Here are Friday's biggest analyst calls of the day: McDonald's, Netflix, Amazon, Nvidia, Visa & more
Here are Friday's biggest calls on Wall Street: Edward Jones upgrades Qualcomm to buy from hold Edward Jones said it sees an "attractive" buying opportunity in Qualcomm. "We are upgrading Qualcomm to a Buy from a Hold because we believe the stock does not fully reflect our growth outlook." Read more about this call here. Wells Fargo reiterates Keurig Dr Pepper as overweight Wells Fargo it's bullish on shares of the beverage giant. "We expect forward progress on the KDP narrative with Q222 results, with sustained strength in the 'Cold' portfolio (Packaged Beverages, Beverage Concentrates, Latin America Beverages) driving a top-line beat; and sequential improvement in 'Hot' (Coffee) after last quarter's challenges." Morgan Stanley reiterates Visa and Mastercard as top ideas Morgan Stanley said it's time investors consider shares of Visa and Mastercard and that the "travel recovery still has legs." "V / MA can benefit from the reopening of Asia-Pac with room for more European tourism improvement, while perception of inflation risk may be overdone, especially for higher income demo. V/MA also hedged given volume driven revs along with continued shift to electronic payments." JPMorgan reiterates Snap as overweight JPMorgan said it's staying bullish heading into Snap earnings next week, but that investors will need to exercise patience. "3Q Estimates Likely High & Rebuilding Credibility/Operational Track Record Will Take Time." BMO reiterates Microsoft as outperform BMO cut its price target on Microsoft to $305 per share from $345, but said it continues to believe that the stock has "both good offensive and defensive attributes." "We are lowering our upcoming June quarter and FY23 estimates to reflect increasing FX headwinds, and we are introducing our FY24 forecasts." Read more about this call here. Goldman Sachs downgrades Yelp to neutral from buy Goldman said in its downgrade of Yelp that it sees a more balanced risk/reward outlook. "What remains an open debate (and one that we believe investors will be particularly focused on) is how the macroeconomic environment and competitive landscape dictates local advertising spend growth over the next 1-2 years." Argus downgrades Delta to hold from buy Argus downgraded the stock due to disappointing earnings and a weak outlook. " Delta has been hurt by capacity reductions and staffing shortages, and recently posted weaker-than-expected 2Q earnings. " Deutsche Bank adds a catalyst call sell on Freeport-McMoRan Deutsche said it's concerned about the company reporting disappointing earnings next week. "We expect Freeport's Q2/22 results (due July 21) to be disappointing. We forecast a significant miss vs. consensus on EBITDA driven by lower realised prices, negative provisional pricing, and one-offs." Bank of America adds Schlumberger to the US1 list Bank of America added the oil field services company to its US1 list and says international could provide resilient in a recession. "Meanwhile SLB , which is the most domestically (i.e., Russia) structured OFS (oil field services) company with respect to Russia operations, has remained the most opaque about the outlook for its Russia business (5% of revenues), thus we continue to monitor the Russia situation closely for SLB." Stifel upgrades Norfolk Southern and Union Pacific to buy from hold Stifel said in its upgrade of the railroad companies that they are cheap. "While we are generally making cuts to estimates on lower growth and higher OR (operating revenue), given the substantial sell-off in equities and our view for a modest recession impact on the rails, we are upgrading some of the cheapest names ( CSX & NSC ) from Hold to Buy." Bernstein initiates Dexcom as outperform Bernstein said in a note on Friday that the diabetes medtech company has a long runway for growth. " DXCM is a clear buy over a 1-/2-year horizon. Even with conservative growth and margin estimates, we're 3% ahead of consensus on the top line." Read more about this call here . Bank of America reiterates Nvidia as buy Bank of America kept its buy rating on shares of Nvidia, but said any weakness in the stock could impact other semiconductor companies. " NVDA has been (is) the innovation/momentum/sentiment leader in semis, and any eps/stock weakness could also impact compute peers AMD, INTC, AVGO and MRVL." Barclays reiterates Amazon as overweight Barclays said in a note that it's cautiously optimistic heading into earnings in early August. "We think there is a decent chance for AMZN to print a 'better than feared' 3Q guide and we would add selectively into the print." Morgan Stanley reiterates Amazon as overweight Morgan Stanley said in a note that Amazon is "primed" for a "reacceleration" after the company's Prime Day earlier this week. "We estimate Prime Day drove $4.6bn of revenue (12% above our expectations), implying 19% growth, an acceleration vs. 8% Prime Day growth in 2021, giving us increased confidence in the strength of the Prime consumer/potential for revenue reacceleration in 3Q22." UBS reiterates Netflix as neutral UBS lowered its price target on Netflix to $198 per share from $355 ahead of earnings next week and said it has serious concerns about subscriber growth. "Expect 2Q sub declines in line with guide & a cautious 2H outlook." Read more about this call here. UBS reiterates McDonald's as buy UBS said in a note ahead of earnings later this month that the stock is "best positioned on resiliency." "Despite significant outperformance YTD, MCD shares should continue to outperform in a choppy & uncertain market given: defensive attributes, inflation protection and key competitive advantages." Wolfe downgrades American to underperform from peer perform and upgrades Allegiant to outperform from peer perform Wolfe said in its upgrade of Allegiant that it has a "proven model." The firm also downgraded American due to its "high-end" balance sheet. "We're upgrading ALGT from Peer Perform to Outperform as it has a proven model through prior recessions. ... Lastly, we're downgrading AAL from Peer Perform to Underperform given AAL's high-end balance sheet leverage heading into a downturn and with our estimates well below Consensus next year." Jefferies reiterates Caterpillar and Deere as buy Jefferies said it's bullish on shares of Deere and Caterpillar heading into earnings later this quarter. "We expect most companies to meet or beat expectations for the 2Q. With long backlogs, supply chains easing a bit and raw materials and logistics costs abating, we may even see some guidance increases."
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