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Tuesday's Biggest Calls on Wall Street
Jefferies Reiterates Apple as Buy
Jefferies has reiterated its recommendation to buy Apple ahead of the company's earnings report on August 3. The investment firm believes that while Apple has presented its long-term vision of computing, the upcoming earnings call will refocus attention on the iPhone and services, which are the primary drivers of the stock.
Wells Fargo Reiterates Netflix as Overweight
Wells Fargo has maintained its overweight rating on Netflix ahead of the company's earnings report. The firm is raising its estimates for Netflix and believes that although there are high expectations from the market, any short-term pressure on the stock would present a buying opportunity, especially if there is positive long-term outlook.
Jefferies Reiterates Alphabet as Buy
Jefferies remains bullish on Alphabet as the company prepares to release its earnings next week. The firm believes that Alphabet's stock could continue to perform well in the second half of the year due to improved advertising checks in Q2, positive advertiser outlooks for Q3 and Q4, and easier year-over-year revenue comparisons.
Truist Reiterates McDonald's as Buy
Truist has reconfirmed its buy rating for McDonald's, citing strong same-store sales momentum driven by successful marketing campaigns and improved operations. The firm has increased its estimates and price target for McDonald's due to the positive performance of the Grimace Birthday Meal, which gained viral attention on social media.
Argus Upgrades Carnival to Buy
Argus has upgraded Carnival to a buy rating, expecting increased revenue for the cruise operator due to higher marketing spending and fleet efficiency improvements. Over the past three years, Carnival has replaced older, less fuel-efficient ships with newer, higher-yielding ones, positioning the company for improved profitability.
Piper Sandler Resumes Dave & Buster's as Outperform
After a change in analyst coverage, Piper Sandler has resumed coverage of Dave & Buster's with an outperform rating. The firm believes that at the current share price levels, there is an attractive upside potential of approximately 23%. The resumption of coverage is based on positive outlook for the company's performance in the near future.
Bernstein Upgrades UnitedHealth to Outperform
Bernstein has upgraded UnitedHealth to an outperform rating, believing that the stock's current valuation undervalues the company's long-term growth prospects. The firm acknowledges concerns surrounding the health care giant, but believes that these concerns are already priced into the stock and that the potential for growth is being overlooked.
Goldman Sachs Reiterates Warner Brothers Discovery as a Top Pick
Goldman Sachs reiterates its top pick status for Warner Brothers Discovery, citing the company's attractive risk/reward profile compared to its peers. The firm believes that Warner Brothers Discovery has key execution catalysts within management's control, such as merger milestones and the relaunch of its flagship streaming platform, that will drive stock performance.
Truist Downgrades Norwegian to Hold
Truist has downgraded Norwegian to a hold rating primarily due to concerns about valuation. The firm believes that the cruise stock and sector have already seen a significant recovery, resulting in a high price already priced into the stock. Truist questions how much more upside potential there is in the stock given the current valuation.
Citi Opens Positive Catalyst Watch on Polaris
Citi has opened a positive catalyst watch on Polaris, anticipating a beat in the company's upcoming earnings report. The firm sees several factors that contribute to its confidence in Polaris, including positive retail sentiment, strong shipments in the second quarter, and the relative outperformance of higher-end products.
Bank of America Reiterates Nvidia as Buy
Bank of America maintains its buy rating on Nvidia and has raised its price target on the stock. The firm believes that Nvidia will continue to dominate the accelerator market and expects greater dispersion among chip stocks in the coming quarters based on the real benefits of artificial intelligence.
Roth MKM Names Uber a Top Second Half Pick
Roth MKM is bullish on Uber for the second half of the year, citing accelerating free cash flow generation and potential non-fundamental catalysts such as inclusion in the S&P 500, stock buybacks, and corporate development actions. Despite the stock's strong performance this year, the firm reiterates its buy rating on the shares.
Bank of America Downgrades Lumentum to Neutral
Bank of America downgrades Lumentum to a neutral rating, questioning the stock's status as a beneficiary of artificial intelligence. The firm believes that the stock is overvalued and that there are better options in the sector. Bank of America downgraded several other stocks in the sector as well due to similar concerns.
Morgan Stanley Names American Express a Top Pick
Morgan Stanley is bullish on American Express ahead of the company's earnings release. The firm believes that strong travel and entertainment spending will continue to benefit American Express and expects positive results in the second quarter. Morgan Stanley sees the stock as a top pick in its sector.
Evercore ISI Upgrades Pinterest to Outperform
Evercore ISI has upgraded Pinterest to an outperform rating, anticipating a recovery in ad spending that will benefit the company. The firm sees clear evidence of stabilizing digital ad spend and expects an overall recovery in the second half of the year. Evercore ISI believes that Pinterest is well-positioned to take advantage of this recovery.
Bank of America Adds Marvell to the US 1 List
Bank of America has added Marvell Technology to its US 1 list of top picks. The firm believes that Marvell's stock has strong potential and has removed another stock from its list to make room for Marvell. Bank of America maintains a buy rating on the removed stock as well.
Deutsche Bank Adds Catalyst Call Buy on Sherwin-Williams
Deutsche Bank is bullish on Sherwin-Williams and has initiated a catalyst call buy ahead of the company's earnings report. The firm believes that Sherwin-Williams is well-positioned to exceed expectations and expects a beat and raise for the quarter. Deutsche Bank sees positive momentum for the company.
JPMorgan Reiterates Amazon as Overweight
JPMorgan continues to view Amazon as its top pick and remains overweight on the stock. The firm expects Amazon Web Services to reaccelerate in the second half of the year, driving significant free cash flow growth. JPMorgan also expects continued margin expansion in the retail segment.
Conclusion: A Hot Take on the Wall Street Calls
The recent Wall Street calls provide valuable insights and recommendations for investors, but they also offer a glimpse into the potential impact on new businesses. These calls highlight the market sentiment and expectations for well-established companies like Apple and Netflix, but they also shed light on emerging trends and opportunities for new businesses to consider.
One notable trend is the continued bullishness on technology stocks, with Jefferies reiterating its "buy" recommendation on both Apple and Alphabet. This reaffirms the expectation that these tech giants will continue to dominate their respective industries. For new businesses operating in the technology sector, this highlights the need to differentiate themselves and offer innovative solutions to compete with these industry giants.
The upgrades and positive outlook for companies such as Uber, Pinterest, and Marvell Technology also present exciting opportunities for new businesses. These calls suggest that there is room for growth and success in their respective sectors, indicating potential demand for innovative and disruptive solutions. Entrepreneurs in these fields could leverage the positive market sentiment to attract investors and drive their business forward.
On the other hand, downgrades on stocks like Lumentum serve as a reminder for new businesses to carefully evaluate their market positioning and competitive advantage. Understanding market trends and investor sentiment is crucial for navigating the ever-changing business landscape.
It is important for new businesses to pay attention to these Wall Street calls as they can provide useful insights and market signals. By analyzing the recommendations and understanding the rationale behind them, entrepreneurs can gain perspective on industry trends and make informed decisions to position their businesses for success. While not every call may directly impact new businesses, the broader market sentiment showcased in these calls should be considered as a valuable factor in shaping business strategies.
Article First Published at: https://www.cnbc.com/2023/07/18/tuesdays-top-calls-on-wall-street-include-nvidia-apple.html
