Wednesday's Notable Analyst Calls: Apple, IBM, Disney, Amazon, Instacart, Nike, Boeing, and More
Here are the significant calls made by analysts on Wall Street on Wednesday:
Morgan Stanley Reiterates Apple as Overweight
Morgan Stanley reaffirmed Apple as overweight, citing positive iPhone survey checks that indicate China as a "bright spot." The longer lead times for the iPhone 15 and the outpacing of Services revenue are contributing factors.
UBS Reiterates Nike as Buy
UBS believes Nike is better positioned in China than the market perceives. The firm expects Nike's investments in product innovation, supply chain speed, and digital initiatives to drive a 14% 5-year EPS CAGR.
Morgan Stanley Reiterates Microsoft as Overweight
Morgan Stanley sees an attractive risk/reward for Microsoft following its dividend raise. The combination of high-teens EPS growth and a durable total return profile supports the overweight rating.
Needham Initiates On Holding as Buy
Needham initiated coverage of shoe manufacturer On Holding with a buy rating and a $40 price target. On Holding is viewed as a premium, disruptive brand with significant growth potential in the consumer market.
Oppenheimer Downgrades Chewy to Perform
Oppenheimer downgraded Chewy to perform due to a challenging backdrop. The downgrade reflects recent signs of weakness in the pet food category and the potential for muted inflation benefits in FY24.
RBC Initiates IBM as Outperform
RBC initiated coverage of IBM with an outperform rating, considering the stock undervalued. The firm is optimistic about IBM's competitive positioning and its role in enabling efficient digital transformation.
JPMorgan Downgrades Dollar General to Underweight
JPMorgan downgraded Dollar General to underweight, citing uncertainty in the low-to-middle income macro picture. The downgrade reflects concerns about the company's core shopper and persistent inflationary pressures.
Bernstein Reiterates Boeing as Outperform
Bernstein recommends buying the dip in shares of aerospace giant Boeing. Despite recent concerns about Spirit Aerosystems' performance and potential delivery issues with China, Bernstein sees this as a buying opportunity.
Citi Upgrades Pinterest to Buy
Citi upgraded Pinterest to buy following its analyst day, expressing increased confidence in the company's engagement, advertising innovation, and improving monetization trends.
JPMorgan Initiates First Citizens Bancshares as Overweight
JPMorgan initiated coverage of regional bank First Citizens Bancshares as overweight, believing that its "best days" are ahead. The acquisition of parts of SVB's business and its role as the bank of the innovation economy contribute to this positive outlook.
Jefferies Upgrades Bausch Health to Buy
Jefferies upgraded pharmaceutical company Bausch Health to buy, citing positive catalysts ahead. The increased probability of a spin pathway and potential legal victories contribute to the upgraded rating.
Needham Initiates Instacart as Hold
Needham initiated coverage of grocery delivery company Instacart with a hold rating. The balanced risk/reward reflects slowing growth post-pandemic and the company's already scaled advertising business.
Rosenblatt Initiates Sonos as Buy
Rosenblatt initiated coverage of wireless home audio company Sonos as a buy, anticipating margin expansion. Sonos is seen as a category leader, poised to benefit from the growth in multi-room music and sound bars.
Goldman Sachs Names Azul a Top Pick
Goldman Sachs upgraded Latin America airline Azul to buy, highlighting its undemanding valuation and positive EBITDA expansion prospects.
Morgan Stanley Downgrades Zebra Holdings to Underweight
Morgan Stanley downgraded computer printing tech company Zebra Holdings to underweight, noting a longer-than-expected turnaround and challenging valuation.
Morgan Stanley Downgrades nCino to Underweight
Morgan Stanley downgraded fintech software company nCino to underweight, citing revenue headwinds and a premium valuation.
Bank of America Reiterates Disney as Buy
Bank of America reiterated Disney as a buy, despite lowering its price target. The company's premiere assets and robust theme park demand contribute to its positive outlook.
UBS Reiterates Apple as Neutral
UBS maintained a neutral rating on Apple, noting softer high-end iPhone demand compared to the previous year.
DA Davidson Initiates Build-a-Bear as Buy
DA Davidson initiated coverage of stuffed animal retailer Build-a-Bear with a buy rating, recognizing it as an iconic brand with untapped growth potential.
Wedbush Upgrades Wingstop to Outperform
Wedbush upgraded Wingstop, highlighting its unique positioning and potential for transaction growth outperformance in any macro backdrop.
Morgan Stanley Reiterates Amazon as Overweight
Morgan Stanley views Amazon's recent announcement of seasonal hires as a bullish leading indicator for expected retail share gains.
These notable analyst calls provide valuable insights into the market's perception of various companies. Investors and market participants should consider these recommendations when making investment decisions.
Conclusion: Impact on New Businesses
The analyst calls on Wall Street can offer crucial insights for new businesses. These calls reflect the market's perception of various companies, which can provide valuable lessons.
Importance of Market Positioning and Innovation
The reiteration of Apple, Nike, and Microsoft as overweight or buy indicates the importance of market positioning and innovation. These companies have managed to maintain a strong standing through continuous innovation and strategic positioning, offering a vital lesson for new businesses.
Adapting to Market Challenges
The downgrade of Chewy and Dollar General underscores the need for businesses to adapt to market challenges. Whether it's dealing with inflationary pressures or a challenging backdrop, businesses must be prepared to navigate these obstacles.
Recognizing Growth Potential
The initiation of On Holding and Build-a-Bear as buy highlights the significance of recognizing and capitalizing on growth potential. New businesses can learn from these companies by focusing on areas with high growth potential and taking steps to exploit these opportunities.
In essence, these analyst calls serve as a barometer of market sentiment and offer valuable lessons for new businesses. By understanding these dynamics, new businesses can better navigate the market and position themselves for success.
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