Wall Street’s top calls on Tuesday: Apple, Exxon, Amazon, Microsoft
Here are Tuesday’s biggest calls on Wall Street: Bank of America adds Warner Brothers Discovery to US1 list. Bank of America said it appreciates the media company’s “long-term potential.” “We remain bullish on the long-term potential of WBD and view the current risk/reward trade-off as extremely attractive.” Goldman Sachs Names Charter a Top Choice for 2023 Goldman said the cable company is a very attractive choice for 2023. “We expect CHTR’s broadband network access to improve throughout 2023, reflecting the expansion of rural footprint, network upgrades and fixed-wireless moderation adds.” KeyBanc upgrades Bumble from sector weighting to overweight KeyBanc said it sees an attractive risk-reward outlook for the matchmaker. “We believe BMBL stocks offer an attractive risk/reward trade-off (20% down move in bear scenario vs +84% up move in bull scenario).” Read more about this call here. Barclays names Microsoft a top pick for 2023 Barclays said, Microsoft will remain a “heavyweight” in 2023 Morgan Stanley downgrades Boeing from overweight to equal weight Morgan Stanley downgrades d The stock down mainly due to valuation. “We are downgrading BA to EW from OW as we see the stock approaching fair value after its recent outperformance at these levels.” Read more about this call here. Morgan Stanley calls Taiwan Semiconductor a catalyst-driven idea Morgan Stanley said it was optimistic about snapping into the semiconductor company’s earnings later this week. “Comments on full-year 2023 forecasts and the mid-cycle recovery are key factors to watch. Stay OW on TSMC on results.” Guggenheim reiterates Disney as buy Guggenheim said it was concerned about a poor theatrical performance from Disney but maintained its buy recommendation. “We anticipate our intense focus on the pursuit of increasing profitability coupled with an ongoing commitment to investing in the creative process. Our BUY rating and price target of $115 remain unchanged.” UBS upgrades US Bancorp to buy from neutral UBS said in its upgrade of US Bancorp that its resilience was “underestimated”. “With no apparent themes (e.g., 2022 interest rate trading), we favor stocks where underlying improvements and/or EPS resilience are underestimated.” Bank of America Names Delta a Top Pick for 2023 “We maintain our Buy rating for DAL and our target price of $43. DAL’s expected return to more meaningful free cash flow generation in 2023 (target of >$2 billion versus BofAE’s $2.3 billion) and 2024 is the biggest differentiator between the Big Four airlines.” Goldman Sachs reiterates Netflix as a sale Goldman said it sees too many negative catalysts heading towards Netflix earnings next week. “Additionally, we remain concerned that additional subscription offers could cause users to ‘spin down’ to the lowest-priced plans in a potential consumer recession over the next 6 to 12 months. Evercore ISI upgrades Travelers to outperform Inline Evercore, in its upgrade, said the insurance company sees profitability in 2023 as we move through ’23.” Wells Fargo upgrades AT&T from equal weight to overweight Wells said the stock is defensive and has a “reasonable” rating.”T is our top pick for wireless networks in 2023 as (a) we see upside from lower EBITDA and FCF consensus expectations driven by strong wireless revenues.” services (+4%) and EBITDA growth (+6%); [and] (b) an improving balance sheet should open up share buyback options.” Read more about the call here. RBC downgrades Box to underperforming sector RBC said it was concerned about the turnaround of the cloud-based content management company, with operating margin up 2,200 basis points since FY20, a growth acceleration led by Suites and Japan, and positive shareholder returns in 2022 (just one in our coverage), we now have concerns about the sustainability of this turnaround, particularly given our reviews suggest that growth in Japan could slow further.” Oppenheimer reiterated Coinbase, as Oppenheimer said it believes the crypto company is a “long-term survivor.” “Coinbase may be one of the few long-term survivors in this space, which we think makes it attractive.” Read more about this call here. Morgan Stanley downgrades Royal Caribbean to underweight from equal weight and upgrades Norwegian to equal weight from underweight M Organ Stanley made several rating changes to its cruise coverage and said booking sentiment continued to ” “Be mixed” Expect a fourth year of losses in FY23.” Read more about this tender here Morgan Stanley is reinstating Virgin Galactic as Morgan Stanley has resumed coverage of the space company and says it has the advantage of a “We are optimistic about SPCE’s LT potential as a first mover in a structurally high-margin business, but our optimism is tempered by the track record of execution and the steep ramp ahead.” ‘ down to ‘Neutral’ UBS said in its downgrade of the stock that it believed ‘investors will need more than security to fuel another multiple expansion in 2023.” “We remain relatively positive on the medium-term risk/reward profile of MSW, including WM & RSG. However, we anticipate investors will need more than certainty to fuel continued multiple expansion into 2023.” Mizuho Upgrades Exxon to Buy from Neutral Mizuho resumed coverage of the stock, saying in its upgrade that it sees margin expansion. “As such, we believe it is difficult to construct a scenario where XOM could not be a leader in cash generation and cash return within our energy coverage group over the next 3-5 years.” Morgan Stanley reiterates Spotify as overweight Morgan Stanley said Spotify has several levers to pull and that it’s a self-help story. “There are clear levers it can pull in almost any macro environment to improve its P/L and share price in 2023 if it so desires. First, it has an opportunity to raise prices for its subscription business, which accounts for almost 90% of its revenue.” JPMorgan echoes Apple as overweight JPMorgan said it appears iPhone lead times for Apple are being delayed. “In week 18 Our Apple Product Availability Tracker, supply-demand dynamics for iPhone Pro models continued to make progress towards normalization across multiple regions, with Pro lead times in the US, UK and China now being less than a week.” JPMorgan Repeats Overweight Amazon JPMorgan said it remains overweight the e-commerce giant, but reviews of its investor survey show Meta will be a better mega-cap performer this year. “META is expected to be the best-performing mega-cap stock (41% of respondents), while AMZN is a close second at 36%, while NFLX is expected to be the worst-performing mega-cap stock .”
https://www.cnbc.com/2023/01/10/tuesdays-top-wall-street-calls-apple-exxon-amazon-boeing-spotify-.html Wall Street’s top calls on Tuesday: Apple, Exxon, Amazon, Microsoft
