Summary: Several major Wall Street firms have made calls on various stocks, including Apple, Nike, Microsoft, and more. Morgan Stanley reiterated Apple as overweight, citing positive iPhone survey checks and strong performance in China. UBS also reiterated Nike as a buy, highlighting the company’s investments in product innovation and digital capabilities. Another call came from Needham, which initiated coverage on ON Holding and Lululemon, both with buy ratings. Oppenheimer downgraded Chewy to perform, while RBC initiated IBM as outperform. JPMorgan downgraded Dollar General, and Bernstein reiterated Boeing as outperform. Citi upgraded Pinterest to buy following its analyst day, and JPMorgan initiated First Citizens Bancshares as overweight. Jefferies upgraded Bausch Health to buy, Needham initiated Instacart as hold, Rosenblatt initiated Sonos as buy, and Goldman Sachs named Azul a top pick. Lastly, Morgan Stanley downgraded Zebra Holdings and nCino to underweight. Bank of America also reaffirmed its buy rating on Disney.
– Apple: Morgan Stanley reiterated its overweight rating on Apple, pointing to positive iPhone survey checks and strong performance in China. iPhone 15 lead times are longer than the previous cycle, and Apple’s Services division is outperforming expectations.
– Nike: UBS reiterated Nike as a buy, highlighting the company’s investments in product innovation, supply chain speed, and digital capabilities. UBS expects a 14% compound annual growth rate in earnings per share over the next five years.
– Microsoft: Morgan Stanley reiterated its overweight rating on Microsoft, citing an attractive risk/reward profile and the company’s recent dividend increase. The firm sees high-teens earnings per share growth and a durable total return profile.
– ON Holding: Needham initiated coverage on ON Holding with a buy rating. The shoe manufacturer is seen as one of the fastest-growing stories in retail, with strong growth potential fueled by health and wellness trends.
– Lululemon: Needham also initiated coverage on Lululemon as a buy, citing the company’s superior growth characteristics. Lululemon is expected to experience double-digit top-line growth driven by innovation in both core franchises and newer Play verticals.
– Chewy: Oppenheimer downgraded Chewy to perform, citing a challenging market backdrop and signs of weakness in the pet food category. The firm expects the challenging environment to persist for the next few quarters.
– IBM: RBC initiated coverage on IBM with an outperform rating, considering the stock undervalued. RBC believes that IBM plays a unique role in the tech ecosystem by enabling efficient digital transformation through consulting and software.
– Dollar General: JPMorgan downgraded Dollar General to underweight, citing uncertainties in the low-to-middle-income macro picture. The firm lowered its price target based on expectations for lower earnings per share.
– Boeing: Bernstein reiterated its outperform rating on Boeing, recommending investors to buy the dip in the aerospace giant’s shares. The recent decline in stock price is seen as a buying opportunity, with no long-term impact from concerns about Spirit Aerosystems’ performance and China’s acceptance of new 737MAX deliveries.
– Pinterest: Citi upgraded Pinterest to buy after its analyst day, expressing confidence in the company’s engagement and advertising strategies. Citi expects improving monetization trends and expanded adjusted EBITDA margins.
– First Citizens Bancshares: JPMorgan initiated coverage on First Citizens Bancshares with an overweight rating, citing the bank’s acquisition of valuable assets from SVB and its strong positioning in the innovation economy.
– Bausch Health: Jefferies upgraded Bausch Health to buy, expecting several positive catalysts for the pharmaceutical company. Jefferies believes that the probability of a spin pathway will increase, leading to stock price appreciation.
– Instacart: Needham initiated coverage on Instacart with a hold rating, reflecting a balanced risk/reward outlook. The company is expected to face slower growth following a surge in demand caused by the pandemic.
– Sonos: Rosenblatt initiated coverage on Sonos with a buy rating, expecting margin expansion in the wireless home audio market. Sonos is a leader in the category, and market growth is driven by the appeal of multi-room music and sound bars.
– Azul: Goldman Sachs named Azul a top pick, upgrading the stock to buy. The Latin American airline is believed to have an undemanding valuation and potential for EBITDA expansion.
– Zebra Holdings: Morgan Stanley downgraded Zebra Holdings to underweight, citing a longer-than-expected turnaround for the computer printing tech company. The firm believes that demand will continue to be weak due to overbuild during COVID and ongoing constraints on consumer spending.
– nCino: Morgan Stanley also downgraded nCino to underweight, expecting revenue headwinds for the fintech software company. The stock is trading at a premium to peers, and the firm believes the numbers are too high.
– Disney: Bank of America reaffirmed its buy rating on Disney, expecting the company to perform well in the future.
Definitions:
– Overweight: Indicates that a stock is expected to perform better than the overall market or sector.
– Buy: Recommends purchasing the stock.
– Underweight: Suggests that a stock is expected to perform worse than the overall market or sector.
– Hold: Suggests maintaining the current position in the stock.
– Outperform: Expects the stock to perform better than its peers or the market as a whole.
Sources: Morgan Stanley, UBS, Needham, Oppenheimer, RBC, JPMorgan, Bernstein, Citi, Jefferies, Rosenblatt, Goldman Sachs, Bank of America.