Here are Thursday's biggest analyst calls of the day: Apple, Netflix, Tesla, Unity, Disney & more

Published Thu, Apr 7 20228:51 AM EDTUpdated Thu, Apr 7 202211:53 AM EDT

Here are Thursday's biggest calls on Wall Street: Guggenheim initiates Teladoc as buy Guggenheim that it's bullish on the future of telemedicine. "We think health-care access is moving more toward digital interactions, and TDOC's broad suite of services addresses more touch points than any other provider, in our view." Read more about this call here. Morgan Stanley reiterates Disney as overweight Morgan Stanley said Disney's Parks division helps strengthen the company's earnings per share outlook. "We raise our Parks estimates and believe Disney is implementing technology and operational tools that should drive structurally higher growth and incremental margins in the years ahead. Streaming remains a show-me story, however, but success is not priced in." JPMorgan reiterates Apple as overweight JPMorgan reiterated its overweight rating on the tech giant, but cut its earnings forecast due to slower consumer spending. "Thus, we are trimming our earnings forecasts for Apple, led by a modest haircut to our revenue growth estimates for iPhone (primarily iPhone SE) and Services, although the overall reduction in estimates is fairly modest given the resilience of high-end smartphones, tablets and laptops to the broader slowdown in consumer spending." Wells Fargo downgrades Wayfair to underweight from equal weight Wells Fargo sees decreasing demand visibility for Wayfair. "To that end, we are lowering our rating on W from EW to UW, as we see waning demand visibility, optimistic Consensus estimates, and a host of competitive, demographic (i.e. lower-income exposed, e-com normalization), and positioning-driven challenges." Read more about this call here. Goldman Sachs reiterates Costco as buy Goldman kept its buy rating on the big-box retailer after it reported March same-store sales that were better than expected. " COST reported March SSS (ex-gas/FX) of +12.2% (includes 1.5%-2% benefit from an incremental day y/y), accelerating from +10.6% in February while inflation remained relatively consistent m/m, and better than consensus at +9.3%." JPMorgan reiterates Netflix as overweight JPMorgan said in a note to clients that expectations are "muted" heading into Netflix earnings later this month. "Heading into earnings on April 19, NFLX is a frequent topic in our discussions w/investors, shares remain controversial, and sentiment skews negative." JMP reiterates Robinhood and Coinbase as market outpeform JMP said Robinhood and Coinbase have some of the "most material long-term upside" in the firm's coverage universe. "For some of the harder-hit FinTech and Digital Asset names like Robinhood (HOOD, MO, $41 PT) and Coinbase (COIN, MO, $394 PT), we have detailed our thesis at length, but we see some of the most material long-term upside in our coverage at this point in these stocks." Barclays downgrades Ford to equal weight from overweight Barclays said investors are still "underestimating risks to the sector." "The choppy macro and input cost inflation puts a premium on execution — and while we are hopeful that the new organization at Ford will over time improve operating eﬀectiveness, in the new term Ford appears vulnerable to the ongoing chip shortage as we believe it came into 2022 with only ~ 1/3rd of its commodity needs locked in — and since then prices have spiked." Read more about this call here. Deutsche Bank downgrades Rite Aid to sell from hold Deutsche said it sees a "negative inflection point" for Rite Aid. "Unfortunately, we believe Covid has hastened the decline of the retail pharmacy segment and we see the potential for a dramatic negative inflection point for RAD shares as this preliminary F2023 outlook seems to be unattainable." Evercore ISI reiterates HP as outperform Evercore said in a note to clients that it's bullish on HP after Warren Buffett's Berkshire Hathaway announced a stake in the company on Wednesday night. "Fundamentally, we do not expect material changes to HPQ's business from Berkshire entering its HPQ position, though we view Berkshire's ownership as a validation of HPQ's strategy/capital return program (notably, Berkshire began acquiring shares following HPQ's announced ~$3.3B offer to acquire POLY on 3/28)." Wells Fargo reiterates Bank of America as a top pick Wells said that "fundamentals remain decent" for Bank of America heading into earnings. "We would agree that there are some issues to book value, capital markets and the possibility for less revenues or higher credit costs. Yet, this seems overdone." JPMorgan upgrades Aerojet Rocketdyne to overweight from neutral JPMorgan said the space-rocket company has an attractive valuation. "We are upgrading Aerojet Rocketdyne to Overweight with a $49 price target implying > 20% upside. We see why AJRD trades at a discount, but we think the current valuation is attractive at < 10x 2023 EBITDAP with visible growth, a net