Here are Monday’s biggest calls on Wall Street: Morgan Stanley names Microsoft a top 2023 pick Morgan Stanley said it sees accelerating earnings per share growth for Microsoft in 2023. “Our primary work suggests a strong (and durable) demand signal for Microsoft in key secular growth opportunities like Public Cloud, Data Management and Security, which should sustain growth in the Commercial business better than investors fear.” Morgan Stanley reiterates Netflix as equal weight Morgan Stanley raised its price target on Netflix to $275 per share from $250 but said the valuation has come too far too fast. “The launch and potential of the ad-tier and paid sharing have helped shares nicely outperform since July. Consensus net adds expectations have also increased.” Evercore ISI reiterates Amazon as outperform Evercore said in a note to clients that Amazon shares are “highly attractive” for investors with a long-term time horizon. “We continue to view AMZN as highly attractive for long-term investors as a DHQ (Dislocated High Quality) stock and see several Value Unlocks.” Jefferies upgrades Moderna to buy from hold Jefferies said in its upgrade of Moderna that it sees the stock rebounding in 2023. “We upgrade MRNA to BUY on significant new pipeline story and catalysts ahead. The Covid vaccine story is old and numbers came way down already and most investors don’t care much about this anymore.” Read more about this call here. Barclays reiterates Coinbase as equal weight Barclays said Coinbase and other crypto companies could be beneficiaries of increased regulation. “We think increased regulation could be a positive catalyst, although we caution that even with the passage of a bill next year, it could still take 12+ months before new rules are scripted and implemented.” Jefferies reiterates Nike as buy Jefferies said it’s bullish heading into Nike earnings on Tuesday. “That said, we continue to favor NKE long-term given its strong brand positioning and international growth opportunity.” Telsey names Amazon a top 2023 pick Telsey said the e-commerce giant will continue to gain share in 2023. “Amazon is gaining market share by leveraging its sticky Prime customer base, expanding into new retail categories, such as grocery, pharmacy, and fashion , and growing AWS to enhance profitability.” Atlantic Equities upgrades Warner Music Group to overweight from neutral Atlantic Equities said in its upgrade of Warner Music that it sees meaningful music growth subscriptions. “We see additional upside if the music industry can deliver sustainable pricing growth.” Raymond James names Delta and Southwest top 2023 picks Raymond James named several airline stocks as top ideas for 20230 and said investors should buy the weakness. “While we recognize that it is hard for stocks to work ahead of potential negative news, we would recommend building positions on pullbacks, particularly across our current Strong Buy-rated top picks: CPA, DAL, LUV, and RYAAY.” Citi names JB Hunt Transport a top 2023 pick Citi named the trucking company as a top pick and says it’s well positioned for growth. “If rails are successful, Hunt is arguably the biggest beneficiary at a similar multiple but with better EPS growth and returns.” Morgan Stanley names Formula One Group a top 2023 pick Morgan Stanley said the company is top beneficiary in the rising popularity of auto racing. “This includes our Top Pick EDR ($30 PT, 50% upside), which monetizes both sports and general entertainment content, FWONK ($75, 30% upside) which is benefiting from the rising global popularity of F1.” Oppenheimer downgrades Tesla to perform from outperform Oppenheimer said it is concerned about “Twitter related” risks for Tesla. “While we continue to see Tesla evolving EV and autonomous technology in advance of peers and driving costs to levels those peers will struggle to match—and have tried to separate Elon Musk’s non-Tesla endeavors from our analysis on TSLA—we believe Mr. Musk’s acquisition and subsequent management of Twitter now make that separation untenable.” Read more about this call here. Piper Sandler names Exxon a top 2023 pick Piper named the oil and gas giant as a top idea, noting it likes the company’s refining exposure. “XOM remains the globe’s largest refiner, representing ~20% of global earnings, and in particular, has more exposure to US refining than many of its global peers.” Stifel downgrades Waste Management to hold from buy Stifel said in its downgrade of the waste company that free cash flow growth remains negative. “We are lowering our rating and target price on Waste Management from a Buy to Hold and to $171 from $185. We have revisited our analysis of FCF to account for the accelerated capital spending for recycling modernization and renewable natural gas.” MoffettNathanson downgrades AT & T to underperform from market perform Moffett said shares of AT & T are overvalued right now. “Relative valuations are now inverted; AT & T once again looks overvalued as we approach the new year.” Goldman Sachs names SolarEdge a top 2023 pick Goldman said shares of the solar company are attractive heading into next year. “SEDG: Attractive risk-reward coupled with margin recovery path.” Read more about this call here. Needham names Nvidia a top 2023 pick Needham named the stock a top idea for 2023 and said investors should buy the dip. “Moreover, unlike other end-markets, NVDA’s graphics segment has declined ~30% Y/Y and China data center has declined at a similar rate. We are approaching a bottom in the gaming segment in C1Q23.” Cowen reiterates Costco as outperform Cowen said it likes Costco’s “robust” long-term fundamentals. “We’re excited about positive catalysts given consistent traffic as a larger share of higher income consumers are drawn to COST’s competitive value.”
