Here are Wednesday's biggest analyst calls: Snowflake, Apple, Amazon, Nike, Robinhood, Rivian & more
Here are Wall Street's biggest calls on Wednesday: Goldman Sachs initiates Wheels Up as buy Goldman said in its initiation of the on-demand private jet company that it sees an attractive entry point. " Wheels Up is a leading company in an established and growing end-market, but one that is also fragmented and has substantial opportunity for an asset efﬁciency model. Conditions in the end-market are currently very strong, but there are also many unique long-term growth drivers." Morgan Stanley upgrades Liberty Media Formula One to overweight from equal weight Morgan Stanley said in its upgrade of the Formula One sports company that it has "higher expectations for its upcoming US media rights." "Is there any room left on the F1 bandwagon? Upgrading FWONK to OW. ... .We are raising estimates on higher expectations for the US media rights over the course of our forecast, contributing to a ~12% EBITDA and ~20% adjusted FCF/share CAGR. .. . F1's business model is perhaps the most contractually driven in our coverage, both in revenue and cost. This visibility should continue to garner a premium in this macro environment..." Read more about this call here . Morgan Stanley reiterates Nike as overweight Morgan Stanley kept its overweight rating on Nike ahead of earnings later this month and said the "long-term opportunity remains intact." "The mkt expects a 4Q EPS miss & '23e guide below consensus. We don't expect any resolution on the China debate N-T, which means investors likely continue to wonder when NKE will return to delivering its L-T targets." Argus upgrades Skechers to buy from hold Argus said it sees a revenue boost and strong earnings over the next few years for the shoe company. "Upgrading to BUY with a $44 target price. Skechers supply-chain initiatives and strong brand are likely to boost revenue and earnings over the next two years." B. Riley downgrades Marvell and Lam Research to neutral from buy B. Riley said it sees slowing demand for Marvell and Lam Research. "For a fourth time in 1H22, we review Semi and Semi Cap sector fundamentals, financials, valuation, stock action and, for a second time since 4/12, cut select ratings and price targets today for eight and 14 companies, respectfully, due to a downwardly revised SOX bottoming view." Wells Fargo upgrades Spotify to equal weight from underweight Wells said Spotify is a "show me" story. " SPOT' s recent investor day laid out a more profitable company than we have modeled historically. Should we believe them? Given the strength in user and revenue growth we're willing to concede some margin expansion opportunity, and give management time to execute." Atlantic Equities downgrades Robinhood to neutral from overweight Atlantic Equities said it's concerned about declining users and revenue. "We are increasingly concerned about the deteriorating revenue trends facing Robinhood and downgrade to Underweight. Robinhood' s MAUs (monthly active user's) have been declining rapidly since 2Q21 and ARPU has fallen 62% from its peak in 1Q21." Read more about this call here . Jefferies upgrades Tapestry to buy from hold Jefferies said in its upgrade of the owner of Coach and Kate Spade that the upside opportunity is "compelling" for shares of Tapestry . "We are shifting lead coverage and upgrading to Buy and $45 PT on a more constructive view of: 1) improved margin and sales growth outlook driven by the foundational changes made to the biz over the last few yrs, namely digital, marketing, & data; 2) China as a LT growth driver and potential NT catalyst." Cowen names Sweetgreen a best idea Cowen said that the salad restaurant company has "growing brands awareness." "We like SG' s narrative: 1) a COVID-19 recovery play amid improvement in urban mobility, 2) the brand overindexes to higher income consumers." Canaccord upgrades Snowflake to buy from hold Canaccord said it's getting more bullish on the stock after the company's analyst day, adding that investors should buy the pullback. " Snowflake 's Analyst Day was held in conjunction with a customer conference that management characterized as its most significant event from an innovation standpoint in several years." Read more about this call here. JPMorgan reiterates Amazon as overweight JPMorgan said that it's analysis shows further upside in subscriber growth for Amazon Prime. "We believe AMZN likely has further pricing power, & we do not expect materially elevated churn or slowing customer acquisition considering the Prime bundle's $1,100 estimated value." Morgan Stanley reiterates Apple as overweight Morgan Stanley lowered its price target on shares of Apple to $185 from $195, but noted the company is better positioned for slowing consumer demand than other names in the firms coverage. "While Apple is exposed to potential slowing of consumer demand, we believe it is better positioned vs. other consumer hardware names with its sticky user base & history of investment through cycles." Mizuho reiterates Tesla, Rivian and Nio as buy Mizuho said it sees electric vehicle company's such as Tesla, Rivian and Nio having a strong second half of 2022. "BEV (battery electric vehicle) Remains a Bright Spot Amidst Macro Headwinds, China LVP (light vehicle production) Positioned for Rebound 2H22E. Cowen reiterates Netflix as outperform Cowen said it sees a "significant multi-year revenue opportunity" for an ad-supported Netflix product. "Our Cowen survey suggests a NFLX ad-supported tier could add ~4MM UCAN members in '23, above our current est."
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