Apple, Tesla, Netflix and Disney
Here are Thursday’s biggest calls on Wall Street: Credit Suisse upgrades AECOM to outperform versus neutral Credit Suisse said the company was one of the main beneficiaries of infrastructure stimulus. “We are upgrading ACM to Outperform from Neutral. As a pure-play professional infrastructure services provider, we believe ACM will benefit from long-term tailwinds associated with infrastructure incentives in the US and globally.” UBS reiterates Apple as a buy UBS said it reiterated its buy rating on the stock but was concerned about falling App Store sales. “As usual, in January Apple presented an annual review (link) of many of the company’s entertainment and service offerings. While many of the updates cannot be extrapolated to financial metrics, we believe Apple’s disclosure in the App Store provides insight into the health of this important offering, which we estimate accounts for nearly 25% of services.” JPMorgan Focuses on Caterpillar JPMorgan has added the stock to its top picks list and says it’s underrated.”We’re adding OW-rated CAT to the AFL as a short-term idea as we believe it has exposure to favorable end markets (~2/3 of the Revenue tied to non-Resi/O & G/Mining) and margin upside potential has been underestimated by investors.” Credit Suisse upgrades Boeing to neutral from underperforming Credit Suisse said in its Boeing upgrade that it saw “stronger aircraft deliveries.” “We are upgrading BA to Neutral (from Underperform) as several key parts of our original thesis are no longer tenable given the company’s improved operating performance.” Citi Names Microsoft as Top Pick for 2023 Citi said Microsoft is well positioned for 2023. “While challenges will prevail for names that grow at all costs, we believe that companies that demonstrate good sales efficiency with large market opportunities that do not require evangelical sales moves are among the best positioned.” RBC names Meta a top -Selection for 2023 RBC said it sees “multiple expansion” for meta stocks on the horizon “META: Getting back the targeting/measurement mojo + removing Tiktok concerns = multiple expansion alongside supporting the bottom line.” Wix.com up to outperform sector RBC said the web development company has pricing power “With WIX down 51% in 2022, we throw our hats back in the ring and step up to outperform with a $100 PT at slightly increased estimates. reflect price increases more appropriately.” Barclays endorses Coinbase as Barclays, with equal weighting, said the outlook for Coinbase looks too challenging “without a turnaround in crypto asset prices.” “Exchange volumes, app download/usage data and crypto asset prices continued to decline in the quarter, but rising interest rates should be a key tailwind; we are revising down our revenue estimates, but this is offset by ~$1 billion or less opex in F23.” UBS downgrades Anheuser-Busch InBev to sell from neutral UBS said in its downgrade of the beverage giant that it saw a lack of positive catalysts “While we have been encouraged by signs of improved execution across AB InBev’s key profit pools, the market may not fully appreciate the risks ahead for 2023.” Read more about this call here. Morgan Stanley Upgrades Cleveland-Cliffs to Overweight from Equal Weight Morgan Stanley said in its upgrade of the miner that it saw “robust” free cash flow. “Upgrade from CLF to OW based on sequentially higher annual fixed price contracts that should result in positive earnings revisions and robust FCF generation despite projected declining spot steel prices. Read more about this call for proposals here. Deutsche Bank upgrades American Tower to buy off-hold Deutsche said in its review of the wireless company that it has a diverse portfolio.” AMT’s well-diversified global portfolio (roughly 50/50 US vs. International) positioned it is best positioned as the key beneficiary of global mobile data traffic growth over the next few years, especially as US 5G wireless investment begins to tail off.” Jefferies Upgrades Netflix to Buy from Hold Jefferies said in his stock upgrade, that the company’s ad-tier subscription service is driving “top-line outperformance” in a timely manner.” Netflix: Buy Raise. AVOD (advertising video-on-demand) will be slow to kick in, but when it does (coupled with changes to password sharing) it should boost top-line outperformance.” Read more about this tender in its downgrade from Roku here that a slowing digital ad market isn’t priced into the stock. “ROKU downgrade to underperform as we do not believe a significantly slower digital ad market reflects near-term consensus expectations and long-term business trajectory remains unclear.” Buying opportunity board seat could help stocks a surprising conclusion. Peltz’s push — despite objections from Disney’s board of directors — has merit and could help Disney stock.” Equities in 2023. “While Q1 23 could be pressured by cuts in consumer and corporate spending, BofA economists expect inflation to fall below 3% by the end of 2023 and we believe a more favorable Consumer spending environment and prospect of lower interest rates may lead to multiple expansions in 2023 Outperform peer performance Wolfe said in his upgrade of the oilfield services company that he likes the stock’s valuation: “We upgrade HAL due to its cheap relative valuation and the… continued revenue tailwind to Outperform High.” in its upgrade from Cinemark that it is a “favorable” Risk/E income ratio for the cinema company. “After shares are down 31% since early December (vs. SPX -3%). , we believe the risk/reward trade-off is more favorable for a positive view on the stock.” Read more about this call for proposals here. JPMorgan echoes Exxon as the overweight JPMorgan said the oil and gas giant has a good mix of offense and defense. “We believe XOM has multiple re-rating potential due to its diversified portfolio, improved execution, portfolio management and capital return (requiring recovery).” Barclays names Burlington a top pick for 2023 Barclays said the off-price trader’s stock “We believe BURL should accelerate stock gains, particularly in 2H23 and beyond.” Bernstein reiterates Tesla as an underperformer Bernstein said he sees too many demand challenges for the automaker more conflicted…. However, we believe many investors are underestimating the magnitude of the demand challenges Tesla is facing and that 2023/24 numbers could be materially rolled back.” Bank of America takes Bank of New York Mellon as Buying back on Bank of America resumed reporting on Bank of New York Mellon, saying it is “cyclical” with multiple “self-help levers.” “While we believe the outlook for revenue growth will be driven by market behavior, we believe focusing on properly sizing the cost base and leveraging capital will ensure EPS defense.” New Street Downgrades AT&T to Neutral from Buy New Street downgraded the stock primarily on the basis of valuation. “We downgraded AT&T to Neutral after a strong performance in 2022.” Morgan Stanley names Palo Alto a top pick for 2023 Morgan Stanley said it has “strong confidence” in the cybersecurity company as a top pick for 2023. We’re doubling down our preference for consolidators that can capture a larger portion of the security budget in times of greater control, with strong reliance on PANW as our top pick.”
https://www.cnbc.com/2023/01/12/thursday-wall-street-analyst-notes-apple-tesla-netflix-disney.html Apple, Tesla, Netflix and Disney
