Here are Wednesday's biggest analyst calls: Tesla, Netflix, Carvana, Exxon, Meta, Apple & more

Published Wed, Nov 2 20228:37 AM EDTUpdated Wed, Nov 2 202211:45 AM EDT

Here are Wednesday's biggest calls on Wall Street: Credit Suisse downgrades Nasdaq to neutral from outperform Credit Suisse downgraded the global markets and exchange company mainly on valuation. "We believe Nasdaq's revenue growth could be pressured in the event of a recession due to having the lowest transactional revenue mix relative to peers (25% vs. 40%+ for peers) and macroeconomic factors continuing to weigh on the company's data & technology growth trajectory." Evercore ISI reiterates Airbnb as outperform Evercore said after the company's earnings report on Tuesday that it's "one of the best fundamental stories (both Growth AND Profitability) in 'Netland." " ABNB reported Relatively Positive Q3 EPS results, with $15.6B in Bookings, $2.89B in Revenue and $1.46B in EBITDA between 1% and 5% above ISI/Street." Read more about this call here . Morgan Stanley reiterates Advanced Micro Devices as overweight Morgan Stanley said after AMD's earnings report on Tuesday that the "4q outlook was slightly worse than our expectations," but that the "the worst is behind us." "Continued PC weakness into 4q weighs on numbers, and the dust hasn't completely cleared, but modest data center growth in 4q should be relief; we like the stock for next year server gains." Bernstein initiates Canopy Growth as underperform Bernstein said in its initiation of the cannabis company that it's overvalued. "But we see CGC as meaningfully overvalued. Its cannabis portfolio has faced similar challenges as TLRY, but it has the worst gross margins in our coverage." Read more about this call here . Loop reiterates Apple as buy Loop said it sees downside to iPhone estimates for Apple. "We believe that further opportunity for estimates reductions remains given the potential for macro impact to iPhones through Jun Q 2023." Bernstein reiterates Tesla as underperform Bernstein said shares of Tesla remain extremely overvalued. The firm also says it's cautious on Tesla's full self-driving ambitions. "While we see risk-reward becoming incrementally favorable, we worry that Tesla may be increasingly faced with trading off margins for growth as EV competition increases globally." Stifel downgrades Bally's to hold from buy Stifel said it sees a lack of visibility for shares of Bally's . "While our revised model implies a mostly in-line Q3 print and FY22 guide, we see increasing macro, FX, regulatory & development risks potentially pressuring out-year estimates and keeping shares range bound in the near term." Evercore ISI adds Block to the tactical underperform list Evercore ISI said ahead of Block's earnings report Thursday that it sees seven reasons to sell the stock including slowing growth. "For 2023 Gross Profit and Adjusted EBITDA, we expect persistent headwinds from increasing Seller competition, slowing macroeconomic growth, principally the U.S., from rising interest rates and more cautious credit disbursement through Afterpay." Bank of America upgrades KKR to buy from neutral Bank of America said it sees an attractive entry point for the investment-management company. "This rating change signals: We continue to become more bullish on the Alt stocks (upgraded APO on 9/22/22), especially relative to the exchanges; view $49 as an attractive entry point for KKR due to 4 factors." Goldman Sachs reiterates Exxon as buy and Chevron as hold Goldman said it prefers Exxon shares over Chevron. "Despite outperformance of Exxon vs. Chevron (+15% in last 6 months), we still see +7% more total return to XOM than CVX from current levels one year out." Needham reiterates Netflix as hold Needham said the streaming giant could see negative revenue growth near term due to its new ad-based product. "In fact, since the new ad-lite tier is 30% cheaper than NFLX's current lowest-price $10/month tier in the U.S., even faster adoption by this tier could result in negative rev growth near term." Bank of America downgrades Twilio to underperform from buy Bank of America double-downgraded the communications tools company due to rising competition. "Over the past few weeks, we spoke with a number of Twilio's key partners, where we inquired about product differentiation, market position, macro environment, demand trends and competition. Feedback suggests that: 1) competitive pricing pressure may be intensifying with TWLO priced at a premium; 2) enterprise market sales cycles are elongated." Read more about this call here. Macquarie initiates Salesforce as outperform After a transfer of coverage, Macquarie said Salesforce is poised to be a "winner." " Salesforce is a more controversial topic we believe due to concerns the company may struggle to hit its FY'26 $50bn revenue target. Nevertheless, we believe the company will be a winner and have the most comprehensive set of customer data available as such data becomes more difficult to access on public internet properties." Bank of America reiterates Peloton as buy Bank of America said it's standing by shares of Peloton heading into earnings on Thursday. "We see value in the sub base given low churn and opportunity for margin improvement, while we don't think a path to sub growth is discounted in the stock despite large TAM and share leadership." Macquarie initiates CrowdStrike as outperform Macquarie said in its initiation of the cyber company that it's firing on all cylinders and poised to gain share. "We think much stricter cyber-insurance-policy requirements and the U.S. Federal zero-trust mandate are likely to intersect (with the U.S. government potentially stepping into cyber insurance), shifting the cybersecurity market toward an analytics, intelligence, and software-based future to the benefit of our top cybersecurity pick CrowdStrike." Read more about this call here. Bank of America reiterates Carvana as buy Bank of America said in a note on Wednesday that it's standing by shares of Carvana. "While recognizing the industry headwind and liquidity concerns, we remain optimistic on the business model and the market opportunity." Bernstein reiterates Amazon, Alphabet and Meta as outperform Bernstein says it's sticking with its call on shares of Amazon, Meta and Alphabet for now after their earnings reports last week. "Rarely do we see Amazon , Google , and Meta miss earnings this badly in the same quarter. Stock reactions following the prints through yesterday's close had Meta (-27%), Amazon (-14%), and Google (-14%) down big as investors sold these names in size."