Here are Monday’s biggest analyst calls: Arm, Carvana, Disney, Apple, Tesla, Netflix & more
Here are the biggest calls on Wall Street on Monday: TD Cowen initiates Tenable Holdings as outperform TD said the cybersecurity company has an expanding platform. ” TENB appears well positioned to benefit from tailwinds within the Cyber Exposure arena with an estimated TAM of $25B (CAGR of ~8%).” Piper Sandler upgrades Skechers to overweight from neutral Piper said in its upgrade of the stock that it likes its balance sheet. “Given the uncertainty of the consumer and U.S. wholesale channel, we are swapping into less speculative, quality earnings growth with a clean balance sheet by upgrading SKX to Overweight and downgrading VFC to Neutral.” Goldman Sachs reiterates Tesla as neutral Goldman cut its estimates on the stock and says it sees pricing heading lower. “Finally, we lower our 2023/2024 EPS estimates for Tesla, driven by lower ASPs [average selling prices] and in turn auto gross margin ex credit assumptions.” Read more about this call here. Goldman Sachs reiterates Apple as buy Goldman said its checks on the newest iPhone suggest “demand [is] outpacing supply.” “Apple pre-orders for the iPhone 15 family of devices started on Friday, September 15 with e-commerce fulfillment dates by Apple quickly moving from the launch date on 9/22 to in excess of 8 weeks for select phones & regions, suggesting that demand is outpacing supply.” Wells Fargo upgrades L3Harris Technologies to overweight from equal weight Wells said in its upgrade of the tech and defense contractor that it has a burgeoning portfolio. “We think LHX’ s portfolio lends itself to growth at least in-line with its defense peers over the coming years, while the stock trades at a significant discount. Evercore ISI reiterates Netflix as outperform Evercore lowered its price target on Netflix to $500 per share from $550, but says it’s standing by its outperform rating. “We are maintaining our Outperform rating on NFLX, but lowering our estimates and price target in the wake of recent management comments at an investor conference and very recent ad channel checks.” Northland initiates Ambarella as outperform Northland said the semiconductor company is well positioned for AI. ” AMBA is developing solutions for autonomous vehicles and AI-enabled IoT devices. We believe these efforts are creating significant value for shareholders over the long term. Near-term AMBA is suffering from an inventory correction.” Mizuho upgrades DoorDash to buy from neutral Mizuho said in its upgrade of DoorDash that it’s deserving of a re-rating. “We believe key drivers include continued market share gains from its category-leading position in the US, and rational competition in Europe. In conjunction, moderated food inflation and resilient consumer spending provide incremental support to our view.” HSBC initiates Lululemon as buy HSBC said in its initiation of the stock that it’s in the “early innings” of growth. “Initiate coverage of lululemon with a Buy and a USD500 TP: a unique business model only in early innings of growth.” Deutsche Bank upgrades Micron to buy from hold Deutsche said in its upgrade of Micron that the market is “underappreciating the earnings per share inflection.” “We believe Street estimates will increase sharply over the next six months, as it appears that the Street may have underestimated the power of price increases, especially in the beginning of a price inflection period.” Read more about this call here. Barclays initiates Alliant Energy as overweight Barclays initiated the utility company and says it’s a “renewables leader.” “Alliant is a regulated utility holding company with primary operations in Wisconsin (WPL) and Iowa (IPL). LNT is a ‘premium’ utility backed by a strong renewable-driven investment program, with the company on track to have 36% of renewables in rate base by 2026.” Wedbush upgrades Carvana to neutral from underperform Wedbush said in its upgrade of the stock that it sees profitability upside. “We are upgrading our rating on CVNA as the recently completed debt exchange and improving profitability could drive upside in 3Q23 and 4Q23, and also give the company at least two years of breathing room to execute.” Evercore ISI reiterates QuantumScape as outperform Evercore said the battery company is a “a key next-gen battery technology that all EV investors will need to monitor over the coming years.” ” QuantumScape (QS) is a US-based EV battery start-up creating an a nodeless, solid-state Lithium-Metal