Here are Friday’s biggest calls on Wall Street: Loop reiterates Apple as buy Loop said it sees production delays for some versions of the iPhone 14 later this year. “As we have been signaling for a few months, the iPhone 14 Pro Max device is running slightly behind schedule and could result in a staggered/delayed launch. AAPL and the contract manufacturers are still pushing for a September launch for all 4 devices.” Goldman Sachs downgrades Roblox to sell from neutral Goldman said it sees “tough comps, & normalization of margins.” “we have increasing concerns around the post-pandemic environment and expect a continuation of slowing growth, tough comps, & normalization of margins in the near-term and as such, we downgrade RBLX to Sell (from prior Neutral) reflecting a more negative risk/reward skew from current levels.” Goldman Sachs downgrades eBay to sell from neutral Goldman downgraded the online e-commerce company and said it sees revenue growth risk. “With the global consumer environment under pressure and eCommerce growth slowing in a post-pandemic world, we see eBay’ s forward GMV (gross margin value) and revenue growth at risk esp. given its overexposure to international markets and as recently launched growth initiatives not having scaled yet and require incremental investments.” Goldman Sachs downgrades Netflix to sell from neutral Goldman said in its downgrade of the streaming giant that it’s now a “show-me story.” “We downgrade NFLX to Sell as we have concerns around the impact of a consumer recession as well as heightened levels of competition on demand trends (both in the form of gross adds and churn), margin expansion, & levels of content spend and view NFLX as a show-me story with a light catalyst path in the next 6-12 months.” Read more about this call here . MoffettNathanson downgrades Electronic Arts to neutral from buy Moffett downgraded the video game maker mainly on valuation. “We’re downgrading EA from Buy to Neutral, but raising our PT to $147 (from $141). We continue to employ a multi-year DCF analysis as our primary valuation methodology, which includes a 7.25% assumed cost of capital and 1.5% terminal growth rate.” Atlantic Equities upgrades CME to overweight from neutral Atlantic Equities said it sees an attractive entry point for shares of the global markets and exchange company. “We are upgrading CME to Overweight and retaining our target price of $235, offering a total return of more than 20%. This follows a pullback in the stock’s valuation despite having the strongest fundamental backdrop of the US exchanges.” Read more about this call here . Goldman Sachs downgrades Kontoor Brands to neutral from buy Goldman said in its downgrade of the maker of Lee and Wrangler jeans that it sees “value channel headwinds intensity.” “Our original thesis on KTB was predicated on strengthening brand momentum, a healthy wholesale channel bolstered by accelerating DTC growth, and improving margins as a result of pricing and product shifts.” Barclays reiterates Microsoft as overweight Barclays said that Microsoft’s success is much bigger than its cloud computing service, Azure, and that the company is firing on all cylinders. “We believe investors are too focused on Azure for the MSFT investment case. We argue that there are a lot more exciting stories that help to grow the $200bn+ revenue base in the double digits.” Bank of America downgrades DocuSign to neutral from buy Bank of America said in its downgrade of the electronics signature company that it sees decelerating billings. “We are downgrading DocuSign shares to Neutral and lowering our PO to $72 from $120 to reflect decelerating billings from near term challenges.” Reas more about this call here . JPMorgan upgrades Spirit to overweight from neutral JPMorgan named the discount airline a tactical trade idea and says it sees JetBlue as the likely winning bid for Spirit. “We also believe a merger outcome between Spirit and JetBlue is a growing probability and may overtake the likelihood of a Frontier deal. Most importantly, Spirit shares are trading in line with the proposed Frontier offer, and – owing to the break fee – slightly below what Spirit shareholders would receive if the DOJ were to block the transaction today, holding current share prices constant.” Read more about this call here . Cowen names Grocery Outlet Holdings a top SMIDCap idea Cowen said it sees further share gains for the discounted grocery store company. “We believe GO’ s off-price grocery model and value leadership will drive comps growth and market share gains, as baskets are on average 40% below conventionals & 20% below discounters.” Evercore ISI downgrades DocuSign to in line from outperform Evercore downgraded the electronic signature company after its earnings report, citing tough comps and billing decelerations. “Not huge fans of the post EPS downgrade and while DOCU shares are probably close to a bottom at current levels if one is taking a longer-term view, we believe the combination of tough compares and continued execution challenges / turnover in the field means any meaningful rebound in billings growth is still further out than we hoped.” Barclays reiterates Tesla as underweight Barclays raised its price target on Tesla to $370 per share from $325, but said it sees disappointing production and margins ahead. “As Tesla CEO Elon Musk grapples with outside business pursuits, the company’s 2Q production and margins are set to disappoint as Shanghai shackles output. Indeed, we now expect sales and production to contract Q/Q.” JPMorgan reiterates Amazon as overweight JPMorgan said in a note on Friday that Amazon remains the “fastest growing” U.S. retailer. ” AMZN likely maintains L-T pricing power. Amazon’s share of US e-commerce increased to 40% and it remains the fastest growing scaled US retailer.” Wedbush upgrading SciPlay to outperform from neutral Wedbush upgraded the mobile and casino gaming company on “valuation and growth drivers.” “We are upgrading shares of SciPlay to OUTPERFORM from NEUTRAL to reflect our revised 12-month price target of $17.00 per share, up from $14.50 previously, which implies upside of over 20% from current levels even after an over 20% increase in the share price over the last month or so.” Morgan Stanley downgrades iHeartMedia to underweight from equal weight Morgan Stanley said in its downgrade of the media company that its radio business is “structurally challenged.” “First, the combined risk of a possible recession and iHeart’s levered business model create outsized risk to the equity. Second, we see its core high margin broadcast radio business as structurally challenged by shifting consumer listening habits.”
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