Here are Thursday's biggest analyst calls: Netflix, Snap, Tesla, Home Depot, GameStop, Twilio & more
Here are Thursday's biggest calls on Wall Street: Piper Sandler downgrades Pinterest and Snap to neutral from overweight Piper downgraded Pinterest and Snap due to slowing digital ad growth. "After a strong two-year stretch, digital ad spend looks to be normalizing. Group multiples have declined and are ~40% off recent highs, but history suggests multiples may not re-rate until after ad spend growth bottoms." Read more about this call here . DA Davidson initiates Rivian as underperform DA Davidson said in its initiation of the electric vehicle company that it sees too many negative headlines for Rivian. "Like most EV start-ups, there have been bumps in the road; while we loved the truck we tested, we are worried that negative headlines will outnumber the positives in the months to come." Read more about this call here. UBS downgrades Albemarle to neutral from buy UBS downgraded the specialty chemical company mainly on valuation. "Over the past month ALB has raised its 2022 EBITDA guidance ~90% above its initial expectations. Upside has been driven by lithium prices, and ALB's shift to variable rate contracts. While this benefits near-term earnings, lithium prices are now well above the cost curve, and the likely direction of pricing over the next five years is down." Goldman Sachs reiterates Tesla as buy Goldman said that it sees Tesla eventually manufacturing different models as more capacity comes online. "We believe Tesla's platform approach could allow it to offer different vehicle models in the long term, especially as it adds more capacity. Jefferies reiterates GameStop as hold Jefferies raised its price target on shares of GameStop to $110 per share from $90 after the company's earnings report and said it's making progress digitally. "Short conference call focused on continued efforts to prioritize growth, future value investments, brand loyalty initiatives, & upgrading demand fulfillment capabilities, even at the expense of near-term margins." UBS names Generac a top pick UBS named the battery backup company as a top pick, noting it sees an attractive risk/reward for shares of Generac. "We see the current valuation as providing an attractive 4:1 upside/downside opportunity with the current share price offering an attractive entry point into a likely long-term, smart home energy winner." Read more about this call here . Morgan Stanley reiterates FedEx as equal weight Morgan Stanley said in a note previewing FedEx earnings later this month that it expects the company to come in below consensus. "The noise of recent quarters is likely to continue in 4Q but anything short of a big miss may be good enough as investors look ahead to the FY23 guide and long-term targets at the Analyst Day." Wells Fargo names Home Depot a best idea Wells named Home Depot a best idea after its recent survey checks showed the home-improvement category is holding up well despite the tough macro environment. "Adding it all up, it does appear that homeowners are becoming somewhat more cautious. However, given little anecdotal evidence of a slowdown coming from the two largest home-improvement players (which likely reflects some level of share gains), we're inclined to believe that home-improvement spend should remain relatively healthy." Guggenheim reiterates Netflix as buy Guggenheim lowered its price target on Netflix to $265 per share from $350, but said that adding advertising to the company's platform should lift long-term revenue. "We expect Netflix will opportunistically leverage existing market-wide technology for the most efficient advertising sales and delivery." Bank of America reiterates Signature Bank as buy Bank of America said shares of the commercial bank provide a "compelling" risk-reward scenario. "Despite the potential for near-term volatility (especially if crypto currencies remain out of favor, potentially impacting Signature's deposit growth), we believe the stock offers a compelling risk/reward at current valuations to add exposure to a best-in-class growth franchise." Baird reiterates Boeing as outperform Baird said shares of the aerospace company look compelling right now. "With a reset in the BA stock and 23% of its current market cap in FCF through 2024, we believe the risk/reward profile for the BA stock looks compelling for long-term investors." Oppenheimer upgrades SolarEdge to outperform from perform Oppenheimer said that SolarEdge has "highly defensible technology." "As investors look to balance growth with defensive postures, establishing core positions in differentiated technology platforms positioned to grow in excess of climate-mitigation peers should offer hedges on inflation and recessionary concerns." Barclays downgrades Twilio to equal weight from overweight Barclays said it's cautious on the company due to a "tougher macro environment." "We're looking for more evidence of growth in Twilio's Segment + Engage opportunity before becoming involved in the name, and we're cautious on messaging volumes into a tougher macro environment.' Read more about this call here.
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