Here are Monday’s biggest calls on Wall Street: Wells Fargo downgrades Adobe to equal weight from overweight Wells said it’s concerned about the high price Adobe paid for design platform Figma last week. “Following a string of disappointing earnings results, Adobe shocked the software world announcing its intent to acquire Figma for ~$20Bn (1/2 cash, 1/2 stock). While the product/strategic fit is clearly aligned, it’s the price tag that is likely to lend credence to the bear case, at least for now.” Read more about this call here. KeyBanc upgrades PulteGroup, D.R. Horton and Lennar to overweight from sector weight KeyBanc said in its upgrade of several homebuilders that it sees attractive upside. “On balance, we see fundamental and rate pressure persisting, but positive relative performance, supporting our upgrades ( DHI, LEN , MTH, PHM, BLD to OW, and KBH, TOL to SW) with approximately 20% upside to our OW price targets from current levels.” UBS reiterates Nike as buy UBS said it’s standing by shares of the athletic retailer, but that it doesn’t see the company’s earnings report next week as a major catalyst. “We believe Nike is making progress implementing its ‘Consumer Direct Acceleration’ strategy and recovering in China. This makes us bullish on Nike’s long-term growth potential and we reiterate our Buy rating on the stock. However, we don’t believe Nike’s 1Q23 report will serve as a major catalyst.” Oppenheimer reiterates Peloton as outperform Oppenheimer said it sees signs that Peloton’s turnaround is starting to take hold. “Overall, while we still do not envision a quick snap back in results at Peloton and continue to recognize meaningful cyclical and structural challenges for PTON, we are increasingly of the view that under guidance of new CEO Barry McCarthy, underlying strategic positioning and financial and operational controls of Peloton are likely strengthening.” Bank of America reiterates Amazon as buy Bank of America noted that Amazon is poised to gain share, especially after FedEx’s disappointing earnings report last week. “Although FedEx’s announcement is a negative read for eCommerce, we see several reasons why Amazon may be less impacted than peers: 1) Amazon no longer ships with FedEx; 2) Amazon has well over 50% of volumes in the U.S.” Deutsche Bank reiterates Micron as buy Deutsche Bank said it sees an attractive risk/reward for shares of Micron heading into earnings next week. “While we believe risks to near term estimates are evident, we, however, believe the stock trading at ~1.1x NTM (next 12 months) book value is close to a cyclical trough, and we view the current risk-reward as attractive.” Raymond James adds Salesforce to the analyst favorites list Raymond James said shares of Salesforce are at an inflection point. “We reiterate our Strong Buy rating on CRM ahead of the company’s analyst day and user conference this week, where we expect to receive an update on key growth opportunities, multi-cloud adoption and increased emphasis on margins.” Cowen names SunOpta a top pick Cowen said the plant food-based company is a top pick with “strong secular trends.” “We have increased conviction in our near- and long-term forecasts, owing to SunOpta’s ability to leverage strong secular trends and its own high barriers to entry.” Compass Point initiates Zillow as buy Compass Point said it sees a substantial revenue opportunity for shares of the online real estate company. “While customer demand (and revenue) is generally correlated to overall real estate market conditions that are expected to remain under pressure through mid-2023, we see the challenge and opportunity for Zillow to actively capture share — which holds potential growth implications that may far offset near-term market headwinds.” JPMorgan reiterates Apple as overweight JPMorgan said in a note that demand remains “elevated” for Apple’s latest iPhone models. “In summary, iPhone demand remains quite elevated for the Pro models, and relative to a year ago, 14 Pro lead times are tracking in line with iPhone 13 Pro, while 14 Pro Max lead times are tracking above iPhone 13 Pro Max, suggesting a richer mix relative to last year.” Piper Sandler upgrades Array Technologies to overweight from neutral Oppenheimer said the solar tracking technology provider should be a key beneficiary of the Inflation Reduction Act. “We are upgrading ARRY to Overweight from Neutral as we: i) believe the company’s strong order book creates the potential for an attractive ’23 revenue/EBITDA outlook, and ii) view ARRY as a beneficiary of IRA’s domestic content requirements along with the manufacturing credits.” Read more about this call here. Morgan Stanley downgrades NCR to equal weight from overweight Morgan Stanley said in its downgrade of the enterprise payment solutions company that it sees execution risk for NCR . “Longer-Tailed Catalyst Path and Increased Execution Risk Drive Downgrade to EW.” Read more about this call here. Oppenheimer upgrades Netflix to outperform from perform Oppenheimer said it’s bullish on Netflix’s ad-tier launch. “Ad-tier launch should accelerate subscriber growth, drive ARPU, and slow churn. NFLX is in a unique position to aggregate large audiences and control the timing of series launches for top-tier advertisers, commanding high CPMs (cost per thousand).” Read more about this call here. Jefferies reiterates Bed Bath & Beyond as hold Jefferies said its analysis shows retailers such as Walmart and Target are key beneficiaries of Bed Bath & Beyond store closures. “After reviewing locations of upcoming Bed Bath store closures, we believe Walmart, Target, and Big Lots will be prime beneficiaries of sales transfer. Home Depot & Lowe’s have the potential to benefit as well, though we believe mass merchants and category-specific retailers are more likely. Based on our estimates, > $150M in sales could be ‘up for grabs’ from just this initial round of closures.”
Apple, Amazon, Adobe, Peloton, Bed Bath & Beyond
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