Here are Tuesday’s biggest calls on Wall Street: Piper Sandler reiterates Amazon as overweight Piper lowered its price target on the e-commerce giant to $119 per share from $125, but said the stock could see a “reprieve.” “First, the company has embarked on a headcount reduction. The peer signal is clear: on average, the companies in our coverage who have cut headcount this year are up ~8% since the announcement, handily outperforming the S & P. Also, as of mid-November, AMZN’s 1YR return in the stock is a ~50% decline.” UBS reiterates Apple as buy UBS said its survey checks show that “iPhone purchase intent was also down 100 bps to 21% from seven year highs last year.” “The average age of the Apple installed base is almost 20 months, near survey highs with increases in all markets except China that was flattish.” Cowen downgrades Peloton to market perform from outperform Cowen said there’s too much uncertainty around the stock. “We downgrade PTON to Market Perform on challenging post-pandemic trajectory and demand uncertainty amid turnaround effort.” Cowen downgrades Lyft to market perform from outperform Cowen said it sees macro and insurance cost headwinds. “We downgrade LYFT to Market Perform on near-term challenges including (i) higher insurance costs, which could persist due to inflationary pressures; (ii) potential for revenue per rider to be affected by weaker consumer; (iii) regulatory overhang.” Cowen downgrades Carvana to market perform from outperform Cowen said in its downgrade of the stock that it has an “uncertain path to cash flow.” “We are downgrading CVNA to Market Perform as industry & macro headwinds have impacted unit growth and revenue trajectory while lengthening the path to profitability.” Read more about this call here. Cowen downgrades Wayfair to market perform from outperform Cowen downgraded the stock due to macro headwinds. “We downgrade W to Market Perform as we lower our ’22-’31 revenue and EBITDA estimates on macro headwinds and concerns about consumer demand for the Home category in ’23.” Baird downgrades Airbnb to neutral from outperform Baird said Airbnb is exposed to a slowdown on consumer spending. “Three downgrades include ABNB, CVNA and VRM, each exposed to pullbacks in discretionary ‘high ticket’ purchases.” Credit Suisse initiates Box as outperform Credit Suisse initiated the cloud content management company and said it’s a “one-stop-shop.” “We believe Box’s Content Cloud has become a compelling, unified, enterprise-grade platform offering users a ‘one-stop-shop’ for their content needs.” Bank of America adds Costco to the US1 List Bank of America said the big box retailer is well positioned for food inflation. “We expect high food inflation to drive continued share gains for the warehouse club channel (including Costco ) given the strong value proposition and price positioning on overlapping SKUs vs. mass and traditional grocery.” Cowen upgrades Walgreens Boots Alliance to outperform from market perform Cowen said in its upgrade of the drug store chain that it sees an attractive risk/reward. “We upgrade WBA to Outperform from Market Perform as WBA’s transformation into a hc svcs business accelerates and op inc mix shifts away from US retail.” Read more about this call here. JPMorgan upgrades Toll Brothers to overweight from neutral JPMorgan said in its upgrade of the homebuilder that shares of Toll are relatively inexpensive. “Moreover, we see upside potential to our FY24E EPS, as we are currently conservatively using a sales pace that is roughly 20% below its 2014-19 average.” Read more about this call here. Wolfe initiates Procter & Gamble as outperform Wolfe said in its initiation of the stock that its valuation is undemanding. “We expect demand elasticities to beat expectations as brand investments and innovation drive wallet share to P & G. The valuation is also not too demanding as investors flee to safety.” Read more about this call here. Barclays reiterates Coinbase as equal weight Barclays said it’s standing by its equal weight rating and that insolvency concerns are overdone. “We also expect Coinbase will engage in more aggressive cost rationalization, and with the expected increase in interest income over the next year coupled with cost cuts, we think insolvency fears (as are currently reflected in bond prices) are overblown.” BMO reiterates AMD and Nvidia as outperform BMO said Advanced Micro Devices and Nvidia are poised for “outsized” share gains. “Data suggests outsized gains for NVIDIA vs. AMD. One thing that is clear to us is that AMD continues to pay the piper for overshipping earlier in the year vs. its rivals in the market. We rate shares of both AMD and NVDA Outperform.” Citi upgrades BP to buy from neutral Citi said in its upgrade of the oil and gas giant that it likes the stock’s valuation and free-cash flow yield. “Growth is one aspect that we believe BP can start to differentiate around versus large-cap European peers.” Read more about this call here. Morgan Stanley reiterates Alphabet as overweight Morgan Stanley said its survey checks show that “GOOGL’s position at top of e-com funnel remains strong.” “E-com drives the online ad markets; data support why we are constructive GOOGL and relative resiliency of paid search through a potentially weakening consumer. Morgan Stanley reiterates SoFi as equal weight Morgan Stanley said it sees increasing signs that SoFi could exit crypto despite it being a very “small piece” of the company’s revenue. “Our view? Crypto a very small piece of SOFI’s revenues, but we see higher odds of 1) crypto exit and 2) potential regulatory scrutiny on the bank Deutsche Bank reiterates Disney as buy Deutsche said it doesn’t see a meaningful change to Disney’s direct-to-consumer strategy after former Disney CEO returned to the top post on Monday. “With respect to DTC, we do not see Mr. Iger changing the strategic direction meaningfully given that the company already reached peak DTC losses last quarter and is on a path to becoming profitable in F2024, with material improvements already in the works given price increases and the launch of the Disney+ AVOD.”
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