Here are Monday’s biggest calls on Wall Street: Morgan Stanley upgrades General Motors to overweight from equal weight Morgan Stanley said the auto giant’s stock is oversold. “The market has sufficiently discounted the challenges to making money in EVs, while under-appreciating the slow-melting ICE ‘flows’ and improved capital discipline. With a positive bull ($60)/bear ($20) skew, we move GM to a ‘top 5′ position in US autos.” Read more about this call h ere. Bernstein upgrades Zillow to market perform from underperform Bernstein upgraded the stock mainly on valuation. “We are upgrading Zillow shares from Underperform (old PT $35) to Market-Perform (new PT $45). When we launched on the stock last May, we were worried about the negative revision risk to both the top- and bottom-line. Estimates have been cut substantially since then. 2023 Street revenue forecasts are down -36% and adj. EBITDA forecasts down -66% since YE21.” Stifel upgrades ScottsMiracle-Gro to buy from hold Stifel said the stock has an “attractive near-term setup.” “Ahead of F2Q23 earnings, we are upgrading the shares of Scotts Miracle-Gro to Buy from Hold increasing our target price to $80 per share.” Goldman Sachs downgrades Exxon to neutral from buy Goldman downgraded Exxon mainly on valuation. “Downgrade from Buy to Neutral after multi-year outperformance as valuation better reflects portfolio depth and execution.” Read more about this call here. Bank of America reiterates Apple as neutral Bank of America said it’s very cautious heading into Apple earnings later this week. “We view the key debates as (1) Does the threat of Bing give Apple an upper hand in negotiating with Google?, (2) secular trajectory of Services growth (can it sustain double digits/teens growth) and cyclical slowdown of advertising and gaming, (3) potential reversal of COVID tailwinds (especially in iPads and Macs).” Bank of America upgrades Comcast to buy from neutral Bank of America said the stock’s valuation is compelling. “We upgrade Comcast to Buy and raise our PO to $49 (based on our DCF framework which equates to 7.6x EV/2024E EBITDA) after the company reported strong 1Q results and management provided upbeat commentary.” Disclosure: Comcast is the parent company of NBCUniversal, which includes CNBC Guggenheim upgrades Biogen to buy from hold Guggenheim said in its upgrade of the biotech company that it likes the company’s product pipeline. “Our investment thesis on BIIB revolves around new strategic key drivers for potential growth that promise to level up the company’s commercial and scientific impact across neurology, psychiatry, immunology, and rare disorders areas.” Guggenheim initiates Endeavor as buy Guggenheim initiated the sports and entertainment company and says it’s “well positioned.” “We believe that Endeavor is well positioned to drive attractive returns to shareholders, serve its multiple passionate fan bases, and provide best-in-class client service.” Evercore ISI reiterates Amazon as outperform Evercore said it’s standing by its outperform rating on the e-commerce giant. ” AMZN’ s current P/E Valuation is actually relatively similar to that of the leading major Consumer & Tech Brand franchises – COST, KO, MSFT, NKE, PG & WMT – and we view AMZN as very well deserving of consideration among these franchises.” SVB Securities initiates Danaher as buy SVB said Danaher is a “great stock for the long haul.” We see DHR as the most meaningful mega-cap long for 2023-24 among the life science tools universe with its guide now fully reset on the most attractive, spec’d-in and recurring revs market of bioprocess tools. Wells Fargo reiterates JPMorgan as overweight Wells said JPMorgan Chase’s deal for First Republic is a positive for the banking giant and the industry. “This seems positive for JPM and the industry.” Citi opening a positive catalyst watch on Western Union Citi said it’s bullish heading into Western Union earnings Tuesday. “Near-term sentiment has slightly improved, but this remains a turnaround story and there is less visibility regarding the Retail trajectory. We also acknowledge a heightened dividend yield, that approaches ~9%.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said Tesla’s price cuts are the best measure of electric vehicle demand. “In our view, Tesla’s pricing is perhaps the best ‘real time’ measure of EV demand, if not the truest indicator of big ticket discretionary purchases globally.” Morgan Stanley upgrades Logitech to equal weight from underweight Morgan Stanley upgraded the stock mainly on valuation. “Upgrading LOGI to EW (from UW) with a new $56 price target (up from $40), as we see a more balanced catalyst path over the next 6-9 months.” Guggenheim upgrades Teradata to buy from neutral Guggenheim upgraded the software company based on positive channel checks. “We’re upgrading TDC shares to Buy from Neutral and introducing a $62 PT (about 60% potential upside vs. current levels), based on channel checks that indicate Teradata may be at a positive inflection point in terms of retaining customers and driving revenue expansion via its Cloud strategy.”
