Listed below are Tuesday’s largest analyst calls: Wells Fargo reiterates Tesla as equal weight Wells mentioned stories that Tesla would make a bid for Sigma Lithium would “safe capability & seize income” for the automaker. “This is able to safe wanted Li provide & seize margin. That mentioned, the placement possible will not qualify for US IRA & there can be new operational dangers.” UBS reiterates Apple as purchase UBS mentioned survey checks present curiosity in Apple TV+ has “flatlined.” “Within the fourth annual survey, simply ~22% iPhone house owners subscribed to AppleTV+, primarily the identical because the Jan 2020 knowledge previous to Covid.” Bernstein reiterates Apple as market carry out Bernstein mentioned “Q2 revenues aren’t a slam dunk and FY 23 income progress will possible be adverse” for Apple. “We see the largest dangers to Providers progress as regulatory (Google funds and App Retailer), and any slowing of iPhone put in base progress from weaker gross sales and/or fewer switchers.” Baird names Amazon, Alphabet and Nvidia prime A.I. picks Baird mentioned firms resembling Amazon, Alphabet and Nvidia might be key beneficiaries of AI. “Whereas not an exhaustive checklist, given the numerous a whole bunch of firms that fall inside our sectors, we imagine firms included right here not solely have superior AI capabilities, but additionally might be key beneficiaries of the ‘tidal wave’ of AI throughout shopper and/or enterprise purposes.” Financial institution of America downgrades Constellation Vitality to impartial from purchase Financial institution of America downgraded the power firm primarily on valuation. ” CEG is a consensus lengthy on account of its seen free money circulation era however the newest improve in working prices, upkeep capex, and nuclear gasoline funding highlights that the Federal Manufacturing Tax Credit score (PTC) solely gives safety on the “pricing” aspect.” UBS downgrades DocuSign to promote from impartial UBS mentioned in its downgrade of the inventory that it is involved about dwindling progress. “We downgrade our score on DocuSign to Promote from Impartial submit final week’s announcement of a brand new 10% workforce discount (after the 9% discount in September) and based mostly on a view that it sends a adverse demand sign about FY24 progress that will not be factored within the inventory.” Citi reiterates Goal as purchase Citi mentioned it is standing by its purchase score heading into Goal earnings on Feb. 28. “Massive image, we imagine there may be gross margin recapture oppty in F23 however danger to gross sales towards robust multi-year comparisons.” Raymond James reiterates Carvana as market carry out Raymond James mentioned it is cautious heading into Carvana earnings later this week. “Whereas CVNA had a tumultuous 2022 (down 98% for the 12 months together with a -41% in December), the inventory has elevated ~140% YTD in 2023 — returning to the$10-11 vary, which we proceed to imagine is a good worth.” Deutsche Financial institution provides a catalyst name purchase on Workday Deutsche mentioned it is bullish heading into the on-demand monetary administration software program firm’s earnings report later this month. “We’re anticipating wholesome F4Q outcomes, very possible overachieving anticipated 24-mos Backlog progress of ~19% y/y, as our companion checks noticeably upticked from F3Q. From the sector, we’re listening to of wholesome ME (Medium Enterprise) demand, a lot of which is only incremental for WDAY , in some instances successful accounts with as few as 500 staff or much less.” Piper Sandler upgrades Caleres to chubby from impartial Piper mentioned in its improve of the footwear firm that it sees “structural earnings beneficial properties.” “We’re upgrading CAL to OW following the two/15 pre-announcement underpinned by a 2023 earnings reset coupled with additional confidence in EPS beneficial properties being structural in nature.” JPMorgan downgrades AutoNation to underweight from impartial JPMorgan mentioned it sees a extra balanced danger/reward for AutoNation . “Nonetheless, we’re not altering our 2025 normalized margin/EPS view but, on which the sector has an total balanced risk-reward at present ranges.” Learn extra about this name right here. Financial institution of America reiterates Meta as purchase Financial institution of America mentioned it is bullish on the corporate’s just lately introduced Meta Verified subscription service. ” Meta continues to take extra aggressive motion to develop earnings within the 12 months of efficiencies. We see subscription providing as a possible excessive margin enterprise with marginal incremental prices.” Financial institution of America reiterates Alphabet as purchase Financial institution of America mentioned it is standing by its purchase score regardless of the ChatGPT thread to Alphabet. “We have now heard each combined and credible opinions from well-informed traders on the ChatGPT menace to Alphabet , and we might anticipate Microsoft will perpetuate the overhang within the close to time period.” Truist downgrades Generac to carry from purchase Truist mentioned in its downgrade of the battery backup firm that it sees macro headwinds. ” GNRC’s inner challenges, each associated to its core dwelling standby generator (HSB) enterprise & rising Clear Vitality merchandise enterprise have been mentioned by mgmt at size over the past a number of quarters, and we imagine are effectively understood by the Avenue.” Learn extra about this name right here . Goldman Sachs upgrades Vir Biotechnology to purchase from impartial Goldman mentioned it sees a lovely danger/reward for shares of Vir. “Compelling danger/reward for an underappreciated catalyst with the potential to drive a significant new leg of progress.” Learn extra about this name right here . JPMorgan reiterates Netflix as chubby JPMorgan mentioned the password sharing crackdown creates near-term danger for Netflix. “Regardless of N-T pushback and confusion round NFLX’s one family method, we anticipate the corporate to make choose coverage & customer support tweaks alongside the way in which, work by these headwinds (because it has earlier than), and finally generate extra income by the mixture of Additional Members and standalone accounts.” Morgan Stanley reiterates Nvidia as equal weight Morgan Stanley raised its worth goal on the inventory to $246 per share from $175 heading into earnings on Wednesday. “We see NVIDIA posting an in line quarter and outlook, with gaming recovering from the lows and the strategic nature of the corporate’s coaching choices buffering them from knowledge middle weak spot.” BMO reiterates Microsoft as market carry out BMO mentioned Microsoft is a key beneficiary of AI. “We predict MSFT’s attain, scale, and entry to knowledge will assist MSFT to develop and practice AI fashions, and thus generate aggressive differentiation.” Barclays reiterates Zoom as equal weight Barclays mentioned expectations are low heading into Zoom earnings later this month. “We imagine the ZM bear case is comparatively understood by traders (a information to flat YoY rev. progress or worse for FY24), and bulls are hoping for latest headcount reductions to assist non-GAAP op. margin by ~300-400bps with FY24 revs. holding in higher.”
