Here are Monday's biggest analyst calls: Tesla, Apple, Nvidia, Amazon, Microsoft, Block, Netflix & more

Published Mon, Sep 11 20238:27 AM EDT

Here are the biggest calls on Wall Street on Monday: Morgan Stanley upgrades Tesla to overweight from equal weight Morgan Stanley said in its upgrade of Tesla that Dojo, Tesla's custom supercomputing effort, is a key catalyst. "Investors have long debated whether Tesla is an auto company or a tech company. We believe it's both, but see the biggest value driver from here being software and services revenue." Read more about this call here. JPMorgan upgrades Tenable to overweight from neutral JPMorgan said the security software solutions company is "well positioned for better fundamentals." "We see an attractive opportunity for better growth, margin expansion, and [free cash flow] moving through the back half of the year into FY24 for TENB. " JPMorgan upgrades Nubank to overweight from neutral JPMorgan said it sees an attractive entry point for the Brazilian neobank company. "We upgrade Nubank (Nu) to OW as we get more confident on its secular winning strategy and we see recent share price correction as a good entry point." Bank of America upgrades CSX to buy from neutral Bank of America said in its upgrade of the railroad company that it sees volume improvement. "While volumes have remained soft for the rail industry, down mid-single digits quarter-to-date, and negative for 30 consecutive weeks, CSX is trending -3.4% for 3Q-to-date, ahead of our -4.6% target." JPMorgan downgrades Brunswick to neutral from overweight JPMorgan said higher interest rates will weight on the marine recreation company in the months ahead. "Near-term over the next 12 months, we see the primary factor weighing on new boat demand as higher interest rates w/ Boat borrowing rates at +9% surpassing mortgage rates for the first time over two decades by our work (~60% historical inverse correlation with BC retail unit growth)." Bank of America reiterates Nvidia as a top pick Bank of America said Nvidia shares remain "compelling" at current levels. " NVDA's compressed valuation already reflects investor concerns about sustainability of genAI capex, geopolitical concerns and (overstated) competitive risks from AMD/INTC esp. as genAI deployments move to lower-cost inference from high-cost training that NVDA dominates." Barclays initiates Bluebird as overweight Barclays said in its initiation of the school bus company that it has accelerating fundamentals "We initiate BLBD at Overweight as backlogs are high and public support for school bus investment is strong." UBS reiterates Amazon as buy UBS said it sees margin expansion for the streaming giant. "We think Amazon can see North America retail margins expand to double digits over time (vs consensus of 5.4% in '25) as the company: 1) unveils efficiency drives like regionalizing its fulfillment network, 2) pulls levers to recoup cost inflation." Bank of America initiates Raymond James as buy Bank of America said the financial services company is well positioned and has a defensive portfolio. " RJF has one of the most diversified gross-profit driven business models under our coverage and is positioned well to handle future macro scenarios versus many of its interest-rate dependent peers." Read more about this call here. Evercore ISI reiterates Netflix as outperform Evercore said its latest survey checks show Netflix has "competitive advantages" in international markets. "Mexico's 'Core' trends remain intrinsically strong, but we think the real learning here is that Netflix may well enjoy greater competitive advantages in international markets due to relatively weaker in-home entertainment options – leading to higher Satisfaction levels and lower Churn rates." Redburn Atlantic reiterates Disney as sell Redburn said it sees too many negative catalysts ahead for Disney. "Compounding slowing traction in its direct-to-consumer business, Disney now faces additional challenges as its carriage dispute with Charter has the potential to shave 18% off OI [operating income] if unresolved. With linear advertising also at a negative tipping point, CEO Bob Iger faces a host of challenges." Deutsche Bank upgrades Kenvue to buy from hold Deutsche says shares of the Johnson & Johnson spinoff company are attractive. "We are upgrading KVUE to Buy, seeing the stock as oversold. While certain fundamental uncertainties and legal liability risks (talc, acetaminophen) outlined in our initiation report are still valid and outstanding, they are now more than adequately discounted in current valuation." Read more about this call here . Jefferies initiates SharkNinja as buy Jefferies said the product and design tech company has "high margins and a massive total addressable market." "We believe SN is well positioned to grow its market share across new and existing categories given its global rapid innovation and commercialization flywheel model." Bernstein upgrades Brown-Forman to outperform from market perform Bernstein said it sees a "constructive margin outlook" for the beverage maker. "Through M & A, Brown-Forman has quietly changed its exposure to growth for the better: it's now more premium and more exposed to high-growth categories and geographies." Citi adds a positive catalyst watch on Microsoft Citi said it sees a "rich catalyst path" ahead for Microsoft shares. "We are opening a positive 90 day catalyst watch on MSFT as we see shares trading higher into year end with a rich catalyst path ahead. After a strong YTD move thru June, Microsoft has lagged on a relative basis post July-Q earnings." Baird names Block as a fresh pick Baird says investors should buy the dip in shares of the company formerly known as Square. "We understand investors' concerns about Thursday's processing issue, but believe the system to be back up and running, and view the stock as oversold at < 3.5X 2024E revenue, around the lowest of our fintech coverage." Read more about this call here . Barclays reiterates Apple as equal weight Barclays says it's bullish heading into Apple's iPhone event on Tuesday, but that it's standing by its equal weight rating. "We believe key to watch this year will be any impact on demand from price increases for Pro models. We think there will be headwinds to units as Pro model ASPs [average selling price]are set to increase against the weaker macro backdrop. We will also be watching carrier incentives closely."