Here are Tuesday’s biggest calls on Wall Street: Wolfe reiterates Tesla as peer perform Wolfe said investors are “bracing for a difficult quarter” when Tesla reports earnings on Wednesday afternoon. “While TSLA appears positioned to sustain strong growth through a recession, we think most investors are still focused on out-year (2025) expectations.” Credit Suisse reiterates Netflix as neutral Credit Suisse said it’s staying cautious heading into Netflix earnings after the bell. “While a meaningful 2Q or 3Q subscriber beat or miss might temporarily move Netflix shares post-earnings, we expect shares will revert to their trading range as visibility will remain low and the company’s pivot to advertising does not even begin in earnest until late 2022.” Read more about this call here. Goldman reiterates Apple as neutral Goldman said it sees solid iPhone demand heading into earnings later this month, but is concerned about FX headwinds. “We believe that demand was likely solid for Apple in the June quarter helped by a rapid rebound in Chinese demand as lockdowns eased partially offset by slight weakness in Europe.” Piper Sandler upgrades Exxon Mobil to overweight from neutral Piper said in its upgrade of the oil and gas company that the setup for Exxon looks “increasingly attractive.” “With fears of a recession already having taken a toll on both refining and IOC stocks, and both 2Q results and 3Q+ outlooks likely to prove robust, we view the setup for the stocks as increasingly attractive into the quarter.” Read more about this call here . Oppenheimer reiterates Dollar General as a top pick Oppenheimer said the discount retailer has a “strengthening fundamental backdrop” in a difficult macro environment. “We are reiterating our Outperform rating and top pick status. We believe a strengthening fundamental backdrop coupled with defensive attributes of the DG model position shares for more outperformance in a potentially more difficult consumer spending backdrop going forward.” UBS reiterates Chipotle as buy UBS said Tuesday that the Mexican chain restaurant is “well positioned to navigate [a] tough macro” environment. “Despite macro headwinds, we see solid upside over time for CMG shares given: leading unit development ,margin expansion drivers, and visibility into a strong multi- yr growth opportunity.” Piper Sandler downgrades Sunrun and Sunnova to neutral from overweight Piper downgraded several solar stocks on Tuesday and said it’s concerned about their “cash generation trajectory.” “We downgrade RUN + NOVA to Neutral from OW as we have lower confidence surrounding their levered cash generation trajectory and struggle with catalysts capable of propelling the stocks meaningfully higher within a risk-off environment.” Needham upgrades Arista Networks to buy from hold Needham said the computer networking company has a robust balance sheet and that it’s a stock to own in a weakening economy. “Arista has a pristine fortress Balance Sheet, and we expect it to keep buying back stock. Arista also has superb Cash flow and 37%+ Operating Margins. We think this is the kind of name to own as the economy weakens and international markets soften even more.” Macquarie downgrades Block to neutral from buy Macquarie said in its downgrade of the payment company that it sees risks of “multiple contraction.” “We forecast for Block to see near-term share-price pressure from consensus EBITDA downgrades, potentially exacerbated by multiple contraction.” Barclays reiterates Peloton as overweight Barclays reiterated its overweight rating on the fitness company and says the stock is “too cheap to ignore.” “While we think subscription names overall have lower downside side due to the stickiness nature of the business, PTON will be providing FY23 guidance this Q and at below 2x sub revenue, is too cheap to ignore.” Citi reiterates UPS as buy Citi said UPS has “stock price resiliency.” “As a result, we think the risk/reward is skewed positively and maintain our Buy. We acknowledge that catalysts are light near-term, but we think with most risks relatively well known, solid execution can yield stock price resiliency. Citi reiterates Microsoft as buy Citi said in a note ahead of earnings later this month that the stock is “still a good place to hide & own on the other side.” “The days of clear-cut beat/raises for MSFT may soon be a distant memory, but we are maintaining our Buy rating into FQ4 results.” Read more about this call here . Morgan Stanley upgrades Cboe to overweight from underweight Morgan Stanley said Tuesday that the options exchange company is well-positioned as recession risks increase. “Preferring rate-sensitive brokers and defensive exchanges, we upgrade CBOE to OW (from UW) given transactional skew with new $140 PT.” Read more about this call here. Deutsche Bank reiterates T-Mobile as a top pick Deutsche Bank said the wireless company has “differentiated” fundamentals heading into earnings later this month. “However, T-Mobile’s fundamentals are further differentiated from other telcos in that T-Mobile is not seeing a meaningful impact from cost inflation, and differentiated from cable in that the company is a beneficiary of increased fixed broadband competition.” Bank of America upgrades ConocoPhillips to buy from neutral Bank of America said in its upgrade of the natural gas company that it sees upside for ConocoPhillips and “selective value.” “In our view risk / reward for the US oils has been reset by the market’s recognition of inflation and an oil curve that has largely retraced levels prior to the Ukraine crisis.” Morgan Stanley reiterates Meta and Alphabet as overweight Morgan Stanley said it sees “less revision risk” in Meta than other names. The firm also reiterated its overweight rating on Alphabet, noting it sees less “micro level investor tension.” “Our preferred pick in online ads over the next 12 months is META (our $280 PT has ~70% upside). First, from a macro perspective, we see less revision risk than other names (as estimates have been cut due to Reels issues). … . We see ~25% upside to GOOGL , but the tactical challenge is we don’t think there is much micro level investor tension.” Morgan Stanley upgrades Cinemark Holdings to overweight from equal weight Morgan Stanley said in its upgrade of the movie theater chain that it’s “insulated” from a slowing economy. “Consumers and studios are returning to theaters, a trend not reflected in CNK shares. Movie-going has also proven counter-cyclical as a form of inexpensive entertainment, insulating CNK from a slowing economy.”
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