Top Wall Street calls: Tesla Microsoft Disney Amazon Alphabet
Here are Wednesday’s biggest calls on Wall Street: Deutsche Bank upgrades Humana to buy from hold Deutsche said the health insurer is “on track to achieve its 2025 earnings target.” “Combining with the alternative capital deployment capabilities as well as the significant less tailwind benefited from covid in the past few years, we see Humana on track to achieve 2025 earnings target.” JPMorgan reiterates Amazon as overweight JPMorgan said Amazon is “well positioned for long-term growth” heading into earnings on Thursday. “We recently trimmed estimates given increased FX headwinds & slowing discretionary spending. Still, we remain confident AMZN can re-accelerate revenue growth and expand OI margins into 2023, largely driven by Retail improvement and still solid AWS growth.” Wells Fargo upgrades Halliburton to overweight from equal weight Wells said it sees cash flow improvements for Halliburton . “We believe the Energy Services sector is on track to deliver consistent sequential and year/year earnings and cash flow improvements as global E & P spending trends higher in 2023 and 2024. Bank of America downgrades Whirlpool to underperform from neutral Bank of America said there has been a severe drop in appliance demand. “We downgrade Whirlpool (WHR) to Underperform from Neutral as industry and company data suggests a severe drop in appliance demand and softening of pricing, while costs remain elevated, pressuring margins.” Bank of America reiterates Uber as buy Bank of America said it’s staying “constructive” on Uber heading into earnings on Nov. 1. “We expect EBITDA flow-through (with declining competitive intensity) and share gains to be 3Q positives.” Piper Sandler initiates Roblox as overweight Piper said in its initiation of Roblox that it’s a “unique” asset. “The advertising opportunity is a catalyst in ’23. Valuation is at a premium but justified in our view given the growth opportunity ahead.” DA Davidson initiates Roblox as buy DA Davidson said in its initiation of the stock that it’s an “organic growth machine.” “We view the current premium on the share s as warranted given the uniqueness of the platform, the aforementioned growth pillars, and what we view as a call option on metaverse-driven investments.” Morgan Stanley upgrades Discover to overweight from equal weight Morgan Stanley upgraded the stock on a potential buyback resumption. ” Discover is one of the few stocks we cover with significant excess capital. DFS is hopeful they can restart the buyback in 4Q22.” Goldman Sachs downgrades Silvergate to neutral from buy Goldman said in its downgrade of the fintech bank that it sees deposit growth uncertainty. “Following 3Q22 results, we are downgrading share s of SI from Buy to Neutral, as we believe greater uncertainty about the trajectory of deposit growth , combined with reduced interest rate sensitivity, primarily as a function of the company’s hedging program, will likely prevent share s from outperforming.” Goldman Sachs downgrades Edgewell Personal Health to neutral from buy Goldman said cost pressure persists for Edgewell. “Where we were wrong was on the company’s earnings level. We had expected the company to deploy more of its FCF to share repurchases .” Morgan Stanley reiterates Disney as overweight Morgan Stanley said Disney share s already have baked in macro risks. “We reiterate our OW rating as share s appear to already reflect some macro risk at the Parks and a depressed value for its streaming and broader media business Bank of America reiterates Microsoft as buy Bank of America said it’s staying bullish on Microsoft after the company’s earnings report on Tuesday and called the quarterly results “resilient.” ” Microsof t reported overall resilient Q1 results , w/ solidly holding Azure & O/M365 growth, though mounting macro pressure prompted a meaningful guide down for Q2 & FY23.” Read more about this call here. Barclays reiterates Alphabet as overweight Barclays said it’s standing by the internet giant even after it missed on earnings on Tuesday. “Stepping back from the print, GOOG remains the best positioned company in digital advertising longer term, numbers should be close to reality after this reset.” Read more about this call here. Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it’s seeing signs that Tesla is “taking steps to become a bigger player in its own battery supply chain.” “Battery manufacturing has been one of Tesla’s main bottlenecks this year. The company filed for a tax abatement in Texas for a battery-grade lithium hydroxide refining facility, potentially to circumvent some of these issues. We’d prepare to see an even more vertically integrated Tesla. Morgan Stanley reiterates General Motors as equal weight Morgan Stanley raised its price target on GM to $32 per share from $30 after the company’s robust earnings report on Tuesday. ” GM delivered a very strong 3Q, beating cons estimates, despite Ford’s significant profits warning heading into the quarter. Same industry. Two different companies.” JPMorgan reiterates General Electric as neutral JPMorgan raised its price target on GE to $58 per share from $50 after the company’s better than expected earnings report. “The GE quarter was initially received poorly on a bad EPS headline, but a rudimentary dig showed the recurring result was better than expected, as Aerospace upside more than offset downside at the other businesses, reminiscent of the pre-pandemic profile.”
