Here are Friday’s biggest calls on Wall Street: KeyBanc repeats Apple as overweight KeyBanc maintains attractiveness for Apple stock. “We recommend holding AAPL. Our KFLD (KeyBanc First Look Data) shows that Indexed Expenses were +2.0% m/m in August, compared to the three-year average of +1.0%. On the positive side, QTD data + followed by 15. Given the extra week of iPhone sales, September should be strong.” Morgan Stanley reiterates Tesla as Overweight Morgan Stanley says it sees a big boost in Tesla’s revenue from the Deflation Act. “We estimate. Tesla produces > 3.1 mm EVs in the US by 2030. Assuming a $10k per unit IRA “boost” could be worth > $30 billion to the company, which , representing an approximately 50% increase in Auto EBIT for FY30 of $65 billion.” Jefferies downgrades International Paper Jefferies downgrades the paper company, saying the cut in containerboard prices is “progressive”. “We are lowering IP and PKG to reflect the massive inventory build-up on the container board to reduce underperformance and estimates for WRK, our audits show a sharp slowdown in orders and broad-based downtime experienced by smaller players.” MKM is launching CrowdStrike, which it says is a cybersecurity company “in a league of its own.” “We believe CrowdStrike has one of the most comprehensive cloud-native platforms in the industry.” Citi reiterates Netflix as Citi raised its price target on Netflix stock from $275 to $305, saying the streaming giant is the best way to stream video on demand. “We expect SVOD sentiment to improve and maintain our Buy ratings on both Netflix and Disney. However, Netflix is our preferred way of expressing our bullish view of SVOD.” JPMorgan downgrades FedEx to neutral from overweight JPMorgan downgraded FedEx after Thursday’s disappointing earnings report. “There’s more to the results being a significant tailwind than F4Q22-like fuel additions masking underlying weakness in F1Q23 results and F2Q23 guidance; it’s sobering to think that Express could lose money (ex-fuel) during the quarter.” Read more about this call. Morgan Stanley upgrades Alcoa to overweight from equal weight Morgan Stanley said it sees “deep value” in the mining company. “Despite strong balance sheets and cheap valuations at spot prices, and even bearish commodity forecasts in some cases, we are only selectively upgrading mining stocks where we see deep value and/or self-help stories amid macro/China recovery uncertainties . . .” Needham is launching Snowflake because Needham said Snowflake has “massive scale” at the time of the cloud computing company’s initiative. “The company benefits from (1) a Cloud-Native Data Platform with large scale due to the latest innovations in the Cloud, (2) a large, growing opportunity at CY26 TAM, which management estimates at $248 billion.” Read more about this call. UBS reiterates Amazon as UBS says Amazon stock remains attractive. “We feel good about AMZN stock, especially retail sales growth/margins; less so on AWS. We feel good about the retail business, especially in North America, between the census data and a possible Head Day 2.” In buying Canoo, Stifel said it sees a positive risk/reward for the electric vehicle startup. “We are encouraged by GOEV’s focus on the most profitable automotive market segments, namely compact SUVs, pickup trucks and last-mile delivery.” Bank of America downgrades Adobe from buy to neutral Bank of America says it’s starting to have longer-term concerns about the stock. “We’re on the sidelines at Adobe, and our timing is driven by receiving Adobe’s second survey data focused on Creative Cloud, not for the upcoming quarter. opinion.” Read more about this call. Bank of America downgraded FedEx from buy to neutral Bank of America downgraded FedEx, saying it saw declining volumes. “The company noted that macroeconomic trends worsened at the end of the quarter and costs lagged behind worsening demand, which it attributed to higher fixed costs such as volume slowdowns (International and US).” Deutsche Bank reiterates Tesla, raising its price target for Deutsche Tesla from $375 to $400, saying the automaker is well positioned for 2023. “We are raising our 2023 gross margin estimates for Tesla and raising our price target to $400 (from $375). Following our recent Berlin factory tour, we’re analyzing the huge potential cost benefits from Berlin and Texas growth and US Deflation Act battery manufacturing credits.” UBS buys Baidu, as UBS says it sees positive risk/reward in Chinese tech company’s initiative.” We believe Baidu’s risk/reward looks attractive as investors are undervaluing its new ventures in cloud and cars.”
Amazon, FedEx, Tesla, Apple, Snowflake
