Here are the biggest calls on Wall Street on Tuesday: UBS reiterates Uber as buy UBS kept its buy rating on the ridesharing company and said it's bullish heading into Uber's investor day on Feb. 10. "We see the analyst day as a positive catalyst: (1) laying out updated LT margin targets (higher on mobility and on the core food delivery portion of the Delivery segment), (2) showing a path to faster mobility bookings growth in 2023 versus 2019, through new formats and geographical unlocks." UBS reiterates Walmart as buy UBS reiterated its buy rating on shares of the big-box retailer and said it's bullish heading into earnings on Feb. 17. " WMT should show strong results to close out the year We think WMT's 4Q results will point to further share gains and a successful holiday season." Morgan Stanley reiterates Ferrari as a top pick Morgan Stanley kept Ferrari as a top pick after the company's earnings report last week. " Ferrari' s strong 4Q and all-time record high order book support our view that > 100% of the company's share price can be justified with the core ICE car business, offering significant upside from EVs at a zero or negative implied price. Remains 'Top Pick.'" Credit Suisse downgrades SelectQuote to neutral from outperform Credit Suisse downgraded the insurance company after its "disappointing" earnings report and said it sees "reduced visibility." " SLQT' s FY2Q22 results came in well below expectations, which the company attributed to: 1) Greater parity between plan benefits for the 2022 benefit year suppressing close rates; 2) Hiring and onboarding delays related to the tight labor market." Oppenheimer downgrades Utz to perform from outperform Oppenheimer said in its downgrade of the snack company that it sees a difficult case for outperformance. "We believe investors should await clearer signs on management's ability to deliver on the longer-term algorithm before becoming more constructive on shares. Although we are moving to the sidelines, we continue to look favorably upon UTZ' s positioning to the salty-snacks category and recent M & A." Morgan Stanley downgrades General Motors to equal weight from overweight Morgan Stanley said in its downgrade of the stock that it sees a "less clear path to realization." "We downgrade GM to EW from OW and lower our price target to $55 from $75 previously following a FY22 guide below our estimate. While SOTP potential still exists, we see a less clear path to realization." Read more about this call here. Barclays initiates coverage of Nio as overweight Barclays said that it sees several positive catalysts for the Chinese electric vehicle company's stock in the years ahead. "Dubbed 'China's Tesla,' NIO targets the premium EV market with models priced between RMB 300-500k ($48-80k). NIO has successfully built its brand as a legitimate luxury car maker, not only by enhancing the high-end look and feel of its cars, but also through its service oﬀerings, such as BaaS (Battery as a Service)." Read more about this call here. Morgan Stanley reiterates Ford as underweight Morgan Stanley reiterated the automaker with an underweight rating and said it sees "execution risk." " Ford was re-rated in 2021 on an EV/connected car strategy that resonated with investors and consumers. We wish investor expectations were better managed for execution risk as the EV plan becomes a reality." BTIG downgrades Airbnb to neutral from buy BTIG said in its downgrade of the stock that consensus expectations are too high. "We downgrade ABNB from Buy to Neutral with concern over consensus expectations and the sustainability of multiple if estimates are coming down and growth is slowing." JPMorgan reiterates Blade Air Mobility as overweight JPMorgan kept its overweight rating on shares of the urban air mobility company ahead of its earnings report on Thursday. The firm said it sees upside over the long term. "Heading into Blade's December quarter and full CY21 earnings on Thursday after market close, we anticipate revenue upside in the December quarter relative to consensus with contribution from recently acquired acquisitions and MediMobility more than offsetting likely lackluster airport demand exiting the quarter." Atlantic Equities downgrades CME Group to neutral from overweight Atlantic Equities downgraded the stock mainly on valuation. "We are downgrading CME to Neutral today after its very strong run of outperformance so far in 2022. Morgan Stanley reiterates Microsoft as overweight Morgan Stanley kept its overweight rating on shares of Microsoft and said the stock is still a strong buy right now. "Secular growth trends powering MSFT' s top line – Cloud Computing, Digital Transformation, Productivity, Enterprise Automation, Security – and the strong operational efficiency driving margin expansion should both prove durable, enabling $20+ in EPS in 5 years and an upward trajectory for shares." Read more about this call here. UBS reiterates Home Depot and Lowe's as buy UBS kept its buy rating on the home improvement companies and said it's bullish heading into earnings later this month. "Our checks indicate that Home Improvement trends remained solid in 4Q and HD / LOW again capitalized nicely on the backdrop. Thus, the companies stand well positioned to deliver top-line growth and margin expansion." Needham reiterates Disney as hold Needham kept its hold rating on shares of Disney. The firm said the company should be a key beneficiary of the metaverse well into the future. "We believe the next phase of building the metaverse benefits DIS and other hit franchise IP owners, especially if the franchise is built around a different world (i.e., Star Wars, Marvel Universe, Cars, Frozen, etc.). No one has better fan-driven IP than DIS. What is clear to us is that high quality content libraries with hit film and TV franchises will be revalued upward as the metaverse scales and becomes more widely adopted over time. Wells Fargo reiterates SolarEdge and Enphase Energy as top picks Wells Fargo kept SolarEdge and Enphase as top picks, but the firm said it's more cautious due to a rising rate environment. "We remain cautious on the renewables sector as the specter of rising rates combined with failure(so far) to pass Build Back Better (renewable tax credits) is likely to continue to weigh on performance near term. While momentum could shift if inflation cools (back to growth from value), we remain cautious for now." Bank of America reiterates Spotify as buy Bank of America kept its buy rating on shares of Spotify after its earnings report last week, but the firm said it's concerned about the gross margin trajectory. "While 4Q exceeded expectations on revenue, gross margins and MAUs, the gross margin trajectory has become less clear as Spotify continues to invest in new initiatives." JPMorgan reiterates Peloton as overweight JPMorgan kept its overweight rating on the fitness company after it announced a new CEO on Tuesday. The firm said it thinks shares will respond positively. "We believe PTON continues to have a strong brand and community, high NPS (net promotor scores), and greater value despite the recent slowdown & challenges in forecasting post-pandemic demand.
A Lowe's hardware store in Philadelphia.
Mark Makela | Reuters
Here are the biggest calls on Wall Street on Tuesday: