The biggest calls from Wall Street analysts, including Tesla and Apple
Here are the biggest calls from Wall Street on Wednesday: Bernstein reiterates that Amazon is outperforming Bernstein said he remains optimistic about the e-commerce giant heading into 2023. “In the uncertain environment, Amazon continues to look like the safest place to e-commerce after taking part in Q3 and likely continuing to do so in Q4.” Wells Fargo downgrades Lear to equal weight as overweight Wells said he expects earnings headwinds in 2023 for the automotive seating and electrical systems company. “We are downgrading LEA from Overweight to Equal Weight. LEA shares are up 10% since the end of the third quarter (vs. S&P also +12%). However, we are more cautious on automotive production compared to IHS, driven by expectations. weakness in Europe and China.” Citi downgrades Marriott to neutral after buy Citi downgraded the stock primarily because of its valuation. “We believe MAR’s fee-based business model is likely supporting the current valuation increase, accurately reflecting the continued recovery in RevPAR (revenue per available room), net unit growth and accelerating asset redemptions. shares.” Morgan Stanley Names Exxon Mobil Among 2023 Top Picks Morgan Stanley said Exxon Mobil is one of the best-positioned stocks heading into 2023. Prefer stocks with (1) strong and/or improving FCF ; and (2) scale and diversity of assets to better manage inflation risks.” Jefferies reiterates Netflix as Jefferies raised its price target on Netflix to $310 per share from $250, but said that he was expecting a better entry point for the action.” Street may be overestimating the AVOD (video on demand) impact for Q4 and 1Q23 while underestimating the full year impact. This leads us to be cautious in the quarter and wait for a better entry point.” Goldman Sachs names Boeing among the top picks of 2023 Goldman said the aerospace giant is well positioned heading into 2023 . and deliveries well below demand.” Barclays puts SolarEdge at equal weight overweight Barclays said it was optimistic about the company’s “pivot” to Europe. “After our trip to Europe, we are more confident about the macro-economic dynamics in Europe that will support SEDG’s growth and its ability to take market share in the near term.” Wedbush Upgrades Darden to Outperform Neutral Wedbush called owners of brands like Olive Garden a “share gain”. “We expect DRI’s category share gains to accelerate in an increasingly uncertain consumer environment, providing visibility into DRI’s ability to meet or exceed current consensus expectations for the financial year 23 relatively high.” Morgan Stanley Reiterates Overweight Apple Morgan Stanley said concerns about competition from the App Store were overblown. “We see limited risk to App Store revenue from greater App Store competition on iOS, and believe that Apple could potentially appease EU regulators could actually remove a long-running surplus. date on Apple shares.” Bank of America downgrades Best Buy for underperforming relative to neutral Bank of America said the environment is too difficult right now for Best Buy. “We expect a challenging environment for BBY to achieve earnings growth in the short to medium term, and are lowering our earnings estimates to account for a challenging medium-term demand environment.” Read more about this call here. Bank of America downgrades Caesars and Penn to neutral instead of buying Bank of America said in its downgrade of Caesars and Penn that it was concerned about flattening gambling spending. “Our new ratings are supported by: 1) slowing Y/Y consumer spending growth according to BAC’s aggregate credit and debit card data, 2) flattening gaming spending and declining visits.” Cowen launches BellRing Brands as it outperforms Cowen said he sees several positive catalysts for the food nutrition company. “We find active nutritional shakes to be the most attractive pocket of growth in snacking, informed by the return to exercise and participation of younger cohorts, and aware that the segment is under-penetrated compared to bars. ” UBS launches Plug Power as a buy UBS has called the hydrogen fuel cell company a “one-stop hydrogen store.” “We’re launching Plug Power coverage with a buy rating and +90% upside. Hydrogen could be a $10 billion market by 2030, and PLUG aims to be a one-stop-shop and leader of the market in all space.” Read more about this call here. Bank of America Reiterates Nike as Neutral Bank of America said it was prudent to enter Nike earnings next week. “Our focus remains on whether demand in North America will worsen next year given strained consumers.” Bank of America Reiterates Alphabet as Buy Bank of America said it stands by its buy rating on Alphabet, but investors need to know more about the company’s cost-cutting initiatives . “We currently estimate membership growth of 5% or around 10,000 net additions in 2023, below Street at 12,000, and we increasingly believe that membership could decline in 2023.” Goldman Sachs reiterates Tesla as buy Goldman lowered its price target on Tesla to $235 per share from $305, but said it was still bullish on the stock for 2023. Headwinds in 2023 as the supply/demand is generally moderating, and we prefer TSLA and GM (both likely to benefit from the IRA, with Tesla in particular a leader in EV/self-driving technology in our opinion). Morgan Stanley improves RingCentral overweight to equal weight Morgan Stanley said the software company was undervalued. “Given the oversized commissions paid historically, RNG has the ability to be more flexible with the business model, which requires us to move to OW.” Wells Fargo reiterates Goldman Sachs as overweight Wells raised its price target on Goldman to $400 a share from $380 and said the company has plenty of “levers” to pull. “Goldman isn’t as cheap as it was at the start of the year, but is still trading at less than 10x our 2023 estimate.” Barclays moves Lennar and PulteGroup to overweight from equal weight Barclays said it is becoming more positive for the homebuilding sector heading into 2023 relative to building products. We’re upgrading LEN and PHM to OW.” Read more about the call here. Deutsche Bank names Qualcomm and Marvel among top picks for 2023 Deutsche said in its 2023 semi-final outlook that it likes stocks with “risk-free estimates/valuations.” “Our favorite names heading into CY23 are those with risk-free estimates/valuations (Buyrated MRVL and QCOM) and those with undervalued stability/idiosyncratic drivers. Oppenheimer upgrades Datadog to outperform on performance. of growth and profit. “We are upgrading Datadog to outperformance with a price target of $105. The unified, real-time enterprise view across the entire tech stack remains critical for developers/enterprises as they focus on identifying/eliminating performance issues. While not recession proof, the mission-critical nature of its solutions gives Datadog relative resilience in times of spending constraints.”
