Here are Tuesday’s biggest calls on Wall Street on Tuesday: Bank of America reiterates Netflix as buy Bank of America raised its price target on the stock to $490 per share from $410 and said it’s bullish on the company’s password crackdown. “Last week, multiple third-party data firms indicated Netflix’s password sharing crackdown was tracking better than expectations. We believe this will drive upward estimate revisions across the Street. Goldman Sachs upgrades Devon Energy to buy from neutral Goldman said the energy company’s valuation is attractive. “We upgrade Devon Energy to Buy from Neutral given (a) FCF inflection from cost deflation, (b) attractive valuation following underperformance and (c) attractive capital returns.” Read more about this call here. Bank of America reiterates Salesforce as buy Bank of America said Salesforce is emerging as an “AI winner.” “AI Cloud offerings could become additive to subs by Q4. We attended Salesforce’s AI day virtually [yesterday]. … Many of the products are still in beta or pilot mode and are scheduled to be launched June through February.” Atlantic Equities downgrades PayPal to neutral from overweight Atlantic Equities said the payments stock has too many “key challenges.” “There look to be no quick fixes to PayPal’ s branded market share or transaction margins, making it tough to see what actions will reignite investor interest in the stock near-term, even from new leadership, so we move to the sidelines with a Neutral rating.” JPMorgan downgrades First Horizon to neutral from overweight JPMorgan said First Horizon’s “earnings power [is] facing headwinds.” “While the company did a good job of holding the franchise together during the lengthy period it was waiting for the transaction with TD to move forward, we walked away from the investor day feeling that the earnings power of the franchise would be challenged over the near-term with expenses likely to run at an elevated pace at least through 2024.” Read more about this call here. Piper Sandler upgrades Assurant to overweight from neutral Piper said it sees an attractive entry point for the stock. “We also believe AIZ has done a good job at better level-setting expectations for ’23 EBITDA growth that sets up a beat and raise story near term as savings from its cost-cutting program along with pricing increase efforts begin to bear more fruit.” Deutsche Bank reiterates Block as buy Deutsche said the payments company is a market share gainer. “We believe SQ will continue to take market share in its major business segments and we find the shares attractively valued.” Morgan Stanley initiates BAE Systems as buy Morgan Stanley said the aerospace and defense company has an “attractive capital deployment policy.” “Within our coverage, we note Overweight-rated BAE Systems has the highest exposure to the US market, representing 44% of 2022 sales.” Canaccord initiates Roblox as buy Canaccord said the social media gaming platform is “unique.” ” Roblox began as a gaming hub for young kids featuring blocky avatars and simplistic games built by hobbyists, but over time the platform has evolved to become one of the leading destinations for immersive gaming and social interactions in persistent virtual worlds.” Loop upgrades Ulta to buy from hold Loop said the “luxury brand expansion represents a multi-year comparable sales growth driver.” “Finally, we believe the recent uptick in shrink will dissipate over time and note Ulta Beauty generates strong free cash flow, which management consistently returns to its stockholders through share repurchases.” Read more about this call here. HSBC upgrades Stone & PagSegero to buy from hold HSBC said Stone and PagSeguro are “gearing up for lower rates.” “With interest rate cuts potentially on the horizon, we find payment acquirers as the most sensitive in our coverage.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it expects Tesla to build a “full-scale captive financing subsidiary as the market matures.” “We think investors should prepare for Tesla to begin building a large full-scale captive financing subsidiary as the market matures, to facilitate the potential IRA leasing rules (which could become a major driver) and several other factors.” Morgan Stanley upgrades Urban Outfitters to overweight from equal weight Morgan Stanley said in its upgrade of the stock that it has an attractive valuation. “We upgrade URBN to Overweight on its attractive ’23e set-up vs. peers & low relative valuation.” Read more about this call here. Goldman Sachs upgrades Oracle to neutral from sell Goldman upgraded the stock after its better-than-expected earnings report. “We credit Oracle for being amongst the longest standing software companies in the market, with scaled businesses across all layers of the technology stack.” Goldman Sachs reiterates FedEx as buy Goldman said it’s standing by its buy rating on FedEx heading into earnings next week. “In our view, a focus on cost reduction progress should be the most important focal point in coming quarters, especially as volumes could remain under pressure in the near term.” UBS downgrades Apple to neutral from buy UBS said downgraded the stock due to “softer iPhone and services growth.” “We are downgrading Apple shares to Neutral from Buy given persistent softness in developed markets and data that indicates growth is likely to remain under pressure.” Read more about this call here.
