Here are Thursday's biggest analyst calls: Tesla, Lululemon, Apple, CrowdStrike, Kraft Heinz & more

Published Thu, May 26 20228:32 AM EDTUpdated Thu, May 26 202211:41 AM EDT

Here are Thursday's biggest calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said in a note Wednesday night that reports of iPhone 14 delays are overblown. "Our supply chain checks don't indicate delays, and looking at past flagship iPhone launches, there's minimal impact to FY shipments or AAPL stock performance when a model launch is delayed." Evercore ISI downgrades Dow to in line from outperform Evercore downgraded Dow mainly on valuation. "We view this call as an opportunity to reduce exposure after strong YTD performance in what has been a relatively unloved name in the sector." UBS downgrades Kraft Heinz to sell from neutral UBS downgraded the food company due to rising "inflationary pressures." " KHC is contending with one of the highest inflationary pressures over the next 12 months, increasing their need to take another round of price this year, which we believe is unlikely in light of WMT's and TGT's commentary last week." Read more about this call here. Jefferies reiterates Tesla as buy Jefferies lowered its price target on Tesla to $1,050 per share from $1,250 and said the company's risk profile is elevated. "Long-held fears of disruption from inside have come true, raising Tesla's risk profile while operating performance continues to set transformative new standards of returns and resource efficiency." Read more about this call here. Bank of America reiterates Starbucks as buy Bank of America said that Starbucks has some of the best margins in the restaurant industry. " Starbucks restaurant level EBITDA margins are among the best in the industry, but highly consistent with the company's positioning as a market share leader in its segment. Restaurants that — for all intents and purposes — operate in a 'market of one' tend toward mid-20s EBITDA margins, irrespective of industry." Morgan Stanley upgrades Lululemon to overweight from equal weight Morgan Stanley said Lululemon is a "long-term compounder on sale." " LULU trades at a discount vs. history on growth decel & recession/consumer fears. But risk seems priced in, & we think the biz could be more resilient thru industry/macro headwinds than the mkt discounts." Read more about this call here. JPMorgan upgrades Sysco to overweight from neutral JPMorgan said the food distributor has increased confidence after a series of meetings with company management. " SYY shares support relatively low-risk upside from current prices. Recent meeting with CEO/CFO gave us confidence of upcoming supply chain and delivery changes to increase market share across the broad U.S. account base." Loop reiterates McDonald's as buy Loop said in a note that its latest survey checks show the fast food giant is on pace to beat same-store sales growth in the second quarter. "Our latest McDonald's U.S. franchisee checks indicate same-store sales growth are on pace to beat expectations in Q2." Bank of America downgrades Centene to neutral from buy Bank of America said there's too much uncertainty around the health-care company. "The industry is going to have to manage through rapidly declining Medicaid membership, as well as the expiration of the expanded ACA subsidies, which not only will likely slow growth, but could cause a risk pool shift in both the Medicaid and exchange businesses. CNC is in the midst of a margin turnaround, giving it some levers to pull to support EPS growth, making it better positioned than peers, in our view." Stephens initiates CrowdStrike and Okta as overweight Stephens said in its initiation of CrowdStrike that the stock has a compelling risk/reward. The firm also initiated coverage of Okta and called the identity-access company a "market leader." "As a market leader in Endpoint Security with a strong/widening tech moat and one of the most comprehensive product offerings in security, we see a compelling risk/reward for a high-quality company with a uniquely strong mix of high-growth and FCF. ... .we think OKTA is attractively positioned to be a key beneficiary of three powerful secular trends: 1) adoption of Zero Trust security, 2) digital transformation, and 3) cloud adoption and hybrid IT." Read more about this call here. Cowen initiates Coinbase as outperform Cowen said in its initiation of the crypto company that it's "built to last." "We are initiating coverage on Coinbase with an Outperform (1) rating and an $85 price target. The company holds a dominant spot volume exchange position in the U.S. with a burgeoning subscription & services platform we believe can grow at a +DD% CAGR for the foreseeable future." Read more about this call here. Bank of America reiterates Charles Schwab as buy Bank of America said that the financial services company is an "inflation fighter" and has an attractive valuation. " SCHW is the only name in our coverage that we expect to grow quarterly EPS (each quarter, sequentially) over the next 2-3 years against a high inflation/rising interest rate backdrop (even with modestly lower public equity markets)." Stephens names J.B. Hunt a best idea Stephens named the trucking company a best idea on Thursday and says J.B. Hunt has a compelling risk-reward outlook. "And while near-term volatility in the stock could persist due to uncertainties around the freight cycle and economy, we see this risk/reward as compelling." Evercore ISI downgrades Union Pacific to in line from outperform Evercore downgraded the railroad company on valuation and "volume shortfalls." "We are upgrading Canadian National to Outperform from In Line given its commodity exposure, safe-haven status in Canada, and more appropriately right-sized guidance range, while we move to In Line on Union Pacific given recent relative outperformance to U.S. rails, 2Q22 volume shortfalls, and a likely guidance reset lower." Cowen reiterates Amazon as outperform Cowen said that Amazon Web Services has more upside for Amazon. " Amazon has several drivers that should yield robust global revenue growth with rising margins the next several years, namely (i) further B2C eCommerce market share gains in large retail verticals; (ii) emerging eCommerce verticals like B2B; (iii) significant opportunity in existing and newer Int'l markets like India, Mexico, and Australia; (iv) AWS should enjoy years of secular tail winds, driving revenue CAGR of ~30% '22E-'27E as workloads migrate to the Cloud."