Here are Friday’s biggest calls on Wall Street. LightShed downgrades Apple to sell from neutral LightShed said in its downgrade of Apple that it sees moderating growth. “We downgraded Apple to Sell from Neutral and established a $120 price target. Our estimates are below consensus on a more conservative outlook for iPhone sales and moderating growth expectations in Services revenue.” Baird reiterates Tesla as a top pick Baird said it sees Tesla launching heat pump technology for homes. ” TSLA has previously stated that the integration of heat pump technology into a home is similar to that of a vehicle, with a vehicle being even harder. We believe that TSLA could roll out a heat pump home offering in the intermediate-term future following comments made at investor day.” Barclays upgrades United to overweight from equal weight and downgrades Southwest to equal weight from overweight Barclays said it sees robust demand continuing for United. “Airlines should benefit from strong demand this Spring; we are swapping our ‘safe’ airline recommendation from Southwest to Alaska and taking on more leverage risk with United while stepping back from an increasingly complex Allegiant.” Read more about this call here. Baird upgrades KeyCorp to outperform from neutral Baird said it sees an attractive risk/reward for the regional bank. “Regional bank risk/reward trade-off very constructive at current prices, upgrading KEY to Outperform, would more aggressively add bank exposure on this selloff.” JPMorgan downgrades DocuSign to underweight from neutral JPMorgan said it sees management uncertainty and rising competition. “After providing a preliminary FY24 outlook during its FQ3 earnings call that investors likely viewed as conservative and setting an achievable growth bar, DocuSign provides full year guidance that falls a bit short on the top line, and PF operating margin guidance that does not seem to allow for much of the recent headcount reductions to flow through.” Evercore ISI reiterates Netflix as outperform Evercore said it is standing by its buy rating on Netflix shares. “Overall, Core Netflix trends are incrementally cautious in the US, with Penetration, Sat Score, and Retention coming down from a particularly strong December, and largely neutral in Japan.” Jefferies upgrades Roblox to buy from hold Jefferies said Roblox is among the “among the fastest growing internet companies earning multiple expansion, higher estimates, and investor interest.” “We are upgrading RBLX on a favorable narrative (top line growth w/ margin inflection & an advertising option) supported by strong net bookings expansion and underlying user metrics.” Read more about this call here. Truist downgrades SVB Financial Group to keep from buying Truist said in its downgrade of SVB that there’s too much deposit risk uncertainty. “Given these risks, we suggest that investors wait on the sidelines until there is more clarity on deposit outflows and the proposed capital raise of $2.25 billion.” Read more about this call here. Roth MKM initiates Chewy as buy Roth said the online pet food company is the next “beast in e-commerce.” “As we continue to navigate the consumer complex, the building strength of Chewy’s core business stands out, particularly around the limited demand “giveback” period faced by most other eCommerce players. Needham reiterates Meta as underperform Needham said it’s standing by its underperform rating on the stock. “We worry that because META doesn’t control its content creators (who are moving to TikTok and YouTube), and it doesn’t control its distribution (subject to iOS and Android), it may not have a terminal value. ” Piper Sandler upgrades Zimmer Biomet to overweight from neutral Piper said it sees upside for the medical device company. “Given the strong continued commentary on the large joint market and what we see as beatable revenue guidance for the year, we are raising our rating on ZBH from Neutral to Overweight.” Citi initiates SolarEdge and Enphase as buy Citi initiated several solar companies and said they are gaining market share. “Our top picks are Buy-rated ENPH , NETI, SEDG , and SHLS. These companies are leaders in their respective domains, are gaining market share, and growing more than overall growth in the sector.” UBS downgrades Caterpillar to sell from neutral UBS said the industrial giant is overvalued. “We downgrade CAT to Sell, as we don ‘t think there is enough cyclical momentum to justify the current valuation.” Baird downgrades Allbirds to neutral from outperform Baird downgraded the footwear company after its disappointing earnings report. “Allbirds missed Q4 sales/adjusted-EBITDA estimates, reflecting weaker demand and heightened promotional headwinds. Management’s strategy to improve growth and profitability (target EBITDA breakeven pushed to 2025) marks a material shift away from the prior playbook.” Bank of America reiterates Spotify as buy Bank of America raised its price target on Spotify to $143 per share from $120 and says it’s staying bullish on the stock. “We continue to project gross margin improvement in 2023, in part driven by more judicious investment spending initiatives.” Morgan Stanley reiterates Charles Schwab as overweight Morgan Stanley said the selloff in shares of Schwab is overdone. “Sell -Off Overdone on Block Sale and Cash Sorting Concerns.” Citi reiterates JPMorgan, Wells Fargo and Goldman Sachs as buy Citi says it’s a buying opportunity for stocks like JPMorgan , Wells Fargo and Goldman Sachs. “With the group pricing in a 12% implied cost of equity, we believe it is an attractive time to be buying the group.” Mizuho reiterates Exxon as buy Mizuho said it’s staying bullish on shares of Exxon. “Our outlook for 2023 oil prices remain unchanged. Overall, we lower our price targets by ~5% but still estimate a sector FCF yield of ~10% – well above the market average of ~3.8%. Thus, we are still constructive on the sector.” Oppenheimer reiterates Pool Corp as outperform Oppenheimer said it sees a compelling entry point for shares of the pool company. “Initiating coverage with an Outperform rating/$408 target, we’re drawn to Pool Corp .’ s long-term growth profile as the leading wholesale distributor in an industry benefiting from migration to warmer climates where there’s a higher propensity for pool ownership/continued interest in backyard living features/spending on higher-value technology-enabled pool content.”
