Here are Friday’s biggest calls on Wall Street: Bank of America upgrades Caterpillar to buy from a neutral bank. Bank of America sees this as a multi-year growth story for the industrial giant. “As macro headwinds ease in 6-9 months and investors look to a new cycle, CAT’s multi-year growth outlook looks positive: Capital spending is higher in a world where copper/oil/gas is effectively ‘short’, and the long tail of fiscal stimulus drives construction projects.” Read more about this call here. Atlantic Equities downgrades Salesforce to neutral from overweight Atlantic Equities downgraded the stock on slower-than-expected sales growth Read more about the call here JPMorgan upgrades Copa Airlines to overweight from neutral JPMorgan said it likes the Latin American airline’s valuation. “From our point of view, Copa offers an interesting combination of: (i) one discounted valuation currently trading at a 25% discount to its historical EV/EBITDA average and (ii) a relatively comfortable balance sheet position with an expected leverage of only 1.8x net debt to EBITDA ratio by the end of 2023 , the lowest among Latin American airlines.” Guggenheim downgrades Tesla to sell from neutral Guggenheim said the numbers were overly optimistic about Tesla’s earnings later this month. “We see a negative catalyst path for the stock to underperform in the short and medium term.” Read more about this call here. Evercore ISI Downgrades Wendy’s So It Doesn’t Do Better Evercore said in its downgrade of the fast-food chain that it sees limited benefits. “We forecast upside potential for Wendy’s fourth and first quarter SSS and EBITDA (details on page 25). However, we see the stock’s upside as more limited at $23 today.” Deutsche Bank downgrades Logitech to hold from buy. “We are becoming more cautious on Logitech as the current downturn in the PC market and weaker demand appears to be more severe than expected.” Read more about this call here. Barclays reiterates Amazon as overweight Barclays said Amazon Prime is ‘THE e-commerce killer app’ “Prime is a moat that seems unassailable to us; AMZN’s customer retention is not only significantly higher than its competitors, it has increased significantly over the past 5 years.” Goldman Sachs downgrades Lockheed Martin and Northrop Grumman to sell from neutral and Raytheon to neutral from buy. Goldman downgraded Lockheed, Northrop and Raytheon and said it was becoming more cautious about defense stocks. “Defense stocks are now pricing in the potential for a new global geopolitical superpower struggle.” Read more about this call here. RBC downgrades KB Home and DR Horton on sector performance from outperform RBC said homebuilder stocks had been going too fast too fast. “Construction stocks have continued to rally over the past month and have now outperformed the S&P 500 over the trailing 12 months, which we think is too fast too early compared to what we think will continue to cause significant demand and price pain/margins in the market Next year.” Bank of America reiterates Alphabet as a buy Bank of America said it maintains its buy rating on the stock but sees further staff cuts this year. “While Alphabet is experiencing some of the investor pressure to cut costs due to founder ownership is shielded and early cost-cutting measures may not have met investors’ near-term expectations, over time the company has attempted to adjust capital expenditures to its capabilities, and we think the first round of layoffs suggests that the Probability of a cost course correction in 1H’23 increases.” Bank of America Names Netflix its Top Pick Bank of America said Netflix is one of the best-positioned media companies for the permanent shift to streaming. “As a result, we continue to believe that NFLX, DIS and WBD, based on their size, depth, breadth and quality of content, are best positioned to manage this transition.” Credit Suisse Reiterates AMC as an Underperformer Credit Suisse said it stands by its Underperformer rating on AMC stock as consumer interest in a return to theaters is lacking at pre-pandemic levels. “In other words, we remain cautious about improvements in movie offerings or consumer behavior returning anywhere near pre-pandemic levels.” Bernstein reiterates Apple’s market performance Bernstein said it remains concerned about iPhone supply and demand. “While AAPL stock has historically not performed well in the 3 to 6 months following iPhone launch, this year’s performance has been unusually poor, reflecting concerns about both iPhone supply and demand.” Wells Fargo notes AutoNation downgrade from overweight to equal weight Wells downgraded the used-car company primarily on the basis of valuation. “As such, we are downgrading AN to EW from OW as we believe current valuation levels are reasonable, but consensus estimates for 2023 are currently too high.” Guggenheim downgrades Warner Music to neutral from buy Guggenheim said in its downgrade from Warner Music that it sees only limited opportunities. “As detailed therein, we have updated our F1Q23 model to better reflect weaker than previously forecast recorded music streaming revenue reflecting 1) an ongoing slowdown in ad-supported streaming and 2) the impact of a lower quarterly release slate (particularly in relative to an above-average peer content cycle.” Bernstein reiterates Costco as an outperformer Bernstein said the stock remains a “solid defensive name” this week, which supports our expectation of continued strong, stable performance.” JPMorgan reiterates Coinbase as neutral JPMorgan lowered its price target for the stock to $53 per share from $66 and said it sees a very challenging backdrop for crypto.”We see the crypto ecosystem as a big challenge for intermediaries like Coinbase, but look at the cost actions taken.” as good steps to manage d it’s business – more are likely to be required.
https://www.cnbc.com/2023/01/13/top-calls-on-wall-street-include-tesla-amc-caterpillar.html Top calls on Wall Street include Tesla, AMC, and Caterpillar