Here are Tuesday’s biggest calls on Wall Street: Atlantic Equities downgrades Roblox to neutral from overweight Atlantic Equities downgraded the stock due to “weakening app download trends.” “We believe Roblox is taking the right approach to increase focus on monetization and YoY bookings trends should improve going forward as comps get easier. However, weakening app download trends suggest engagement could continue to soften in core markets in the near-term.” Read more about this call here. Bernstein reiterates Tesla as underperform Bernstein said in a note on Tuesday it’s concerned that Elon Musk’s purchase of Twitter could cause Tesla shares to decline. “Perhaps the bigger – but less probable – financial risk is that Musk completes the deal, and TSLA’s share price declines materially, triggering a margin call.” Citi reiterates Netflix as buy Citi said the streaming giant does not have a “natural investor base” and needs to introduce a “lower priced ad tier.” “Once Netflix’s sub base began to contract, investors stopped viewing the firm as a growth stock. But, given the lack of FCF, value investors are unsure how to assess the firm. As such, Netflix’s equity does not have a natural investor base. ” Rosenblatt initiates Imax as buy Rosenblatt said in its initiation of Imax that the company is a key beneficiary of more Hollywood blockbuster-type releases. “With the rise of streaming, Hollywood has shifted more emphasis on the blockbuster tent poles that used to be the highlight of the summer. Now, blockbusters dominate the slate with the smaller budget art films and romantic comedies shifting to streaming.” Morgan Stanley upgrades Marqeta to overweight from equal weight Morgan Stanley said it sees an “attractive entry point.” “MQ’s diversified set of vertical exposures, competitive moat, and stable unit economics have us turning incrementally bullish on the platform’s long-term trajectory.” Read more about this call here. Rosenblatt upgrades Snowflake to buy from neutral Rosenblatt said investors should buy the dip in shares of the cloud computing data company. “Finally, due to the recent significant decline in the stock price for Snowflake, we are upgrading our rating on SNOW to a Buy (was Neutral) as our revised target price reflects an 84% return from current levels.” Read more about this call here. Bernstein initiates DoorDash as outperform Bernstein said DoorDash is the firm’s top pick in the space. “We are bullish on the long-term growth potential of on-demand delivery and DoorDash is our favorite way to play the space – it’s the market leader, with a best-in-class management team, and industry leading unit economics.” Read more about this call here. Daiwa reiterates Disney as buy Daiwa lowered its price target on shares of Disney to $ 151 from $ 201, but says investors should buy the dip. “We continue to believe that this entertainment and market leader can dominate the burgeoning streaming market and we look at stock weakness as buying opportunities.” Bank of America reiterates Apple as buy Bank of America said it sees App Store revenue growth accelerating. “Over time, we expect Licensing (advertising), Apple Care and new services (TV +, Fitness +, Arcade +, News +, Apple One Subscription bundles) to scale in user content and features, contributing to the overall services revenue growth.” Bank of America reiterates Snap as buy Bank of America said in a note it’s concerned about an ad recession after Snap warned of a revenue and earnings miss on Monday evening. “We think reopening, macro factors, unusual comps and a negative news cycle is impacting ad spend, and not a sudden shift in user activity on the platform or new competitive initiative in May, so we remain constructive on LT revenue potential.” Citi initiates MetLife as buy Citi initiated MetLife with a buy rating and said volatility is creating an “opportunity” with the stock. “We prefer Life over P&C currently, despite the market suggesting a preference for the opposite based on valuation: We see the life sector as attractive given materially higher interest rates YTD and increasing visibility around COVID claims (for most).” Bank of America adds Visa to the US1 list Bank of America said it now prefers Visa over Mastercard. “While we continue to believe MA will likely grow faster than V on an underlying basis given its smaller base, in light of the current macro climate and relative valuations, we have a slight preference for V. As a result, V replaces MA on our US1 list. ” MoffettNathanson reiterates Coinbase as buy Moffett lowered its price target on Coinbase to $ 200 per share from $ 600, noting it expects the crypto currency cycle to be flat in 2022 and 2023. “We are making the assumption that while no two crypto cycles will be alike, of course, the most recent cycle likely offers the best indication of what the next one might look like. ” JPMorgan reiterates Boeing as overweight JPMorgan said Boeing needs to continue to execute deliveries of 737s and 787s. “The decline in Boeing’s stock price has prompted continued questions from investors and so we are sharing some updated thoughts. The primary goal for Boeing is unchanged, in our view: deliver 737s and 787s. This will help generate cash, reduce working capital , and begin the de-delivery process. “
