Here are Thursday’s biggest calls on Wall Street: Goldman Sachs initiates Apellis Pharmaceuticals as buy Goldman initiated the biotech company with a buy and says it sees “continued execution.” “APLS is a commercial biopharmaceutical company developing therapies through inhibition of complement at the level of C3, with approved assets Syfovre, an intravitreal injection for geographic atrophy (GA), a form of age-related macular degeneration that causes vision loss, and Empaveli in paroxysmal nocturnal hemoglobinuria (PNH), a rare blood disorder.” HSBC initiates Tesla as reduce HSBC said in its initiation of Tesla that the stock’s valuation is too rich. “Tesla is more than a very expensive auto company; its ambition is to be an innovator, which underpins the valuation.” Barclays upgrades Kellanova to equal weight from underweight Barclays said it sees top-line growth for the company. “With the spin of its North America cereal business (WK Kellogg, ticker KLG) now firmly in the rear view, we are upgrading K (now known as Kellanova vs Kellogg previously) to Equal Weight from Underweight.” Wolfe upgrades Spirit AeroSystems to buy outperform from peer perform Wolfe said shares of the aersopace company are derisked. “We upgrade shares of SPR to Outperform from Peer Perform following a cascade of derisking that should set the stock up to work on the expected production upcycle.” JPMorgan upgrades Montrose to overweight from neutral JPMorgan said in its upgrade of the environmental services company that shares are “compelling.” “We are reducing our Dec-24 price target to $41 to reflect a lower target multiple in a higher rate environment; however, we are upgrading the stock to Overweight from Neutral as we see the current stock valuation as very compelling.” Bank of America reiterates Disney as buy Bank of America said it’s standing by its buy rating after Wednesday’s earnings report. “DIS’ F4Q results were mixed with revenues below our forecast while operating income was above our expectations.” Goldman Sachs reiterates Arm as overweight Goldman said it’s sticking with its buy rating after the stock’s earnings report on Wednesday. “That said, we are reiterating our Buy rating on ARM with an updated 12-month price target of $65 (up from $62 prior) and, as such, would recommend investors to take advantage of any pullback to add to or initiate positions.” Goldman Sachs reiterates Instacart as buy Goldman said it’s sticking with its buy rating on the grocery delivery company after Instacart’s earnings report on Wednesday. “Shorter term, we expect investors will remain focused on elements of consumer demand, competitive intensity, the broader offline to online grocery industry shifts and the mix of stock buyback authorization to offset any pressure from forward lockup expiration.” Morgan Stanley reiterates Rivian as overweight Morgan Stanley said it’s sticking with its overweight rating on the electric vehicle company. ” Rivian shares offer approximately 40% potential upside to our price target. Narrowing the gap to our target will come down to management execution on cost reduction / re-engineering while maintaining capital discipline over the next 12 months.” Deutsche Bank initiates Eli Lilly as hold Deutsche said in its initiation of Eli Lilly that the stock’s valuation is stretched right now “The GLP-1 phenomenon has lifted LLY’ s FY24E EPS multiple to 48x – near all-time highs, leaving little room for upside. LLY is also trading at a 16x premium vs NVO, which looks stretched to us.” Deutsche Bank initiates Merck as buy Deutsche said in its initiation of the pharma company that it’s bullish on the company’s oncology drug, Keytruda. “In our view, MRK’s Keytruda has established itself as backbone for oncology treatment regimens, that we believe provides the best visibility for growth until FY2028, barring GLP-1 peers.” Evercore ISI adds a tactical outperform on Target Evercore said it’s bullish on the stock heading into earnings next week. “We are adding Target to the TAP Outperform list into 3Q23 earnings on 11/15 with a view that near term comp pressures are well understood, while Target’s ability to manage earnings can drive EPS upside.” Deutsche Bank upgrades Parker Hannifin to buy from hold Deutsche said in its upgrade of the motion and controls technologies company that it sees “strong potential” for multiple expansion. “Moreover, we think PH’s beat/raise mantra is likely to continue, as we think recently revised FY24 guidance is still overly conservative in two main areas: Industrial NA/International margins and Aerospace organic growth.” Goldman Sachs initiates Cytokinetics as buy Goldman said it sees an attractive risk/reward for the biotech company. “We initiate coverage on Cytokinetics with a Buy rating and a 12-month price target of $50. We see an attractive risk/reward on both near catalysts and the intermediate term commercial opportunity.” Wells Fargo reiterates Nvidia as overweight Wells said it’s bullish heading into the company’s earnings report next month. ” NVDA’s Software Monetization in Very Early Innings … but Likely to Become Increasingly Visible.” HSBC upgrades Anheuser-Busch InBev to buy from hold HSBC said it sees market share stabilization for the beer giant. ” ABI’s valuation, its stabilizing Bud Light market share, and the strength of other key markets merit a Buy rating for the stock.” Barclays upgrades Valaris to overweight from equal weight Barclays said the offshore driller has valuation upside. “Offshore drillers signalling greater return of cash flow next year, an indication of confidence in demand and FCF generation.” Barclays upgrades Unilever to overweight from equal weight Barclays said in its upgrade of the consumer products company that it’s bullish on management. “We upgrade Unilever to OW and raise our PT to £46. There’s much to do and it will take time but new CEO Hein Schumacher comes across as a real operator who understands the challenges.” Citi upgrades ContextLogic to neutral from sell Citi said in its upgrade of the e-commerce company that it sees a more balanced risk/reward. “We upgrade shares of WISH to Neutral from Sell as the strategic alternative process changes the risk/reward balance now, offsetting continued revenue declines and cash burn.”
