Here are Tuesday's biggest analyst calls of the day: Apple, Ferrari, Dell, Tesla, Chegg, Penn & more

Published Tue, May 2 20238:32 AM EDT

Here are Tuesday's biggest calls on Wall Street: Piper Sandler reiterates Tesla as overweight Piper said it's standing by its overweight rating on the stock, but lowered its price target to $280 per share from $300. "Since the Q1 call, investors have fretted about Tesla's willingness to trade price for volume, and while we share management's view that margins will eventually rise due to software, this won't occur quickly enough to offset the near-term impact of lower prices, higher warranty costs, and slower inventory turnover." Evercore ISI reiterates Apple as outperform Evercore said it's bullish on Apple shares heading into earnings later this week. " Apple should report modest upside to Mar-qtr driven by better iPhone units given better China/emerging market demand coupled with channel fill benefits." JMP initiates Planet Labs as market outperform JMP said in its initiation of the earth imaging company that it has a strong competitive moat. "We like Planet for several reasons, including: 1) it has a fleet of over 200 satellites which form the infrastructure for a scalable, one-to-many, software-like business model; 2) robust imagery archives that create a technical competitive moat; 3) Planet is still nascent in its growth trajectory." UBS initiates Ameresco as buy UBS said it sees an attractive entry point for shares of the renewable energy company. "We initiate coverage of AMRC shares with a Buy rating and $60 PT implying ~45% upside potential." Barclays downgrades Shoals to underweight from equal weight Barclays said in its downgrade of the solar company that shares of Shoals are overvalued. "Our change in rating is underpinned by 1) the pricey valuation and 2) a 2023 outlook that we believe has risk." Morgan Stanley upgrades Dell to overweight from equal weight Morgan Stanley says it's getting more constructive on shares of the PC giant. " DELL is our most-preferred US PC OEM given 1) secular share gains, 2) conservative FY24 guide, 3) attractive valuation, 4) a path to accelerated shareholder returns, and 5) potential S & P inclusion." Read more about this call here. Citi downgrades Coinbase to neutral from buy Citi said in its downgrade of Coinbase that there are too many unknowns. "We lower our rating to Neutral/High-Risk on the belief that until the regulatory 'rules of the road' are better established in the U.S., the stock will remain weighed down by this high level of uncertainty." Read more about this call here. Barclays initiates Ferrari as equal weight Barclays said in its initiation of the stock that it's waiting for a better entry point. "We are constructive on RACE's BEV transition, very high earnings visibility and compounding qualities, but wait for a better entry point." Rosenblatt initiates Palo Alto Networks as buy Rosenblatt said the cyber security is in a "solid" position. "In the problematic macro backdrop, hyper-threat environment enterprises and government organizations continue to spend on security. Palo Alto Networks is a diversified cybersecurity company most famous for its next-generation firewall (NGFW) used for perimeter network security." Roth MKM upgrades Penn to buy from neutral Roth said it's bullish heading into the company's earnings report later this week. "We upgrade PENN to Buy ($40 PT) ahead of a potential 1Q beat/raise on 5/4. We also see a case for strategic alternatives involving Penn's digital segments and see this narrative building in 2023." Bernstein upgrades Roper to outperform from market perform Bernstein said in its upgrade of the software company that it sees multiple expansion. "We believe we can reduce Roper's compounding model to two key levers: (1) organic FCF growth, and (2) multiples paid to acquire cash. We think both are set to improve, supporting the long-term mid-teens FCF growth target." Jefferies downgrades Chegg to hold from buy Jefferies downgraded the education tech company over AI headwind concerns. "We are downgrading CHGG to Hold (from Buy) with an $11 PT as AI headwinds start to impact the fundamental story." Read more about this call here. Wedbush downgrades SoFi to neutral from outperform Wedbush downgraded the stock due to concerns over sales margins. "We're downgrading shares of SoFi to NEUTRAL from OUTPERFORM as we believe there could be downside risk to its gain on sale margins and fair value marks of its loan portfolio." Bank of America downgrades Quest Diagnostics to neutral from buy Bank of America said in its downgrade of Quest that it has concerns about the company's deal for Haystack Oncology. "Overall, we have a favorable view on DGX's business, but we already had some concerns about reaching the margin and adj. EPS growth targets outlined at the March investor day, and this deal makes us more cautious." Barclays downgrades Capri, Under Armour and Victoria's Secret to equal weight from overweight Barclays downgraded several retail brands on Tuesday and says it's concerned about slowing consumer spending. "Downgrading FIGS to Underweight; GOOS, CPRI , EYE, UAA , VSCO to Equal Weight." Cowen reiterates Target and Walmart as outperform Cowen said it's standing by its outperform rating on the big box giants. "Ahead of 1Q, we prefer WMT as we favor prospects for +LSD% traffic as consumers, inclusive of the higher-end, seek value in food/essentials. Expect TGT to meet at least the low-end of a wide (LSD%) to +LSD% comp sales guide, but discretionary headwinds and NT EBIT margin fears will likely persist."