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Biggest Calls on Wall Street
Morgan Stanley Reiterates Amazon as Overweight
Morgan Stanley is bullish on Amazon's upcoming earnings, predicting that shipping and fulfillment cost per unit efficiencies will lead to upward revisions in street EBIT numbers. The bank believes that Amazon's regional fulfillment network, launched in the first quarter of 2023, will be a significant driver of these improvements.
Deutsche Bank Upgrades Spotify to Buy
Deutsche Bank has upgraded Spotify from hold to buy, stating that the recent selloff of the stock is overdone. The bank is optimistic about the company's top-of-funnel metrics, 3Q gross margin guide, and narrowing operating losses.
Barclays Reiterates Apple as Equal Weight
Barclays expects Apple to report an in-line quarter, with better services and stable iPhones offsetting weaker non-iPhone hardware categories. The bank notes that the delay of IP15 and unit shifts to December could pose a risk for the September quarter.
Raymond James Downgrades Target to Market Perform
Raymond James downgraded Target, citing a loss of topline momentum. The bank believes that QTD sales and traffic trends have remained soft, suggesting that Target is struggling to maintain its growth.
Bank of America Names NXP Semiconductors as Top Pick
Bank of America believes that NXP Semiconductors has the ability to navigate the current challenging environment. The bank highlights the company's portfolio diversity, ability to pass along rising input costs, and expected growth in autos content as factors that will help drive its success.
Morgan Stanley Downgrades RTX to Equal Weight
Morgan Stanley downgraded RTX, stating that the risk/reward seems balanced at the moment. The bank believes that there is limited potential for significant upside and therefore downgraded the stock to equal weight.
Morgan Stanley Upgrades WW International to Overweight
According to Morgan Stanley, shares of WW International, formerly known as Weight Watchers, are undervalued. The bank sees the company's turnaround story, along with the traction gained by its new GLP-1 telehealth brand Sequence, as strong factors for potential growth.
Needham Reiterates Netflix as Hold
Needham reports that investors are feeling more bearish after Netflix's recent earnings report. The bank has observed an increase in incoming calls expressing concern about the company's performance.
Citi Reiterates Eli Lilly as Buy
Citi has raised its price target on Eli Lilly and maintains its buy rating. The bank acknowledges the stock's near-term earnings momentum and believes that the company's continued commitment will contribute to its success.
Deutsche Bank Adds a Catalyst Call Buy on Goodyear Tire
Deutsche Bank has added Goodyear Tire to its short-term Catalyst Call Buy List, citing the potential value unlocked by the company's agreement with Elliot Management. The bank believes that the addition of board members and a strategic review committee will help drive shareholder value.
Citi Opens a Positive Catalyst Watch on Restaurant Brands
Citi has opened a positive catalyst watch on Restaurant Brands, the owner of popular brands like Burger King. The bank expects a rally in shares leading up to the company's earnings release on August 8.
Bank of America Reiterates Microsoft as Buy
Bank of America stands by its buy rating on Microsoft, following the company's robust earnings report. The bank highlights the solid Q4 results, which exceeded revenue expectations across various lines of business.
Morgan Stanley Reiterates Disney as Overweight
Morgan Stanley has lowered its price target on Disney but maintains an overweight rating. The bank notes that linear TV pressures and a maturing streaming market have led to lower estimates for Disney and other industry players.
Citi Reiterates Meta as Top Pick
Citi considers Meta its top pick among Internet sector stocks. The bank expects revenue to reaccelerate and predicts margin expansion for the company. They also reiterate their buy rating and provide a price target of $360.
TD Cowen Initiates Microstrategy as Outperform
TD Cowen has initiated coverage on Microstrategy, considering it an attractive vehicle for investors interested in gaining exposure to Bitcoin. The bank believes that Bitcoin will prove to be a superior store of value and sees Microstrategy as a way to participate in this trend.
JPMorgan Reiterates Alphabet as Overweight
JPMorgan maintains its overweight rating on Alphabet, following the company's strong earnings report. The bank emphasizes the positive aspects of the report and highlights Google's AI leadership, advertising stabilization, and progress on cost control.
JPMorgan Adds United Airlines to the Focus List
JPMorgan has added United Airlines to its analyst focus list, citing potential upside due to international travel tailwinds and continued pilot and aircraft shortages. The bank believes that United and other major airlines can outperform their domestic-centric counterparts.
Morgan Stanley Reiterates General Motors as Overweight
Morgan Stanley finds the weak market reaction to General Motors' earnings report surprising. The bank believes that concerns over over-earning into UAW negotiations have caused investors to sell the stock, despite positive results.
Conclusion: A "Hot Take" on Wall Street Calls and Possible Impact on a New Business
The latest Wall Street calls reflect a mix of bullish and bearish views on several prominent companies across various industries. While these calls primarily impact existing investments, they can also provide insights for new businesses looking to navigate the market dynamics.
One notable call is Morgan Stanley's reiteration of Amazon as overweight, emphasizing the potential for improved shipping and fulfillment cost efficiencies. This suggests that e-commerce companies should prioritize optimizing their logistics operations to control costs and enhance profitability. New businesses entering the online retail space may need to consider robust fulfillment strategies to compete effectively.
The upgrade of Spotify by Deutsche Bank highlights the importance of strong metrics and narrowing operating losses. This underscores the need for new companies to focus on revenue generation, gross margins, and sustainable operations to attract investor attention.
On the other hand, the downgrade of Target by Raymond James suggests caution in terms of maintaining growth momentum. This serves as a reminder for new businesses to continuously monitor their sales and traffic trends and adapt strategies accordingly to avoid stagnation.
Bank of America's naming of NXP Semiconductors as a top pick reinforces the significance of portfolio diversity and the ability to navigate challenging environments. This indicates that new businesses should strive for a well-balanced product or service lineup and be prepared to adapt to changing market conditions.
Overall, these Wall Street calls highlight the importance of financial performance, strategic positioning, and adaptability for both established companies and new businesses. Entrepreneurs should closely follow market trends, consider potential risks, and develop comprehensive strategies to succeed in a competitive landscape. While these calls primarily impact large corporations, their underlying insights can serve as valuable guidance for any business striving for growth and market success.
Article First Published at: https://www.cnbc.com/2023/07/26/top-wall-street-analyst-calls-including-microsoft-apple.html.svg)
