Here are Friday’s biggest calls on Wall Street: Mizuho reiterates Amazon as buy Mizuho said it is standing by its buy rating on the e-commerce giant. “Maintain Buy on AMZN and $135PT on positive long-term fundamentals, but expect stock volatility from potential downward revisions near-term.” Barclays upgrades Ralph Lauren to overweight from equal weight Barclays said Ralph Lauren is a “best-in-class” apparel brand. “We upgrade RL and PVH to Overweight given 1) RL’s position as a best-in-class apparel brand and continued elevation.” Read more about this call here. JPMorgan upgrades Regeneron to overweight from equal weight JPMorgan said it sees several positive catalysts ahead for the biotech company in 2023. “We are upgrading REGN to OW from N ahead of a number of important 2023 updates.” Read more about this call here. Morgan Stanley upgrades PagerDuty to overweight from equal weight Morgan Stanley said it sees better profitability ahead for the cloud computing IT company. “Strong unit economics, highly ratable sub revenue and market leadership in an important category provide the backdrop for a strong pivot to profitability. At ~4x CY24 sales, we think shares undervalue PagerDuty’s ability to sustain 20% growth, expand margins and generate FCF. ” Read more about this call here. MKM downgrades Pinterest to neutral from buy MKM said it sees a more balanced risk/reward outlook for Pinterest. “At current levels, we believe the risk/reward is fairly balanced. Furthermore, our proprietary ad agency survey results have marginally negative read-throughs for Pinterest as compared to Facebook, Instagram, YouTube, and Snap, implying a potential market share loss amid a somewhat weak ad spend market in 1H23.” Evercore ISI reiterates Tesla as in line Evercore said recent checks show “a well-expected influx” of orders after Tesla cut prices. “the big question is whether order trends remain ‘sticky’, as US deliveries were already expected to grow +50-60% YoY to 750-800k. Price cuts can only stoke extended demand so much, for existing/aged product, as seen in China w/ just 12k regs/week after cuts.” Bank of America reiterates Block as buy Bank of America said it sees a long runway for growth for shares of the company formerly known as Square. “The pandemic as well as new product introductions have led SQ’s estimated TAM to increase from $60B (Square only) in 2017 to $190B ($120B Square, $70B Cash App) in 2022.” Cowen downgrades Salesforce to market perform from outperform Cowen said it sees too many headwinds for Salesforce right now. “We are downgrading CRM to Market Perform. With several recent exec departures & a major restructuring underway, we expect to see elevated levels of disruption risk.” JPMorgan reiterates Netflix as overweight JPMorgan said it sees growth potential after the company’s strong earnings report on Thursday after the bell. “We remain bullish on NFLX shares as: 1) content, advertising, & paid sharing should drive accelerating FXN (foreign exchange neutral) revenue growth through 2023; 2) operating margins expand due to faster revenue growth & tighter cost discipline; & 3) FCF ramps on improving profit & stable cash content spending.” Read more about this call here. JPMorgan reiterates Coinbase as neutral JPMorgan said Coinbase is a beneficiary of other company’s challenges from the FTX fallout. “We see Coinbase as a beneficiary of the challenges that have faced other brokers/exchanges in the aftermath of the collapse and bankruptcy of FTX.” BMO upgrades QSR to outperform from market perform BMO said in its upgrade of the owner of brands like Burger King that it sees “improving momentum.” “We are upgrading Restaurant Brands to Outperform, based on improving momentum at all three major brands. Credit Suisse names Apple as a top 2023 pick Credit Suisse said the sell-off in shares is a buying opportunity. “We continue to believe Apple remains a core holding given its very strong installed base and ecosystem which drives significant recurring revenue. India and Indonesia represent large new markets.” Morgan Stanley reiterates Palo Alto Networks as overweight Morgan Stanley said it’s an “exceptional” opportunity to own the stock. “Given the ability to consolidate security budgets within a large installed base, growing recurring revenue and improving operating margin, we believe PANW remains a durable 20%+ FCF compounder even in a slowing macro.” BMO initiates Travelers as outperform BMO initiated the insurance company and said it has a lower catastrophe loss profile compared to peers in the sector. “We rate TRV Outperform as our forward EPS estimates materially exceed the consensus given our view that TRV’s reserving/COGS position continues to improve, while the company has displayed a consistently lower-than-peers catastrophe loss profile.” Wells Fargo reiterates Johnson & Johnson as overweight Wells said it’s staying bullish on shares of Johnson & Johnson heading into earnings Tuesday. “Macro headwinds may pressure margin, but we c ould see EPS guidance bracket consensus.”
