Here are Friday's biggest calls on Wall Street: Goldman Sachs downgrades Robinhood to sell from neutral Goldman said that the bar is too high for Robinhood to reach profitability next year. "We are also downgrading HOOD to Sell from Neutral, as we believe Street estimates are still too high and see a high bar for HOOD to reach profitability in 2023 (requires 10+% organic revenue growth + macro tail winds) as the company has noted." UBS downgrades HP to neutral from buy UBS said it likes the company's execution, but added that "shares [are] likely to tread water as risk/reward is balanced." "We downgrade HPQ to Neutral from Buy given the confluence of factors including incremental signs of softness in low-end Consumer PCs following recent checks over the past month along with the likelihood of a slower buyback next year following the expected close of the Plantronics deal in late CY22." Morgan Stanley names Amazon, Alphabet and Meta as top recession picks Morgan Stanley said in a note to clients on Friday that if a recession occurs, investors are likely to "come back to higher quality, free cash flow generative names with more quantifiable guardrails around a reasonable range of 2023 cash flow." "While our economists are not calling for a recession, we remain on macro watch and today provide a multifactor framework across 32 online ad, e-com, travel and shared economy companies showing which could better navigate a downturn. GOOGL , FB, MTCH, AMZN , BMBL screen highest." Credit Suisse downgrades Alcoa to neutral from outperform Credit Suisse said it sees "inflationary pressures" hurting Alcoa. "We downgrade Alcoa to Neutral (from Outperform) as we view LME (London Metal Exchange) aluminum prices as being near peak, AA continues to deal with inflationary pressures & capex should start to accelerate more meaningfully for de-carbonization targets." Bank of America upgrades Kroger to buy from neutral Bank of America said it sees "significant" earnings per share upside drivers for Kroger . "Elevated food inflation should continue: the Finished Consumer Foods PPI, various commodity indices & even fertilizer prices imply elevated/accelerating Food at Home inflation for at least the next six months. Given the lag in pass-thru, we would expect elevated levels of grocery inflation to continue at least through 1H23." Raymond James initiates Procter & Gamble as outperform Raymond James said the stock is well positioned to navigate increased volatility. "While the backdrop for consumer staples has grown more challenging as the market assesses growth and inflation post-pandemic, we believe PG' s improved ability to navigate volatility, cushion itself against costs with its own initiatives, and focus on innovation position it well to sustain its momentum." Baird reiterates Caterpillar and Deere as outperform Baird kept its outperform rating on the ag equipment companies, saying they should benefit from an inflationary environment. "We are maintaining Outperform on CAT and DE , both are benefiting from direct exposure to commodity-extraction customers likely to disproportionately benefit from inflationary environment." Morgan Stanley reiterates Spotify as overweight Morgan Stanley lowered its Spotify price target to $225 per share from $300 due to "higher interest rates and lower long-term gross margins." "Underlying growth (ex Russia shutdown) appears to have been strong during the quarter. Recent competitor price increases support our view that Spotify ARPUs can grow long term. While we lower our PT to reflect higher interest rates and lower long-term gross margins, we remain OW." Morgan Stanley reiterates Boeing as overweight Morgan Stanley lowered its price target on shares of Boeing , saying it sees "higher execution risks." "We are lowering our PT to $230 from $288 as positive catalysts we expected to occur in April 2022 have been pushed to the right. We recognize we may have been too optimistic and need to factor in higher execution risk." RBC initiates Raytheon as outperform RBC said in its initiation of the stock that the defense sector has benefited from a positive re-rating. "We believe RTX is establishing a new standard for end market exposure (65/35 from defense/ aero in 2021) that will benefit from stronger defense fundamentals as well as the commercial aerospace recovery." Deutsche Bank reiterates Apple as buy Deutsche Bank said that a Apple hardware subscription "makes sense financially and psychologically." "More important than the short-term EPS accretion opportunity in our view, however, is the opportunity to reset consumer expectations of how often to refresh an iPhone and to get more consumers to try other AAPL subscription services." Morgan Stanley reiterates Peloton as equal weight Morgan Stanley reiterated its equal weight rating on shares of the fitness company, but said it sees third-quarter subscriber upside. The firm added, however, other decelerating trends are still concerning. "Our PTON SWEAT tracker implies 3Q net adds/subscribers of 264k/3.03M, well above MS/consensus net adds of 166k/200k." Bank of America names JPMorgan a top pick into earnings Bank of America said in a note to clients that it sees a "unique" backdrop heading into JPMorgan's earnings later this month. "Stock has historically traded poorly on the back of earnings announcements, but we see the current backdrop as unique in terms of investor sentiment, the significant shift in rate outlook and the potential for better than feared update on customer behavior." JPMorgan reiterates Constellation Brands as top pick JPMorgan said that the beverage company is the "best GARP in our universe with top-line momentum continuing in beer." "Net-net, we continue to think the top-line momentum is more important to the STZ and with the Beer top-line trends continuing to be strong, ~100% U.S. exposure, and committed capital allocation framework we think shares remain an attractive." Bank of America downgrades UPS to neutral from buy Bank of America said in its downgrade of UPS that it's concerned about demand and pricing declines. "Freight market signals have turned increasingly softer and suggest demand is waning (and not due to capacity being added), as we highlighted in our weekly Transport Tracker and our proprietary bi-weekly BofA Truck Shipper Survey." Goldman Sachs reiterates Tesla as buy Goldman said in a note to clients on Friday morning that it's bullish heading into Tesla earnings later this month. "We remain positive on Tesla for the full-year driven by strong EV demand, the company's leading ability to navigate the supply chain (e.g., Tesla has been able to find alternative suppliers more quickly in part due to its vertically integrated model), and increasing prices for its vehicles."
A sign hangs from a fence at Metropolitan Park, the first phase of new construction of Amazon's HQ2 development, in Arlington, Virginia, October 13, 2021.
Kevin Lamarque | Reuters
Here are Friday's biggest calls on Wall Street: