Here are the biggest calls on Wall Street on Monday: JPMorgan downgrades Philip Morris to neutral from overweight JPMorgan said in its downgrade of the tobacco stock that it's concerned about the company's exposure to Ukraine and Russia. " Philip Morris International derives 8% of group sales (c6% Russia, c2% Ukraine) and c8% of group EBIT from Russia/Ukraine." Read more about this call here. Morgan Stanley upgrades Tal Education to overweight from underweight Morgan Stanley said in its double upgrade of the Chinese education company that the stock is "undervalued." "Revisiting quality names – EDU, TAL, DAO: Sentiment towards\ the space remains low, but we believe the worst is over and quality names are undervalued." Morgan Stanley upgrades U.S. Steel to equal weight from underweight Morgan Stanley said in its upgrade of U.S. Steel that the company is likely to "cope better" than its peers with higher raw materials costs. "Escalation of the Ukraine/Russia conflict has prompted a sharp increase in steel metallic prices, including scrap/pig iron. Directly or indirectly we see higher raw material cost inflation for steel names under our coverage." Bank of America reiterates Apple as buy Bank of America kept its buy rating on shares of the tech giant. The firm said it's bullish heading into the company's new product launch day on Tuesday. "Third-party data on smartphone share by price band shows that Apple's smartphone share over the years has increased meaningfully in the $800-900, $900-1,000, and $1,000+ bands. However, its share of the lower-price bands has remained low." Wells Fargo reiterates Netflix as overweight Wells Fargo kept its overweight rating on shares of the streaming giant. The firm said investors need to be patient with the company's subscriber additions. "The challenge on NFLX is anchoring net add expectations. This deep dive into global connectivity and subscriber penetration suggests long-term net adds are more likely 20mm or better than 15mm or worse. If correct, the shares are floored based on the current EV/Submultiple, and EPS estimates will trend higher. Wedbush downgrades Ralph Lauren to neutral from outperform Wedbush said that it's concerned about Ralph Lauren 's exposure to Europe. "The situation in Ukraine is a key sentiment overhang for our group, which may weigh more heavily on the group going forward. Most notably, last week's news that Russian troops attacked a Ukrainian nuclear power plant seems to have been a 'game changer' in the eyes of the public. " Jefferies downgrades Citi to hold from buy Jefferies said that it's concerned about the banking giant's global exposure due to events in Russia. "We downgrade Citi to Hold from Buy. While management articulated a clear vision at the investor day, the new ROTCE targets are loftier and farther away than our expectations." Read more about this call here. Bank of America reiterates Disney as buy Bank of America kept its buy rating on shares of the entertainment giant. The firm said it sees "multiple drivers" sending the stock higher. "After a 2-year Covid-19 driven drag, theme parks came roaring back in FY1Q22 with operating income nearly reaching FY1Q20 levels. We are encouraged by multiple drivers: 1) technology enhancements in theme parks, such as virtual queues, preordering food, touchless check-in at hotels, which DIS was able to implement as a result of the unprecedented park closures." Morgan Stanley upgrades Palantir to equal weight from underweight Morgan Stanley said in its upgrade of Palantir that the risks are largely priced in right now. "Upgrade to EW but awaiting more visibility of positive catalysts around a durable government business and yields on recent investments in commercial." JPMorgan reiterates Amazon as a top idea JPMorgan kept its overweight rating on the e-commerce giant and said it sees the company continuing to gain share. "We estimate Amazon increased its share of US e-comm from 39.2% in 2020 to 41.6% (+238bps) in 2021. While AMZN' s share of e-comm could dip slightly in 2022, we'd note that the company has gained ~600bps of share since the pandemic began." Morgan Stanley reiterates CrowdStrike as overweight Morgan Stanley kept its overweight rating on the cybersecurity company and said it's cautious heading into earnings later this week. "A rising overall security demand has driven higher expectations for CRWD. However, we see risk to investor expectations in Q4 as growth in customer adds is unlikely to outpace a declining average deal size by wide enough margin, resulting in more limited upside to consensus ARR (annual recurring revenue) forecasts." KeyBanc upgrades NextEra Energy to overweight from sector weight KeyBanc upgraded the energy company mainly on valuation. " NEE has been the worst performer in our universe YTD as management transition and a rotation out of clean energy names has taken the shine off a premium utility + clean energy developer." Read more about this call here. Loop reiterates Best Buy as buy Loop kept its buy rating on the electronics retailer and said it likes the stock's valuation. "We continue to believe Best Buy stock is very favorably valued — particularly given the fact Best Buy's 'pandemic performance' has generally been in line with what we consider to be the company's peer group." Argus downgrades DraftKings to hold from buy Argus said in its downgrade of the sports-betting stock that it's concerned about increasing competition. " DraftKings is facing fierce competition from MGM and Wynn, which are expanding their online sports betting operations." Read more about this call here. UBS upgrades Five Below to buy from neutral UBS said that investors should buy the dip in discount retailer Five Below . "We believe the recent pullback in the stock has created an attractive buying opportunity. The shares now trade at 25x our 2022 EPS est. and 21x our 2023 est. vs. its 35x avg. NTM (next 12 months) PE over the last five years." Seaport downgrades American Airlines to neutral from buy Seaport downgraded American mainly on valuation. "Energy market chaos tied to the Russia/Ukraine war and a supply/demand dynamic poorly calibrated for the industry's new cost structure prompt us to capitulate on weaker balance sheet stories."
The Netflix logo is seen on their office in Hollywood, California.
Lucy Nicholson | Reuters
Here are the biggest calls on Wall Street on Monday:
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