Global Courant 2023-05-11 18:22:01
These are Thursday’s biggest calls on Wall Street: CLSA double down on Block’s downgrade to underperform buy CLSA said it was concerned about long-term growth for Block. “We are stepping aside for Block as our concerns about the macro environment are now overshadowing our continued enthusiasm about long-term growth prospects.” Barclays initiates PagSeguro over obesity Barclays said the Brazilian payment processing company has pricing power. “We like the company’s ambitious yet focused strategy of (a) integrating its own consumer- and merchant-facing digital bank (Pag Bank) into its payment processing service and (b) going “upstream” by attracting larger merchants as customers .” Credit Suisse upgrades RingCentral to outperform neutral Credit Suisse upgraded the software company following Wednesday’s earnings report. “RNG reported another strong data point that the company is structurally improving its profitability profile.” KeyBanc raises Albemarle and Livent to overweight from sector weight Key said in its Livent upgrade that demand for lithium is improving. The company also upgraded Albemarle and says the stock’s valuation is attractive. “We expect China’s lithium demand to improve after a downturn that began in November 2022. Evercore ISI reiterates that Apple is outperforming. Evercore said it is optimistic about Apple’s position in the ad space. “We remain a material opportunity see for Apple in the advertising space and we believe they can grow to $30 billion in revenue (versus $4-5 billion in FY22). Maintain Outperform & Target $190.” Susquehanna Improves International Game Technology From Neutral To Positive Susquehanna said the gaming company has numerous positive catalysts. ” International Game Technology: U/G to Positive; Favorite Downside protection through lottery with upside catalysts.’ Goldman Sachs Downgrades Twilio From Buying To Neutral Goldman said it was concerned about slowing growth for Twilio. and slowing growth in data and applications, plus the ability to re-accelerate towards its medium-term growth target.” Bank of America Adds Progressive to US1 List Bank of America added the insurance company to its US1 List and said shareholders dip.” Benefiting from a recent dip in the share price of Progressive (PGR) stocks, we are adding the stock to the US1 list. JPMorgan upgrades Norfolk Southern and JB Hunt from neutral to overweight. JPMorgan said in Norfolk’s upgrade that it sees operations improving. The company also upgraded JB Hunt and says it sees “the end of de-stocking.” “Intermodal providers will also benefit from the shift in TL (full truckload) momentum and we are upgrading JBHT to OW and SNDR to N, which are also benefiting from recent progress on a West Coast employment agreement for the port, improving the rail service and the end of destocking. We are also upgrading NSC to OW as operations will improve when rail rehabilitation in Eastern Palestine is completed in June and the network fully adapts to proactive changes to reduce the risk of derailment.” JPMorgan raises Axon to overweight from neutral JPMorgan said in its taser-maker upgrade that investors should buy into the dip. “We benefit from a ~15% drop in AXON stock price yesterday after printing (S&P up 80bps) and upgrading to OW of N.” Roth MKM upgrades Roblox to buy from neutral Roth MKM said there is an “inflection point” on the horizon for Roblox. “We are taking a more constructive stance on Roblox following comments from management that headcount and compensation growth will soon slow.” Credit Suisse upgrades Alcoa to outperform neutral Credit Suisse said it sees aluminum prices recovering. “We are upgrading Alcoa to Outperform and adding it as a top pick as we see LME (London Metal Exchange) aluminum prices recover next year as global demand cycles ramp up.” Read more about this call here. B. Riley initiates Children’s Place purchase B. Riley said the children’s clothing store is well positioned. “Our investment thesis is that as the fog of the COVID era lifts, investors will discover that PLCE is at least as good as ever and get a free option that it is measurably better.” Barclays downgrades Northrop Grumman’s rating from overweight to the same weight. Barclays downgraded Northrop’s rating due to “margin deterioration”. “Gap with peers likely narrower than expected due to margin deterioration, downgrade to EW.” Bank of America echoes Nvidia as a buy Bank of America said it will stick with the AI beneficiary’s buy rating. “Net-net, we maintain our Buy rating at NVDA (on top of gaming recovery, data center/AI expansion, Morgan Stanley repeats Advances Micro Devices as overweight Morgan Stanley said AMD’s AI opportunity is in the “multiples.” We have tried to make conservative forecasts for AMD’s AI given historical false starts, but higher price points plus supply chain commentary point to an opportunity that is multiples of our initial target. from CF, MOS, and LXU to Neutral and lower the PTs to $80, $42, $12, from $110, $62, and $22, respectively, as data from the most recent Crop Progress Report paves the way for a potential record harvest for corn in the US Goldman Sachs reiterates Robinhood as neutral Goldman said it is sticking to its neutral rating for Robinhood stock after its earnings report on Wednesday was better than expected, driven largely by better securities lending income, while transaction-related income was roughly in line and expenses were better than expected. its earnings report on Thursday. “Our view on F2Q results and outlook implications: F2Q results were mixed relative to our estimates, with total segment OI above our estimate, but DTC earnings underperformed.” Read more about this call here. Baird reiterates that Boeing is outperforming Baird said the aerospace giant is a “cyclical top game.” “While BA stock is only up 5%, we expect significant gains in the coming months as higher production kicks in and investor focus shifts to 2024 with much better revenue, earnings and free cash flow fundamentals.” Correction: Roblox was misspelled in an earlier headline.
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