Here are Monday’s biggest calls on Wall Street: Bernstein reiterates Apple as market perform Bernstein said it’s concerned about disappointing iPhone revenues for Apple. “We believe that iPhone revenues this year are likely to disappoint, and we see the potential for downward revisions (we are 6% consensus EPS for FY 23).” Citi reiterates Tesla as neutral Citi said Tesla’s fourth-quarter setup is improving but that the company’s earnings report is not likely to resolve everything. “The recent selloff has been driven by legitimate negative developments (Dec China demand/share) and other concerns that we don’t think Q4 results alone are likely to resolve.” JPMorgan reiterates Netflix as overweight JPMorgan said it’s staying bullish heading into Netflix earnings next week. “Heading into 4Q earnings on Thursday, 1/19, we remain bullish on NFLX shares (upgraded to Overweight on 10/19/22) & the company’s ability to reaccelerate revenue, expand operating margins, & grow FCF in 2023.” Guggenheim upgrades AutoZone to buy from neutral Guggenheim said it sees “operational improvement” for the auto parts retailer. “In fact, one could argue that the greatest degree of operational improvement has been generated by AutoZone, Inc.” Bank of America names Amazon, Uber and Pinterest as top 2023 picks Bank of America named Amazon , Uber and Pinterest as top ideas for 2023, noting it likes stocks with margin growth potential. “For risk-on stocks, we generally favor: 1) share gainers in their sectors, 2) operations that will benefit from a positive shift in consumer or business spending, 3) significant margin growth potential from current levels (street needs reason for upside optimism), and 4) valuations well below historical averages.” Goldman Sachs adds Alibaba to the conviction buy list Goldman added the stock to its top picks list and said it thinks the worst is behind it. “We see Alibaba at 11X 2023 adj. P/E as the best value stock proxy to enjoy advertising recovery, fintech and cloud structural growth, add to CL as we believe the worst is behind us after two years of downward earnings revisions with the largest room for valuation multiple repair amongst the mega-caps as its top line growth resumes and 2022-25E earnings resume to mid-teens growth.” Read more about this call here. Piper Sandler upgrades Oracle to outperform from neutral Piper Sandler said it sees an “improving” risk/reward for Oracle shares. “Upgrading to Overweight on an improving risk-reward as cloud momentum takes hold. KeyBanc upgrades Visa and Mastercard to overweight from sector weight KeyBanc upgraded several credit card stocks on Monday and said it sees “growth durability.” ” V/ MA : upgrade to OW as our prior travel-related dislocation concerns have faded and new flows (e.g., P2P, B2B etc.) beyond consumer card are improving the diversification and growth durability.” Read more about this call here. Piper Sandler upgrades Uber to outperform from neutral Piper said in its upgrade of Uber that it sees consumers opting to hail rides instead of replacing old cars. “Vehicle prices are near all-time highs, and a quick reversion to historical pricing seems unlikely. As a result, we think cash-strapped consumers will increasingly opt to hail rides instead of trying to replace old cars.” Read more about this call here. Morgan Stanley upgrades GXO to overweight from neutral Morgan Stanley said in its upgrade of the logistics provider that it sees several growth opportunities. “2022 was a tough year for GXO’s stock and while the noise may not be fully behind them we believe this can be more than offset by LT targets which we expect to get at the upcoming investor day.” Morgan Stanley reiterates Dick’s as overweight Morgan Stanley said Dick’s screens as among the best risk/rewards in retail. “Stock looks mispriced if pre-COVID structural changes hold. DKS’s customer base is larger/stickier now and should benefit from higher sports participation.” RBC upgrades Stryker to outperform from sector perform RBC said in its upgrade of the medtech company that it sees upside to estimates. “We are upgrading shares of SYK to Outperform and raising our PT to $284 (from $240) as we see potential tailwinds that could position the company to deliver upside to sales estimates.” Goldman Sachs downgrades MetLife to neutral from buy and Prudential to sell from neutral Goldman downgrades several insurance companies on Monday, noting it prefers higher free cash flow yielding stocks. “The MET and PRU downgrades are in part driven by our more defensive posture on the outlook for life insurance and the environment which has led us to favor higher free cash flow yielding companies.” Bank of America upgrades Zillow to buy from underperform Bank of America said in its double upgrade of Zillow that it likes the company’s growth initiatives. “Zillow is implementing several important growth initiatives that could drive share gains, and given a highly leverageable expense base, we estimate adjusted EBITDA could nearly double from 2023 to 2025.” Jefferies names Meta a top 2023 pick Jefferies named the social media giant a top pick and said it predicts new growth drivers for Meta. ” META will be the best-performing mega-cap driven by expense reductions and new monetization drivers.” Jefferies downgrades Marriott to hold from buy Jefferies said in its downgrade of Marriott that it sees limited upside. “It should be self-evident that with most aspects of the recovery played out and the looming recession, the upside to earnings and valuation for bellwether stocks is limited.” Jefferies downgrades Signature Bank to hold from buy Jefferies said in its downgrade of the commercial bank that it sees too much uncertainty for Signature. “Bank stocks face another year of uncertainty with revenue forecasts challenged, provisions for credit on the rise, and capital return mostly sidelined ahead of a recession.” Bank of America names Ferrari a top 2023 pick Bank of America said the luxury car company has pricing power. “Our top stock picks for 2023 are: RACE (unique asset, pricing power, resilient performance, and conservative outlook).” JMP reiterates Coinbase as market outperform JMP said it’s standing by its buy rating on the crypto company but that the industry needs to “get serious.” “Crypto needs to get serious: near- and longer-term considerations for the industry and its infrastructure, including leaders such as Coinbase. ” Raymond James upgrades Toll Brothers to outperform from market perform Raymond James said in its upgrade of the stock that it sees an attractive risk/reward. “But for now, we believe the best most attractive risk/reward opportunity lies in moving up the price point curve towards Toll Brothers (with its more visible construction backlog), which is still trading at just 1.0x tangible book value and 7.9x CY23 EPS despite its very encouraging 2023 guidance.”
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