battery which has both significantly higher density & decreased charging times.” UBS initiates BioMarin Pharmaceutical as buy UBS said the pharmaceutical company is undervalued. “We think BMRN is turning a corner with its recent transition to profitability and two major product approvals secured with launches underway.” Deutsche Bank upgrades Iridium to buy from hold Deutsche said it sees an attractive entry point for the satellite company. “With the stock having pulled back meaningfully since reporting 2Q earnings, (-21% vs. NASDAQ -1%), we believe now is an attractive entry point and upgrade Iridium from Hold to Buy. In our view, the main cause of the weakness is concern around the direct-to-device opportunity.” Raymond James initiates Disney as outperform Raymond James said in its initiation of Disney that the stock is compelling. “So, while sentiment around the space has been quite negative for several quarters, we believe the expected cash flow growth is compelling and that there are opportunities for attractive shareholder returns in media, particularly given that valuations have come down significantly.” Read more about this call here. Guggenheim upgrades Ralph Lauren to buy from neutral Guggenheim said in its upgrade of the stock that it sees more upside ahead. “This morning, we are upgrading the shares of Ralph Lauren to Buy from Neutral and establishing a $166 price target, representing ~45% potential upside from current levels.” Bank of America upgrades ESAB to buy from neutral Bank of America said the Swedish industrial company is underappreciated. ” ESAB is executing better than expected (leverage falling, margin expanding, growth outperforming) and we have a renewed appreciation of its portfolio.” Morgan Stanley upgrades Simply Foods to overweight from equal weight Morgan Stanley said in its upgrade of the food products company that the stock is attractive. ” SMPL’s above-average sales/EPS growth profile is supported by: 1) attractive active nutrition category growth, 2) strong topline outlook underpinned by Quest’s success, 3) opportunity for a recovery in Atkins.” Bernstein reiterates Nvidia as outperform Bernstein said it’s standing by its outperform meeting on shares of Nvidia after a meeting with company management. “The company continues to sound positive and optimistic about the AI opportunity, highlighting various aspects of their moat during the meeting.” Wells Fargo initiates ASGN Incorporated as overweight Wells initiated the digital innovations solutions company for government and businesses and says investors should buy the dip. ” ASGN lagged the S & P by > 20% YTD on tech woes and concerns over a slowing macro. We see opportunity given: 1) valuation discount to staffing & consulting peers; 2) a materially different rev mix vs history.” Wells Fargo reiterates Nike as outperform Wells lowered its price target on the stock to $120 per share from $130 and says it’s concerned about more bad news than good. “Sentiment continues to drift lower as we gear up for NKE’s 1Q print, where we expect to hear more bad than good news. Following lateral reads/industry checks, we believe Street numbers could again move lower. We cut EPS below Street and PT to $120.” Bernstein initiates Arm as underperform Bernstein said it’s “too early” to declare the semiconductor company an AI winner. “While expectations that Arm will be a beneficiary from AI growth may be adding a premium to the share price, we believe it is too soon to declare them an AI winner. In addition, we remain more conservative on their ability to deliver increased royalty rates at the pace management is guiding.” MoffettNathanson downgrades PayPal to market perform from outperform Moffett said in its downgrade of PayPal it’s concerned about declining profit growth. “Looking forward, unfortunately, we expect PayPal’s gross profit growth to remain lackluster, in the low- to mid-single digits, and we see the potential for further downside to our estimates, particularly given the strong momentum of Apple Pay, which we worry will begin to benefit from the powerful network effects in payments.” Read more about this call here. Morgan Stanley upgrades Vertex to overweight from underweight Morgan Stanley said the tax solutions company is underappreciated. “With the investment program essentially ending in 2Q23, we believe Vertex is now at an inflection point that will see revenue accelerate from low-to-mid teens to mid-to-high teens YoY and return FCF margin from 1% in FY22 to high-teens by FY25.”