Here are Thursday’s biggest calls on Wall Street: Evercore ISI upgrades Netflix to outperform Netflix Evercore expects revenue growth to accelerate due to the company’s ad-supported model, Evercore said. “We are upgrading NFLX shares to outperform with a new $300 pt based on recent US and international survey work and our proprietary analysis of NFLX’s ad-supported and password-sharing revenue opportunities. We believe the opportunities, particularly ad-supported services, constitute Growth Curve Initiatives (GCIs) – catalysts that can drive a material re-acceleration in revenue growth.” Read more about this call here. Atlantic Equities has upgraded Activision Blizzard from neutral Atlantic Equity to overweight, saying it sees positive risk/reward for the stock if the Microsoft acquisition is approved. “We are upgrading Activision Blizzard to overweight. We view the risk-reward positive if the Microsoft acquisition is approved, and the much more limited downside if the deal is not completed.” Read more about this call here. Piper Sandler reiterates Boston Properties as neutral Piper said it sees the work-from-home environment as “hardly unheard of” ahead of the real estate management company’s Investor Day next week. “While not of the same historical magnitude as the Queen’s passing, the importance of conveying the relevance of office to next week’s Investor Day in Boston is paramount for BXP. As the world moves past the pandemic in most cases, WFH returns to office. with a lingering residue, which is hard to unheard.” Wedbush upgrades Deckers from neutral to outperform Wedbush said the stock is poised to outperform. “Amid an extremely challenging retail environment, DECK was an exceptional company last EPS season, one of the only companies in our coverage to actually raise guidance.” Credit Suisse upgrades Wynn from neutral to outperform Credit Suisse notes that the casino company’s stock is too compelling to ignore. “At current levels, we think Wynn is one of the more compelling stories in gaming.” Read more about this call here. Bernstein named PinduoDuo a top pick. Bernstein said it liked the ag-tech company’s strong execution. “To say that Pinduoduo has been an enigma would be a significant understatement. Management makes a point to be vague about the future. A variety of investor questions are answered with “investing in agriculture” … Now in Queen’s English. But look beyond Pinduoduo’s eccentricity, and it’s clear the company has persevered.” Jefferies upgrades Nordstrom to buy from hold and downgrades Kohl’s from hold “While we are not calling LT positive on department stores, we believe the stock remains suitable for selection based on valuations and co-specific catalysts. We also conducted a survey to measure spending expectations. To JWN Buy, Reit. Buy on M, Downgrade to KSS on hold.” Jefferies introduced Okta because Jefferies said at the start of Okta that the identity-access management company is a “great buying opportunity”. “This, in our view, has created an attractive entry point for a major cyber asset. While we do not discount the amount of work facing the company (likely to take a few quarters), we highlight a great product , together with a large and under-penetrated market.” Read more about this call here. Morgan Stanley reiterates Hostess Brands as overweight Morgan Stanley said it sees “top line upside” for the maker of Twinkies. “We see top line upside at TWNK, supported by accelerating US scanner data QTD, recent innovation, more marketing investment, stronger pricing power.” Susquehanna started Bill.com as a positive Susquehanna said she liked the accounting software company’s long-term prospects. “We are launching Bill.com coverage with a price target of $190 and a positive rating. We are looking to expand our customer base, increase TPV (Total Portfolio Value) and continue to grow the Company’s long-term growth rate by physically increasing its rate.” Likely the probabilities, and our out-year estimates are well ahead of consensus.” JPMorgan downgrades Duckhorn from overweight to neutral JPMorgan said it still prefers the wine company over the long term but that related guidance could disappoint. “We still like NAPA’s long-term and operational performance track record as the IPO in March 2021 has been impressive, but we look at a number of reasons for now,” said Bernberg to buy Marriott from Hold. Said stock is a “shareholder return” story. “The hotel sub-region has now become our favorite game among our coverage universe and we expand to buy Hilton, Hyatt and Marriott, taking on the price targets of all global operators.” Bank of America reiterates Ollie’s purchase as Bank of America notes that it is bullish on the discount retailer and observes that Ollie is getting more deals in stores because “their sellers want to move additional product. ” “We see the potential for further deals as many retailers, such as Bed Bath & Beyond, Tuesday Morning, At Home and Party City, and their vendors seek to move additional product.” Goldman Sachs Upgrades to Buy Chart Industries from Neutral Goldman said in its upgrade of the engineer-equipment clean energy company that it sees strong LNG order volumes. “Our upgrade to Chart Industries is driven by 1) over the next 12-month period, investors are more likely to underwrite LNG orders, which have the potential to be added to the backlog in 2023/24, through 2025+, 2) Consensus estimates drive revision.) Given the higher margins and operating leverage in a manufacturing business, stronger LNG order volumes should increase.” Needham upgraded Tesla from underperforming to hold and began buying Fisker Needham said at the start of Fisker that he liked the stock’s valuation. The firm also upgraded Tesla to hold but said it preferred Fisker. “We rate FSR as Buy, RIVN as Hold and LCID underperform. We are upgrading TSLA from Underperform to Hold. We prioritize FSR due to attractive valuation, business strategy and technology of SUVs ” Credit Suisse upgrades Nokia from neutral to outperform Credit Suisse said in its upgrade of the telecom company that it has an “underappreciated product portfolio”. “We take a deeper dive into Nokia’s growth drivers. We see the Telco Wireless capex headwinds developing into 2023. However, we believe the strengths we are building in Nokia’s diversified portfolio and its network infrastructure division Let’s hope, that means it’s better than our telecom equipment coverage. Ericsson to weather the aforesaid headwinds.” UBS reiterates purchase of Microsoft as UBS said it still sees several positive catalysts for the stock. “While Microsoft’s shares are relatively unchanged since reporting 4Q/June results in late July, we and investors have had plenty of Microsoft to absorb as of late, from PC weakness to Azure cloud migration activity.” There are issues.” Baird reiterated Pinterest as an outperformance Baird said it sees several positive catalysts ahead for the stock. “While we are reducing Q4 estimates slightly to reflect broader advertising industry headwinds, we think PINS can outperform the broader digital media space.”
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