Wall Street’s top calls Wednesday include Tesla, Apple and Salesforce
Here are Wall Street’s biggest calls for Wednesday: Deutsche Bank upgrades Pool Corp to buy from hold Weg for housing, which could push the relative multiples back to levels more associated with a mid-cycle environment compatible, even if demand for new homes were simply to show some stabilization. Wells Fargo Adds Boeing to Signature Pick List “Boeing is playing on the secular growth story of global air travel. WFS Aerospace & Defense analyst Matt Akers sees robust cash generation, an underserved market and easing growth concerns that will underpin strong stock gains in the quarters ahead.” Credit Suisse Named FedEx a Top Pick Credit Suisse said the stock was “tempting.” “FedEx is our top pick for 23: The most compelling opportunities often come from a bending of expectations.” Bank of America downgraded Coinbase for underperforming neutral Bank of America and said it sees too much headwind for the crypto -stock market. “After analyzing Q4 crypto transaction volume data (detailed in this report) and with the crypto outlook for 2023 bleak at best (as evidenced by COIN’s second round of job cuts announced yesterday), we are lowering our revenue estimates for 2023 even further down the road for COIN.” Read more about the call here. JPMorgan downgrades XPO to neutral from outperformance JPMorgan said it was concerned the company was missing expectations. “We expect XPO to live up to expectations will miss for 2023 as rising interest rates weigh on earnings, while LTL (less than a truckload) faces a freight market that is less supportive of an operational turnaround.” Barclays endorses Apple as Barclays equally weighted its price target on the stock of 144 US dollars to $133 per share, noting that it is concerned that Apple Services estimates are “at risk.” estimate that the Dec-Q app store is down 2%, which also puts the Dec-Q consensus estimates for services at risk.” Mizuho initiates Oracle acquisition Mizuho says he likes the company’s diversified portfolio. “Oracle’s broad portfolio of infrastructure and applications products is maturing, prompting the company to move to the cloud to re-accelerate its growth profile.” Goldman Sachs names Tesla and General Motors top picks for 2023 Goldman named Tesla a ” Cost and technology leader,” and said GM is “among the leaders in autonomy.” “We would remain selective on auto OEM stocks as price and mix are likely to be headwinds in 2023 as supply and demand generally soften; we favor TSLA and GM (with Tesla being a cost and technology leader in EV/clean mobility, and both Tesla and GM Cruise are among the top autonomy companies we believe).” Read more about this call here. Goldman Sachs ranks Jefferies of “Buy” down to “Neutral” Goldman said it sees a “declining backlog” for the investment bank firm underperforming M&A/trading and a sharper fall in backlog.” Oppenheimer upgrades Expedia to outperform Oppenheimer believes the travel company’s stock is pricing in macro headwinds. “Over the past 12 months, EXPE shares are down 48% and have thus underperformed the 32% of the S&P and their current EV is now 11% below the level pre-COVID, although we forecast 115% EBITDA in 22E/23E. /127% above level of 19 due to structurally higher margins from successful execution of cost cuts.” Citi downgrades Levi’s to neutral from buy Citi said it was concerned about weak denim trends. “While LEVI is a strong brand with good global prospects over the long term “In the short to medium term, we expect a challenging US backdrop characterized by weaker denim trends to pressure results.” Read more about this call here Cowen reiterates Netflix as outperforming Cowen said that it stays true to the stock on its path to gains next week.”We also anticipate investors will be looking for color as the ad tier rolls out. Meanwhile, our annual survey of ad buyers points to a big advertising option over time for NFLX.” while our consumer survey shows NFLX was the top choice for living room playback in Q4.” Ban k of America Names Northrop Grumman a Top Pick for 2023 “We remain positive on Northrop Grumman as Prime remains on track to continue to benefit from increasing sales in its Ground-Based Strategic Deterrent and B-21 programs, the two are the three pillars of the nuclear triad. As with the nuclear power subs, we see little risk to these strategically important programs, even with continued wind-down.” Bank of America upgrades Toll Brothers and Pulte Group to buy from neutral. Bank of America upgraded several builders and led compelling ones “We are upgrading PulteGroup to Buy (from Neutral), Toll Brothers to Buy (from Neutral) and Lennar to Neutral (from Underperform). Valuation is compelling for PHM (trading at 1.1x 2023E price-to-book ) and TOL (trading). at 0.9x 2023E price-to-book).” Guggenheim upgrades Warner Brothers Discovery to buy from neutral Guggenheim said Warner Brothers Discovery has a compelling narrative. “We see an attractive narrative going into the first half of 2023, with the implications of a recently announced refresh of domestic subsidiaries, tight cost controls and the upcoming launch of a restructured Max product as key catalysts.” Susquehanna downgrades Southwest to neutral from positive Susquehanna said it have operational concerns for the airline. “Winter Storm Elliot clearly disrupted air travel in late December, with LUV’s associated operational collapse taking center stage among US peers (e.g. ” Bernstein downgrades Salesforce to market performance from outperformance Bernstein said in his downgrade of the stock that they into “growth purgatory.” “Salesforce recently announced ~10% job cuts, in addition to commenting on other cuts that will only slow growth further.”Read more about that call here Bank of America ranks Dow from underperformance to neutral high Bank of America said it is taking a more “offensive” approach to the stock. “We take a more aggressive stance on ratings, but refrain from going “all-in” on risky assets until we have more See confirmation from macro and commodity markets.” Deutsche Bank reaffirms Moderna as a buy Deutsche Bank called the biotech a “ei unique disruptive innovation story”. “MRNA remains a unique disruptive innovation story and while that also implies some risk profile, the cash pile is now less of a relative support.” JPMorgan downgrades CarMax to underweight from neutral JPMorgan said it sees an unfavorable risk-reward tradeoff for the used-car company. “As such, it is premature to rate KMX on a recovery multiplier (peak to bottom or ~30x our FY24 EPS at current levels) as there are still many cards to unfold including checking the important boxes at SG&A and of retail GPU execution in the next few quarters before the industry bottoms out.” Read more about that call here. Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said the stock was a “share gainer.” we see Microsoft as a stock gainer, benefiting from vendor consolidation and its strong positioning in terms of CIO priorities and long-term trends.” Cowen affirms Amazon as an outperformer Cowen said Amazon will gain its share of digital advertising. “According to our own survey at 50 top-tier US ad buyers, Amazon is expected to gain market share alongside TikTok for the third straight year.”
https://www.cnbc.com/2023/01/11/top-wall-street-calls-on-wednesday-include-tesla-apple-salesforce.html Wall Street’s top calls Wednesday include Tesla, Apple and Salesforce
