To The Moon

Here are Thursday’s biggest calls on Wall Street:

Bank of America moves to a no rating on Western Alliance

Bank of America said it’s moving to a no rating on shares of the regional bank, noting Western Alliance is caught in a “negative feedback loop.”

“We believe that WAL, and the broader regional banking group, are caught in a negative feedback loop driven by steep sell-off in stock prices that are feeding into deposit attrition fears.

Raymond James upgrades Wix.com to outperform from market perform

Raymond James said in its upgrade of Wix.com that it sees strong margins for the website developer.

“Our upgrade is based on: 1) We expect continued steady bookings and revenue growth in 2023 (~10%) with continued strength in revenue/ subscriber. Additionally, we expect sub growth comps to ease in 2H23. 2) Expect Strong Margin Improvement in 2023/2024 and beyond.”

Citi downgrades Wingstop to neutral from buy

Citi downgraded Wingstop mainly on valuation.

“When married with a valuation (absolute/relative) approaching multi-year highs, we find it difficult to argue for much greater upside in shares over the next twelve months and therefore move to the sideline.”

DA Davidson initiates ZoomInfo as buy

DA said the software data company is attractively valued and a Buffett-like investment.

“We are initiating coverage of ZI with a BUY rating and a $30 target as a rare value investment within software. We see a strong competitive moat, substantial long-term opportunity and a uniquely attractive valuation.”

Goldman Sachs upgrades Cemex to buy from neutral

Goldman upgraded the building material due to a “better than expected pricing environment.”

“We upgrade Cemex to Buy reflecting a better than expected pricing environment as evidenced by 1Q23 results.”

Berenberg initiates Mobileye and Ambarella as buy

Berenberg said in its initiation of Mobileye that the autonomous driving tech company is an AI beneficiary. The firm also initiated Ambarella and said it’s an “up-and-coming competitor with a differentiated offering, ex-automotive revenue, and long-term SAM expansion opportunities, all at a reasonable valuation.”

“We have entered a period of transformative innovation in the automotive industry, primarily driven by developments in AI and computing.”

Bank of America upgrades Verisk Analytics to buy from underperform

Bank of America said the data analytics and risk assessment company is “defensive.”

“We upgrade Verisk Analytics to Buy from Underperform. We think the shares look attractive here due to VRSK’s 1) defensive business model in an uncertain environment; 2) accelerating sales growth, which drives our higher EPS outlook.”

Citi upgrades Deutsche Bank to buy from neutral

Citi said the global investment bank is at an “attractive entry point.”

“Deutsche Bank is one of the most de-rated banks YTD, yet the 1Q23 results demonstrated potential for further consensus earnings upgrades.”

Rosenblatt reiterates Apple as buy

Rosenblatt said it’s standing by its buy rating heading into earnings on Thursday after the bell.

“Apple confronts its March quarter earnings report post-close. We like the company longer term. In no way are we pushing investors to aggressively accumulate shares ahead of this report. A pullback might happen near term and provide a better opportunity.

DA Davidson downgrades PacWest Bancorp to neutral from buy

DA said in its downgrade of the PacWest that it sees too much uncertainty for the regional bank.

“While the company has discussed certain asset sales (lender finance), an outright sale seems unlikely, in our view, given the current environment.”

Goldman Sachs upgrades Procore Technologies to buy from neutral

Goldman said in its upgrade of the construction management software company that it sees “top line resilience.”

“We highlight the following key reasons for the upgrade: 1) Gaining conviction that Procore can deliver breakeven profitability in F24, benefiting from sustained revenue outperformance and higher marketing efficiency, 2) Ability to deliver upside to revised F23 guidance for 26% revenue growth.”

Baird upgrades Blackbaud to outperform from neutral

Baird said the software solutions company for nonprofit and education is seeing ” bottom-line improvements.”

“We believe BLKB’s pricing and crosssell initiatives can drive improved growth, while cost discipline should drive continued bottom-line improvements.”

Susquehanna downgrades Frontier to neutral from positive

Susquehanna said in its downgrade of the discount airline that it sees slowing growth.

“That said, with now 2 cuts to FY23 capacity guidance, we see elevated risk to Frontier’s growth profile for FY23-24 and are moving to the sidelines.”

CFRA reiterates Berkshire Hathaway as hold

CFRA said it’s standing by its “fairly valued” hold rating heading into Berkshire earnings on Saturday.

“CFRA believes Berkshire Class B shares are fairly valued versus historical averages, though the year-to-date performance of the shares has been aided by a rotation into value stocks and by Berkshire’s balance sheet strength.”

UBS initiates Ferguson as buy

UBS said the construction supply company is resilient.

“We expect the US residential business (>50% of FERG’s revenue) to remain relatively resilient, despite macro uncertainty, which underpins our above consensus topline growth forecasts for the company.”

Bernstein reiterates Qualcomm as outperform

Bernstein said it’s standing by its outperform rating on Qualcomm after its earnings report on Wednesday and that it “ought to be bought.”

“While we believe investors were expecting a miss, this was admittedly a somewhat sobering report. That being said, there were some promising signs to latch on to as well.”