Here are Wall Street’s biggest calls on Wednesday: Morgan Stanley reiterates Apple as overweight Morgan Stanley said it’s taking an “incrementally more conservative view” on Apple’s December quarter. “Remain constructive on iPhone demand durability given solid lead time data, but for now, conservatively assume no add’l units are pushed into the March Q.” Bernstein reiterates Tesla as underperform Bernstein said it’s increasingly concerned about demand issues for Tesla. “The company has responded by cutting prices in China and the US (for December deliveries), and purportedly reducing production in China.” Read more about this call here. Oppenheimer reiterates Roku as outperform Oppenheim said it sees Roku shares hitting an inflection point in 2023. “As more platforms launch advertising tiers, Roku could increase its available ad inventory.” Bank of America reiterates Warner Brothers Discovery as buy Bank of America said Warner Brothers Discovery shares are the “best value in media.” “WBD management has implemented a tremendous amount of both operational and strategic changes since closing the merger in April. We anticipate the company will deliver on its goal of $2bn+ in incremental synergy in 2023 with a longer-term cumulative target of $3.5 bn+.” BMO downgrades Republic Services to market perform from outperform BMO downgraded the waste services company mainly on valuation. “RSG has significantly outperformed the market year to date (RSG: flat; S & P 500: -16%) reflecting robust industry conditions, solid execution, and an investor preference for defensive stocks. Morgan Stanley downgrades Airbnb to underweight from equal weight Morgan Stanley said it’s starting to see the “supply bear case” take hold for shares of Airbnb. “Supply deep dive speaks to slowing listings growth, occupancy headwinds, and lower room night demand. Estimates fall significantly and we don’t think Street has considered this risk.” Read more about this call here. Wells Fargo downgrades Dominion to equal weight from overweight Wells said in its downgrade of the electric company that it sees balance sheet concerns. “Despite the recent underperformance (shares are down 16% since before the Q3 earnings call vs. the S & P Utilities +6%), we downgrade shares of D to Equal Weight from Overweight and lower our price target to $64/sh.” Wells Fargo names Enphase Energy as a top pick Wells said investors should buy the dip in shares of the solar energy company. ” ENPH was down 7.8% yesterday as part of a broader sell-off in clean tech and high-beta growth stocks.” Read more about this call here. Raymond James downgrades Signature Bank to market perform from strong buy Raymond James said it sees balance sheet initiative headwinds for Signature Bank . “While we remain bullish on the bank’s long-term prospects to produce superior loan growth, operating efficiency, and credit metrics, we see near-to intermediate-term headwinds related to its balance sheet initiatives. Loop initiates Applied Materials as buy Loop said the semiconductor company is well positioned heading into 2023. “In our view, the company’s equipment product array, market leadership and competitive strengths in materials engineering can provide many solutions within this construct.” Wolfe downgrades Shopify and Chewy to peer perform from outperform Wolfe downgraded Shopify and Chewy on concerns about consumer weakness in e-commerce. “We are also revising our ratings on SHOP and CHWY to Peer Perform from Outperform after the recent rally.” Wolfe downgrades Booking to peer perform from outperform and Expedia and TripAdvisor to underperform from peer perform Wolfe downgraded several online travel companies on Wednesday and said it sees moderating travel demand in 2023. “We are also revising ratings on BKNG to Peer Perform (vs. Outperform previously), EXPE and TRIP to Underperform (vs. Peer Perform previously).” Stifel reiterates Papa John’s as buy Stifel said shares are “compelling” heading into 2023. “We believe PZZA shares represent a compelling value and are poised to deliver a stronger performance in 2023.” Bank of America upgrades SolarEdge to buy from neutral Bank of America said it sees a recovery in fundamentals for the solar company. “We acknowledge credit where it’s due and highlight tangibly clearer visibility over the near to medium term. Early signs of execution in 3Q22 and ratable improvement underpin a recovery in SEDG’s fundamentals. Read more about this call here. JMP upgrades MongoDB to market outperform from market perform JMP upgraded the developer data platform company after its earnings report on Tuesday. “We upgrade MongoDB, Inc. to Market Outperform with a $215 price target from Market Perform, after the company delivered much better than- expected F3Q23 results… ” Wedbush downgrades Carvana to underperform from neutral Wedbush said bankruptcy risks are rising for shares of Carvana. “Combined with the fact that many CVNA bonds have been trading at ~50 cents on the dollar, indicating investors see a high probability of default, we view this news negatively for the CVNA shares.” Read more about this call here.
