visibility.

“While our thesis on acceleration of profitability has played out and Sea continues to make progress on margins; growth outlook for 2023 remains uncertain due to changing competitive environment.”

Atlantic Equities reiterates Home Depot and Lowe’s as overweight

Atlantic Equities said in a note that investors should buy any weakness in the home improvement stocks.

“Home Depot (HD) and Lowe’s (LOW) have underperformed YTD, weighed down by concerns regarding tough comps and an economic slowdown, with soft Q1 trends likely to compound these fears.”

Jefferies upgrades General Electric to buy from hold

After a change in analyst coverage, Jefferies upgraded the stock and says it’s bullish on GE’s aerospace division.

“GE Aerospace will have a clearer story to tell following the GE Vernova spin in early 2024, which we believe is one of the better positioned stories to the aerospace ramp.”

Jefferies downgrades Raytheon to hold from buy

Jefferies said in its downgrade of Raytheon that it’s concerned about profit headwinds for the aerospace and defense company.

“We see risk to the 2025 updated FCF target of $9BB, which represents a steep ramp from ~$4.8BB expected for 2023 and is largely predicated on growing the bottom line with likely headwinds around working capital and Pratt profitability.”

Bank of America downgrades NetApp to underperform from neutral

Bank of America said in its downgrade of the hybrid cloud data services company that it sees weaker demand.

“We are downgrading shares of NTAP from Neutral to Underperform based on our view: (1) Product rev growth will be challenged in F24 given weaker demand environment, (2) Slowdown in public cloud creates a growth headwind through F24.”