Here are Thursday’s biggest calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said recent disclosures indicate Apple’s app store revenue may have bottomed. “All in, October marked a 4th consecutive month of App Store net revenue declines, although we’re closely watching App Store performance in the month of November to better gauge whether the 1 point improvement in Y/Y net revenue declines in October means declines bottomed in September and can improve into year end.” Goldman Sachs reiterates Robinhood as neutral Goldman said it’s standing by its neutral rating on the stock, but noted it came away impressed with the company’s earnings report on Wednesday. “The company’s shares were up in after hours trading, as HOOD put up a slight beat on the top line, largely driven by net interest revenues, and a much more significant beat on the bottom line as a function of the company’s strong cost control. ” Morgan Stanley reiterates CVS as overweight Morgan Stanley said CVS’s “strategic path & earnings targets [are] intact.” “For CVS, it’s continued confidence in the path to 2024 earnings supported by buybacks & balance sheet flexibility and up to $9 bill debt capacity to pursue M & A to support long term strategic vision.” Guggenheim downgrades Roku to neutral from buy Guggenheim downgraded Roku after its earnings report and said it has limited visibility on the stock going forward. “Overshadowed by Weak Outlook, Limited Visibility; Lowering Rating to Neutral.” Read more about this call here . JPMorgan downgrades Qorvo to underweight from overweight JPMorgan said it sees too many risks to Qorvo’s “top-line growth and profitability.” “Soft Outlook; NT Macro Headwinds/Inventory Burn to Stifle Rev/Margin Recovery; long-term China Risk.” Read more about this call here. Morgan Stanley reiterates Match as overweight Morgan Stanley said shares of Match are “compelling.” “Self-help story, sequential acceleration, and several upside drivers set up to be one of the best ’23 stories in our space at compelling valuation, albeit with macro uncertainty.” Read more about this call here. RBC downgrades Fisker to sector perform from outperform RBC said in its downgrade of Fisker that it sees too much “near-term execution risk” for the electric vehicle company. “We are moving to the sidelines seeing near-term execution risk and lower units in the outer-years as the product could be less competitive in the face of the Inflation Reduction Act.” UBS upgrades Tal Education to buy from neutral UBS upgraded the Chinese education company on an improved profitability outlook. “TAL’s Q2FY23 was a strong beat on the topline, which also led to a surprising operating profit profitability.” Canaccord downgrades Zillow to hold from buy Canaccord said in its downgrade of Zillow that it is concerned about rising mortgage rates. “That said, with mortgage rates at 20-year highs and more volatile than at any time since the early 1980s, we see risk to estimates for next year and the possibility of an extended top line decline and associated margin pressure.” Wells Fargo initiates Keysight Technologies as overweight Wells called the electronic test and measurement equipment software company an “Instrumental Play on Digital Transformation.” “We believe KEYS can continue to expand margins by driving software mix above today’s ~20% contribution – we est. ~125bps GM% expansion for every 5% software rev. contribution.” Read more about this call here. UBS reiterates Home Depot and Lowe’s as buy UBS said it’s staying bullish heading into the home improvement retailer’s earnings reports later this month. “While some subtle signs have emerged that Home Improvement demand is softening, we think HD / LOW will report steady results in 3Q.” Morgan Stanley downgrades Lincoln National to equal weight from overweight Morgan Stanley said it sees “sizable risk” in shares of the insurance company. “Investor confidence in Lincoln is likely to be severely impacted by an outsized charge that drove a large EPS loss of ($10.23), and drove book value per share.” Morgan Stanley reiterates New York Times as overweight Morgan Stanley said it sees “pricing power” and “tailwinds” ahead for The New York Times. “We see tailwinds (underlying pricing power, margin expansion potential) outweighing potential near-term headwinds in delivering on expectations for +10-11% adj. EBITDA growth over the next 4-5 years, supporting premium multiple & upside to shares.” Bank of America reiterates Boeing as neutral Bank of America said it liked the message at Boeing’s analyst day but that “much remains to be seen” for the aerospace company. “The Boeing Investor Day was a pleasant surprise, as it was one of the most authentic BA conferences we have attended in years.” Piper Sandler reiterates Tesla as overweight Piper said price cuts will drive a periodic sell-off in shares, but that’s it’s standing by the stock. “As noted elsewhere in our work, we think price cuts could drive periodic sell-offs in the coming months, but overall, when Tesla cuts price, the real losers will be Tesla’s peers (not Tesla itself).”
