Analyst calls: All the market-moving chatter from Wall Street on Friday morning
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(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest post.) A chunk of the Wall Street chatter Friday morning centered around Apple and its latest quarterly report. The tech giant posted fiscal third-quarter earnings that exceeded analyst expectations. However, revenue was down for a fourth straight quarter . Shares were down 3% in the premarket on the back of those results. Elsewhere on Wall Street this morning, Goldman Sachs named Monster Beverage a top pick. Check out the latest calls and chatter below. 6:50 a.m. ET: Stifel downgrades Papa John’s, calls ‘uncle’ “OK Papa, We Call Uncle.” That’s what Stifel analyst Chris O’Cull wrote in his downgrade of Papa John’s shares to hold from buy. O’Cull also cut his price target to $65 from $81, citing disappointing third-quarter earnings. “The company also lowered its unit opening guidance for 2023 and indicated that 2024 would be a challenging year for international development and N.A. comp growth,” he said. “Our Hold thesis reflects our view that performance during the next several quarters will be volatile given the U.K. market turnaround, sales and development obstacles in key international markets, like the Middle East, and our view that the promotional activity in the U.S. QSR Pizza segment has intensified.” Papa John’s shares have struggled in 2023, losing 23.5%. PZZA YTD mountain PZZA in 2023 — Fred Imbert 6:11 a.m. ET: New Tesla truck poses ‘threat’ to global truck manufacturers Tesla’s new Semi truck puts original equipment manufacturers at risk, according to Morgan Stanley. “We expect the Tesla Semi to deliver a competitive payload, creating a highly efficient, high range, fast charging, software-defined, Class 8 truck. This poses a threat to Truck OEMs worldwide,” analyst Shaqeal Kirunda wrote in a note. The electric truck has both higher efficiency and longer range than incumbent OEM BEV, or battery electric vehicle, offerings, Kirunda wrote. The analyst expects Tesla to present a competitive payload in 2024 and thinks the EV maker can achieve this, as Tesla has a competitive advantage in battery production and its Semi truck is BEV native, rather than a diesel truck being transformed with an electric powertrain. Kirunda noted that delays in production and supply chain have currently limited the Semi truck to pilot phases, but that some key Tesla customers — including PepsiCo —have begun to use a small number of the trucks. Volvo, which the firm said has already made strides with its electric vehicle offerings, seems to be best protected against disruptions caused by Tesla’s product. Shares of Tesla were down less than 1% in premarket trading. . — Pia Singh, Michael Bloom 5:51 a.m. ET: Here’s what analysts have to say about Apple’s earnings Apple reported fiscal fourth-quarter earnings after the closing bell on Thursday that beat analyst expectations for sales and earnings per share but indicated a decline in overall sales for the fourth quarter in a row. Shares dipped 3.4% in premarket trading Friday. Here’s what some of the major shops on Wall Street have to say about the results: Morgan Stanley maintained its overweight rating on the stock and kept its price target of $210, noting that Thursday’s results “strengthen the bull case” for investors. The firm expects Apple’s average revenue per unit to increase once macroeconomic headwinds lessen. Goldman Sachs reiterated its buy rating on the stock and its 12-month price target of $227, which implies 27.8% potential upside for Apple. The bank noted that “this was a solid quarter” with gross margin strength driven by strong iPhone results and an acceleration in services revenue. Like Morgan Stanley, the firm is confident that the iPhone active installed base will compound and reach a record in the fourth quarter, in part, by expanding into emerging markets and a growing base in other Apple products. JPMorgan kept its overweight rating, but cut its price target by $5 to $225, based on its 2025 earnings estimate. The firm likes Apple’s iPhone and Services revenues, tight discipline on operating expenses, its revenue growth catalysts and upside to earnings. These qualities should lead “Apple to deliver to sell-side consensus EPS expectations for F1Q24 despite a softer revenue outlook,” according to the firm. Wells Fargo reiterated its overweight rating on the stock, noting Apple’s strong balance sheet and free cash flow generation, as well as its growing recurring paid subscriber base. The firm, which also kept its $225 price target, said it thinks Apple’s fourth-quarter results could be “largely uneventful.” — Pia Singh, Michael Bloom 5:40 a.m. ET: Goldman names Monster Beverage a top pick Goldman Sachs analyst Bonnie Herzog called Monster one of the bank’s top picks after the energy drink maker posted its third-quarter results. The company reported adjusted earnings per share of 41 cents, beating a StreetAccount forecast of 40 cents per share. “We continue to favor strong volume-led growth stories across the Staples universe (we model FY23/FY24 vols of +10.4%/+13.1%), with MNST being a standout. Against this backdrop, we are increasingly bullish on the stock, though maintain our FY23/FY24 EPS est of $1.54/$1.85 to be conservative,” Herzog said. The analyst has a buy rating on Monster along with a $62 per share price target. That forecast implies upside of more than 17%. — Fred Imbert, Michael Bloom
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