Here are Wednesday's biggest analyst calls: Apple, Tesla, SoFi, ServiceNow, Meta, Netflix, Splunk and more

Published Wed, Jun 14 20238:35 AM EDTUpdated Wed, Jun 14 202312:03 PM EDT

Here are Wednesday's biggest calls on Wall Street. Piper Sandler initiates Domino's as overweight Piper said it sees an attractive risk/reward for Domino's shares. "This is an idea that we really 'like' on a relative basis to our other coverage and we are favorable on the Risk-Reward setup." Barclays reiterates Netflix as equal weight Barclays raised its price target on the stock to $375 per share from $250. "While we believe Netflix continues to be structurally the best positioned to benefit from engagement shift toward streaming, present valuation seems to more than adequately reflect potential upside from near-term growth optimization tools like paid sharing and advertising." Wolfe reiterates Netflix as outperform Wolfe raised its price target on the stock to $485 per share from $388 and said it's bullish on the company's password sharing crackdown opportunity. "We see a once in a life-time opportunity for Netflix to benefit from both ARPU & subscriber gains (newly monetized subs & premium/standard accounts that split into multiple accounts), at nearly 100% incremental margins." Piper Sandler reiterates Meta as outperform Piper Sandler raised its price target on the stock to $310 per share from $270 and said ad spend is "holding up." "We are now more confident in META's re-acceleration and raise 2H23 revenue & out-year estimates. Our Ad Metrics data suggests pricing is weaker, but spend is holding up." Read more about this call here. Bernstein reiterates FedEx as outperform Bernstein said the bar is "not that high" heading into FedEx earnings next week. "We are expecting an in line quarter, and while making a conviction call on the guide is difficult, we don't think the bar is that high here. The low multiple on the stock captures a pretty wide range of what should still be earnings growth in a bad market, limiting the downside risk." Bernstein reiterates Apple as market perform Bernstein said the stock is fairly valued and that buybacks could be helping shares. "While we see the stock as fairly valued at currently levels, we see a path (and precedent) for AAPL continuing to grind higher near-term, given its historically strong seasonal trading period in advance of new iPhone launches is in full swing, and we see limited risk to estimates through the end of this fiscal year." Gordon Haskett downgrades DoorDash to hold from buy Gordon Haskett said it sees more balanced risk/reward outlook for DoorDash. "We're downgrading DASH shares to Hold from Buy as we now see a balanced risk/reward profile with top- and bottom-line upside (across both print vs consensus and guidance vs consensus) no longer enough to drive favorable share price reaction." Needham initiates ServiceNow as buy Needham said ServiceNow is an artificial intelligence beneficiary. " ServiceNow is built on a single code base, a single data model, and a single database. As a result, the company's extensible platform drives a high rate of innovation in solving new use cases for customers, which is evident in the projected CY25 TAM of $220 Billion." Citi downgrades Logitech to neutral from buy Citi downgraded the stock due to the unexpected departure of CEO Bracken Darrell. "After the close on June 13th, Logitech announced its president and CEO, Bracken Darrell, is immediately departing for an outside opportunity, but remaining present for a one-month transition to interim CEO Guy Gecht." Needham downgrades Applied Materials and KLA to hold from buy Needham downgraded several semiconductor stocks such as Applied Materials and KLA and said it sees a less attractive risk/reward. "With only ~10% or less upside over the next 12 months, we do not believe there is enough reward to justify buying these stocks given the risks." Raymond James initiates Deckers as outperform Raymond James said in its initiation of the shoe company that it likes its wide array of products and is bullish on management execution. " DECK has a long track record of strong execution; 2) HOKA brand has strong momentum and is in the early innings of long-term growth globally; 3) UGG remains an attractive brand and has LT opportunities (incl. international, category diversification)." SVB Securities upgrades Shift4 Payments to outperform from market perform SVB Securities said in its upgrade of the payment company that it sees increasing volume growth. " Shift4's volume growth has accelerated (+53% YoY in 3Q22, +54% in 4Q22, + 66% in 1Q23) suggesting that Shift4's ambitious expansion initiatives are gaining traction." BTIG initiates PayPal and SoFi as buy BTIG initiated several fintech and payment companies Wednesday and said it's a "pivotal point for Fintech stocks" such as PayPal and SoFi. "Overall, despite the worries surrounding the banking sector, we expect IT spend to increase, and could see higher spend than expected, given propensity for banks to go to external vendors rather than internally developed products in more strained environments." Read more about this call here. Citi initiates Albemarle and Linde as top picks Citi said in its initiation of several lithium and chemical companies Wednesday that it sees burgeoning margin expansion. "We are positive on all paints & coatings names, seeing margin expansion in 2H23 and beyond as raw materials moderate. Our Top Picks are