Here are Tuesday's biggest calls on Wall Street: Morgan Stanley upgrades NextEra Energy to overweight from equal weight Morgan Stanley said the energy company is a key beneficiary of the Inflation Reduction Act. "We expect NEE to be one of the biggest beneficiaries of the Inflation Reduction Act (IRA), which brings faster wind, storage and battery storage growth for the next 10+ years." Wolfe upgrades Tesla to outperform from peer perform Wolfe said the automaker is a top beneficiary of the Inflation Reduction Act. "Even prior to the IRA, Tesla appeared very well positioned. Demand continues to meaningfully exceed their ability to Supply. Recent capacity adds support their target of 50% average annual growth, translating to 3.8 MM units by mid-decade." Read more about this call here. Citi downgrades FedEx to neutral from buy Citi said it see macro headwinds for the shipping giant. "We are downgrading FedEx to Neutral from Buy and lowering our price target to $225 from $270. Our call is focused on the potential for macro headwinds to challenge EPS growth this year, as the company's self-help initiatives are more focused on F24 and beyond." JPMorgan reiterates Amazon as best idea JPMorgan said Amazon is well positioned for the rest of 2022 and into 2023. "Secular Shift, Easing Comps & Return on Heavy Investments Position AMZN Well in 2H22 & 2023." Cowen initiates Sun Country Airlines as outperform Cowen said in its initiation of the low-cost airline that it has an attractive business model. "We are initiating coverage of Sun Country Airline s, a Minneapolis-based hybrid airline with a strong balance sheet and contracted recurring revenue streams covering 32% of its revenue." HSBC upgrades Anheuser-Busch InBev to buy from hold HSBC upgraded the beer and beverage company on valuation. "Having lost more than 20% of its value in the past year, we upgrade ABI on valuation, and because revenues and margin pressure should ease into year-end and next year." Read more about this call here. Deutsche Bank names Honeywell and Caterpillar top picks Deutsche Bank said it prefers stocks with "late-cycle end-market exposure." "As we pull all of these thoughts together and consider which companies are best/worst positioned for 2023 (marrying this with valuation, of course), we come to the following top picks: HON, EMR, ETN, CAT, and TEX." UBS reiterates Target as a top pick UBS said the big-box retailer is well positioned heading into 2023. "Our best ideas reflect those retailers with greater earnings visibility heading into 2023. TGT is working through its inventory backlog and we believe the one-time costs it incurred over this period will not repeat." JPMorgan downgrades Ciena to neutral from overweight JPMorgan said in its downgrade of the telecommunications networking company that it sees limited upside. "Ciena continues to expect revenues for FY23 to track at or around $4.2 bn (in line with consensus expectations heading into the print), which in our view is a stretch target and requires either limited disruptions in the supply chain on a go-forward basis or demand moderation for the industry easing up supply." BTIG upgrades Transocean to buy from neutral BTIG said in its initiation of the offshore drilling company that it sees an "ongoing offshore rig upcycle." "Bottom line: We believe we are in the early innings of the ongoing offshore rig upcycle, which should provide strong cash flows and refinancing opportunities for RIG to improve its balance sheet." Raymond James adds Dave & Buster's to the current favorites list Raymond James said in a note to clients Tuesday that investors should buy the stock heading into earnings Wednesday. "We reiterate our Strong Buy rating on PLAY , and are adding it to our Current Favorites list, ahead of the company's F2Q (ended 7/31) release on Wednesday, 9/7." Bank of America initiates Lumentum as buy Bank of America said in its initiation of the telecommunications-equipment company that the stock has an attractive valuation. "We initiate coverage on leading optical component supplier Lumentum with a Buy rating and $105 PO (~30% potential upside) based on 14x forward PE, inline with peers." JPMorgan downgrades Discover to neutral from overweight JPMorgan said in its downgrade of Discover that it sees better opportunities elsewhere in the firm's coverage. "Downgrading to Neutral as pullback across the space creates more attractive relative opportunities. JPMorgan reiterates Apple as overweight JPMorgan said investors should watch for pricing details on Wearables at Apple's product event Wednesday. "However, in our view, while pricing for iPhone remains a watch point for investors, the focus should be greater on pricing for Wearables (AirPods and Apple Watch), which are a more discretionary purchase for consumers relative to iPhones." Bank of America initiates Dropbox as buy Bank of America said in its initiation of the file-sharing service that it has strong free cash flow. "We find Dropbox stock attractive on the basis of: 1) strong FCF generation and potential incremental returns to shareholders; 2) price to free cash flow (P/FCF) as an empirical factor of outperformance during Fed tightening cycles." Bank of America downgrades Carlyle Group to underperform from buy Bank of America double downgraded the private equity company due to decelerating growth. "We believe the management change could adversely impact employee retention, fundraising, and CG' s business strategy including M & A and signals risk to prior financial targets/guidance." Stifel reiterates Norwegian as buy Stifel said concerns about cruise demand are overblown and that investors should buy the stock right now. "The risk/reward in NCLH shares seems overly compelling at current levels, and we would be using recent weakness as a long-term buying opportunity." Bank of America initiates Lyft as underperform Bank of America said the ride-sharing company has "unique challenges" in a post-pandemic recovery. "While we see long-term option value in Lyft as the largest pure play U.S. ride-share name, near term we expect its smaller scale to create unique challenges in its post-pandemic recovery, including share losses."