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Wall Street’s Biggest Calls for Tuesday
Evercore ISI Reiterates Apple as Outperform
Evercore reiterates Apple as outperform and bullish on its foray into augmented and virtual reality. The Vision Pro of AAPL provided consumers a view into the future of compute as the shift away from mobile devices is imminent.
Credit Suisse Upgrades Melco to Outperform from Neutral
Credit Suisse ups Melco to outperform from neutral, citing a better-than-expected recovery in 1H23. The company notes four positive structural trends, an encouraging government, increase in per-player value, successful non-gaming events, and hopeful early signs of recovery in the VIP segment. Short-term, it is expected to offer the most positive earnings surprise in 2Q23.
Piper Sandler Reiterates Tesla as Overweight
Piper Sandler is standing by shares of Tesla despite doubts in China’s EV sales’ legitimacy. The company points out that some skepticism may be warranted, citing media reports that questioned China’s EV sales, but sees the shares as overweight.
Morgan Stanley Upgrades Baidu to Overweight from Equal Weight
Morgan Stanley upgrades Baidu to overweight from equal weight and terms it to be the best AI play in China. MS believes China’s AI evolution is at an inflection point, and BIDU can seize the US$7.4tn AI internet opportunity.
Citi Upgrades Philip Morris to Buy from Neutral
Raymond James Downgrades Palantir to Outperform from Strong Buy
Raymond James downgrades Palantir to outperform from strong buy on valuation grounds. The company appreciates >60% of its shares since the early May 1Q print launch of its AI platform.
Citi Adds Positive Catalyst Watch on Delta
Citi introduces a positive catalyst watch on Delta, citing its international-long-haul exposure, new pilots’ agreement, and no significant capex outlays over the years.
Bank of America Adds Amazon to the US1 List
BofA adds Amazon to the US1 list, designating it as the top idea.
Morgan Stanley Upgrades U.S. Foods to Overweight from Equal Weight
Morgan Stanley upgrades U.S. Foods to overweight from equal weight as it sees optionality in the stock.
Morgan Stanley Initiates Everest Re Group as Overweight
In an upgrade of the stock, Morgan Stanley considers Everest Re Group best positioned to benefit from the current reinsurance hard market and successfully grow premiums and expand underwriting margins.
Morgan Stanley Initiates Arch Capital as Overweight
Morgan Stanley believes Arch Capital should be the secular growth winner, positioning the company well to benefit from efficient capital allocation.
Morgan Stanley Upgrades Avis Budget to Overweight from Equal Weight
Morgan Stanley believes Avis Budget can demonstrate its profitability potential, given its proven track record of fleet risk management and lower operating costs.
Evercore ISI Reiterates Nvidia as Outperform
Evercore believes Nvidia is in the early innings of AI with a potential for accelerated compute attach rate to increase as AI proliferates across workloads.
BMO Initiates Entegris as Outperform
BMO thinks Entegris provides specialty chemistries, materials, filtration, and other process solutions to the semiconductor and high-end electronics industries.
SVB Securities Reiterates Disney as Outperform
SVB Securities believes one hard Disney bundle, including content from Hulu, Disney+, and ESPN+, can reduce churn, aggregate engagement, and generate substantial non-programming cost savings.
Goldman Sachs Initiates Atmus Filtration as Buy
Goldman Sachs sees Atmus filtration and media solutions as a global leader that enables trucks and off-highway machinery to efficiently operate at increasingly stringent air emissions levels.
Canaccord Reiterates Rivian as Buy
Canaccord is standing by shares of Rivian despite operational issues since its 2021 IPO. Its vehicles remain desirable and well-reviewed, and Canaccord expects the operational clouds to clear as production ramps and financials improve.
Evercore ISI Reiterates Anheuser Busch InBev as Outperform
Raymond James Reiterates Chipotle as Outperform
Raymond James increases its price target on Chipotle stock, citing demand trends that remain strong with expectations of CMG continuing to outperform given strong momentum, projected unit growth, and upside to 2024 estimates.
From the biggest calls on Wall Street for Tuesday, it is clear that there are a lot of opportunities for businesses to capitalize on. Especially in the technology sector, the trends towards AI and virtual and augmented reality are major focuses. Tesla, Apple, Nvidia, and Baidu are all noted for their AI potential. Entegris, Atmus Filtration, and Rivian are also businesses with potential for growth in the advanced technology sector. In the stock market, there is also room for growth in Melco, Delta, and U.S. Foods, among others.
However, it is important to note that there are risks involved in investing in any business. Palantir is noted for its valuation grounds, and Evercore is skeptical about the sales improvement of Bud Light despite reiterating Anheuser Busch InBev as outperform. As for Chipotle, even though it is rated outperform, investors will need to balance demand trends with the current supply chain crunch.
New businesses looking to grow will need to keep up with the market trends and stay vigilant to see what opportunities and challenges lie ahead. Wall Street calls like these can offer insights on what areas have potential for growth, but ultimately it is up to individual businesses to determine their strategies based on their own unique strengths and weaknesses.
Article First Published at: https://www.cnbc.com/2023/06/20/tuesdays-top-analyst-calls-on-wall-street.html