Here are Monday’s biggest analyst calls: Apple, Amazon, Berkshire Hathaway, Coinbase, Disney & more
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Here are Monday’s biggest calls on Wall Street: Deutsche Bank reiterates Apple as buy Deutsche said it’s standing by its buy rating on the stock after reviewing Apple’s quarterly 10-Q filing. “We also note that iPhone represents a moderately higher proportion of net sales in the Greater China region than in any other regions.” Wells Fargo reiterates Rivian as equal weight Wells said it’s cautious heading into the electric vehicle company’s earnings report Tuesday. “Lastly, RIVN will likely start delivering some post price increase orders in the second half as RIVN doesn’t deliver purely on chronology.” Stifel upgrades Snowflake to buy from hold Stifel said headwinds are stabilizing for the stock. “We are upgrading shares of SNOW to Buy from Hold as recent commentary from MSFT as well as other 3rd party consumption models (DDOG, FROG, CFLT) lead us to believe the optimization headwinds the group has felt over the last 9 months are stabilizing, and with easing comps in 2H23, we believe SNOW’s revenue growth should stabilize in the high 30% range.” Morgan Stanley reiterates Disney as overweight Morgan Stanley raised its price target on Disney to $120 per share from $115 and said it likes the company’s cost cutting measures. “Disney’s business model benefits from the synergistic creation, distribution, and monetization of its brands and IP – which help to drive returns across its business lines.” BMO upgrades Peloton to market perform from underperform BMO said it sees an improved risk/reward balance for Peloton. “With PTON’s first negative Subscriber guidance behind us, we believe shares reflect these concerns and Risk/Reward has shifted, even skewed upward at current levels.” JPMorgan upgrades American to overweight from neutral and downgrades Southwest to neutral from overweight. JPMorgan said in its upgrade of American that it likes the airline’s improved balance sheet. “Harmonizing our target multiples drive downgrades for Frontier and Southwest . … We’ve made one important change to our AAL model; harmonizing 2024 profit sharing with the formula used by Delta, as we expect both American and United to pivot towards this standard as new labor contracts are reached.” Read more about this call here. JPMorgan initiates Alcoa as overweight JPMorgan said in its initiation of Alcoa that it sees a “favorable aluminum metal pricing environment in the coming years.” “We rate Alcoa Overweight as we believe the company will drive operational improvements and benefit from a generally favorable aluminum metal pricing environment in the coming years, though we note that this could be impacted by a pending recession in the US and economic weakness globally.” Read more about this call here. Daiwa upgrades Coinbase to buy from hold Daiwa said it sees “accelerating global expansion and crypto-native innovations” for the crypto exchange. “We believe the current share price has largely priced in the US regulation uncertainty but underestimated Coinbase’s recovering profitability, accelerating global expansion and crypto-native innovations. Goldman Sachs upgrades Dropbox to neutral from sell Goldman said the cloud storage company has a “healthy margin profile.” “We upgrade Dropbox to Neutral (from Sell) and raise our price target to $25 (from $22) following DBX’s 1Q23 results that beat across all metrics and de-risked the guide for the rest of the year by leaving it unchanged.” Bank of America upgrades Fortinet to buy from neutral Bank of America said the cybersecurity company has solid fundamentals. “We are upgrading Fortinet, from Neutral to Buy and raising our PO from $66 to $75, based on 27x CY24E EV/FCF a premium to cyber peers’ 20-25x, which we believe is warranted given the company’s strong fundamentals.” Bank of America upgrades XPO to neutral from underperform Bank of America said the focus on cost cuts should drive multiple expansion for XPO . “We lift our PO to $50 (from $33), on 19.5x our 2023e EPS (as it rebounds post trough EPS and its upside potential gains momentum on new management.” Rosenblatt initiates Pegasystems as buy Rosenblatt said the software company is “poised to deliver improving operational performance.” ” Pega provides a powerful, highly scalable low-code software platform for business process, AI-supported decisioning and workflow automation, with key use cases focused on customer engagement and customer service for large enterprises in the banking, telecom, insurance and healthcare vertical markets.” Morgan Stanley upgrade Vitru to overweight from equal weight Morgan Stanley said in its upgrade of the Brazilian distance learning company that it sees a compelling entry point. “The recent Vitru sell-off has reduced the multiple gap vs. peers, opening an attractive entry point.” JPMorgan upgrades Scotts Miracle-Gro to overweight from neutral JPMorgan said the fertilizer company is a “reasonable investment.” “We think that Scotts is now a very reasonable investment for investors with a one year time frame or a three- to five-year investment horizon.” Bank of America reiterates Churchill Downs as buy Bank of America reiterates its buy rating on the horse racing company after the Kentucky Derby over the weekend, noting Churchill has a “unique growth profile.” “Given this backdrop, CHDN expects Kentucky Derby week to reflect a new record with $14-$16M of EBITDA growth vs. last year, up slightly from prior guidance of $10- $15M. Maintain Buy & our $325 PO on CHDN’s unique growth profile.” Stephens reiterates PacWest Bancorp as overweight Stephens said it’s standing by its overweight rating on the regional bank. “Following a volatile week of trading, PACW announced Friday evening a reduction in the quarterly common stock dividend to $0.01 (from $0.25) and also declared the quarterly preferred equity dividend.” Janney reiterates Western Alliance as buy Janney said shares of Western Alliance are “dirt cheap” right now. “Reiterating BUY Rating and Fair Value Estimate of $63.00 on Expectations the Stock Could Double in the Next 12 Months as Company Fundamentals Overcome the ‘Fear Trade.'” UBS upgrades Pentair to buy from neutral UBS said in its upgrade of the pool and spa equipment company that the “growth recovery and margin opportunity [is] not priced in.” “We upgrade PNR to Buy on the view that the pool cycle is nearing its bottom, and that the company will deliver on margin targets.” Read more about this call here. UBS reiterates Berkshire Hathaway as buy UBS said that the company’s annual meeting over the weekend was the “best in years.” “We viewed Berkshire’s 2023 annual meeting as the best in several years with quality questions and insightful answers.” Loop reiterates Amazon as buy Loop said Amazon investors “severely underestimate the upside to earnings power.” “The stock continues to be held back by concern over the slowdown at AWS and questions surrounding the long term influence of AI adoption on cloud vendor selection.”
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