Here are Wednesday’s biggest calls on Wall Street: Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it’s standing by its overweight rating on the stock but auto sales numbers show Tesla’s share of the EV market is falling. “Notably, Tesla’s share of the US EV market falls to historic lows (sub- 50%), continuing its downward trend.” UBS initiates Fiverr as buy UBS said the Israeli online marketplace company has “significant upside.” “We are positive on FVRR because 1) FVRR’s volumes lead overall job listings by 2 or more quarters, and job listings have started stabilizing, 2) expectations are low, and while macro remains uncertain, we see scope for expectations and multiples to trend up as the outlook firms up in 2024.” Read more about this call here. UBS upgrades Fluor to buy from hold UBS said the construction and engineering stock is underappreciated. “We think investors underappreciate FLR’ s potential as it continues its turnaround. It has reached an inflection point on legacy risk concerns and is close to returning to more normalized margins or better after several sub-par years, while cash flow adds further upside.” Read more about this call here. TD Cowen initiates Lithium Argentina as outperform TD said the lithium company is an “Argentine pure play story.” “We are initiating coverage on Lithium Argentina (LAAC) with an Outperform rating following the separation from Lithium Americas Corp (LAC).” Bank of America upgrades Orange to buy from underperform Bank of America double upgraded the European telco company and says it has upside potential. “Orange’s investment case stands out, in our view, as one of the few in the sector that captures all these elements while still at an attractive valuation.” Bank of America upgrades Oddity Tech to buy from neutral Bank of America said the consumer tech platform is a “high quality growth story.” “We are upgrading ODD to Buy from Neutral as we think the recent pullback in the stock presents an attractive buying opportunity.” KeyBanc downgrades Apple to sector weight from overweight Key said it sees slowing growth for Apple. “In our view, user growth is still more important than unit growth, but we believe this could be a losing argument NT given lack of catalyst, which we believe results in a neutral risk/reward.” Goldman Sachs reiterates Alphabet as buy Goldman said the internet giant is an “AI leader.” “In addition (and while better understood than six months ago by the market), we continue to frame GOOGL as an AI leader in the coming computing shifts that might impact consumer and enterprise computing trends.” JPMorgan reiterates Meta as overweight JPMorgan lowered its price target on the stock to $400 per share from $425 but says it’s sticking with the stock. “We remain positive on META shares, but are lowering our 2024 and 2025 EPS estimates primarily to account for greater increases to expenses.” Oppenheimer reiterates Netflix as outperform Oppenheimer said a report of a price increase on Netflix’s ad-free plan are a positive catalyst for shares of the stock. “Regardless, the price increase should increase ARM [average revenue per membership] , either driving more subs to higher ARM ad-tier relative to ad-free Standard plan, or by increasing ad-free ARM. Either way, NFLX should be able to report higher revenue, after disappointing investors, with the stock -21% vs. NASDAQ’s -9%, since reporting 2Q earnings on 7/19.” Bank of America reiterates Blackrock as buy Bank of America said the asset management company is well positioned. “Specifically, while we estimate downside to current consensus EPS for both AB and BLK in 3Q23 from negative beta, we forecast a significant reacceleration in net flows in 4Q23/2024 and reiterate our Buy ratings.” Read more about this call here . Mizuho reiterates Coinbase as underperform Mizuho said it sees Coinbase revenue by 10% as volumes continue heading lower. “We expect dwindling volumes (i.e. $28bn in July, $24bn in August, and $20bn in September) combined with an expected drought in retail trading to meaningfully weigh on 3Q revenue, which we expect to be 10% below current consensus levels.” Loop reiterates Snowflake as buy Loop said Snowflake is an “emerging” AI leader. “In terms of the stock, SNOW remains our favorite large-cap growth idea as we think current valuation of 10x EV/C2025 Revenue is reasonable for what we view as a 30%-plus top-line grower, margin expansion story, and category leader in one of the largest and fastest growing TAMs that we follow.” Bernstein reiterates Peloton as outperform Bernstein said it’s standing by its outperform rating on the stock as the bear case is “unlikely” to play out in the firm’s view. “The bear case is unlikely to play out, especially now. PTON has already proven the bear case wrong, by growing net adds in all but the last Q even in a tough post-COVID backdrop.” Mizuho reiterates Nvidia as buy Mizuho added the stock to its top picks list and says it’s an AI winner. “We rate NVDA with a Buy rating and a $590 PT, ~41.3x F25E EPS, within its historical 15-67x range, which we see as appropriate given as NVDA continues to dominate gaming and AI/accelerated compute despite near-term concerns around consumer and data center slowdowns.” Truist downgrades Sunnova and Sunrun to hold from buy Truist downgraded several solar companies Wednesday mainly on valuation. “As such, we D/G shares of solar installers RUN & NOVA to Hold from Buy, and recommend investors instead buy utility-scale/resi suppliers incl. ARRY, NXT, SEDG, GNRC & SHLS.” Read more about this call here.
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