Here are the biggest calls on Wall Street on Tuesday: Morgan Stanley reiterates Nike as overweight Morgan Stanley said it sees a potential "volatile backdrop" heading into Nike earnings next week. "Production shortfalls & transit delays make F3Q results & guidance difficult to predict, though recent Softlines results put a beat & raise in view. The stock could remain range-bound on China, EMEA (spec. Russia) & inventory uncertainty. But the L-T opportunity is unchanged." Cowen reiterates Nvidia as outperform Cowen said the stock presents an "opportunity for patient investors." "Market pullback, analyst day, and nascent software opportunities are driving broadening investor interest ... Under reasonable assumptions, we see potential for ~$140B in revs, ~$28/sh EPS, and an embedded $26B software business. Risks are there, but so is the opportunity for patient investors." Bernstein initiates Peloton as outperform Bernstein said in its initiation of the fitness company that it likes the company's new CEO and supply chain strategy. "In E-commerce, we like Peloton (OP, TP $40), an unlikely hero after its recent fall from grace — with a new CEO, a new supply chain strategy, a tighter belt and a healthy underlying business with engaged users and fast-growing TAM, we think it's time to buckle in for the ride. Read more about this call here. Evercore ISI initiates Planet Fitness as outperform Evercore said in its initiation of the gym company that it sees upside to estimates. "We think Planet Fitness' demand is still 15% depressed (back at prepandemic levels … but still way below trend), and see 25% upside to 2023 EPS estimates as gym demand fully normalizes by 2023." Read more about this call here . Wells Fargo reiterates Microsoft as overweight Wells Fargo said in a note to clients on Tuesday that the tech giant was one of the firm's favorite defensive stocks. " MSFT — the best way to play the broad secular trend toward software, platform positioning especially advantageous in the current environment and management has proven adept at making the right strategic moves in a fast-changing backdrop." Baird reiterates Apple as outperform Baird kept its outperform rating on shares of Apple, but says the company could face "greater input cost pressures" due to inflation. " AAPL could face a negative impact related to higher input costs, but its brand should position it well to potentially charge higher prices on upcoming products. We would note the newly released iPhone SE starts at $30 more than its predecessor. Apple's ecosystem and superior hardware/software integration should help it stand out relative to other hardware providers." UBS reiterates Signet as buy UBS said in a note to clients that "sentiment is bearish" heading into the jewelry retailer's earnings on Thursday. "Several indicators suggest sentiment is weak. 1) SIG' s stock price has fallen -18% YTD and has underperformed the S & P 500 by -530 bps. 2) The stock's short interest has risen 500 bps to 13.4% during this period." Bank of America reiterates Coinbase as buy Bank of America said it's bullish on Coinbase's opportunity to take advantage of "newer areas" of the digital-asset ecosystem. "We continue to believe COIN will be successful in diversifying its revenue streams beyond retail trading into newer areas of the digital-asset ecosystem." UBS reiterates Amazon as buy UBS said it came out of Amazon's most recent earnings report "more confident in the path for higher margins, particularly in 2H." "Within e-commerce, we prefer AMZN on the basis that 2H22 consensus EBIT numbers look conservative as the company has signaled a slowdown in the investment cycle." Deutsche Bank initiates eBay as buy Deutsche said in its initiation of the stock that it sees "impressive executional focus." "We believe that the market is underappreciating eBay' s positioning within the secular growth trends associated around re-commerce and, more importantly, the impressive executional focus that has followed CEO Jamie lannone's arrival." Read more about this call here. JPMorgan reiterates Netflix as overweight JPMorgan said recent data checks show Netflix's subscribers adds are running ahead of schedule. "Following a stronger-than-expected start to 1Q, data has slowed in recent weeks, but our analysis of Apptopia tracking through early March still suggests NFLX is running ahead of plan. If NFLX were to conclude 1Q at its recent pace, we believe Net Adds could be 4M+, down from the 5M+ implied by our regression in mid-February but above the 2.5M guide." Baird upgrades Toast to outperform from neutral Baird said in its upgrade of the point-of-sale restaurant management system that it sees further share gains. " Toast is standing at a buffet of (1) an above-GDP growth vertical (restaurants), (2) increasing software modules per restaurant, (3) secular shift to payments, (4) inflation, (5) potential to start internationally." Read more about this call here . Bernstein initiates Nike as outperform Bernstein said in its initiation of the athletic retailer that the stock isn't cheap but that its market position is "better than ever." " Nike remains the long-term quality play, and today its market position is better than ever, with higher share, more direct sales, more capital light e-commerce sales, better customer feedback and an acceleration in customer growth." Read more about this call here. Benchmark upgrades Zoom to buy from hold Benchmark said in its upgrade of the teleconferencing company that it sees an attractive risk/reward. "We are now upgrading Zoom to Buy from Hold and installing a conservative $124 price target still affording 30%+ upside off a five-year forecast through F2027 that implies rather stunted long-term TAM development. Baird upgrades GoodRx to outperform from neutral Baird said in its upgrade of the health-care telemedicine company that it likes GoodRx's valuation. "While our prior concerns around competitive dynamics remain relevant, we are now more constructive because: 1) expectations now appear to be at an achievable level, 2) valuation now looks attractive, supported by our SOTP analysis." Read more about this call here. Goldman Sachs upgrades Mosaic to buy from neutral Goldman said in its upgrade of the phosphate and potash mining company that it sees improved free cash flow. "On the back of our higher NPK (nitrogen, phosphorus, and potassium) price forecasts, we upgrade MOS to Buy from Neutral and raise our 12-month target to $83, or 34% upside potential." Goldman Sachs downgrades Hormel to sell from neutral Goldman said in its downgrade of Hormel that it sees an "unattractive" risk-reward outlook. "Recent outperformance and expanded valuation premium versus (+19% P/E premium to Staples) present an unattractive risk/reward in the face of accelerating inﬂationary cost pressures and rising demand elasticity, in our view. Jefferies reiterates Charles Schwab as buy Jefferies said in a note to clients on Tuesday that Charles Schwab is well positioned to benefit from retail trading. "We recently surveyed ~1,300 individuals in the U.S. regarding their brokerage activity (stocks, crypto, etc). The results highlight ongoing elevated levels of engagement, growing usage of products like crypto, and the desire for educational content." Piper Sandler reiterates Rivian as overweight Piper kept its overweight rating on shares of the electric vehicle company, but said any Covid shutdowns in China could have ripple effects. "We believe in the strategy; we wouldn't sell RIVN based on early production cuts. But beware: a Covid resurgence in Asia may further impact semiconductor supply chains. China auto production has grown at a robust pace so far in 2022 ... but Covid-induced factory closures could have ripple effects, both in China and beyond." Citi adds Jabil to the focus list Citi added the manufacturing-services company to its top picks list, noting investors should buy the dip on the stock. "We are adding Jabil to the U.S. Focus list, which is reserved for Citi's highest conviction stocks. We have a Street high target price of $90, which is +67% upside given the recent pull back that was associated with both the overall stock market and even more pressure on technology stocks."
Reed Hastings, co-founder and CEO of Netflix, gestures during an event of the Fundacion Telmex Mexico Siglo XXI (Telmex Foundation Mexico XXI Century) in Mexico City, Mexico, September 6, 2019.
Edgard Garrido | Reuters
Here are the biggest calls on Wall Street on Tuesday: