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Wall Street Analysts Make Calls on Monday
Alliant Upgrade
Bank of America upgraded Alliant, the energy company from Wisconsin and Iowa, to buy from neutral. Bank of America finds the shares attractive, stating that the stock's current price suggests an excellent buying opportunity.
Moderna Upgrade
UBS upgraded Moderna to buy from neutral, stating that the biotech company's pipeline is underappreciated. According to UBS, Moderna's CMV vaccine has the potential to drive earnings over the next two years, and the current price does not reflect the drug's potential.
Alphabet Downgrade
UBS downgraded Alphabet to neutral from buy due to near-term monetization risk for the tech giant. They see medium-term revenue risk from new search (SGE) disrupting the ad inventory. It may take time to optimize, placing a risk on near-term monetization.
Tesla Downgrade
Goldman Sachs downgraded Tesla from buy to neutral, mainly on valuation. According to the bank, Tesla's growth potential and competitive positioning are already reflected in the current stock price.
Walmart Reiterated
Morgan Stanley reiterated Walmart as overweight, referring to its latest survey checks showing that demand for Walmart+ is growing. Walmart+ currently has over 21 million members, suggesting that the appeal and awareness are broadening.
Coinbase Reiterated
TD Cowen reiterated Coinbase as underperform, stating that the regulation of bitcoin ETF's could negatively impact the company. TD Cowen noted that COIN shares are facing considerable regulatory risk, which could adversely affect demand, particularly for non-BTC crypto with negative breadth.
Brinker Initiated as Underweight
Wells Fargo initiated Brinker as underweight, highlighting that the company's owner, which includes Chili's, is susceptible to an economic slowdown. Brinker may be facing exposure to trade down and promotion, particularly with the slowing macro.
Sherwin-Williams Upgrade
BMO upgraded Sherwin-Williams to outperform from market perform. The bank believes that the paint company's raw materials' fading in the near-term and the housing markets look encouraging and may provide reasonable upside to the bank's above-consensus estimates.
Tesla Reiterated
Deutsche Bank reiterated Tesla as a buy and raised its price target on the stock to $230 per share. Deutsche Bank sees Tesla's longer-term story as intact and best-in-class.
Uber Reiterated
Bernstein reiterated Uber as outperform, suggesting that the company has become a good business and has a scale/market share advantage. The bank believes that the company is delivering on its promises of improving profitability, capital discipline, and healthy growth.
Boeing Reiterated
Citi reiterates Boeing as buy, stating that investors should buy the dip. The potential disruption to deliveries is expected to be temporal, not structural.
WSFS Financial Upgraded
DA Davidson upgraded WSFS Financial to buy from neutral, anticipating the bank will benefit from a higher-for-longer rate environment. They believe that WSFS is among the best- position mid-Atlantic coverage to gain from the environment.
Amazon Named Top Pick
Roth MKM named Amazon a top pick and increased the company's '23E/'24E Revenue estimates by about 1%.
Palo Alto Networks Reiterated
Morgan Stanley reiterated Palo Alto Networks as overweight while raising its price target on the stock to $302 per share. Morgan Stanley is recognizing the share gain from vendor consolidation, an expanding TAM, and improving margins.
Lululemon Reiterated as Overweight
Piper Sandler reiterated Lululemon as overweight and increased its price target to $450 per share. The bank believes that LULU has a tremendous revenue growth opportunity in China.
Meta Reiterated as Buy
UBS reiterated Meta as a buy and raised its price target on the stock to $335 per share, suggesting that generative AI will add to the next leg to shares.
Paramount Global Reiterated as Buy
Bank of America reiterates Paramount Global as Buy. The bank distinguishes that PARA has a unique collection of assets and can generate significant buyer interest if ever put up for sale.
Disney Reiterated as Buy
Loop reiterated Disney as Buy and reduced its EPS estimates and price target to $110 from $120, emphasizing the strength of the company's franchise and current valuation.
Brunswick Reiterated as Buy
Citi reiterates Brunswick as Buy and believes that BC is the best 'early cycle' name in their coverage. However, they do not envision a scenario in which 2023 will be confused with early cycle in the boat space.
As a new business, keeping an eye on Wall Street analyst calls can provide insight into industry trends and investment potential. Some of the upgrades, such as for Alliant and Moderna, could indicate opportunities for investment in the energy and biotech sectors. However, downgrades for Alphabet and Tesla could signal potential risks and challenges in the tech and automotive industries. It's important to note that some reiterated buy recommendations, such as for Walmart and Disney, could reflect long-term growth potential for companies that are adapting to changing consumer demands. Additionally, emerging areas such as generative AI, which UBS cites for Meta, and international growth, such as Piper Sandler's prediction for Lululemon in China, could become areas of focus for the ambitious new business.
Still, it's important to take note of high regulatory risks, such as for Coinbase, and external economic factors, such as for Brinker's trade down exposure, to ensure that any investment strategy is balanced. Overall, keeping tabs on Wall Street analysts' calls can help new businesses understand market trends, identify emerging industries, and make informed investment decisions.