ALB, LIN, and EMN." Read more about this call here. Bank of America initiates Oculis Holding as buy Bank of America said in its initiation of the biopharma company that it's an "emerging [toward] eye health biotech w/ several late-stage assets." " OCS is a clinical-stage biotech focusing on developing topical treatments for ocular disorders." Raymond James reiterates Dave & Buster's as strong buy Raymond James said shares of Dave & Buster's are "undervalued." "We continue to see a compelling risk/reward with 30-60% upside under our base/bull case and ~25% downside under our bear case." Read more about this call here. B. Riley downgrades Cinemark to neutral from buy B. Riley downgraded the movie company due to an uncertain film slate. "We are downgrading Cinemark Holdings, Inc . from Buy to Neutral and reducing our PT from $21 to $20. We remain positive on the longer-term opportunity for CNK to benefit from the ultimate recovery of the domestic box office and continued growth opportunities in Latin America." Citi reiterates Accenture as buy Citi said the Dublin-based IT company is an AI beneficiary. "In our view, with AI, we could repeat a longer-term pattern of IT Services companies using tech advancements to stay relevant to enterprise customers looking to solve business problems. Accenture will obviously discuss its massive $3 billion AI investment — that scale is difficult for most companies to compete with." Citi adds a positive catalyst watch on Li Auto Citi said it sees "strong growth momentum in sales volume" for the China electric vehicle company. "We view Li Auto's recent strong weekly shipment and potential sector recovery into Jul-23 as positive. We open a 30-day positive Catalyst Watch on Li Auto." Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it thinks the market wants Tesla to be an "AI name." "We think the market wants to believe Tesla is an AI name first, an auto company second." Barclays reiterates Splunk as overweight Barclays said Splunk is undervalued and has several positive qualities similar to Salesforce. "With that, we believe SPLK represents an interesting asset that could deliver solid growth with significant margin upside. At 18x CY24E EV/FCF, we think this opportunity is not priced correctly and we think investors should revisit the story." TD Cowen reiterates Wingstop as outperform TD Cowen said it's standing by its top-pick status on shares of the wings company. "We are bullish on the biggest investor debate surrounding WING's ability to 'comp the comp' in 2H23, given none of the SSS drivers launched in 2022 (Uber Eats, higher ad fund contribution & chicken sandwich) are one-time in nature." Berenberg upgrades Estée Lauder to buy from hold Berenberg said in its upgrade of the stock that it sees an "attractive buying opportunity." "Following the recent rebase of buyside expectations (ytd, Estée Lauder i s down by 27%) and sellside earnings (12-month forward earnings are 16% lower ytd), we envisage an attractive buying opportunity." Piper Sandler initiates Bentley Systems as overweight Piper said the company is a "high quality industrial software franchise operating with scale." "We are initiating coverage of Bentley Systems, provider of infrastructure engineering software, with an Overweight rating & $60 PT." Raymond James upgrades IPG Photonics to outperform from market perform Raymond James said in its upgrade of the laser company that it's underappreciated. "We are upgrading IPG Photonics to Outperform from Market Perform and establishing a $170 price target. Our upgrade is based on our view that: 1) Electric vehicle battery capacity capex will present a substantial growth cycle for the company, 2) the EV vertical will approach 50% of IPG revenue by 2025 and is underappreciated in current Street models." Roth MKM upgrades Maxeon Solar Technologies to buy from neutral Roth said in its upgrade of the solar company that it sees margin expansion ahead. " MAXN's North American supply chain is sold out through the end of 2025 for its utility scale solar business, with over 1GW of capacity allocated for 2026 and 2027 based on options supported by deposits." Morgan Stanley reiterates Advanced Micro Devices as overweight Morgan Stanley said it's standing by its overweight rating after the company's AI event. "Largely as previewed, today's AMD Data Center and AI event offered a solid look at Bergamo (cloud server CPU) and outlined the entire AI strategy, across CPU, GPU, compute offload/DPU, and software." JPMorgan adds Dollar General to the focus list JP Morgan added the stock to its focus list and said shares are attractive. "We are adding DG to our Analyst Focus List as a Growth idea (after removing shares in January) with recent management access pointing to an unchanged multi-year structural P/L framework." Bernstein reiterates Anheuser-Busch InBev as outperform Bernstein said Bud Light continues to bleed share, but that it's standing by the stock. "Compared to the April 1st baseline, ABI's volumes declined an incremental 13% for the week ending June 3rd, while Molson Coors' volumes grew an incremental 14% Piper Sandler reiterates Shake Shack as overweight Piper said the burger chain is the firm's top idea. "In the event that the macro environment makes it such that the entire Limited Restaurant Owner-Operator sub-segment struggles to work for a period of time, we'd expect SHAK to at the very least exhibit strong relative outperformance in that scenario."