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Thursday's Biggest Calls on Wall Street
TD Cowen Upgrades Meta to Outperform
TD Cowen has upgraded Meta to outperform and raised its price target to $345. The firm believes that Meta will continue to see share gains due to underestimated consensus estimates and potential monetization upside from Reels and other surfaces long-term.
TD Cowen Reiterates Amazon as Outperform
TD Cowen has reiterated its bullish stance on Amazon ahead of its earnings release. The firm expects Amazon's revenue to grow by 9.6% year-over-year in the second quarter, driven by e-commerce revenue and elevated advertising revenue growth.
Stifel Initiates Clean Energy Fuels as Buy
Stifel has initiated coverage of Clean Energy Fuels Corp. with a buy rating and a target price of $6. The firm views Clean Energy Fuels as the best way to express a bullish view on the dairy renewable natural gas (dRNG) industry.
TD Cowen Reiterates Alphabet as Outperform
TD Cowen has reiterated its outperform rating on Alphabet and raised its price target to $140 per share. The firm expects Google search growth to improve, driven by ongoing US consumer strength.
Barclays Downgrades Coinbase to Underweight
Barclays has downgraded Coinbase to underweight, citing few near-term catalysts for the cryptocurrency exchange. The firm believes that regulatory overhang, low trading volumes, and a recent run-up in shares will limit Coinbase's performance.
JPMorgan Downgrades Carvana to Underweight
JPMorgan has downgraded Carvana to underweight due to a disconnect between the company's valuation and its fundamentals. The firm believes that Carvana's stock price is not justified by its financial performance.
Morgan Stanley Reiterates Spotify as Overweight
Morgan Stanley has reiterated its overweight rating on Spotify and raised its price target to $185 per share. The firm views Spotify as a "show-me" story and expects the company to raise prices and improve its operating income profits.
Morgan Stanley Names Cboe a Top Pick
Morgan Stanley has named Cboe as a top pick and believes that the stock's valuation is attractive. The firm prefers Cboe and Taiwan Semiconductor Manufacturing (TSM) due to their unique growth levers and limited downside risk.
Morgan Stanley Downgrades SoFi to Underweight
Morgan Stanley has downgraded SoFi to underweight, stating that the stock is mispriced for bank profitability. The firm believes that SoFi should be valued more like a bank as it transitions into a more traditional banking model.
Deutsche Bank Reiterates Microsoft as Buy
Deutsche Bank has reiterated its buy rating on Microsoft, stating that the stock is well-positioned heading into earnings. The firm expects Microsoft's revenue growth to ease slightly but remains positive on the company's prospects.
BMO Upgrades Pilgrim's Pride to Outperform
BMO has upgraded Pilgrim's Pride to outperform, citing a more attractive risk/reward profile for the poultry producer. The firm believes that Pilgrim's Pride has a greater set of potential catalysts that will drive its performance.
JPMorgan Reiterates Netflix as Overweight
JPMorgan has reconfirmed its overweight rating on Netflix and raised its price target ahead of earnings. The firm remains bullish on Netflix and expects the company's performance to be strong in the second quarter.
Bank of America Reiterates Tesla as Neutral
Bank of America has maintained its neutral rating on Tesla ahead of its earnings release. The firm has lowered its second-quarter estimate for Tesla and believes that the company's gross margin will be impacted by price cuts.
Credit Suisse Upgrades China Equities to Overweight
Credit Suisse has upgraded Chinese equities to overweight, stating that valuations are attractive. The firm believes that Chinese equities have been undervalued compared to global PMIs and sees opportunities for growth.
Northcoast Upgrades Domino's to Buy
Northcoast has upgraded Domino's to buy, citing a more robust outlook for the stock. The firm believes that Domino's has been trading at a discount but expects its sales, profits, and development growth to improve.
Bank of America Reiterates Disney as Buy
Bank of America has reconfirmed its buy rating on Disney following the announcement of a contract extension for CEO Robert Iger. The firm sees several positive factors for Disney, including a positive strategic outlook, strong theme park demand, and potential in sports betting.
Oppenheimer Reiterates Microsoft as Outperform
Oppenheimer has reconfirmed its outperform rating on Microsoft and raised its price target. The firm believes that Microsoft's dominance in enterprise IT, integrated AI platforms, and wholesale marketplace give it a strong position in the market.
BMO Reiterates Chevron as Outperform
BMO has reconfirmed its outperform rating on Chevron, highlighting the company's capital return. The firm prefers Chevron among integrated oil companies due to its higher oil exposure and potential for growth.
Potential Impact on a New Business
These recent calls on Wall Street indicate various shifts in ratings for different companies, providing insights into potential investment opportunities and market trends. For a new business, staying informed about these calls can help shape strategic decisions and identify potential partnerships and competitors.
One interesting hot take for a new business is the growing focus on clean energy. Stifel's initiation of coverage on Clean Energy Fuels Corp. and its bullish outlook on the dairy renewable natural gas (dRNG) industry suggest potential opportunities in the renewable energy sector. A new business looking to enter this market could explore partnerships with companies in the clean energy space or consider providing innovative solutions to support the transition to renewable energy sources.
Additionally, the upgrade of Meta, formerly known as Facebook, by TD Cowen highlights the potential for monetization through platforms like Reels. A new business that focuses on creating content or tools for social media platforms could benefit from the anticipated share gains and potential monetization opportunities presented by Meta's underestimated consensus estimates.
The downgrades of Coinbase by Barclays and Carvana by JPMorgan demonstrate the importance of carefully considering factors such as regulatory hurdles and financial performance when evaluating the potential of a business in the cryptocurrency or automotive industry. A new business in these sectors should be cognizant of external factors and strive to build a strong financial foundation to differentiate itself in the market.
Overall, paying attention to the calls made by influential Wall Street firms can provide valuable insights for a new business. It is important to keep a finger on the pulse of market trends, emerging opportunities, and potential challenges to make informed decisions and position the business for success.
Article First Published at: https://www.cnbc.com/2023/07/13/thursdays-top-analyst-calls-on-wall-street.html
