Here are Thursday’s biggest calls on Wall Street: Canaccord reiterates Coinbase as buy Canaccord said in a note to clients that the crypto company’s strategy “still makes sense.” ” COIN has taken its fair share of lumps over the past few months – most of which we view as some guilt by association: being an industry leader in a new industry and against the backdrop of a tough macro.” Morgan Stanley reiterates Apple as overweight Morgan Stanley said it’s seeing an uptick in Apple’s “Apple One” subscription service. “‘As a result, this uptick in Apple One search intensity could signal increased traction with Apple users, which has the potential to 1) help offset slowing App Store and digital advertising growth in the near-term, and 2) increase Services monetization and spend per user over time, a key pillar of our thesis that Apple shares are undervalued when valuing the business on a subscription basis.” Bank of America downgrades Lennar to underperform from neutral and KB Home and Toll Brothers to neutral from buy Bank of America said in its downgrade of Lennar, KB Home and Toll that it’s concerned about rising interest rates. “Homebuilder earnings and industry data indicate a sharp demand deceleration in June/July as a result of worsening affordability and lower consumer confidence.” Read more about this call here. UBS reiterates Tesla as buy UBS said that, after a recent tour of the company’s Berlin factory, it increased the firm’s “confidence in Tesla’s volume curve and gross margin expansion.” “We were the first broker to get a Giga Berlin tour together with key clients. We saw a very busy factory floor obviously making good progress towards the 5,000 car/week target run-rate by year-end.” Raymond James downgrades La-Z-Boy to market perform from outperform Raymond James said in its downgrade La-Z-Boy that there’s too much uncertainty for the furniture company. “Our change in recommendation is not a reflection on F1Q23 results (results were above expectations) or F2Q guidance but more so our view that our forward numbers are coming down as there is more uncertainty on the backlog delivery given inventory positioning in the wholesale business, as well as the uncertainty surrounding recovery in written trends post summer.” Read more about this call here. Berenberg reiterates Tesla as hold Berenberg said after a visit to the company’s Fremont factory that it sees ” limited short-term potential from autonomous driving.” “We expect Tesla’s automotive gross margin to benefit as its production mix shifts away from Fremont, California, which suffers from high labour costs, an inefficient layout and relatively dated equipment. However, following demo drives, we envisage limited short-term potential from autonomous driving.” Goldman Sachs upgrades FREYR Battery to buy from neutral Goldman said the battery company is a top beneficiary of the Inflation Reduction Act. “Looking at the competitive landscape in the US, FREY is set to operate the largest gigafactory outside of the OEMs’ dedicated EV battery plants.” Citi opens a positive catalyst watch on Nvidia Citi opened a positive catalyst watch on the stock after it r eported earnings on Wednesday and says Nvidia “remains a data center story with major auto inflection next year.” ” NVDA stock was down 4% after missing the Oct-Q outlook on gaming and guiding data center +1% qq vs our/street +4%/+6% expectations.” Read more about this call here. Morgan Stanley upgrades Stride to overweight from equal weight Morgan Stanley said in its upgrade of the for-profit education company that the stock has an attractive valuation. “Stride is an underappreciated, resilient business with an attractive valuation, moving to OW.” Read more about this call here. MKM reiterates Uber and Alphabet as buy MKM said that it sees further upside potential this year for Uber and Alphabet. “Our bottom-line/actions calls are as follows: Upside candidates — those with dislocations creating an asymmetric reward opportunity: GOOGL, UBER. ” Citi reiterates Eli Lilly as buy Citi raised its price target on Eli Lilly to $370 per share from $285 and says it’s bullish on the company’s obesity drug, tirzepatide. “We have increased our peak risk-adjusted tirzepatide forecasts (diabetes/ obesity/NASH) to > $25bn (previously $15bn, consensus c.$16bn). Our ongoing feedback from physicians/payers continues to fuel our optimism for broader access, reimbursement and adoption given the previously unforeseen glucose and weight lowering properties.” Morgan Stanley reiterates Salesforce as overweight Morgan Stanley said in a note following Salesforce earnings that it likes the company’s long term free-cash-flow story. “A large cut to FY23 revenue targets likely spurs investor debate on Salesforce’s growth potential, but we view this more as a de-risking of the outlook in response to a weakening macro, while more fundamental initiatives around margins and capital allocation improve the longer-term FCF story.”
Apple, Tesla, Coinbase, La-Z-Boy, Nvidia