Here are Wednesday biggest calls on Wall Street: Barclays downgrades Tesla to equal weight from overweight Barclays downgraded the stock on valuation and challenging near-term fundamentals. “Downgrading TSLA to EW from OW; 2) Stock performance amid recent rally too sharp relative to challenging near-term fundamentals…questions remain on margins, demand elasticity; 3) Bullish on LT opty, but LT initiatives will take time to show through.” Read more about this call here . Goldman Sachs upgrades Petrobras to buy from neutral Goldman said the Brazilian petroleum company has an attractive valuation. “While some uncertainty remains (although relatively lower than earlier in the year), we see PBR trading at an undemanding valuation.” Read more about this call here. Wolfe upgrades Spotify to outperform from peer perform Wolfe said it sees sustainable upside for Spotify . “As such, we believe the potential for sustained upside to Street OI estimates ahead will be a key catalyst for shares.” Read more about this call here . BMO upgrades Adobe to outperform from market perform BMO said it’s bullish on the company’s venture into AI. “As discussed in our recent survey, we believe that ADBE can capture price/mix, as well as new users, through generative AI.” Read more about this call here. Citi initiates Everest as buy Citi initiated coverage of the insurance company and said it’s “capitalizing on the most favorable reinsurance underwriting environment in decades.” “We believe RE’s primary business is well positioned for faster growth given leverage to attractive specialty lines and international expansion.” Bank of America reiterates FedEx as buy Bank of America said the “structure transformation” is in progress after FedEx’s earnings report Tuesday. “Showing early progress, Ground volumes declined yet margins improved in 2H23, the first time it achieved that in its history.” Goldman Sachs reiterates Nike as buy Goldman said it’s standing by its buy rating heading into Nike earnings next week. “We believe a key debate amongst investors heading into the 1Q result will center around Nike’s wholesale channel strategy and growth outlook.” TD Cowen names Ralph Lauren a best idea TD Cowen said it’s bullish on shares of Ralph Lauren . “Our model and channel work suggests that Consensus estimates are underestimating management’s ability to execute toward a mid-teens EBIT margin target.” TD Cowen names Tapestry a best idea TD Cowen said the stock is underappreciated. ” TPR’s strong direct to consumer channel (90% penetration vs. CPRI’s 70%) drives higher service, more pricing control, and higher margins.” TD Cowen names IAC a best idea Cowen said the media company is undervalued. ” IAC is our best Smidcap idea for 2023, as IAC’s portfolio segments trade at a significant conglomerate discount, in our view.” Jefferies reiterates Amazon as buy Jefferies raised its price target on the stock to $150 per share from $135 and said it have more room to run. ” AMZN shares are +50% YTD (vs. S & P500 +14%) as improving profitability, an AWS recovery in sight and the perception of long-term AI tailwinds have driven outperformance.” Loop upgrades OneSpaWorld to buy from hold Loop said shares are attractive of the spa company that services cruise ships. ” OneSpaWorld has contracts that give OSW exclusive rights to serve as the sole health and wellness services provider for nearly all major U.S. cruise lines.” Oppenheimer reiterates Uber as outperform Oppenheimer said it has “increased confidence in UBER’s consumer tailwinds.” “Despite +70% YTD, UBER remains a top large-cap pick in our coverage, and we are increasing our target to $65 from $55 on higher peer valuations and increased confidence in UBER’s consumer tailwinds.” Citi opens a positive catalyst watch on Molson Coors Citi said the beverage maker is a beneficiary of the Bud Light controversy. The firm reiterates its long term neutral rating on the stock. “We believe that TAP will continue to benefit from the Bud Light controversy throughout the summer, leading to upside to both top- and bottom-line estimates and raised 2023 guidance.” JPMorgan initiates Tyler Technologies as overweight JPMorgan said the software company is a “market leader.” ” Tyler is a domestic software provider solely focused on the public sector. Many governments are running outdated systems which are overdue to modernize: this creates a strong secular tailwind.” Goldman Sachs reiterates Micron as buy Goldman said it’s standing by its buy rating on the stock heading into earnings next week. “That said, our views on 1) the overall Memory cycle predicated on demand stabilization, particularly across the PC and smartphone end-markets, and disciplined supply-side actions on the part of all participants, and 2) Micron’s medium- to long-term competitive position in DRAM and NAND, remain unchanged.” Bernstein reiterates Oracle as outperform Bernstein said Oracle is a “mini Microsoft. ” “At a high-level, In 2015 Microsoft’s story had three key pillars and one could argue Oracle has 3 similar pillars: 1) the Office Cloud Transition — Oracle is in the early days of an ERP Cloud migration; 2) a nascent growth opportunity in Azure — Oracle has OCI Gen 2; and 3) the Windows and Server & Tools Cash machine.” Needham reiterates Disney as hold Needham said negative sentiment continues to build for Disney. “Over the past several weeks, the tone of incoming calls about DIS has shifted distinctly negative, and sentiment has further deteriorated since CFO Christine McCarthy left last week.” Barclays reiterates Carnival as overweight Barclays called the cruise company a “self-help” story. “Remain OW on Positive Earnings Revision Cycle and CCL’ s Self-Help Potential. Needham reiterates Snowflake as buy Needham raised its price target on the stock to $216 per share from $180 and said it’s bullish on the company’s foray into AI. “We dove into Snowflake ahead of the company’s Summit user-event next week. In our view, there is potential for the company to increase the size of its TAM from $248 Billion in CY26 – based on platform positioning and the unlock of new use-cases from Generative AI.” Deutsche Bank reiterates Shopify as buy Deutsche said it sees “meaningful upside” ahead for Shopify shares. “With shares +85% YTD and investors struggling to see upside from current levels, we remain Buy rated and believe a better understanding of the near term profitability potential along with longer term earnings power could help catalyze the shares.” Citi names Workiva a top pick Citi said the software-as-a-service company has upside. “WK is our new top pick with continued upside from ESG and potentially capital markets and a shift in valuation towards EV/FCF (enterprise value/free-cash flow) going into ’25.” Morgan Stanley reiterates Dell as overweight Morgan Stanley said it sees an “attractive catalyst path” for Dell shares. “We have greater conviction in our OW thesis following meetings w/ incoming CFO Yvonne McGill & Director of IR Hall Butler.” Morgan Stanley reiterates Apple as overweight Morgan Stanley said it’s bullish on the company’s use of Apple TV+ to acquire further sports streaming. “However, we view Apple TV+ and Apple’s further investments in sports streaming as a way to increase installed base loyalty and acquire new users, both of which are opportunities to further monetize the Apple user longer-term.”
