Here are Tuesday’s biggest calls on Wall Street: Loop reiterates Apple as buy Loop said it sees macro headwinds building for Apple. “Loop investigation into numbers (BUILDS/SHIPMENTS) shifting downwards offers numerous factors that all suggest macro headwinds and core demand remain a challenge for AAPL through at least CQ1 2023.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said investors should buy the dip in shares of Tesla. “Elon Musk’s ownership of Twitter could affect some consumers’ sentiment regarding Tesla. Any resulting weakness in Tesla shares could create an opportunity for investors.” Morgan Stanley names CBOE a top pick Morgan Stanley said the global markets company has a compelling entry point. “We see Cboe as benefiting from challenging macro & volatility that should support volumes and drive upwards revisions.” Read more about this call here. Deutsche Bank initiates First Solar, Sunnova and Enphase Energy as buy Deutsche initiated several solar stocks on Tuesday, noting it sees “considerable growth opportunities.” “We have selective BUY ratings within our coverage, and our top picks include Sunnova, First Solar and Enphase. ” Jefferies initiates Harley-Davidson as underperform Jefferies said in its initiation of Harley-Davidson that the stock has come too far, too fast. “Shares have rallied out of a strong 3Q, but dealer checks suggest the recent retail inflection lacks legs.” Read more about this call here. Baird downgrades Leslie’s to neutral from outperform Baird said in its downgrade of the pool company that it sees a more cautious risk/reward for Leslie’s. “With promotional activity picking up and steep inflation comparisons looming, we believe a more cautious near-term stance is warranted.” Oppenheimer downgrading Carvana to perform from outperform Oppenheimer said in its downgrade of the stock that it sees “nearer-term operational and financial risks for Carvana.” “We remain optimistic about longer-term prospects for CVNA and the company’s shares. That said, significant nearer-term operational and financial risks for Carvana have emerged and are likely to cloud the CVNA investment story for the foreseeable future.” Read more about this call here. MKM upgrading Activision Blizzard to buy from neutral MKM said in its upgrade of the video game company that it sees “improving fundamental momentum.” “In our view, Activision’s shares are severely discounting the fundamental improvements being seen with its business and the strong growth potential in 2023.” Bank of America upgrades Netflix to buy from underperform After a change in analyst coverage Bank of America double upgraded the stock and says it’s “still the streaming leader.” “Netflix transformed the way entertainment is created, distributed and consumed. In our view, the company’s global scale, strong brand, and superior user experience position it to remain a leader as this transition continues to transpire globally.” Read more about this call here. MoffettNathanson initiates Amazon as outperform Moffett said in his initiation of the e-commerce giant that it sees multiple expansion. “For three years, Amazon has experienced multiple compression as EBIT estimates declined and capital intensity was greater than expected. We believe we are at the end of the tunnel.” Baird initiates Mobileye as outperform Baird analyst Luke Junk said in his initiation of Mobileye that the autonomous vehicle systems software company that it’s a market leader. “Net, we recommend purchase/would lean into any volatility, for this premier franchise/longer-term optionality.” Morgan Stanley reiterates Berkshire Hathaway as equal weight Morgan Stanley kept its equal weight rating on Warren Buffett’s Berkshire Hathaway and says the company was a net buyer of three new positions in the third quarter. “The company initiated new positions in 3 companies: JEF (+433k shares), LPX (+5.8m shares), and TSMC (+60.1m shares).” Argus upgrades Philip Morris to buy from hold Argus said in its upgrade of the tobacco company that shares are attractive. “Philip Morris is working to become a mostly smoke-free (noncombustible) company by 2025. •The company is on track to complete its acquisition of Swedish Match.” Jefferies downgrades Madison Square Garden Entertainment to hold from buy Jefferies said in its downgrade of Madison Square Garden Entertainment that it sees no near-term catalysts. “In the interim, with the expected pressure on the capital markets, there do not appear to be catalysts for re-rating from the present level of ~15X FY24E AOI to higher levels that reflect the inherent value.” Raymond James downgrades Viasat to market perform from outperform Raymond James said it sees too many headwinds for the satellite company. “And while we still do not believe competition from SpaceX Starlink or fixed wireless broadband will be catastrophic to the long-term growth story by any means, it does affect customer growth on the margins.” Morgan Stanley reiterates Alphabet as overweight Morgan Stanley lowered its price target on Alphabet to $120 per share from $125 and said the company is still “best positioned to navigate through a challenging macro backdrop.” “We lower our GOOGL PT to $120 but remain OW (~25% upside) seeing the company (and paid search) as being best positioned to navigate through a challenging macro backdrop.” Barclays reiterates Amazon as overweight Barclays said it sees a favorable risk/reward for Amazon shares right now. “AMZN shares remain out of favor heading into peak holiday season owing to its sub-seasonal revenue guide and AWS deceleration.”
