Here are Wednesday's biggest analyst calls of the day: Nike, Amazon, Netflix, FedEx, Coinbase & more
- Morgan Stanley reiterates General Motors as overweight.
- Wolfe upgrades Norwegian, Royal Caribbean and Carnival to outperform from peer perform.
- Goldman Sachs initiates Maxr Technologies as buy.
- Stephens reiterates FedEx as overweight.
- Canaccord initiates Coinbase as buy.
- JPMorgan initiates Cleveland-Cliffs as overweight and transferred coverage of U.S. Steel as underweight.
- Morgan Stanley reiterates Nike as overweight.
- Rosenblatt initiates SoFi Technologies as a top pick.
- Mizuho initiates Squarespace as buy.
- Jefferies adds Amazon to the franchise picks list.
- Morgan Stanley reiterates Sunrun as overweight.
- Pivotal upgrades Dish to buy from hold.
- JPMorgan reiterates Netflix as overweight.
- JPMorgan reiterates Amazon as overweight.
- Bernstein initiates Sea as outperform.
- Morgan Stanley reiterates Exxon as a top pick.
Here are the biggest calls on Wall Street on Wednesday: Morgan Stanley reiterates General Motors as overweight Morgan Stanley kept its overweight rating on shares of the automaker and said investors should look forward to its next earnings report later this summer as the "shares have arrived." "When GM CEO Mary Barra says that 1H21 financial results will be 'significantly better' than prior guidance (weeks before the end of the quarter)… what could that mean? We think it could be the start of kicking off investor expectations to $10 of earnings power at GM." Wolfe upgrades Norwegian, Royal Caribbean and Carnival to outperform from peer perform Wolfe upgraded several cruise company stocks and said booking trends were increasing over the past week. "We are upgrading the 'Big 3' public cruise stocks ( Carnival , Norwegian & Royal Caribbean ) from Peer Perform to Outperform. Our checks suggest improving booking / pricing trends out of North America over the past month, with stronger trends over the past week." Read more about this call here . Goldman Sachs initiates Maxr Technologies as buy Goldman initiated the space tech company and said it was "attractively priced." "We think MAXR has a gem business in earth intelligence and a turnaround opportunity in Space Infrastructure. MAXR trades on a 14% 2023E FCF yield, despite what we see as great long-term opportunity in the space market." Read more about this call here. Stephens reiterates FedEx as overweight Stephens kept its overweight rating on shares of FedEx ahead of next week's earnings report but said it had concerns that the stock has been "stubbornly range bound." The firm also raised its price target on the stock to $360 from $350. "We anticipate strong results and an encouraging FY22 guide from FedEx next week when the company reports its F4Q June 24. What concerns us is that every investor we have spoken to over the last 6-8 weeks expects the same thing. In a market starving for companies that have pricing power and leverage to secular growth themes, we are surprised that FDX has been stubbornly range bound for the last six months." Canaccord initiates Coinbase as buy Canaccord said in its initiation of coverage that it's the clear "on-ramp" to the crypto world. "We view COIN as a kind of 'super on-ramp' to everything crypto, and that holds true for consumers, institutions and enterprises. Today that on-ramp is mostly comprised of trading revenue, but the future here could unfold rather fast and include support of new protocols, exploiting the nascent hyper growth in DeFi (decentralized finance), and even owning cloud-centric blockchain solutions. But that is the future." JPMorgan initiates Cleveland-Cliffs as overweight and transferred coverage of U.S. Steel as underweight JPMorgan initiated coverage of several steel stocks and said it saw free cash flow and a "generational opportunity for integrated steel to de-lever." "Relative to the steel market itself, while we are believers in a higher-for-longer market given the pace of economic recovery in the country, extended mill lead times and low inventories through the system, longer term, new electric arc furnace's likely will add ~10-12% to sheet capacity, which along with imports, should ultimately catalyze a top in price. ... .We are initiating coverage with OW ratings on CLF , RS and STLC CN, Neutral ratings on NUE, CMC and CRS, and assuming coverage on EAF and STLD with OW ratings and X with an UW rating." Read more about this call here. Morgan Stanley reiterates Nike as overweight Morgan Stanley restated its overweight rating