Here are Tuesday’s biggest calls on Wall Street: Barclays initiates Core Scientific as overweight Barclays said the IT services management company is “best in class.” ” Core Scientific is where you’ll want to be when Crypto Winter turns to Spring. While we acknowledge recent volatility in crypto markets, we remain positive on the long-term viability of Bitcoin, and see CORZ as among the highest-quality mining assets, with operating metrics that consistently outperform the industry.” Read more about this call here . Oppenheimer initiates Bowlero as outperform Oppenheimer said the bowling company is an “interesting” investment opportunity. “As the largest operator of bowling centers in North America, Bowlero represents an interesting investment opportunity, we believe. It is ~7x larger than the No. 2 player, and the remaining industry is highly fragmented.” JPMorgan upgrades Gilead to overweight from neutral JPMorgan said in its upgrade of the biopharmaceutical company that it’s getting “increased visibility.” “We are refreshing our thesis on GILD and upgrading shares to Overweight from Neutral as we see the combination of increased visibility on the company’s HIV franchise and an emerging oncology franchise not well reflected in valuation at 9.5x 2022 EPS.” Read more about this call here. JPMorgan reiterates Disney as buy JPMorgan lowered its price target on the entertainment giant to $145 from $160, noting it still likes the stock, but that investors should be patient. “While we like Disney shares today after the recent market downturn, we would be more excited to buy following F4Q results given potential commentary for higher-than-Street OI losses for 2023 and 2024 in DTC.” Read more about this call here. Bank of America reiterates Meta and Alphabet as top picks Bank of America lowered its estimates on Facebook parent Meta and Google parent Alphabet to account for a mild recession but said the two companies are still “top value stocks.” “We have three takeaways from our analysis: 1) Street estimates for Alphabet/Meta advertising revenues are likely too high for 2023, 2) AVOD and TikTok competition could capture over $5bn+ from industry growth, and 3) much like 2009, we see potential for strong EPS resiliency for Alphabet/Meta from cost cutting in 2023.” UBS upgrades Domino’s to buy from neutral UBS said the company has a “compelling long-term growth story.” “We are upgrading shares of DPZ to Buy given: 1) our belief that demand weakness concerns are overblown; 2) catalysts exist to accelerate U.S. sales trends.” Read more about this call here . Citi adds a positive catalyst watch on JPMorgan Chase Citi said a third-quarter earnings beat by JPMorgan Chase on Oct. 14 will cause the stock to pop. “We are opening a positive catalyst watch on JPM as we believe a 3Q earnings beat on the top line will lead to upward revisions on full-year guidance and imply a better run rate into 2023.” Wells Fargo downgrades Paramount to equal weight from overweight Wells said in its downgrade of Paramount that the traditional linear cable model is declining quickly. “We think the linear business model that has underpinned Media is set to decline rapidly. Pivots to DTC are dilutive to margins and earnings.” Morgan Stanley initiates Ginkgo Bioworks Holdings as equal weight Morgan Stanley said the biotech company is “best positioned,” but that investors will need patience. “A horizontal platform and proprietary Codebase position DNA well to unlock synbio’s full potential where others have failed. While downstream economics represent attractive long-term optionality, challenging macro and early stage of commercialization reduce likelihood of relative NTM (next twelve months) outperformance.” Deutsche Bank reiterates Tesla as buy Deutsche said it’s confident that delivery numbers will stabilize in the months ahead. “As a result of Tesla’s new shipping strategy, we do think the number of vehicles in transit could continue to grow in the next few quarters.” Citi opens a positive catalyst watch on Schlumberger Citi opened a positive catalyst watch ahead of the company’s analyst day in early November. “At their upcoming analyst day on Nov. 3rd, we believe SLB presents a sufficiently bullish narrative with respect to digital business growth and the resiliency of the International OFS growth cycle to propel the stock. Thus, we open a catalyst watch on the stock ahead of the event.” Deutsche Bank reiterates Block as buy Deutsche said the company’s Cash App is a “sleeping giant.” “In recent months SQ has continued to make progress linking its three primary ecosystems, namely Square, Cash App, and Afterpay. We believe the largest opportunity in these efforts will derive from broadening Cash App Pay acceptance to a wider audience of merchants, resulting in the creation of another widely used digital wallet that functions similar to Alipay or WeChat in Asia.” JPMorgan reiterates Amazon as overweight JPMorgan said Amazon is still a top pick and that the firm still sees more upside. ” AMZN remains our Best Idea as we continue to expect Y/Y revenue acceleration, margin expansion & capex moderation (all led by Retail) to drive significant FCF inflection in 2023.” Morgan Stanley names Taiwan Semiconductor a top pick Morgan Stanley said the stock has likely bottomed and shares are attractive. ” TSMC’s stock valuation is already attractive enough to look beyond the 2022-2023 tech down cycle. Looking at the long term, the reduced capex burden and significant outsourcing from Apple and Intel are key reasons why we’ve formed a positive outlook for the year 2024.” MoffettNathanson reiterates Netflix as market perform MoffettNathanson said Wall Street may be overestimating Netflix’s ad-based tier. “Yet, it appears to us that the sell side may be overestimating this opportunity. While we are largely in line with consensus for 2022 and 2023, the Street is forecasting much faster long-term revenue growth.”
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