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Thursday's Biggest Calls on Wall Street
Credit Suisse Reiterates Apple as Outperform
Credit Suisse has raised its price target on Apple stock to $220 per share and remains bullish heading into Apple's earnings on August 3rd. The bank believes that Apple's push into emerging markets and the upcoming launch of the Vision Pro will result in under-penetrated services opportunities. They raise their target price based on future earnings projections and the availability of the Vision Pro and a return to iPhone growth.
Morgan Stanley Reiterates Tesla as Equal Weight
Following Tesla's recent earnings report, Morgan Stanley is maintaining its equal weight rating on the stock. The bank sees a balanced risk-reward with a price target of $250 per share, and both bull and bear cases unchanged at $450 and $90 respectively.
Morgan Stanley Upgrades Anheuser-Busch InBev to Overweight
Morgan Stanley has upgraded the beer giant to overweight, citing an attractive valuation. The bank believes that H1 results will provide clarification about the impact of the Bud Light situation. They view the risk-reward for investors as favorable.
RBC Downgrades Carvana to Underperform
Due to deteriorating fundamentals, RBC has downgraded online used car company Carvana to underperform. While the bank acknowledges the positive aspects of Carvana's recent Q2 results and debt restructuring, they are maintaining an underperform rating based on fundamental analysis.
Wolfe Initiates Nvidia as Outperform
Wolfe has initiated coverage on Nvidia with an outperform rating, recognizing the company's position as a strong grower in the semiconductor industry. The bank maintains a positive thesis for Nvidia and believes it will continue to be the strongest grower in the next five years.
Barclays Downgrades Estee Lauder to Equal Weight
Barclays has downgraded Estee Lauder, expressing concerns over the company's prospects for a recovery in China. The bank expects reinvestment to pressure margins in the medium-term and predicts a more muted recovery in the Chinese market.
Barclays Downgrades Skyworks to Equal Weight
Barclays has downgraded semiconductor radio frequency company Skyworks due to valuation concerns and a lack of catalysts. The bank sees few upcoming events that would drive the stock higher and believes it is currently fairly valued.
Morgan Stanley Reiterates Microsoft as Overweight
Morgan Stanley continues to rate Microsoft as overweight and sees the company as a top pick heading into earnings. The bank believes that Microsoft's momentum behind Generative AI solutions and a favorable currency environment will drive positive revisions to consensus estimates.
UBS Reiterates Chevron as Buy
UBS reiterates its buy rating on oil and gas giant Chevron ahead of the company's earnings release. The bank views Chevron as a top pick due to potential catalysts in the next twelve months.
UBS Reiterates McDonald's as Buy
UBS reiterates its buy rating on fast food giant McDonald's, expecting further share gains and earnings upside. The bank believes that McDonald's strong global sales momentum and competitive advantages will drive continued growth.
Bank of America Reiterates Netflix as Buy
Bank of America raises its price target on Netflix stock and maintains its buy rating following the company's strong earnings report. The bank believes that Netflix's healthy subscriber growth reflects positive initial results from its efforts to address password sharing.
Deutsche Bank Downgrades Avis Budget to Hold
Deutsche Bank downgrades Avis Budget primarily on valuation concerns. The bank notes that the stock has rallied significantly since its previous upgrade and is now approaching the target price, leaving limited room for further upside.
Wells Fargo Reiterates Walmart as Overweight
Wells Fargo believes that Walmart shares are attractive at their current level. The bank views Walmart's share gains and alternative value stream bundle as key factors that will provide resilience and drive growth in the coming years.
Bank of America Reiterates Alphabet as Buy
Bank of America maintains its bullish outlook on Alphabet heading into earnings. The bank sees Alphabet as a more defensive stock with relative earnings stability and the potential to support the stock with buybacks.
Bank of America Reiterates IBM as Buy
Bank of America stands by its buy rating on IBM following the company's earnings report. The bank sees potential in IBM's early traction in AI and believes that the stock is not fully reflecting any future changes in revenue and profits.
Bank of America Reiterates Goldman Sachs as Buy
Bank of America raises its price target on Goldman Sachs and maintains its buy rating. The bank believes that an improvement in underlying business momentum is needed for further positive revisions to earnings estimates.
Citi Reiterates ServiceNow as Buy
Citi raises its price target on ServiceNow following positive channel checks. The bank is optimistic about near-term trends in the company and believes that targets will be met or exceeded.
Conclusion: Assessing the Wall Street Calls for a New Business
The recent Wall Street calls on various companies indicate the diverse outlooks and potential impacts on different businesses. For a new business entering the market, it is essential to stay informed about these calls and understand how they might influence the overall landscape. Let's analyze some key insights and their implications:
1. Credit Suisse's bullish outlook on Apple highlights opportunities for emerging market expansion and the upcoming launch of the Vision Pro. This suggests potential growth prospects for businesses operating within the Apple ecosystem.
2. Morgan Stanley's balanced rating on Tesla indicates a balanced risk-reward situation. While Tesla has shown promising results, it is important to assess the overall market dynamics before making any significant investment decisions.
3. Morgan Stanley's upgrade of Anheuser-Busch InBev reflects an attractive valuation and provides a favorable risk-reward scenario. This suggests potential opportunities for businesses operating in the alcohol and beverage industry.
4. RBC's downgrade of Carvana indicates deteriorating fundamentals. This highlights the importance of continuously monitoring the fundamentals of a company before entering into any business partnerships or investment engagements.
5. Wolfe's outperform rating on Nvidia suggests promising growth potential within the semiconductor industry. This may present opportunities for new businesses operating in the tech sector to explore collaborations or partnerships.
6. Barclays' downgrade of Estee Lauder due to concerns about the Chinese market signals potential challenges for businesses heavily reliant on a Chinese consumer base. It is crucial for new businesses to carefully analyze their exposure to specific markets to mitigate potential risks.
7. Bank of America's buy rating on Netflix following strong earnings reflects positive growth prospects. This underscores the potential opportunities for businesses operating in the digital streaming and entertainment sectors.
8. Wells Fargo's overweight rating on Walmart indicates positive sentiment towards its share gains and value stream bundle. This highlights potential collaborative opportunities for new businesses aiming to enter the retail market.
Overall, new businesses should pay close attention to Wall Street calls and evaluate how they align with their specific industry and objectives. Understanding the implications of these calls can help new businesses make informed decisions and navigate the market effectively, capitalizing on potential growth opportunities and mitigating risks.
Article First Published at: https://www.cnbc.com/2023/07/20/thursdays-biggest-wall-street-calls-like-tesla-netflix.html.svg)
