Here are the biggest calls on Wall Street on Monday: Wells Fargo downgrades Paramount to underweight from equal weight Wells downgraded the media giant due to a lack of visibility and an “uncertain” direct-to-consumer outlook. “We’re downgrading PARA to Underweight as we can no longer justify its premium multiple amid our more negative view on linear trends and an uncertain DTC outlook.” Read more about this call here. UBS downgrades Caterpillar to neutral from buy UBS said in its downgrade of Caterpillar that it sees a more “balanced risk/reward.” “Our thesis on positive margin inflection is playing out, and we continue to see a positive trajectory for margins and earnings growth from here.” Read more about this call here . Morgan Stanley upgrades Pure Storage to overweight from equal weight Morgan Stanley said in its upgrade of the data flash storage company that it sees “share gains and growing value proposition.” ” PSTG is generally a consensus long, and risks around NAND pricing and cloud capex do exist. However, we believe PSTG should fare better than our general enterprise names in macro weakness, given share gains and growing value proposition.” Read more about this call here . Truist downgrades Keurig Dr Pepper to sell from hold Truist said in its downgrade of the beverage giant that it sees a “coffee hangover” for shares of Keurig Dr Pepper. “Lowering rating to Sell; Expect Coffee Hangover in ’23.” Barclays downgrades Amgen to underweight from equal weight Barclays said in its downgrade of the biopharmaceutical company that expectations are too high as investors wait for an update on Amgen’s obesity drug, AMG133. “In short, we think AMGN shares could come under pressure after the recent gains on the back of this update.” Read more about this call here. Canaccord reiterates Tesla as buy Canaccord says Tesla “screens quite well relative to large-cap tech.” ” Tesla’s innovation curve appears to be accelerating, a stark contrast to other large-tech companies whose incremental product updates appear stagnant at best.” Wells Fargo downgrades Hanesbrands to underweight from equal weight Wells said in its downgrade of the underwear and apparel company that it sees balance sheet risk. “We are downgrading HBI to UW (from OW) as we now see: 1) greater risk to numbers (our 2023 EPS now falls ~30% below Street) and 2) potential headwinds via the company’s debt/leverage position.” Daiwa downgrades Honeywell to neutral from outperform Daiwa said in its downgrade of Honeywell that risk/reward is just not as favorable. “We find the risk-reward less favorable, given potential downside to 2023 consensus estimates and premium valuations.” Cowen initiates Freyer Battery as outperform Cowen said in its initiation of the battery company that it’s well positioned. ” FREYR Battery aims to drive lithium-ion battery emissions (CO2e/kWh) and cost lower by leveraging renewable powered facilities, localized supply chains, and a differentiated cell design.” Citi adding a positive catalyst watch on Roku Citi says it’s staying bullish heading into earnings later this week. “Given the 9% short interest and the potential for a top-line beat, we are opening a 30-day positive catalyst watch on Roku. ” Deutsche Bank downgrades Texas Roadhouse to hold from buy Deutsche downgraded the steak themed restaurant company and says it sees a more “balanced” risk/reward. “On the back of TXRH’ s recent 3Q22 earnings release and outlook, we are moving our rating to Hold, down from our previous rating of Buy. Overall, this is a Risk Reward and Valuation call, and there is not much more to it than that.” Northland downgrades Advanced Micro Devices to market perform from outperform Northland said in its downgrade of the semiconductor company that the “the tide is turning” for AMD and it sees too many headwinds. “We believe indigenous Chinese demand will be very slow to recover. … .The game console cycle is entering year 4 and growth will likely slow.” UBS downgrades DaVita to neutral from buy UBS said in its downgrade of the kidney dialysis company that operating trends are deteriorating. “Previously, we viewed DVA as a defensive safe- haven with strong visibility into cost savings next year and relatively well-controlled labor.” JPMorgan reiterates Apple as overweight JPMorgan says in its latest iPhone tracker update that lead times are lengthening for Apple’s iPhone Pro models. “iPhone Tracker: Short delivery lead times on base models; lead times extend for both the Pro Models.” Citi reiterates Home Depot as buy Citi says the long-term opportunity is too attractive to ignore for shares of the home improvement retailer. “Regardless of the macro backdrop, we still believe HD has the right strategy to win the long-term opportunity. Morgan Stanley reiterates Southwest as a top pick Morgan Stanley says it has “solid confidence” in shares of Southwest. “Despite a soft 3Q print and an in-lineish 4Q guide, LUV mgmt. exuded confidence on the call that their operational reliability was back on track and this gave them runway to push topline higher and CASMxF lower into 2023.” Morgan Stanley reiterates Charles Schwab as a top pick Morgan Stanley says it’s standing by the stock despite shares underperforming. “Reiterate Overweight on SCHW as cyclical beneficiary of rising interest rates that continues to demonstrate resilient franchise growth, despite a challenging macro backdrop, as seen through a consistent mid-single-digit net new asset (NNA) growth rate.” Oppenheimer reiterates Uber as outperform Oppenheimer says Uber shares have a “compelling value proposition” ahead of earnings on Tuesday. “Even with near-term international softness, we see a push to increased profitability based on cross-selling and decreased marketing investment by peers”
