Here are Friday’s biggest analyst calls: Netflix, Tesla, Apple, Coinbase, Ralph Lauren, Amazon and more
Here are Friday’s biggest calls on Wall Street: Mizuho reiterates Amazon as buy Mizuho said he was maintaining his buy rating on the e-commerce giant. “Keep buying on AMZN and 135 PT on positive long-term fundamentals, but expect equity volatility from potential short-term downside revisions.” Barclays moves Ralph Lauren overweight for equal weight Barclays has declared that Ralph Lauren is a “best in class” clothing brand. “We are upgrading RL and PVH to Overweight given 1) RL’s position as a premier apparel brand and its continued elevation.” Read more about this call here. JPMorgan Upgrades Regeneron to Equal Weight Overweight JPMorgan said it foresees several positive catalysts for the biotech company in 2023. “We are upgrading REGN to OW from N ahead of a number of significant 2023 updates. ” Learn more about this call here. Morgan Stanley shifts PagerDuty to an overweight from equal weight Morgan Stanley said it expects better profitability for the cloud computing company. “A strong unit economy, highly notable under-earnings and market leadership in an important category provide the backdrop for a strong pivot to profitability. At around 4x CY24 sales, we believe stocks are under- assess PagerDuty’s ability to sustain 20% growth, increase margins and generate FCF.” Read more about this call here. MKM Downgrades Pinterest to Neutral from Buy MKM said it sees a more balanced risk/reward outlook for Pinterest. “At current levels, we believe the risk/reward ratio is fairly balanced. ad spend market somewhat weak in 1H23.” Evercore ISI reiterates Tesla as online Evercore said recent audits show “a much-awaited influx” of orders after Tesla cut prices. “The big question is whether order trends remain ‘sticky’ as US shipments were already expected to rise +50-60% YoY to 750-800k. Price declines can only fuel prolonged demand, for existing/aging products, as seen in China with only 12,000 regs/week after cuts.” Bank of America reiterates Block as buy Bank of America said it sees a long growth streak for the company’s stock formerly known as Square.” The pandemic as well as new product introductions led SQ’s estimated TAM to drop from $60 billion (Square only) in 2017 to $190 billion. lars ($120 billion squared, $70 billion cash) in 2022.” Cowen downgrades Salesforce to market performance from outperformance Cowen said he sees too many headwinds for Salesforce right now. “We are downgrading CRM to Market Perform. With several recent leadership departures and major restructuring underway, we expect to see elevated levels of disruption risk.” JPMorgan Reiterates Netflix While Overweight JPMorgan said it saw growth potential after the company’s strong earnings report on Thursday after the bell. “We remain bullish on NFLX stocks because: 1) paid content, advertising and sharing are expected to accelerate FXN revenue growth (currency neutral) through 2023; 2) operating margins are increasing due to faster revenue growth and tighter cost discipline; & 3) FCF accelerates earnings improvement and stable cash content spending.” Learn more about this call here. JPMorgan Reiterates Coinbase as Neutral JPMorgan said Coinbase is a beneficiary of challenges from other companies following FTX fallout. “We view Coinbase as a beneficiary of the challenges faced by other brokers/exchanges following the collapse and bankruptcy of FTX.” BMO upgrades QSR to outperform market performance BMO said in its upgrade of owner of brands like Burger King that it sees “improved momentum”. “We are upgrading restaurant brands to outperform, based on improved momentum from the Big Three brands. Credit Suisse names Apple a Top Pick for 2023. Credit Suisse said the selling stocks is a buying opportunity.” We continue to believe that Apple remains a core portfolio given its very strong installed base and ecosystem that generates significant recurring revenue. India and Indonesia represent important new markets. Morgan Stanley Reiterates Palo Alto Networks Overweight Morgan Stanley said it was an “exceptional” opportunity to hold the stock. operating margin, we believe PANW remains a sustainable aggravating 20%+ FCF even in a slowing macro. note that TRV is outperforming, as our forward EPS estimates are well above consensus, given that we believe TRV’s reserve/COGS position continues to improve, while the company shows a consistently catastrophic loss profile lower than that of its peers. Wells Fargo reiterates Johnson & Johnson as overweight Wells said it remains bullish on Johnson & Johnson shares heading into earnings on Tuesday. We could see EPS guidance parenthesis consensus.