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Monday's Biggest Analyst Calls: Apple, Netflix, Amazon, Cava, Disney, Rivian, Tesla, and More

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## Monday's Biggest Calls on Wall Street ### Citi opens a negative catalyst watch on Estee Lauder Citi has opened a negative catalyst watch on Estee Lauder, expressing caution heading into the company's earnings in late August. Citi expects guidance for FY'24 to be below consensus, and although this is somewhat anticipated by the market, investors may not view low guidance as conservative given the significant cuts over the past two years. ### Wells Fargo downgrades Fox to underweight from equal weight Wells Fargo has downgraded Fox due to ongoing cord-cutting risks, particularly with regards to Fox News and its viewership and share pressures. The bank also notes elevated ecosystem risks, leading to a more negative estimate outlook that falls below the Street's expectations. ### Loop downgrades Aaron's to neutral from buy Loop has downgraded Aaron's based on concerns about valuation and fundamental factors. The dramatic surge in demand for furniture, appliances, and consumer electronics due to the pandemic, as well as the ongoing BrandsMart integration, has raised some fundamental concerns. While the downgrade is primarily driven by valuation, Loop believes there are additional reasons to be cautious about the stock. ### Morgan Stanley upgrades Shockwave Medical to overweight from equal weight Morgan Stanley has upgraded Shockwave Medical, a cardiovascular medical device company, to overweight from equal weight. The bank believes that reimbursement will improve, leading to higher growth expectations for 2024 and 2025. With several catalysts on the horizon, Morgan Stanley feels that Shockwave Medical is well-positioned for future growth. ### Goldman Sachs reiterates Nvidia as a buy Goldman Sachs has reiterated its buy rating on Nvidia and raised its price target on the stock. The bank believes that Nvidia is entering a new phase of growth driven by the emergence and proliferation of Generative AI. The company's consistent investments in hardware and software have established a strong competitive moat, making it a key player in the AI industry. ### JMP upgrades Charles Schwab to market outperform JMP has upgraded Charles Schwab to market outperform, noting that the company's new guidance for the second quarter suggests weaker performance. However, the bank believes that the market is now better positioned from an earnings perspective, with downward revisions already factored in. Overall, JMP sees an interesting trade opportunity in Schwab. ### KBW upgrades BlackRock to outperform KBW has upgraded BlackRock to outperform, citing the company's consistent organic growth and profitability. The bank sees BlackRock as a good investment due to its strong financial performance and positive outlook for the future. ### Bank of America reiterates Amazon as a buy Bank of America remains bullish on Amazon, particularly ahead of the company's Prime Day. The bank projects that Prime Day could represent a significant portion of Amazon's gross margin value for the quarter, further driving the company's growth and profitability. ### Jefferies reiterates Tesla as a hold Jefferies has raised its price target on Tesla but is maintaining its hold rating. The bank expects Q2 to be a trough in auto gross margin but also sees a shift in valuation drivers, particularly with Tesla's focus on AI-based autonomy. Jefferies values Tesla as a superior-ROIC, software-enhanced manufacturer. ### UBS reiterates Disney as a buy UBS remains cautious about Disney heading into earnings but is sticking with its buy rating. The bank expects continued pressure in advertising and linear operating income in F3Q. However, UBS believes that Disney's long-term growth prospects are positive. ### Morgan Stanley reiterates Netflix as equal weight Morgan Stanley has raised its price target on Netflix and views the risk/reward for the stock as balanced. The bank believes that much is already priced into the stock, considering the high expectations and the competitor withdrawal. While the bank sees potential for further growth, it is taking a neutral stance on Netflix. ### JPMorgan initiates Cava as overweight JPMorgan is bullish on Mediterranean fast food restaurant Cava in the long term. The bank believes that the market's positive view on the medium/long-term story of Cava is justified, and there is still room for the stock to grow. ### Morgan Stanley reiterates Rivian as overweight Morgan Stanley maintains its buy rating on electric vehicle company Rivian. The recent rally in Rivian's stock is driven by a mix of fundamental and technical forces, with the stock surpassing the bank's price target. Morgan Stanley remains optimistic about Rivian's future prospects. ### Evercore ISI reiterates Apple as outperform Evercore ISI is bullish on Apple, despite weak growth in the gaming market. The bank believes that the expanding platform, growing pipeline, and large deal momentum will enable Apple to maintain strong revenue growth and margin expansion in the coming years. ### Bank of America upgrades SEE and Weyerhaeuser to buy Bank of America has upgraded Sealed Air, now known as SEE, due to its attractive valuation. The bank also upgraded Weyerhaeuser, highlighting the company's exposure to the housing market as a favorable factor. ### Stifel reiterates ServiceNow as a buy Stifel has raised its price target on ServiceNow and is becoming more bullish on the stock. The bank expects the company's expanding platform, growing pipeline, and large deal momentum to support continued revenue growth and margin expansion. ### UBS reiterates Yum! Brands as a buy UBS sees Yum! Brands as a high-quality compounder and believes that the stock will present a buying opportunity over time. The bank remains positive on the company's long-term growth prospects, particularly Taco Bell's strength and KFC's international growth. ### Oppenheimer reiterates Domino's as outperform Oppenheimer has raised its price target on Domino's and sees an attractive risk/reward for the stock. The bank believes that the company represents an actionable idea for the remainder of the year. ## Conclusion: How Wall Street's Ratings Could Impact a New Business The Monday's Biggest Calls on Wall Street provide valuable insights into the market outlook for various companies. For a new business seeking to navigate the ever-evolving financial landscape, paying attention to these ratings can offer important implications. Understanding how Wall Street perceives established companies in different industries can provide guidance on potential risks, trends, and investment opportunities. Negative catalyst watch on Estee Lauder by Citi and the downgrade of Fox by Wells Fargo highlight the risks associated with specific companies. While this may not directly impact a new business, it can serve as a reminder to consider potential challenges and uncertainties that could arise in the market. On the other hand, the upgrades and positive ratings on companies like Shockwave Medical, Nvidia, BlackRock, and Charles Schwab present potential opportunities for growth and profitability. These ratings can serve as a reminder to focus on areas of the market that are experiencing positive momentum and investor sentiment. The bullish stance on Amazon by Bank of America and positive outlook on Cava by JPMorgan demonstrate the importance of understanding industry trends and consumer behavior. For a new business operating in the retail or fast food sectors, these ratings provide insight into the potential growth prospects and market opportunities available. Overall, while the Wall Street ratings mentioned above may not directly impact a new business, they offer valuable insights into market sentiment, industry trends, and potential risks. By staying informed and analyzing these ratings alongside their own business strategies, new businesses can better position themselves in the market and make more informed decisions for their growth and success. Article First Published at: https://www.cnbc.com/2023/07/10/mondays-biggest-analyst-calls-like-apple-tesla.html

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