Here are the biggest calls on Wall Street on Tuesday: UBS reiterates Target as buy UBS said in its bullish on the big box retailer heading into earnings next week. “There are several investment debates on TGT heading into its upcoming results. Is its guidance for 2H’22 too high? What about ’23? Are comps slowing? … .At the heart of these questions is whether TGT has taken aggressive enough action to clear out its inventory and can it maintain its comp momentum into ’23. We think the answer to these questions is yes.” Baird downgrades Bed Bath & Beyond to underperform from neutral Baird said in its downgrade of the stock that the risk/reward looks unattractive as the stock continues to be caught up in the meme craze. “Shares have surged 148% since July 27, including +86% the past two trading days. This frenzied move has been driven by non-fundamentally focused market participants. With market share losses accelerating and BBBY burning cash, fundamental risk/reward looks unattractive, in our view.” Read more about this call here. Morgan Stanley reiterates Blackrock as overweight Morgan Stanley said in a note to clients that it’s bullish on Blackrock’s recently announced partnershi p with Coinbase. ” BLK’s recently announced partnership with Coinbase creates an institutional on-ramp for digital assets, starting with bitcoin.” Piper Sandler upgrades Tyson Foods to neutral from underweight Piper upgraded Tyson mainly on valuation. “We continue to recognize risks from consumers downtrading (both within meat and to other alternatives), and there remains risks to F23 Beef margins from short cattle supplies (as F22 herd liquidation pulls supply forward).” Deutsche Bank downgrades Palantir to sell from hold Deutsche said in its downgrade of the data analytics software company that it sees the government business decelerating. “We downgrade PLTR shares to Sell from Hold following 2Q results that change our view of the company’s Government business and overall risk/reward in the stock.” Read more about this call here . Craig-Hallum downgrades Nvidia to hold from buy Craig-Hallum downgraded the stock after its disappointing earnings preannouncement on Tuesday. “The good news is Datacenter is the largest segment today and growth continues to be very strong, which limits the downside NVDA should see from this Gaming cycle vs the one in late 2018. The problem is that unless Datacenter can post back-to-back growth of ~50% in F23/F24, our EPS estimates have to come down quite a bit due to the Gaming impact.” JPMorgan reiterates Netflix as neutral JPMorgan kept its neutral rating on the stock in a note to clients on Tuesday, but says the next year will be critical to “re-accelerating revenue growth.” “We believe NFLX has urgency around both accelerating Revenue growth and driving greater FCF, w/the latter supported by flattish content spending over the next couple years.” UBS downgrades Sanofi to neutral from buy UBS said in its downgrade of the pharmaceutical company that it sees slowing earnings per share growth. “We are downgrading Sanofi shares from Buy to Neutral. After a FY22 guidance raise to c.15% EPS growth at 2Q we think the equity story will take a pause.” MKM downgrades Winnebago to neutral from buy MKM said in its downgrade of the RV company that it sees limited upside for Winnebago shares right now. “Taking a step back, the stock is up a modest 6%-7% since we launched coverage with a Buy rating on May 4th, noting that industry conditions have since worsened given runaway inflation, the subsequent surge in interest rates, and a longer than expected timeline for the needed reduction in industry towable RV production.” BMO upgrades Brunswick to outperform from market perform BMO said in its upgrade of the marine products company that the stock has an attractive valuation. “We are upgrading shares of Brunswick to Outperform from Market Perform with a revised price target of $110 (from $90). We think BC shares have pulled back to an attractive valuation owing to investor concerns about the sustainability of demand as well as the impact of a slowing economy.” Deutsche Bank adds a catalyst call buy on Union Pacific Deutsche added a short-term buy idea on shares of the rail company and says the stock looks “compelling.” “We’re most optimistic on the potential for UNP given much easier comparisons coming up, which should allow for surprisingly strong headline volume growth (as well as acceleration in mix trends). This, together with notable underperformance vs. the broader Rail sector over the last 30 days, offers a compelling near-term opportunity, in our view.” Loop initiates Enovix as buy Loop said in its initiation of Enovix that the lithium battery company could one day be worth $80 billion. “Initiating Buy with a $50 PT / $8.0B Market Cap ($2.3B Market Cap currently); furthermore we see L-T upside potential (say by 2030) for a $575 stock / ~$80B Market Cap)… and yes, we truly believe this opportunity is legitimate (Figure 3). That said, we fully acknowledge risks and a bear case exists.” Bank of America upgrades Tellurian to buy from neutral Bank of America said in its upgrade of Tellurian that it sees improved liquidity and free cash flow for the nat gas company. “Finally, a third benefit from the gas rally has been heightened demand and ability of oil & gas players to gain exposure to LNG via equity stakes.” Wolfe reiterates Tesla as peer perform and General Motors as outperform Wolfe said in a note on Tuesday that Tesla and GM would be “clear winners” should the Inflation Act become law. “Will the UST grant waivers in implementing the Inflation Reduction Act? In the absence of waivers, GM and TSLA would be clear winners. Argus upgrades Restaurant Brands to buy from hold Argus said in its upgrade of the owner of Burger King that it sees increasing margins and further expansion for Restaurant Brands . “We expect the company’s e-commerce capabilities, investments in its franchises, strong loyalty program, and international expansion to benefit earnings. We also look for menu simplification to improve order accuracy and increase throughput, boosting restaurant-level margins.” Argus downgrades Charter to hold from buy Argus downgraded the cable company due to concerns about subscriber losses. “While Charter , like other large cable companies, has been losing video subscribers for years due to competition from cheaper streaming services, the company reported a startling decline in internet subscribers in 2Q22.” JPMorgan initiates BeiGene as overweight JPMorgan said in a note that the China pharma company offers “solid long-term growth.” “We see BeiGene shares as undervalued given quality of assets/growth and highlight the stocks as among our top picks in the sector.” Read more about this call here.
© heardonwallstreet.com