Here are Wednesday's biggest analyst calls of the day: Netflix, Nvidia, Apple, Amazon, Costco & more
Here are Wednesday's biggest analyst calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said it sees more upside in Apple stock heading into earnings next week. "We see upside to Mar Q Street rev, with iPhone 13 & Mac strength more than offsetting relative underperformance in iPad & Services. We expect more cautious Jun Q commentary due to China Covid lockdowns but would buy any weakness ahead of product launch catalysts later this year." Needham upgrades Netflix to hold from underperform Needham upgraded Netflix even after its disappointing earnings report, noting it's getting bullish on the company's low-priced tier. " NFLX is indicated to open down 27% this morning, at $254/share following its earnings release. Today, we upgrade NFLX to Hold from Underperform because, for the first time, the CEO stated NFLX will introduce a low-priced advtg tier over the next 18-36 months." Barclays upgrades Avis Budget to equal weight from underweight Barclays said it's getting incrementally more positive on the rental car industry. "While we still believe there's room for HTZ to close the valuation gap with CAR, we're now incrementally constructive on the rental car space in an inflationary environment, and thus upgrade CAR to EW." RBC upgrades Palantir to sector perform from underperform RBC said in its upgrade of the stock that it sees "upside to government numbers" due to the situation in Russia and Ukraine. "Government setup could translate to near-term upside (though this is not showing up in our U.S. fed spend tracker, yet); SPAC investments are likely coming to an end; and PLTR does not look cheap to us at 10x CY23E EV/revenue, but does better reflect the risk-reward, which leans more balanced now given recent improvements in the near-term government-spending outlook." JPMorgan downgrades Netflix to neutral from overweight JPMorgan said in its downgrade of the stock that the company has "conceded' to the firm's bear thesis after Netflix's earnings report on Tuesday. "Following a sea change quarter for NFLX in which the company essentially conceded to every key point of the bear thesis, we're downgrading our recommendation to Neutral & lowering our price target to $300." Read more about this call here. Piper Sandler reiterates Nvidia as overweight Piper said that concerns about risks from Russia are overblown for Nvidia. "In our eyes, the China Covid supply risk remains something we are monitoring, but the risk from Russia demand is quite manageable given the supply constraints." Deutsche Bank adds a catalyst call buy on Albemarle Deutsche added a catalyst call buy on the specialty chemical company, saying Albemarle is on track for a beat and raise when it reports earnings on May 4. "We are initiating Albemarle as a Catalyst Call Buy. Fueled by sharply higher lithium prices, we believe Albemarle is on track for another beat and raise with its Q1 earnings release on May 4." Citi adds Amazon to the focus list Citi said that the e-commerce giant is firing on all cylinders. "We view Amazon as one of the best positioned companies in our coverage universe across some of the largest Internet growth vectors — eCommerce, Online Advertising, and the Cloud — and while higher operating costs are likely to impact margins in the shorter term given the rising cost of transportation, we believe Amazon should benefit from improved operational efficiencies at its new Fulfillment Centers, the closing of some of it physical retail locations, and the lapping of Covid-related labor shortages." Read more about this call here . Stephens downgrades Halliburton to equal weight from overweight Stephens downgraded the stock mainly on valuation. "Following an impressive run by HAL post-downturn, and with the stock now near its highest level since 2018, we are moving to EW (from OW) on shares (price target to $40 from $37). Over the past seven quarters, HAL has managed to claw back ~500bps of margin (after bottoming in 2Q20), while quarterly revenue has grown nearly 35% over that same period." Bank of America reiterates Snap as buy Bank of America it sees a "favorable" setup into Snap earnings on Thursday. "While a consumer recession and TikTok's ad growth are risks for the Online media group, we like the relative 2H set up for Snap on stable user growth, potential progress on ad measurement improvements, and opportunity for Spotlight or Maps monetization." Morgan Stanley reiterates Tesla as buy Morgan Stanley said it will be looking out for commentary on inflation and supply constraints when the automaker reports earnings. "We believe Tesla's vertical integration and access to 'electric metals' is largely underappreciated by investors." Loop reiterates BJ's and Costco as buy Loop raised its price targets on the big-box retailers, saying it sees traffic starting to increase. "We are reiterating our Buy ratings and raising our price targets on shares of BJ's and Costco , from $70 to $80 and $645 to $650, respectively. We believe traffic is growing for both companies as their competitive gas and food prices drive consumers to the clubs. Read more about this call here . Citi upgrades Alphabet and Meta Platforms to buy from neutral Citi said in its upgrades of Alphabet and Facebook parent Meta that it sees "multiple vectors" ahead for sustained growth. "While we recognize the heightened volatility across the sector over the past several quarters given debates on what the new normal looks like post Covid, the longer-term impact of Apple's ATT changes, greater regulatory scrutiny and increasing macro fears, we also believe the broader sector is healthy as consumer engagement online continues to be more immersive and grow, and we see multiple vectors ahead for sustained growth." Morgan Stanley reiterates Rivian as overweight Morgan Stanley said Rivian is still best positioned to be Tesla's biggest challenger. "Longer term, we still see Rivian as The One that can best stand as a viable challenger to Tesla in U.S. on-shore renewable transportation/energy infrastructure."
Nvidia CEO Jensen Huang wearing his usual leather jacket.
Here are Wednesday's biggest analyst calls on Wall Street: