Here are Thursday’s biggest calls on Wall Street: Morgan Stanley reiterates Disney as overweight Morgan Stanley lowered its price target on Disney to $125 per share from $170, but said the stock is “attractive” at current levels. “Down 40% YTD and below its pre Disney Plus launch share price, we see an attractive risk/reward at current levels. Led by its Parks & Experience segment and with the benefit of a still young streaming business scaling to profitability, we see 20-25% adjusted EPS growth over the next three years.” JPMorgan reiterates Netflix as neutral JPMorgan said it’s cautiously optimistic on a rollout of Netflix’s ad-supported product. “We believe NFLX will also try to time the rollout of the ad-supported tier w/elevated account sharing efforts.” Benchmark initiates Warner Bros. Discovery as buy Benchmark said it expects the media stock to “regain its footing.” “Although WBD stock price performance since its April 11th trading debut has been heavily compromised by the market’s 2022 streaming aversion, leverage concerns, and overall equity market recession angst affecting advertising, we are confident WBD’s shares will regain their footing.” Read more about this call here. UBS downgrades Duke Energy to neutral from buy UBS downgraded the energy company on valuation. “We are downgrading Duke Energy to Neutral from Buy as a result of rolling forward our valuation to the 2024 valuation year and updating our valuation methodology and premiums/discounts consistent with our Halftime Report also published this morning.” Bank of America upgrades Bunge to buy from neutral Bank of America said the sell-off in shares of the ag company is “unwarranted.” “We also like the limited correlation between the global ag cycle and economic cycle. As such we view the sell-off in ADM and BG as largely unwarranted.” Benchmark initiates Texas Instruments as buy Benchmark said it expects Texas Instruments to continue to deliver “solid revenue and operating margin progression.” “Leading Analog Supplier with Specific Leverage into Autos & Industrial.” Morgan Stanley names Nio a research tactical idea Morgan Stanley named the electric vehicle company as a tactical idea and says it sees shares rising quickly in the near term. “While sluggish industry sentiment resulted in the sell-off, we believe NIO’s upbeat June sales together with good volume trajectory into 2H, aided by a strong product pipeline, will revive investor confidence in the company’s operations and trigger a rebound in the stock.” Read more about this call here . Piper Sandler initiates Bath & Body Works as overweight Piper said the stock is trading at a “hefty” discount. “We’re initiating coverage of BBWI and COTY today as we expand our coverage in the Beauty & Wellness space. We believe both these names fit nicely into our coverage universe, with BBWI being a retailer of masstige bath, body, and fragrance products and COTY being one of the largest global beauty conglomerates serving the prestige and mass markets.” Read more about this call here. Raymond James initiates Etsy, Rent the Runway, The Real Real and thredUP as outperform Raymond James initiated several internet retailers on Wednesday night, noting it likes companies with “strong revenue growth.” “We initiate coverage of the Digital Commerce sector with nine companies, including one Strong Buy (FIGS), six Outperforms (ETSY, RVLV, REAL , TDUP, RENT, BRLT) and two Market Performs (OSTK, POSH). It’s a controversial time given rising interest rates (which have pressured most growth stocks) and macro uncertainty stemming from inflation, supply chain pressure, and shifts in spending towards services (and away from products) due to the COVID re-opening.” Read more about this call here . Oppenheimer reiterates Coinbase as outperform Oppenheimer said that it’s sticking with shares of Coinbase despite the collapse in crypto prices. “With the Fed’s tightening policy, total market cap of crypto declined by ~55% for 2022’s second quarter, and trading volume subsided, COIN is going into one of its toughest prints as a public company.” Goldman Sachs reiterates Tesla as buy Goldman said a Tesla Supercharger Network represents a “sizeable revenue opportunity” for the auto company. “While the network has historically been accessible only to Tesla owners, Tesla has discussed plans to open up the network to all EV drivers over time (and has already done so in select locations in Europe), which we believe could represent a sizable revenue opportunity with strong incremental margins by improving station utilization.” Northland upgrades AMD to outperform from market perform Northland said that macro headwinds are priced in and investors should buy the stock. “We are upgrading AMD to OP. We are also reducing estimates to account for a global recession by cutting $2.8B out of our CY23 forecast.” Jefferies downgrades Simon Property to hold from buy Jefferies downgraded the real estate investment trust and mall owner due to “structural headwinds.” “Downgrading AKR, BRX, KRG, OHI, SBRA, RPT, SPG & HIW to Hold, given weaker pricing power, longer duration leases, and/or structural headwinds.” JMP reiterates Alphabet and Meta as market outperform JMP lowered its estimates on shares of Alphabet and Meta, but said the two stocks should fare better in a tougher macro environment. “We expect search (Alphabet) and lower funnel performance platforms (Facebook) to fare better and highlight the importance of diverse and dense ad auctions as advertisers increase their return on ad spend expectations and tighten their ad budgets.”
