Here are Monday’s biggest calls on Wall Street: Piper upgrades Carvana to overweight from neutral Piper said the used car company is “grossly undervalued.” “We know that rising interest rates are a risk, and we know that bankruptcy is a real possibility. But CVNA is now 1/10th as valuable as it was 12 months ago, and after running a detailed sensitivity analysis (pages 7-16), we think many realistic scenarios suggest that CVNA is grossly undervalued.” Read more about this call here. UBS reiterates Costco as buy UBS said in it sees more upside for shares of Costco. “We believe COST will post healthy 4Q EPS upside The co. has already reported strong top-line results in its monthly sales results to date, helping to support our 9.9% comp estimate for 4Q (ex fuel and FX). We think steady membership acquisition was a key contributor to this acceleration.” Stifel initiates Darling as buy Stifel said in its initiation of the animal food company that it’s well positioned for sustainability investing. ” DAR’s Food and Feed business lines are economic today and align well with sustainability investing standards.” Cowen initiates Roblox as underperform Cowen said it sees too much uncertainty for the stock and that it’s overvalued. “Roblox’s high valuation is based on the perception that it will be a key player in the evolving metaverse.” Read more about this call here. Morgan Stanley reiterates Walmart as overweight Morgan Stanley said that Walmart+ continues to gain momentum with new service offerings. ” Walmart+ membership stands at a record ~17m (~13% US household penetration) and up ~1m since early May. New survey findings on why Walmart customers are (or aren’t) subscribing to Walmart+.” JPMorgan reiterates Apple as overweight JPMorgan said iPhone demand looks strong following Apple’s new product announcements last week. “In summary, iPhone demand indications are strong following the launch, and while similar to last year the mix continues to be more favorable towards Pro models, lead times for the two Pro models are already more extended relative to last year.” UBS reiterates Nike as buy UBS said it has “conviction” in shares of Nike heading into earnings later this month. “While macro issues may weigh on NKE near-term, we continue to have conviction in Nike over the NTM (next twelve months).” Loop initiates Monday.com as buy Loop said it likes the cloud based work management software maker’s business model. ” MNDY is a leader in the emerging market for low-code/no-code digital teamwork tools, which is a large and rapidly growing market.” Mizuho downgrades Adobe to neutral from buy Mizuho said in its downgrade of the stock that it sees a challenging macro heading into earnings later this week. ” ADBE will be reporting its F3Q results on September 15. Our checks this quarter were indicative of a more difficult environment than expected, even allowing for a challenging macro.” Goldman Sachs initiates Newmont as buy Goldman said in its initiation of the gold mining company that it sees an attractive entry point. ” Newmont Corp .: Underperformance marks attractive entry point for low-risk gold miner; initiate at Buy.” Read more about this call here. Bernstein names Las Vegas Sands a top pick Bernstein said it sees “investment optionality” for shares of the casino company. ” LVS completed the sale of its Las Vegas operations in February, with after-tax proceeds of ~$4.4bn plus $1.2bn in deferred payment. We do not expect any major investments in the near term outside of Singapore, but the liquidity and dry powder at LVS creates some investment optionality and eventual return of capital to shareholders.” Citi downgrades Occidental Petroleum to neutral from buy Citi said in its downgrade of the stock that it doesn’t see “sufficient” upside right now. “Thus while OXY should continue to witness debt to equity conversion, we don’t see sufficient upside to maintain our Buy rating.” Piper Sandler reiterates Chevron and Exxon as overweight Piper said it’s bullish on the oil and gas giants, but sees slightly more upside “torque” for shares of Exxon. “With XOM/ CVX largely at valuation parity, and despite chemicals headwinds, we see greater upside ‘torque’ at XOM across a variety of levers (refining, international gas, cost reductions) that offers an increased potential for positive estimate revisions, and maintain a modest preference for XOM vs. CVX amongst these Overweight names.” Bank of America upgrades Union Pacific to buy from neutral Bank of America said in its upgrade of Union Pacific that it sees volumes improving. “We had been neutral to negative on most transport carriers since our April downgrades given a decelerating freight environment. However, rail service has begun to improve as hiring rebounds and volumes have inflected positive.” Wedbush adds Jack in the Box to the best ideas list Wedbush added the fast food chain restaurant to its best ideas list and says it sees upside to estimates. “We believe management’s technology investments are an integral part of the future success of this value message, particularly as JACK’s new loyalty program finally allows the brand to speak to different customer segments more effectively.” Morgan Stanley initiates Bill.com as overweight Morgan Stanley said in its initiation of Bill.com that the bill payment company has “underappreciated growth.” “Strong secular tailwinds driving penetration into a nascent market opportunity which can potentially reach $80B, a defensible moat within an effective distribution strategy and a solid track record of execution outweigh risks of SMB (small midsized business) exposure, as investors seek the highest quality software assets.” Read more about this call here. RBC upgrades Vale to outperform from sector perform RBC said in its upgrade of the Brazilian miner that investors should build positions in the stock. “With confidence that Vale’ s path for Base Metals leads to better monetization, our target increases to $16 (from $15). Brazilian elections next month could cause volatility, as could Samarco liability headlines, but we would use this to build positions.”
