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Here are the most important calls on Wall Street on Wednesday: CFRA downgrades Roku to a hold sell CFRA said it sees “complex fundamentals” for Roku. “While the constant shift from linear and pay TV networks to streaming continues, ROKU has many major competitors. The value creation of its Roku channel and smart TVs is a matter of debate as to whether ROKU can scale these offerings for profitable growth.” Piper Sandler reiterates that Target is overweight. Piper said Target is a key beneficiary of the fight against Bed Bath & Beyond. “We believe the difficulties at BBBY (not covered) will result in significant near-term opportunity for Target stock, similar to (if not greater than) the gains in Toys “R” Us/Babies “R” Us shares in 2018/2019.” Evercore ISI Adds Cisco Systems to Its Tactical Best Companies List Evercore said Cisco is in a good position ahead of a profit next week. “We think CSCO is in a position to report and navigate at least as expected on the streets, with some room for growth as the company sees supply chains normalize and market share for them returns.” Evercore ISI reiterates that Apple is outperforming Evercore stock, saying it supports Apple stock. “The continued rise in purchase commitments is encouraging at a time when there are some concerns about growth prospects. Gross profit should recover quickly when the exchange rate becomes more favorable. Sticking to our OP rating and $190 goal.” Oppenheimer confirms that Lululemon is outperforming Oppenheimer stock, saying it is backing Lululemon stock. “We have taken a close look at the latest trends at LULU and have reassessed our position on the stock. In our view, LULU’s main structural expansion prospects remain unchanged and any cyclical pressure on margins and/or sales in the company is likely to be ineffective. short-lived.” Barclays initiates the purchase of Walmart. Barclays called Walmart a “defensive” stock. “Offensive Defence: Defensive Performance (Based on Customer/Category Impact, Inflation Support) Plus Additional Growth Factors: WMT tops the list.” Morgan Stanley Upgrades American Express to Higher Than Its Same Rating Morgan Stanley said it sees a steady rise in the payment card issuer’s earnings. “We are upgrading Amex to overweight from equal weight as we tilt our stock selection towards 1) higher credit quality, 2) strong earnings growth and 3) positive operating leverage. AXP has a lower credit risk skew with higher FICO card members. Read more about the call here. Bank of America upgrades Royal Caribbean to Neutral from Poor Bank of America said its review checks show Royal Caribbean orders are gaining momentum. “In our review, RCL pricing is more reliable than CCL/ NCLH (Carnival/Norwegian), and given that RCL has largely eliminated its balance sheet risk, which is $78 from $40 in 2022. Bank of America ups TripAdvisor rating to buy from underperforming Bank of America “We’re upgrading TripAdvisor to ‘Buy’ from ‘Unsatisfactory’ due to accelerating growth in Viator (receiving bookings), strong US demand and a recovery in Europe,” said he sees solid growth for the travel booking company. read here Credit Suisse initiates United Rentals as it outperforms Credit Suisse, saying it sees organic and inorganic growth for equipment rental company vanity. “URI has changed its business model from a simple equipment rental company to a total solution provider, using technology and digital solutions to better serve its customers and optimize the efficiency of the entire organization.” KeyBanc downgrades Sherwin-Williams to industry from overweight KeyBanc said demand for Sherwin-Williams is declining. “We cut our FY23 EPS to $8.30 (from $9.32) as falling demand caps operating leverage despite declining input costs, and initiate FY24 EPS for Year 24 at $9.26, up 3% with higher margins.” Bank of America reiterates purchase of Chipotle Bank of America said it expects higher earnings per share following the company’s earnings report on Tuesday. “While CMG’s strong results in January reflect broader industry trends (unseasonally warm weather supporting demand), we believe the improvements the company is making to food availability (fewer menu deactivations), staffing (90% fully staffed) and service also contribute.” Daiwa reiterates Disney purchase as Daiwa said it maintains its buy rating against Disney revenue on Wednesday after the bell. “Good travel data and comparable data points to upside potential for parks results. Parks and improved streaming are driving revenue growth. We’re lowering our scores but staying above Street.” Wells Fargo confirms that Goldman Sachs is overweight as Wells raised its share price target to $420 per share from $390. “Our view is that investors give GS the least amount of attention to expected returns compared to its peers.” Read more about this call here. Bank of America reiterates purchase of Domino’s as Bank of America said it is optimistic about Domino’s launch of loaded potatoes. “We reiterate our Buy recommendation and $448 on DPZ shares. Given our expectations of a return to previous growth rates, we believe the DPZ’s historical range is relevant.” JPMorgan downgrades Hain Celestial stock to neutral on overvalued stock JPMorgan downgraded the stock largely on the basis of valuation. “We are downgrading HAIN’s stock from overweight to neutral… First, the stock has been relatively strong lately, up 38% since the 12/20/22 crash.” Bank of America confirms Microsoft’s view that the acquisition Bank of America said it is optimistic about Microsoft’s AI performance in the long term. “However, we believe that Microsoft remains ahead of the pack in AI-enabled enterprise use cases that are likely to lead to more meaningful revenue increases for the company over time.” Loop confirms Alphabet purchase as Loop said it maintains its buy rating on Alphabet shares. “We are raising our earnings-per-share forecast due to lower revenue and greater spending discipline. We now forecast a 1% decrease in revenue in 1Q, no change in 2Q, and a 7% increase in revenue in 2H23 on the back of weakening competition.” Morgan Stanley confirms Tesla is overweight Morgan Stanley said it remains bullish ahead of Tesla Investor Day on March 1st. “We are seeing a sharp decline in incoming customer calls on Tesla over the past week as the stock tested the $200 mark (MS Price target). $220)”.
Credit: www.cnbc.com /
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