cash position that leaves capital to deploy, and the potential (eventually) to be acquired." Citi initiates Roblox as buy Citi said Roblox has a "healthy pipeline of software enhancements." " Roblox is a unique two-sided gaming platform with positive FCF and a relatively lean capital structure. And, after a sharp reduction in Street estimates we think consensus estimates are now reasonable. While the firm's valuation is above many peers, we believe this is justified given firm's strategic position, rapid growth and healthy pipeline of product enhancements.' Read more about this call here. Truist initiates Figs as buy Truist said in its upgrade of the health-care clothing company has robust fundamentals. "While shares have been volatile post-IPO (May 2021), we believe that the company's fundamentals remain robust and expect it to deliver industry leading GMs (gross margins) and adj. EBITDA margins (20%+) over the mid term. We also note that the combination of rapid sales growth AND high profitability sets FIGS apart from digitally native, recent-IPO peers." Piper Sandler upgrades Murphy Oil to overweight from neutral Piper said Murphy Oil has a compelling valuation at current levels. "We upgrade BRY, CDEV, LPI and MUR to Overweight from Neutral as a result of our higher oil price deck, and compelling relative valuations for each." Berenberg upgrades Yeti to buy from hold Berenberg said investors should buy the dip on Yeti. "Upgrading our rating to Buy (from Hold); reducing our price target to $92 (from $103), implying ~68% upside. Since hitting its 52-week high on Nov. 5, Yeti has underperformed the market (down ~49% vs. Russell 2000 down ~17%), despite delivering continued growth on its top and bottom lines." Read more about this call here. Citi initiates Unity Software as buy Citi said in its initiation of the video game software company that it "presents a unique opportunity to be bullish" with "unprofitable tech out of favor." "We like Unity's software engine and its leading position in the mobile gaming market." Deutsche Bank reiterates Charles Schwab as a top pick Deutsche said that the financial services company is one of its top picks heading into the earnings season. "For this earnings season, we expect the exchange stocks to perform the best across our coverage, followed by the interest rate sensitive stocks in our coverage, primarily Charles Schwab in the online brokers, but also the trust banks." Oppenheimer reiterates Tesla as outperform Oppenheimer kept its outperform rating on shares of Tesla , saying it's bullish heading into the company's earnings later this month. "First, we are looking for indicators of progress on its manufacturing capacity expansion. Second, we expect geographic and feature mix along with the ability to pass higher supply chain costs on to consumers to drive margins. Third, we believe upside in shares from here is rooted in progress related to its autonomy program along with continued leadership in EV." JPMorgan upgrades AutoNation to overweight from neutral JPMorgan said the auto retailer has a strong balance sheet. " AN has the best balance sheet optionality in our coverage, and the recent pullback makes relative valuation screen the most attractive in the space on normalized EPS potential." Morgan Stanley names Wells Fargo, Signature Bank and American Express top picks into earnings Morgan Stanley said it likes Wells Fargo, Signature Bank and American Express heading into earnings. The firm said it likes stocks with "benefiting from rate and loan growth tail winds." "While the banks have several potential tailwinds ahead including higher interest rates and accelerating loan growth, tail risks have clearly increased due to the war, including a higher probability of recession as the Fed raises rates quickly to bring down inflation." Citi upgrades Mission Produce to buy from neutral Citi said the avocado company has an attractive valuation. "Our upgrade reflects the stock's discounted attractive valuation after a 33% price correction in six months given higher interest rates and negative reactions to news headlines." Piper Sandler upgrades Occidental Petroleum to overweight from neutral Piper said the stock is inexpensive at current levels. "Despite performance to date, we believe we are still very early in a multiyear cycle and remain constructive the sector, and while everything looks attractive in absolute terms at the current deck, we shuffle our preferences to reflect current realities: Upgrade OXY to Overweight; Downgrade TTE to Neutral." Barclays names Target a top pick Barclays named the big-box retailer as a top pick and says it has an "extremely attractive" valuation. "We are making TGT our Top Pick on the heels of our recently completed survey validating resiliency of the model in the face of a potential slowdown in the macro, combined with extremely attractive valuation at ~8.7x FY23E EV/EBITDA and ~13.5x P/E."

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 Thursday's biggest calls on Wall Street: