Here are Tuesday’s biggest calls on Wall Street: JPMorgan reiterates Netflix as overweight JPMorgan said paid password sharing should be a financial tailwind for Netflix. “All in, paid sharing should increase both revenue & subscribers, & we estimate that at least 30M of the 100M non-paying HHs globally can ultimately become extra members or new subs.” Bernstein reiterates ServiceNow as outperform Bernstein said it’s bullish on shares of the software company. “We are bullish about ServiceNow’s chances to achieve an incredibly rare and valuable distinction: becoming a winning platform-of-platforms in the cloud technology era.” Morgan Stanley downgrades Prosperity Bancshares to underweight from equal weight Morgan Stanley downgraded several regional banks mainly on valuation. “Downgrading stocks with the least upside: We are downgrading CBSH and PB to Underweight from Equal-weight, and downgrading CFR to Equal-weight from Overweight. These are relative valuation calls, given how much the rest of the group has de-rated.” Read more about this call here . UBS reiterates JPMorgan Chase as buy UBS said it’s bullish heading into JPMorgan’s investor day on May 22. “We do believe that JPM will, as always, give painstaking detail on the current and planned market share gains and investments for each of its major lines of business.” Morgan Stanley reinstates Carvana as equal weight Morgan Stanley reinstated coverage of the stock and said it has mitigated cash burn. “A faster path to break-even EBITDA, faster SG & A cuts and a far more sanguine used car environment addresses some uncertainty in the stock that led us to remove our PT. We see CVNA’ s stock as an option on auto credit and management execution with an extension of time value.” Oppenheimer initiates GE Healthcare a outperform Oppenheimer said the health care company is an “attractive large-cap diagnostics & imaging play.” ” GE Healthcare is the global leader in healthcare diagnostics, imaging, and intervention.” Read more about this call here. Atlantic Equities reiterates Wells Fargo as overweight Atlantic said it sees the banking giant as a “self-help” story. “We regard WFC as a self-help story with improving loan growth combined with a continued focus on cost reduction and capital returns.” Barclays reiterates Walmart as overweight Barclays said the big box giant is well positioned heading into earnings Thursday. “We remain encouraged by gains in consumables and across customer cohorts and channels, which we also show, and expect WMT stock to hold up better in a slowing environment.” BMO upgrades Gilead to outperform from market perform BMO said in its upgrade of the stock that it has a “best-in-class cell therapy franchise.” “We are upgrading Gilead to Outperform and increasing our target to $100 from $90 based on: What we believe to be a best-in-class cell therapy franchise supported by strong manufacturing capabilities.” Read more about this call here . Mizuho reiterates SoFi as buy Mizuho said it’s standing by shares of SoFi. “SOFI bears are weighing on the stock in recent days. They wrongly, in our view, conclude that since no personal loans were sold in 1Q, SOFI is unable to sell its loans. We believe the correct reasoning is that SOFI is able to earn ~6.4% annualized yield on holding its personal loans, which is more attractive than selling them at ~5%.” Citi reiterates Deere as buy Citi said it’s standing by its buy rating on shares of Deere. “Despite the sell-off in row crop futures, we expect DE to maintain a positive stance around the prospects for 2024 large ag equipment volumes in most markets.” Bank of America resumes Western Alliance as buy Bank of America said it sees an attractive risk/reward for the regional bank. “While WAL is not out of the woods yet, we believe management has shown remarkable execution thus far in navigating the post SVB turmoil.” Read more about this call here. Gordon Haskett upgrades Expedia to buy from hold Gordon Haskett said in its upgrade of the stock that it sees a “favorable” risk/reward. “We see an attractive risk/reward dynamic, with investors failing to appreciate EXPE’s solid fundamentals and tailwinds that should come with the completion of the tech stack migration and loyalty program launch. As such, we’re upgrading EXPE to Buy from Hold.” Citi upgrades Williams Companies to buy from neutral Citi said the petroleum stock is oversold. “We now view WMB as oversold and upgrade to Buy (from Neutral) following YTD under-performance.” Citi reiterates FedEx as buy Citi said it’s standing by its buy rating FedEx shares. “Overall, we think the setup is positive and are currently above consensus estimates for both F4Q23 and F2024.” Argus upgrades Royal Caribbean to buy from hold Argus said it sees margin expansion for the cruise operator. “We are upgrading Royal Caribbean Group to BUY from HOLD and setting a target price of $88. We think that high cruise occupancy in 1Q23 points to a demand recovery and is likely to result in stronger-than-anticipated revenue and earnings. We also look for margins to strengthen and expect new ships to launch over the next 12 months.” Barclays upgrades Amdocs to overweight from equal weight Barclays said the communications software company is well positioned for 5G. “We have become more confident that new domains will provide revenue growth tailwinds – this is supported by a recent discussion with an industry expert who points out that DOX is well positioned to capitalize on the ‘inevitable’ industry transition to 5G and new domains.
