Here are Wall Street’s biggest calls on Monday: Barclays reiterates Apple as equal weight Barclays said it sees trends that show Apple’s June quarter is setting up to be strong. “Given that trends are tracking above based on the combination of the AAPL estimate expectations and builds outlook, we believe it sets up for a stronger June quarter for AAPL product revenues relative to consensus.” RBC upgrades Tesla to outperform from sector perform RBC noted it sees “near-term improvement and long-term positioning” for the electric car maker. “Upgrading to OP, $1,100 PT (from $1,175) given more favorable near-term set-up and belief that Tesla’s focus on supply chain and vertical integration will be a mid-term competitive advantage.” Read more about this call here . Morgan Stanley reiterates Coca-Cola as overweight Morgan Stanley said consensus is “too low” for shares of Coca-Cola. “We are Overweight on KO, with new detailed analysis showing that consensus revenue remains too low not only in 2022, but also in 2023 (which we think is less understood), and that Coke’s pricing power and away from home recovery post-COVID drives much better KO near-term visibility than CPG peers.” JPMorgan reiterates Ulta as a top idea JPMorgan reiterated Ulta as a top pick for the second half of the year and said the stock is a good “hiding” place. “Inflation pass through/defensive names remain dominant (autoparts, grocery/club, TSCO) with the ULTA reopening popular.” Wells Fargo initiates Silvergate as overweight Wells said it sees an attractive entry point for shares of the fintech and bank company. “We are in the nascent stages of crypto and blockchain adoption, with Silvergate providing a regulated and FDIC-insured platform for participants looking to on-ramp and off-ramp USD into the crypto ecosystem. SI has created a strong network effect through its Silvergate Exchange Network, which is utilized by some of the largest exchanges and institutional clients in the crypto space.” Read more about this call here. Cowen names Alaska Airlines a top SMIDCap idea Cowen said Alaska is “well-positioned for second half growth.” “We expect the airline to return to profitability in the June quarter, and to continue being profitable into 2023. We believe investors should take another look at the shares.” Guggenheim reiterates Nike as buy Guggenheim said many of the near-term challenges Nike is facing are transitory and that investors should stick with the stock. “While we do not believe Nike is immune from the numerous challenges brought on by COVID-19, logistics, and other geopolitical uncertainties, we believe many of these issues are transitory in nature. We remain BUY rated and believe this uncertainty provides a buying opportunity.” UBS reiterates Micron as a top pick UBS said Monday that it sees robust margins for shares of Micron. “Amid macro concerns, we believe investors continue to overlook several key factors. First, although end market weakness in PC/smartphones is weighing somewhat on near term DRAM ASPs (average selling price), we see very strong pricing support heading into C2023 as the industry growth in bit supply is set to compress significantly.” Jefferies reiterates Amazon as buy Jefferies said shares of Amazon could be “range-bound” in the near term but added that it’s standing by the stock. “We believe AMZN’s stock could be range-bound near term as difficult comps result in slower Sales growth, while overcapacity and wage inflation depress Op Income margin.” UBS reiterates Chipotle as buy UBS said the Mexican chain restaurant has some of the “best upside” in its restaurants coverage. “Brand well positioned w/ levers to drive transactions & sales, and resiliency. We believe CMG shares have among some of the best upside in Restaurants, supported by medium & LT growth catalysts, and near-term resilience. A key point of investor pushback is CMG’ s ability to cont. to drive positive traffic against elevated pricing.” Wolfe downgrades DocuSign to underperform from peer perform Wolfe downgraded the stock due to decelerating billing and the potential for single digit revenue next year. ” DOCU reported mixed F1Q23 results and updated its FY23 billings guidance to now grow ~half as previously expected and suggests potential for single-digit revenue growth next year.” Jefferies reiterates Microsoft as buy Jefferies said Microsoft is well positioned for any economic weakness. “We view MSFT as a diversified business better positioned to weather potential macro weakness than others & these enhancements should sustain durable rev growth for the foreseeable future.” JPMorgan reiterates Apple as overweight JPMorgan said it sees Gaming Services contributing at least $1 billion in revenue for Apple by 2025. “We forecast Apple Arcade subscribers to expand rapidly, led by the ramp in popular titles, leading to an estimated 70 mn subscribers by 2025 which by our estimate will lead to $1.2 bn in revenues for the service.”
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