on shares of Nike and said the long term story was "intact." The firm also raised its price target to $185 from $172. "Revenue is a well-understood risk in 4Q, & our predictive model's outlook has improved. Our online discount tracker suggests GM upside, & SG & A guidance appears conservative, which could drive an EPS beat. ST risk appears priced in per YTD underperformance." Rosenblatt initiates SoFi Technologies as a top pick Rosenblatt named the online personal finance company as a top pick and said it had a "powerful" cost advantage over competitors. "The incumbent legacy banks face a challenging road ahead as a new wave of digitally native and mobile-first banks rush into the market. Challenger banks like SoFi command a powerful cost advantage over incumbents which will lead to dramatic disintermediation over the next 5-10 years, leaving substantial primary bank accounts, revenues, and market value up for grabs." Mizuho initiates Squarespace as buy Mizuho initiated coverage of the website hosting and building company and said it was "compelling." " Squarespace offers a robust SaaS platform to build Website and Ecommerce sites that we believe is differentiated through aesthetic appeal, ease of use, and features to garner market share in the digital goods and services marketplace." Jefferies adds Amazon to the franchise picks list Jefferies added Amazon to its franchise picks list and said it sees the company continuing to benefit from further e-commerce adoption. "We are adding AMZN to the Jefferies Franchise Picks list as fundamentals are likely to benefit from increased e-comm adoption and faster growth at its highest margin businesses. Our proprietary survey points to a permanent increase in online consumption, with 63% of respondents continuing to spend more online even after restrictions were lifted." Morgan Stanley reiterates Sunrun as overweight Morgan Stanley reconfirmed its overweight rating on shares of the solar company and said it was one of the more "compelling" stocks in the firm's energy coverage. "We view Sunrun as the most compelling clean energy stock we cover, driven by minimal growth reflected in the stock, a growing 'economic wedge,' low financing costs, consumer demand for reliability, and the convergence of EVs and renewables. Pivotal upgrades Dish to buy from hold Pivotal said in its upgrade of the stock that it had "upside potential" in 5G. "We view our new target price as arguably conservative considering the significant upside potential in the DISH greenfield 5G wireless opportunity and to a much lesser extent from the likely inevitable merger with DIRECTV." JPMorgan reiterates Netflix as overweight JPMorgan said the streaming giant had one of the strongest upcoming slates in the company's history. "What we are more excited about, however, is the content slate improving the back half of June & then more materially in 2H21 when we believe NFLX could have its strongest 6-month slate ever following pandemic-driven production delays." JPMorgan reiterates Amazon as overweight JPMorgan kept its overweight rating and top pick status on shares of Amazon and said it was expecting an increase in the cost of Amazon Prime. "We believe the pandemic may have delayed a Prime price increase in 2020, & that could now come over the next few quarters to partially offset incremental costs of Prime 1-day shipping, Amazon Fresh/Whole Foods free shipping, & ongoing FC expansion." Morgan Stanley reiterates Exxon as a top pick Morgan Stanley stood by the oil and gas company as a top pick and said it sees "upside to consensus." 'Rising commodity prices and capital discipline support further upside to consensus earnings and FCF estimates in 2Q and beyond for both XOM & CVX. XOM remains our top pick, with outsized rate of change supporting the best dividend coverage in ~10 years and ~30% upside to consensus EPS in 2021/22 Read more about this call here. Bernstein initiates Sea as outperform Bernstein began coverage of the internet platform company with an outperform rating and said it had "immense value in the long term." "While the stock has rerated over the past 12 months, Sea Ltd, a super app in the making has exhibited strong execution capabilities. This makes us believe that it will win a large share of the new economy end markets in select emerging markets, presenting immense value in the long term. Read more about this call here.
The Nike logo is seen on the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Here are the biggest calls on Wall Street on Wednesday: