Here are Tuesday's biggest analyst calls of the day: Nvidia, Netflix, Apple, MGM, Tyson Foods & more
Here are Tuesday's biggest calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said "green shoots are emerging" as the latest Apple App Store data shows revenue growth accelerating. "April App Store net revenue growth accelerated to 8% Y/Y, as strength in China offset weaker trends in the US." Wedbush downgrades DocuSign to underperform from neutral Wedbush said it sees tough growth ahead for the e-document signature company. "That said, we are downgrading our opinion of DocuSign from NEUTRAL to UNDERPERFORM as this WFH beneficiary could see difficult growth ahead not factored into shares at current prices in our opinion." Piper Sandler downgrades Kellogg to underweight from neutral Piper said that its survey checks show consumers are cutting back on basics like cereal. " Kellogg lacks better current momentum (following disruptions from its 2021 strike) at a time when it looks likely to face accelerated downtrading, which could potentially make it harder to regain share." Read more about this call here. Piper Sandler downgrades Chegg to neutral from overweight Piper said that investors need to see a "steady trend of beat/raises" in order to gain confidence in the stock. "In our view, we expect Chegg to remain in the penalty box in the near/medium term as this is the second time that CHGG has lowered guidance in six months. Investors will need to see a steady trend of beat/raises and enrollment stability to gain confidence in the stock." Oppenheimer upgrades JPMorgan Chase and Morgan Stanley to outperform from perform Oppenheimer upgraded several banks on Tuesday, saying investors should buy the dip. "We say that investors should take advantage of this weakness and are upgrading JPM , MS, and SIVB to Outperform from Perform, three strong companies that we have long admired but until recently thought were relatively more fully valued." William Blair adds Planet Fitness and BJ's to the focus list William Blair added the exercise fitness company to its focus list, noting it's well positioned for gains going forward. The company also added BJ's to its focus list, citing an attractive valuation. "We added BJ's Wholesale Club to the Consumer Near-Term Focus List, reflecting our expectation for strong underlying growth in the business and an attractive valuation. ... In the near term, we believe Planet Fitness is well positioned to meet our above-consensus first-quarter estimates for revenue growth of 74% and a more than threefold increase in adjusted EPS on accelerating same-store sales growth to 18.0% > Evercore ISI reiterates Disney as outperform Evercore said it sees Disney as a second half of 2022 story. "More importantly, the content slate will begin to ramp in FQ4, with content from marquee Disney brands doubling in FY22 Piper Sandler downgrades Tyson Foods to underweight from neutral Piper said in its downgrade of Tyson that it conducted several survey checks which show that consumers continue to cut back on meat. "Consumers we survey say they are cutting back on basics; meat most at risk. Of consumers we surveyed, 42% expect to cut back spending on basic goods as result of higher inflation and concerns about finances." Read more about this call here . Morgan Stanley resumes Nvidia as equal weight Morgan Stanley reinstated coverage of Nvidia after a period of restriction, noting it has concerns about a deceleration in gaming. " NVDA remains one of the best growth names in the semis space, carving out a strong, differentiated cloud AI/ML business and leading position in gaming. That said, we are concerned about deceleration in gaming and high valuation vs. peers, which keeps the bar raised and multiple at risk." Read more about this call here. Wells Fargo downgrades Carvana to equal weight from overweight Wells Fargo said it sees a lack of near-term catalysts for the online car seller. "But as industry headwinds build, we await further evidence that CVNA' s considerable progress from FY19-21 can be replicated in both good and unfavorable macro backdrops." Bank of America downgrades Charter to neutral from buy Bank of America downgraded the cable company due to broadband growth concerns. "The cable industry currently has ~70% share of U.S. broadband households and as the incumbents, Charter and cable are likely to cede share to these new entrants in coming years as FWA and fiber deployments and marketing accelerate." Atlantic Equities downgrades Colgate-Palmolive to neutral from overweight Atlantic Equities said in its downgrade of Colgate that it sees a "challenging operation backdrop." "With shares trading above 20-year averages on both absolute and relative multiples, and considering the challenging operational backdrop, we are moving our rating from Overweight to Neutral." Read more about this call here . JPMorgan resumes MGM as overweight JPMorgan said should buy the dip on shares of MGM as the Vegas recovery continues. "We like the 15% pullback to the low $40s share price levels to play for a continued recovery in Las Vegas, particularly a rebound in mid-week group/convention business, where hotel pricing remains strong despite a mixed macro (higher gas/oil prices, a diminished YTD wealth effect and geopolitical concerns) and efficient use of its increasing cash hoard toward share." Read more about this call here. Benchmark reiterates Netflix as hold Benchmark said it remains skeptical of a Netflix recovery. "We view Netflix as now effectively much more of a media than tech name as other streamers are perfecting their interfaces and also have big data expertise, alongside much deeper IP libraries at studios like Disney and Warner Bros." UBS reiterates Peloton as sell UBS kept its sell rating on shares of the fitness company ahead of earnings on May 10 and said investors will be listening closely for updates on the company's new pricing strategy. "While subscriber growth guide for Q4 will be a focus when PTON reports earnings (UBSe growth of +29% vs. Street's +30%), what will matter more is management's commentary on new pricing strategy, customer acquisition cost and impact on churn rates." JPMorgan reiterates McDonald's as overweight JPMorgan said in a note on Tuesday following last week's earnings that McDonald's is key as a long-term core holding and a safe-haven stock in an "unstable world." "Solid top-line performance matched with higher cost outlook, but MCD offers relative sanctuary in unstable world."
The Netflix logo is seen on their office in Hollywood, California.
Lucy Nicholson | Reuters
Here are Tuesday's biggest calls on Wall Street:
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