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Here are Monday’s biggest calls on Wall Street: Jeffries reiterates the Netflix purchase as Jeffries said his recent survey checks show Netflix should be able to retain users despite tough password-sharing measures. “We believe NFLX is positioned as a ‘must have’ streaming service and is a contender for the top spot in video content distribution.” Wells Fargo raises Spotify’s rating to overweight Wells said the stock is coming out of its “margin trial period.” “When we upgraded SPOT to Equal Weight, it was based on management showing progress towards margin targets. Opex is leveraging as OI losses improve and we think SPOT will break even in Q1 2024.” Morgan Stanley reiterates that Disney, as the overweight Morgan Stanley said Wednesday it is optimistic about the entertainment giant’s earnings. “We remain optimistic that the Disney Parks segment, which accounts for the majority of its revenue, will be able to generate healthy growth in FY23 and beyond.” Bernstein upgraded Diageo’s rating to outperform market results Bernstein said the spirits company’s shares are attractive at current levels. ” Diageo: Upgrading to outperform performance – over a year of multiple compression => an attractive entry point for a quality compounder.” Read more about this call here. Morgan Stanley confirms Amazon is overweight Morgan Stanley said Amazon is gaining share, but Walmart and Costco are in a better position to compete. “AMZN share growth accelerated in the fourth quarter to the fastest pace since 2020. Meanwhile, the share of our retailers is slowing down. A clear negative for the rest of retail, especially with 3P pushing AMZN up. more; WMT/COST may be in a better position.” Wells Fargo reiterates Dollar General and top picks Ollie Wells said Dollar General has “unique flexibility.” The firm also stated that Ollie’s Bargain Outlet has an attractive risk/reward ratio. “Expectations were not met, each of these problems looks solvable, in our opinion, and we see a unique flexibility for the company to meet/exceed initial forecasts. less inflation, but still cost-adjusted.” Wells Fargo confirms Tesla is of equal weight. Wells said the industry dynamics surrounding electric vehicle pricing remain “challenging.” “After the IRA [Inflation Reduction Act] Redefining an SUV, TSLA slightly raises Model Y prices. We estimate a weighted average price increase of $690. A minor price adjustment, in our opinion, does not significantly change the pricing dynamics for electric vehicles, which is questionable.” Feb. 8, and we expect current reserves and revenue and EBITDA to be higher at $626m versus Street at $619.” but that he backs the tech giant’s stock. “Sales fell in all regions; but the largest margins declined in Europe/America.” KeyBanc upgrades Splunk to overweight industry KeyBanc said the software company’s stock is defensive. Telsey Downgrades RH to Market Efficiency Telsey said in its downgrade of RH that it sees a more balanced risk/reward. – in the long term, with stocks up 29% since the December 8 2022 Q3 report, stocks appear fairly valued at around 20x 2023 consensus earnings per share, above the 3-year average of 19.2x and the 5-year average at 17.3x”. Rogers Communications upgrades Rogers Communications stock to Buy from Neutral UBS said it sees an attractive risk-reward ratio for the Canadian telecommunications giant: “We are upgrading Rogers stock to Buy from Neutral and raising our target price to $75 , based on the 8x 2024E forecast. EBITDA is in line with the historical average for a Canadian telecommunications company.” Gordon Haskett downgraded Lyft to Hold, not Buy. “Rating downgraded to “Hold”; the expectation of a shortage of active riders in the 4th quarter will further increase concerns about revenue growth.” Raymond James Downgrades PayPal to Overmarket Raymond James said in his downgrade of PayPal that market share losses are mounting. “To put it simply, while most investors expect the initial 2023 revenue growth forecast to be lower than the street, we believe the 2023 revenue forecast will imply stable or negative growth for branded checkouts, which is likely to will make the stock loss narrative grow even louder.” MoffettNathanson Downgrades T-Mobile to Overmarket Moffett said he was concerned about the slowdown. “Here’s the problem: We’re seeing a growing disparity between industry growth rates and company expectations, not just for T-Mobile, but for the entire Big Three.” Credit Suisse upgraded the Dow’s rating to match the backlog of poor results Credit Suisse said it sees an improvement in the chemical company’s risk-reward ratio. “While we remain concerned that demand could unexpectedly fall to the downside in 2023 (we remain below consensus), we believe the risk/reward of higher demand for some DOW commodities in 2024+ is skewed in favor of . Our target price of $68 is about 10x. our EBITDA in 2023.” Baird Calls Under Armor New Choice Baird said sentiment for Under Armor’s stock is improving. “Group sentiment has moved significantly more positively since last fall, as prospects for a soft landing and a Fed turnaround raised hopes for a strong earnings recovery in 2023.” Cowen initiates Dick’s as he outperforms Cowen, his polls show that Dick’s continues to gain market share. “In our Consumer Tracker survey, when respondents were asked, ‘When I buy sporting goods, is my first choice to go?’, an average of 31% of 2022 respondents indicated that Dick’s was their preferred sporting goods retailer.” Loop downgraded Rent-A-Center to refrain from buying Loop downgraded Rent-A-Center mainly due to valuation. “While our downgrade is primarily based on valuation, we also have some fundamental concerns given the boom in furniture and consumer electronics demand driven by the pandemic.”
Credit: www.cnbc.com /
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