Here are Wednesday's biggest analyst calls: Tesla, Apple, Microsoft, Mattel, Amazon, Costco and more

Published Wed, Sep 27 20238:19 AM EDTUpdated Wed, Sep 27 202310:46 AM EDT

Here are Wednesday's biggest calls on Wall Street: HSBC upgrades Johnson Controls to buy from hold HSBC said it sees an attractive entry point for the stock. " Johnson Controls shares are down 20.7% since Q3'FY23 results, significantly underperforming its Building efficiency peers and broader S & P 500 industrials." UBS reiterates Apple as neutral UBS said its survey checks show wait times for Apple's newest iPhone are shorter compared to one year ago. "Wait times for the Pro models across most major markets including the US, China, and Europe are shorter compared to the same period last year." Deutsche Bank reiterates Tesla as buy Deutsche Bank said it sees "meaningful downside risk" in 2024 for Tesla, but that it's standing by its buy rating. " Tesla's 3Q23 deliveries and production could miss Street expectations, but more importantly, we see meaningful downside risk to 2024 consensus due to limited volume growth next year." Read more about this call here . Goldman Sachs reiterates Chevron as buy Goldman Sachs said investors should take advantage of any weakness and buy the dip. "Among the Big Oils, we highlight our preference for Buy-rated CVX and COP given relative valuation using a long-term $80/b Brent price." Bank of America names Occidental Petroleum a top pick Bank of America said the petroleum company is well-positioned for oil "strength." "Of our oil weighted coverage we see OXY best positioned to capitalize on near term oil strength while capital efficiency, a deep drilling backlog and the Berkshire 'put' can help mitigate downside risk if some of the caveats laid out by our commodity team are borne out." Read more about this call here . Bank of America reiterates Costco as buy Bank of America said it's standing by its buy rating after the company's earnings report Tuesday. "We reiterate our Buy and view COST as well-positioned given: 1) expected warehouse club share gains as consumers continue to adjust to higher grocery prices, making COST's value proposition even more attractive, 2) private label leadership." Bank of America upgrades Kosmos Energy to buy from neutral Bank of America said shares of the upstream oil company are compelling. "Given Kosmos' advantaged cash flow duration and sustainable growth story, we see the current valuation as compelling." Morgan Stanley names M & T Bank a top pick Morgan Stanley said the regional bank is defensively positioned in the current environment. "We favor MTB for its excess capital and liquidity position which makes it more resilient to a challenging macro and regulatory environment versus peers." Bank of America reiterates Amazon as buy Bank of America said it's standing by its buy rating on the e-commerce giant despite the lawsuit filed against it Tuesday. "The FTC along with 17 state attorneys filed a well-anticipated antitrust lawsuit against Amazon on Tuesday. … While we cannot offer an opinion on potential trial outcomes, we think a settlement is unlikely and expect Amazon to make a vigorous defense." UBS initiates e.l.f. Beauty as buy UBS said the beauty company has a long runway for growth. "Beyond sales growth, ELF is in the early innings of a bottom line inflection story after several years of cost headwinds/increased spending, and we now expect strong top line growth to flow to the bottom line, driving a +28% EPS CAGR in FY23-26." UBS initiates ChargePoint and Blink Charging as buy UBS said the charging companies are well-positioned in the future of electric vehicles. "We launch coverage on three Electric Vehicle Supply Equipment (EVSE) companies: BLNK, CHPT & WBX – we see opportunities within the space as EV adoption accelerates. Read more about this call here . Bank of America initiates Leonardo DRS as buy Bank of America said the defense contractor is "well positioned to capture growth in mission critical end markets." "We initiate coverage of Leonardo DRS with a Buy rating and a $20 price objective, implying 23% upside potential." BMO reiterates Microsoft as outperform BMO said the company remains well-positioned for artificial intelligence. "We remain Outperform on Microsoft given the strong multi-year opportunity in generative AI across its business, and particularly in Office." Morgan Stanley initiates Mattel as overweight Morgan Stanley said in its initiation of the toy company that Mattel is well-positioned for topline growth. "Poised to take share in the $300B+ retail licensing market post the success of the Barbie movie." Evercore ISI upgrades XPO to outperform from in line Evercore ISI said in its upgrade of the logistics company that it sees an "operational turnaround." "And we upgrade XPO to Outperform (from In Line) as its operational turnaround unfolds just as all networks begin to benefit from accelerating pricing." TD Cowen initiates Levi's as outperform TD said Levi's is well-positioned for global growth. "With #1 brand awareness and market share, Levi's is well positioned to grow direct-to consumer engagement, international presence, and a lifestyle product assortment beyond denim." William Blair initiates SharkNinja as outperform William Blair said in its initiation of the stock that it sees a "clean runway for growth." " SharkNinja is a dual-brand portfolio specializing in the design and innovation of household products and small appliances." Berenberg initiates Twist Biosciences as buy Berenberg said in its initiation of the biotech company that it's "building antibody drug discovery and DNA data storage capabilities, which we see as emerging opportunities." "We are initiating coverage of Twist Bioscience Corp. (TWST) with a Buy rating and $27 price target, implying 29% upside potential." D.A. Davidson initiates SoundHound as buy D.A. Davidson said in its initiation of the speech recognition company that its well-positioned for AI. "We are initiating coverage of SoundHound AI with a BUY rating and $5.00 price target. SoundHound has been leading with its innovative and independent Voice AI platform that we expect will set the standard for performance moving forward in the Voice AI market." Bank of America reiterates Walmart as buy Bank of America said it sees gross margin expansion continuing for shares of the big-box retailer. "We reaffirm our Buy rating given WMT' s strong near and long-term outlook."