Here are Tuesday’s biggest calls on Wall Street: Truist initiates Tesla as buy Truist said Tesla is a “remarkable success story.” “Overcoming obstacles in traditional, established, automotive & energy industries, Tesla developed innovative technology, built scale, and achieved industry-leading profitability.” Read more about this call here. Morgan Stanley reiterates Tesla overweight Morgan Stanley lowered its price target on Tesla to $1,150 from $1,200, but said it’s standing by the stock heading into earnings next week. “We believe TSLA can leverage its cost leadership in EVs to aggressively expand its user base and over time generate a higher % of revenue from recurring/high-margin software & services.” Read more about this call here . JPMorgan adds Qualcomm to the focus list JPMorgan added the stock to its focus list and said it sees limited downside for shares of Qualcomm. “Closer to trough fundamentals for smartphones, where we see limited further downside for 2022, and expect better trajectory even if still a modest decline in 2023.” BMO upgrades Advanced Micro Devices to outperform from market perform BMO said the semiconductor name is a sustainable franchise for investors. “We are raising our rating on shares of AMD to an Outperform from a Market Perform. There is no going back for customers to the old days of when AMD’s share would be capped. We see a sustainable compute franchise as a result of continued superior execution on all fronts under Dr. Su’s leadership. Goldman Sachs upgrades Flywire to buy from neutral Goldman said the payments company can be resilient in a downturn. “Our work suggests that the bill pay / accounts receivable automation names (PAY/ESMT/ FLYW ) as well as the large cap acquirers (FIS/FISV/GPN) should have highly resilient businesses in a downturn, and we are upgrading FLYW to Buy on this theme.” JPMorgan downgrades Cisco to neutral from overweight JPMorgan said in its downgrade of the stock that investors should “rotate” into a more “diversified supplier.” “We are downgrading CSCO and FFIV to Neutral, and recommend investors rotate into more diversified supplier JNPR, as well as CDW with its strong execution track record and countercyclical cash flow ‒ positioning both to be defensive holdings into 2023.” Deutsche Bank reiterates Starbucks as buy Deutsche Bank said it’s cautiously optimistic heading into Starbucks earnings in early August. “While the primary discussion / debate tends to revolve around what gets said at the Investor Day in September, we note that as it pertains to the 3Q22e earnings results in a few weeks. our sense is that investors are expecting to see a U.S. SSS result in the +~9% range.” Oppenheimer reiterates Chipotle as outperform Oppenheimer called the Mexican chain restaurant a “stand out” heading into earnings later this month. “As we hunt through our coverage for potential earnings upside through 2023, CMG stands out. This is a strong foundation of our Outperform thesis, along with accelerating high-quality unit growth and a trough valuation.” Credit Suisse initiates Corteva as outperform Credit Suisse said in its initiation of Corteva that it’s a “leading” seed producer. “We are initiating coverage of CTVA with an Outperform rating, in contrast to the Underperform rating on crop protection peer FMC, and broader agricultural chemical Underperforms on NTR and CF.” Baird downgrades Pool Corp to neutral from outperform Baird downgraded the pool company mainly on valuation. “We are downgrading FAST, POOL , and SITE to Neutral from Outperform. We remain positive over the long term on each company given their unique growth characteristics, strong market positioning and excellent track record of execution, but our revised estimates leave fairly modest upside to each stock, assuming valuation in line with long-term averages.” Citi downgrades Dollar General to neutral from buy Citi said expectations seem too high for the discount retailer. “We continue to believe DG is well positioned in the current retail landscape both near term and long term, but as one of only 2 stocks that is up on a 3, 6 and 12 month basis (BJ is the other), expectations seem high and upside seems more limited from here.” Cowen reiterates Amazon as outperform Cowen said in its preview note for Amazon earnings that it sees accelerating revenue. “We trimmed ’22-’27 est’s given macro headwinds, but are still ~1% / 16% above cons. ’22 revenue and Op Inc. We expect AMZN rev growth to re-accelerate in 3Q on easier comps & Prime Day shifting to 3Q. We also forecast 2H22 margin expansion as AMZN’s overstaffing & fulfillment overcapacity issues ease.” Rosenblatt upgrades Twitter to buy from neutral Rosenblatt said it now sees an “unusually appealing near-term opportunity” for the stock. “As a result, we now see leverage on Twitter’ s side in this fight, upgrade the stock to BUY, and move to a $52 price target, assuming settlement within 3% of Musk’s contractually obligated acquisition price, and up over 40% from recent levels. Twitter now looks like an unusually appealing near-term opportunity, in a market otherwise hammered by macro concerns.” Read more about this call here . JPMorgan reiterates Netflix as neutral JPMorgan said in a note that it’s “constructive” heading into Netflix earnings next week. “That makes us more constructive N-T as we expect the NFLX narrative to shift from slow/no Sub growth forcing the company to reluctantly pull Ad & Account Sharing levers to a story about the early progress of those initiatives & the future benefits in terms of both monetization & subscribers.” Jefferies downgrades Cigna to hold from buy Jefferies said in its downgrade of the health insurance company that it sees an “outsized recessionary impact” on the stock. “We view CI as the most vulnerable MCO (managed care org.) to an economic downturn, with heavy Comm’l exposure and few offsets.” Bank of America reiterates Apple as buy Bank of America kept its buy rating on shares of the tech giant and says it’s bullish on the company’s opportunity in advertising. “We estimate about $6bn in revenue by 2026 from advertising on the Apple Maps App, and from monetizing Apple’s MapKit. We estimate $3bn rev by 2026 if Apple were to launch an ad-supported version of Apple TV+.” Deutsche Bank upgrades Costco to buy from hold Deutsche said in its upgrade of the warehouse club retailer that it sees meaningful share gains ahead. ” COST is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop.” Read more about this call here. Deutsche Bank adds a catalyst call buy on Albemarle Deutsche named the lithium company as a catalyst call buy idea and says it sees a “beat and raise” when the company reports earnings in early August. “Fueled by sharply higher lithium prices and no signs of a slowdown in demand, we believe Albemarle is on track for another beat and raise with its Q2 earnings release on August 3.”
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