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Wednesday's Biggest Calls on Wall Street
TD Cowen Reiterates Nvidia as Outperform
Cowen has reiterated its outperform rating on Nvidia, stating that the company continues to lead in important AI verticals, despite restrictions in China. They have a price target of $500.
Oppenheimer Names Nasdaq a Top Pick
Oppenheimer has named Nasdaq as a top pick, citing stable earnings growth over time and higher recurring revenue. They believe this will support both earnings growth and multiple expansion in the long term.
TD Cowen Reiterates Advanced Micro Devices as Outperform
TD Cowen remains bullish on Advanced Micro Devices, especially in generative AI. They have raised their price target on the stock to $135 and believe that the focus will turn to AMD's strong Datacenter prospects and AI strategy post-earnings.
Baird Names Foot Locker a Bearish Fresh Pick
Baird sees a negative trading setup ahead for Foot Locker due to difficult comparisons in late July and August. The stock has already fallen 29% this year.
Loop Upgrades TJX Companies to Buy
Following store checks, Loop has increased its sales and earnings estimates for TJX Companies. They have upgraded the company to a buy rating and raised their price target from $75 to $95.
Citi Adds Positive Catalyst Watch on General Motors
Citi sees ample upside for General Motors, with the potential for another beat/raise. They believe that the stock's current valuation is attractive, especially considering GM's underperformance compared to Ford.
Citi Downgrades JPMorgan to Neutral
Citi has downgraded JPMorgan due to valuation concerns. They believe that the premium valuation has returned and are moving to the sidelines.
Atlantic Equities Downgrades Coinbase to Neutral
Atlantic Equities has downgraded Coinbase due to valuation concerns. They have raised their target price to $80, but believe that the recent rally in the shares is excessive.
JPMorgan Upgrades Holley to Overweight
JPMorgan has upgraded Holley, citing margin upside. They believe that the company's topline will improve in 2023 and 2024, and there is potential for margin expansion.
Bank of America Upgrades DraftKings to Buy
Bank of America has upgraded DraftKings due to expected margin inflection. They believe that accelerating product and revenue momentum will drive an inflection in margins and profitability.
Baird Reiterates Amazon as Outperform
Baird's checks show that Amazon's Prime Day is off to a good start. They believe that this is a positive sign for the e-commerce market, which has been under pressure due to the return of in-store shopping.
Citi Reiterates Tesla as Neutral
Citi maintains a neutral to slightly negative view on Tesla heading into earnings. They believe that Tesla's stretched valuation leaves the stock vulnerable, especially if there is any margin shortfall or unimpressive numbers in the upcoming quarter.
Raymond James Upgrades SunPower to Strong Buy
Raymond James recommends buying the dip in shares of SunPower, citing the stock's excessive weakness. They believe that the company's exposure to the California market has caused an overreaction in the stock.
UBS Reiterates Netflix as Buy
UBS has raised its price target on Netflix and remains bullish on the stock. They believe that the newly launched paid sharing markets will contribute to positive data and increased engagement.
Bank of America Upgrades Stellantis to Buy
Bank of America has upgraded Stellantis, citing valuation upside. They believe that the market has already priced in the worst, and the company can withstand the current challenges.
Morgan Stanley Upgrades Lazard to Overweight
Morgan Stanley expects a new M&A cycle to begin, leading to increased deal making for Lazard. They believe that lower volatility and recovering markets will drive an M&A inflection in 2024.
DA Davidson Downgrades Redfin to Underperform
DA Davidson has downgraded Redfin due to the stock's significant increase in value. They believe that the stock has become overvalued and is the top performing name in the broader Prop Tech coverage.
Bank of America Downgrades Cisco to Neutral
Bank of America has downgraded Cisco due to concerns over near-term trends. They maintain their price target but have reduced their rating to neutral.
Baird Upgrades SEE to Outperform
Baird believes that Sealed Air has de-risked and that the earnings expectations for 2023 are already low. They expect volume optics to improve in the third quarter and have a realistic earnings power of $4 for the company.
UBS Upgrades AstraZeneca to Buy
UBS sees attractive growth potential for AstraZeneca at a reasonable price. They believe that the current valuation does not reflect the company's strong pipeline and growth prospects.
Conclusion: Analyzing Wall Street's Calls and Their Implications for New Businesses
Wall Street's recent notable calls offer valuable insights for new businesses looking to navigate the market. Several companies, such as Nvidia, Nasdaq, and Advanced Micro Devices, have been reaffirmed as outperform or top picks, signaling their continued strength and potential for growth. These endorsements can serve as positive indicators for new businesses operating within similar industries or those leveraging emerging technologies like AI and data centers.
Conversely, Baird's bearish outlook on Foot Locker suggests challenges in the retail sector, particularly related to difficult quarterly comparisons. This cautionary note underscores the need for new businesses to carefully gauge industry trends and market dynamics to avoid potential pitfalls.
Upgrades and downgrades from major institutions like Citi, Bank of America, and UBS also carry weight. For instance, Citi's positive catalyst watch on General Motors highlights the stock's attractive valuation and potential for positive surprises, which can be encouraging for new players in the automotive industry.
Additionally, the downgrade of Coinbase due to valuation concerns by Atlantic Equities sends a cautionary message about the potential risks associated with excessively high share prices. This serves as a reminder for new businesses to carefully evaluate their own valuations and ensure they are well-supported by their underlying fundamentals.
Ultimately, while these calls reflect the opinions of Wall Street analysts, they provide noteworthy perspectives that entrepreneurs can consider when making strategic decisions. New businesses can benefit from paying attention to these market assessments and conducting thorough research to gain a better understanding of industry trends, valuations, and potential risks. By staying informed and adaptable, emerging companies can position themselves for success in the ever-evolving market landscape.
Article First Published at: https://www.cnbc.com/2023/07/12/wednesdays-top-analyst-calls-on-wall-street.html.svg)
