Here are Monday's biggest calls on Wall Street: Loop initiates Match as buy Loop said the dating app company is the "market leader." "As online communities have grown with the rise of Web 2.0, online dating has grown along with it, and Match Group, Inc. has established itself as the market leader in the space." Read more about this call here. Evercore ISI upgrades Warner Brothers Discovery to outperform from in line Evercore said in its upgrade of Warner Brothers Discovery that the newly combined media company's shares are undervalued. "We think the shares are undervalued with a ~14% 2023 levered FCF yield and a path to grow FCF/share at a double-digit rate per year thereafter." Goldman Sachs reiterates Netflix as neutral Goldman Sachs said Monday that it's staying neutral heading into the company's earnings report later this month. The firm said it needs a "clearer line of sight" on content spending and margin growth. "While the competitive intensity for media consumption choice remains elevated (short form video, long form video & gaming), we see NFLX with a strong content slate in the coming quarters (with many returning titles that had been delayed as a result of the pandemic). Against that backdrop, we remain Neutral rated on NFLX and lower our PT from $450 to $420 on the back of shifts in subscriber growth." JPMorgan upgrades AT & T to overweight from neutral JPMorgan resumed coverage of the stock, saying it likes that the company is now more communications-focused. "A more communications-focused company, AT & T now looks more like Verizon than it has in years after shedding the distractions and revenue drag of a declining satellite video business and the capital obligations of the Warner/HBO media businesses." Read more about this call here . Baird downgrades Nvidia to neutral from outperform Baird said in its downgrade of Nvidia that it's concerned about order cancellations. "We believe order cancellations recently started in consumer GPUs, driven by excess inventories, a slowdown in consumer demand (reflected by an ongoing reduction in graphic cards pricing), slowdown in PC demand, and the Russia embargo." Read more about this call here. Citi upgrades Wells Fargo to buy from neutral Citi upgraded the banking giant ahead of earnings next week, saying it sees "capital flexibility and asset sensitivity." "As we refreshed our models, one balance sheet that clearly stood out to us was WFC in terms of capital flexibility and asset sensitivity." UBS reiterates Alphabet as buy UBS said it sees upside to Street estimates due to "larger Google Workspace business." "Channel work suggests that Workspace revenue could have totaled ~$2B in 4Q21 (vs. our in-print estimate for $1.3B), comprising 36% of segment revenue." UBS reiterates Microsoft as buy UBS kept its buy rating on shares of the tech giant on Monday, but said it's concerned about a "gentle deceleration" on Office 365. "We now believe that the Office 365 juggernaut is likely to begin a gentle deceleration given high penetration and the pandemic/work-from-home benefit starting to fade. That said, we remain Buy-rated on Microsoft shares." Atlantic Equities reiterates Coinbase as overweight Atlantic Equities kept its overweight rating on shares of the crypto company, noting it sees "upside optionality." "While near-term fundamentals have been challenging for Coinbase , we believe that there is potential for a rebound in both price and volumes through 2022." Morgan Stanley reiterates Nio as overweight Morgan Stanley said that Nio's temporary production suspension won't derail the stock's overall positive story. " NIO announced a temporary production suspension given the spillover of supply chain disruption amid China's Covid lockdowns. This isn't an idiosyncratic issue; more OEMs are scrambling to overcome the sporadic production hiccups in 2Q amid China's ongoing Covid-zero policy." Wells Fargo reiterates Lowe's as overweight Wells kept its overweight rating on the home-improvement retailer, noting it sees an "attractive" entry point. "The heavy lifting on LOW 2.0 is largely behind us, the FY22 outlook appears conservative and was reaffirmed) and plenty of LT growth levers remain. All in, we would use any volatility Monday as an entry point." JPMorgan downgrades American Express to neutral from overweight JPMorgan said in its downgrade of American Express that it sees more attractive risk-reward balances elsewhere in the firm's coverage. "We continue to view AXP as one of the most fundamentally compelling names within our coverage. However, we believe current estimates and valuation fully incorporate a relatively positive base case. Consequently, we see more attractive risk/reward opportunities within our coverage." Read more about this call here. Bank of America reiterates Disney as buy Bank of America reiterated Disney 's Park division will drive an earnings recovery. "Near-term catalysts include: (1) continued theme park improvement/recovery, (2) DTC rollouts in new geographies, increased content output in 2HFY22, rollout of ad-supported service and potential price increases, and 3) sports-betting options at ESPN." Piper Sandler upgrades Schlumberger to overweight from neutral Piper Sandler said in its upgrade of the oil field services company that it sees "impressive cycle-to-date operational and financial delivery." "Again, we expect that most OFS (oil field services) stocks, including SLB , will prove cheaper than they currently look on current estimates." MKM upgrades JetBlue to neutral from sell MKM said in its upgrade of JetBlue that the the bad news is already "baked" in. "We believe much of the bad news is now baked into the stock and do not expect material downside from here, thus the upgrade. The proposed offer for Spirit Airlines caught us and likely many others by surprise." Deutsche Bank initiates Joby as hold Deutsche said in its initiation of the urban air mobility company that it sees an unfavorable risk-reward balance at current levels. "While Joby is the leader of the pack, in our view, on several levels, we regard the risk/reward profile to be more favorable for Archer ($10 PT or ~150% upside potential) given the stock's large valuation discount and potential to surprise investors with its progress. Deutsche Bank names Warner Brothers Discovery a top pick Deutsche said that the media company is one of the most well positioned in the industry. "We view the new Warner Bros. Discovery (WBD) as one of the best positioned companies in the global streaming video entertainment industry given its content and IP portfolio, combined with its widely recognized HBO Max brand and existing base of 92M streaming subscribers." Goldman Sachs upgrades Rio Tinto to buy from neutral Goldman said in its upgrade of the metals and mining company that it sees a strong iron ore outlook for Rio Tinto. "With a strong start to the year (~25% ytd, ~60% yoy), we expect the price of aluminum to continue to rally as a function of Russia constituting a signiﬁcant portion of global supply (6% of global supply, the No.3 supplier), with an indirect effect through elevated natural gas prices (Russia makes up 19% of global natural gas supply and 35% of the European gas market) as higher prices weigh on smelter margins." Wells Fargo upgrades KeyCorp to overweight from underweight Wells said in its double upgrade of the regional bank that it sees a positive risk-reward balance. "We tactically upgrade KEY and increase the PT (to $27 from $23) given benefits from Main St. Banking and est. reward-to-risk ratio of 2-4 to 1." Bank of America downgrades Fortune Brands to underperform from buy Bank of America said in its downgrade of Fortune Brands that it sees gross margin headwinds and risk to the China outlook. "The recent surge in metals (zinc, copper, nickel) will pressure plumbing. Cabinets face incremental headwinds from still rising hardwood lumber costs and a tight labor market, potential trade-down: cabinets is a competitive, discretionary category and significant price hikes could result in trade down to lower cost products or brands."
Chinese electric vehicle start-up Nio Inc's first employee Tianshu LI, and company's leadership team celebrate at the New York Stock Exchange (NYSE) Opening Bell to commemorate the company's initial public offering (IPO) at the NYSE in New York, September 12, 2018.
Brendan McDermid | Reuters
Here are Monday's biggest calls on Wall Street: