Here are Wednesday’s biggest calls on Wall Street: UBS reiterates Apple as buy UBS said wait times for Apple’s iPhone are hitting “extreme levels.” “Typically, the month of December accounts for 35%-40% iPhone units in the quarter raising risk if supply is constrained into December.” Bank of America reiterates Amazon as buy Bank of America said Amazon is a key beneficiary of automation. “We maintain Buy on Amazon as we see potential for significant fulfillment cost savings ahead driven by greater efficiency.” Deutsche Bank downgrades Medtronic to hold from buy Deutsche said it sees too many headwinds for Medtronic. ” MDT has had a challenging 12 months, with several product issues in CY 4Q:21 and then macro headwinds impacting EPS growth in FY23.” Raymond James downgrades Home Depot to market perform from outperform Raymond James said it sees a more balanced risk/reward outlook after the company’s earnings on Tuesday. “Our change in opinion is not a reflection of Home Depot’s execution (has been solid), but more so our view that the risk/reward for HD entering 2023 now appears more balanced, with the ongoing risk/headwinds to the U.S. housing industry and the stock recovering nicely off its 2022 lows. Read more about this call here. Wells Fargo upgrades Oscar Health to overweight from equal weight Wells said shares of the health insurance company are too attractive to ignore. “We are upgrading OSCR to Overweight from Equal Weight. While the range of outcomes remains wide, we believe risk/reward skews to the upside following significant YTD underperformance.” Read more about this call here. Bank of America reiterates Signature Bank as buy Bank of America said it sees a long-term favorable risk/reward outlook for the crypto bank. ” Signature s hares have been under pressure due to perceived risks tied to FTX. … However, for investors willing to look past the near-term EPS volatility tied to potential outflow of crypto deposits, we see the risk/reward as favorable, especially if the Fed is nearing an end to its rate tightening cycle with a terminal rate of approximately 5% versus 4% currently.” UBS downgrades Advance Auto Parts to neutral from buy UBS said in its downgrade of Advance Auto Parts that it’s losing share. “Given the impact of inflation, unit losses are much steeper, suggesting that it is losing customers at a rapid pace.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it’s “constructive” on the long-term adoption of EV’s. “Other than Tesla , EVs lose money. This really gets lost in the details, in our opinion. The majority of unit volume in most EV production forecasts through 2030 is accounted for by legacy internal combustion OEMs transitioning to EVs.” Bernstein reiterates Alphabet as outperform Bernstein said it’s standing by its outperform rating on the stock after an activist investor warned the company needs to cut costs. “We side with the activists and expect Google will do what needs to get done, even if it’s uncomfortable.” Citi reiterates Zoom as sell Citi s aid Zoom may continue to “falter” due to slowing growth. “With worsening growth prospects and rising competitive risk, we maintain Sell/High Risk rating and see more downside ahead and cut TP to $72 which equates to 16x our FY24 EV/FCF estimate.” Read more about this call here . UBS reiterates Walmart as buy UBS said the stocks is undervalued after the company’s earnings report on Tuesday. “So, we believe there’s a compelling case for WMT’s shares at the current level.” Evercore ISI adds a tactical underperform call on Etsy Evercore said it sees softening purchase trends in the near term. The firm kept its long-term outperform rating on the stock. “Reasons are: our proprietary survey results suggest softening purchase frequency trend and a shift in spend toward lower-priced items among Etsy customers, as well as negative consumer sentiment toward the direction of the U.S. economy.” Credit Suisse reiterates Nvidia as outperform After a change in analyst coverage, Credit Suisse named the tech company as a top pick. ” Nvidia (NVDA), Outperform: Our top pick. NOT making a call ahead of the quarter. Long-term growth in AI, de-risked gaming, content gains with Grace/Hopper, and optionality from software.” Read more about this call here . Credit Suisse initiates Qualcomm as outperform Credit Suisse said it likes Qualcomm’s diversified revenue stream. “Top pick in handsets, with derisked numbers and optionality from potential iPhone contract and non-handset business.” Read more about this call here . Goldman Sachs upgrades Lincoln National to buy from neutral Goldman said in its upgrade of the life insurance company that it sees strong capital generation. “Coming away from our analysis we upgrade LNC to a Buy rating (from Neutral) driven by our view that the company should be able to rebuild its capital base and display its relatively strong underlying capital generation faster than investors are expecting.”
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