Here are Friday’s biggest calls on Wall Street: Goldman Sachs reiterates Bank of America and Wells Fargo as top picks Goldman said Bank of America and Wells Fargo are its preferred names heading into 2023. two are best positioned to benefit from higher rates, with industry-leading deposit franchises (in terms of low-balance retailing), suggesting they will be among the last banks in the industry to become liability-sensitive .” Telsey downgrades Under Armor to market performance from outperform Telsey said it was concerned about too much inventory weighing on the stock. “Given the pressures sporting goods brands are facing and Under Armor’s positioning in the market – with slower sales growth and greater exposure to apparel – we are lowering our score to Market Perform from Outperform. .” Learn more about this call here. Truist upgrades AT&T to buy pending Truist said he expects the telecommunications company’s revenue growth to accelerate. “We are upgrading AT&T after more than 15 years of underperformance now that it has demonstrated its ability to focus on its core business as opposed to acquisitions of loosely tied companies at high market valuations.” Bank of America downgrades Snap to neutral after buying Bank of America downgraded the stock after its mixed earnings report. Snap’s Q3 revenue/EBITDA of $1,128m/$73m was mixed compared to Street at $1,137m/$21m as macro headwinds continued to weigh on advertising demand, but cost-cutting initiatives have helped drive profitability.” Raymond James upgrades Juniper to buy heavily from outperformance Raymond James said in his company upgrade network that the consensus estimates were too low.” We’re moving Juniper to Strong Buy from Outperform. We see new routers gaining a new round, led by deals like Verizon and Google. We consider consensus estimates for 2023 to be low.” Read more about the call here. JPMorgan Reiterates Coca-Cola Outperforms JPMorgan lowered its price target on Coke to $63 per share from $70, but said that he remained optimistic heading into earnings next week.”We don’t believe there is much concern about underlying trends in the quarter or for FY22 as the 2H22 guidance looked relatively conservative, with the three-year CAGR implied by the forecast decelerating to +4.5% in 2H from +6.5% in 1H despite high prices. equities and what appear to be largely resilient consumer trends. Bernstein Downgrades Snap to Market Performance After Outperforming Bernstein downgraded the company after its earnings report on Thursday and said Snap appeared to have “lost all momentum.” “With the stock down -85% over the past 12 months, to suggest that investor expectations were low on earnings is an understatement. Yet low expectations offered no support for a company that seems to have lost all momentum.” Learn more about this call here. RBC Reiterates Shopify as Outperformer RBC has called the e-commerce payment platform company one of the most compelling stocks in business coverage. “While macro uncertainty and rising risk-free rates are expected to continue to weigh on Shopify’s valuation through the end of 2022, we believe Shopify is one of the most compelling long-term growth stories in our coverage universe.” JPMorgan reiterates Apple overweight JPMorgan said investors are too focused on iPhone growth ahead of Apple’s earnings next week. “Investor focus remains on the iPhone as always at this time of year; however, for a year in which investor expectations range from declining earnings in the bearish case to modest growth in the bullish case, every driver of growth matters. Oppenheimer Reiterates Netflix Outperforms Oppenheimer said he thinks pandemic subscriber headwinds are in Netflix’s rearview mirror. “Furthermore, the strong 3rd quarter, despite significant content competition, shows that the unfolding of the pandemic is slowing and that NFLX remains a staple streaming service for consumers.” Goldman Sachs Launches Workiva as Buyer Goldman launched the software-as-a-service company and said he saw benefits for Workiva. “Under current conditions, we believe software that supports critical business processes will be an outsized priority in software budgets, especially where digital transformation projects have already begun.” Learn more about this call here. Barclays reiterates Microsoft is overweight Barclays says macro issues remain, but sees a “strong setup” heading into Microsoft earnings next week. “We see a strong setup in the quarter that could certainly give the numbers a boost. However, the macro and its impact is a looming question mark, and we believe investors’ attention this quarter may hinge on comments on the outlook as some begin to question whether the FY23 forecast for double-digit annual growth on the top and bottom lines can hold.” Raymond James downgrades KB Home, Toll Brothers and PulteGroup to market performance from strong buy and DR Horton to outperformance from strong buy and Lennar to market performance from outperformance Raymond James downgraded several homebuilders due to rising mortgage rates. “Housing affordability is crippled by mortgage rates of 7%. Reluctantly, we are calling on homebuilders after a relentless 200 basis point increase in 30-year mortgage rates over the past 2.5 months. With this industry rating, we are lowering the ratings of all of our covered homebuilders and reducing EPS estimates to new lows in the St. KBH, LEN, MDC, PHM and TOL are all revised to Market Perform, and DHI is lowered to Outperform Cantor launches Palo Alto Networks while overweight Cantor said in his launch of the cybersecurity company that it “offers customers superior threat intelligence and performance by “We’re launching coverage on Palo Alto Networks, the most comprehensive next-gen security platform in our opinion, with an overweight rating and a 12-month price target of 22 $0.” SVB Securities upgrades Moderna to perform in the market from an underperformer SVB upgraded the biotech company primarily on valuation. “We are upgrading MRNA to MP, after a long period of underperformance, in stark contrast to the other commercial-stage/mature large-cap companies in our universe, IONS and ALNY.” JPMorgan Reiterates Amazon as Top Pick JPMorgan lowered its estimates on the e-commerce giant, but said it remained a top pick ahead of next week’s earnings. “We are reducing AMZN estimates and lowering our PT to $175, but AMZN remains our preferred name in the short and long term.” JPMorgan adds IAC to its priority list JPMorgan has added the media and internet brands holding company to its priority list and says it sees an attractive risk-reward ratio. “While this is not a 3Q earnings call, we are adding IAC to JPM Equity’s analyst list as we believe the dislocated stub value (~$1B) presents attractive risk/reward over a longer time horizon.” KeyBanc shifts Oracle to overweight to sector KeyBanc says it is more confident in the company’s stock after attending its analyst day. “We are upgrading ORCL shares to overweight with an $80 price target following the 2022 analyst day that paved the way for mid-40s margins and multi-year HSD revenue growth (high single digits), allaying some of the risk concerns around the Cerner acquisition that we cited in our December downgrade.”
#Fridays #biggest #analyst #calls #Apple #Netflix #Bank #America #Amazon #ATT #Snap