Here are the biggest calls on Wall Street on Monday: Canaccord reiterates Tesla as buy Canaccord raised its price target on Tesla to $881 per share from $815 and says the company is a “sustainability behemoth.” “While macroeconomic factors and recent price increases can certainly impact order rates, we estimate Tesla’s EV momentum and competitive lead – from manufacturing, to materials procurement, to autonomy – is secured for some time. With additional offerings in solar, energy storage, and more to come, Tesla remains the sustainability behemoth.” JPMorgan downgrades Carvana to neutral from overweight JPMorgan said in its downgrade of the online car company that it sees an unattractive risk/reward. “We are moving to Underweight from Neutral on CVNA as shares screen expensive vs e-comm peers and relative to our broader coverage universe on near- to medium-term profit estimates.” Read more about this call here. Pivotal downgrades Roku to sell from hold Pivotal said in its downgrade of the stock that it sees an ‘inevitable recession” leading to more declining revenue growth. “We are lowering our rating on ROKU from HOLD to SELL after a recent stock rally following a significant stock price plunge post frankly awful 2Q results/3Q guidance.” Read more about this call here. Piper Sandler reiterates Charles Schwab as overweight Piper said in a note that it thinks earnings can growth faster than revenues. “The SCHW model has been the envy of financial firms with its implied double-digit earnings growth. Generally, SCHW’s client assets are expected to grow at low doubledigit CAGR based on (1) a blended (equity & fixed income) market appreciation annual return of 5%-8% and (2) net new asset growth of 5.5%-6.5% annually. And with modest leverage, earnings can grow faster than revenues.” JPMorgan upgrades Corteva to overweight from neutral JPMorgan said in its upgrade of the ag and seed company that it sees numerous tailwinds like the price of corn and soy. “There are a number of tailwinds converging for Corteva in 2023, and fewer headwinds. The strength in the prices of corn and soy should allow the company to price its seed products higher for 2023, and seed volumes should be positive. Farmers are more likely to plant more corn in 2023 given a shortened planting season in 2022 and good grain prices.” JMP reiterates Robinhood as market outperform JMP said in a note that after meeting with Robinhood management that profitability is closer. “Robinhood’s management meetings highlight that profitability is close but growth investment continues; reiterate our Market Outperform rating and $28 price target.” Benchmark downgrades Western Digital to hold from buy Benchmark said in its downgrade of the stock that it sees “softening macro conditions.” ” Western Digital posted upside June results, but the September quarter guidance was well below expectations. A sharp inventory correction is underway in the client segment impacting both HDDs and flash. Coupled with softening macro conditions, we believe the inventory reset will take a couple of quarters.” JPMorgan upgrades First Solar to overweight from neutral JPMorgan said in its upgrade of the solar company that it’s a beneficiary of the the legislation passed by the Senate over the weekend. “We are upgrading FSLR to Overweight from Neutral. FSLR has nearly 3 GW of US based module capacity, expanding to 5.9 GW (gigawatt) by YE24 that will qualify for domestic manufacturing tax credits.” Read more about this call here. Guggenheim upgrades First Solar to buy from neutral Guggenheim said the solar company is a key beneficiary of the Inflation Reduction Act. “Of all the names in our coverage, we believe FSLR appears positioned to benefit the most from the provisions of the Inflation Reduction Act that passed the Senate yesterday. Although there is still some potential uncertainly as to the legislation’s fate in the House, the odds of passage have improved considerably, in our judgement.” Telsey downgrades Leslie’s to market perform from outperform Telsey said in its downgrade of the pool stock that it sees too many execution issues. “We are downgrading our rating on LESL to Market Perform from Outperform for the following reasons: 1) challenges lapping tough comparisons from the last two years following a significant pull-forward in demand related to the pandemic and US government stimulus as well as price inflation on chemicals, namely chlorine.” Citi reiterates Amazon as buy Citi said in a note that it’s bullish on the company’s acquisition of iRobot which was announced on Friday. ” Amazon remains our top-pick across the Internet sector as we believe it can gain wallet share during periods of macro uncertainty, AWS demand continues to grow, and our view that operating margins can expand going forward and we reiterate our Buy rating and $185 target price.” Needham reiterates Apple and Amazon as buy Needham said in a note on Monday that Apple and Amazon are a “growing threat to streaming incumbents.” “The three most important trends in streaming (our view) are: 1) structural consumer behavior shifts since 2019; 2) the shift from subscription driven to ad-driven business models in streaming; and 3) the entry of AAPL and AMZN into the live sports bidding wars and addriven business models, which threatens all streaming incumbents.”
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