Here are the biggest calls on Wall Street on Tuesday: Morgan Stanley reiterates Rivian as overweight Morgan Stanley says it’s standing by shares of the electric vehicle company, but that a strategy change might be in order. The firm lowered its price target to $24 per share from $26. “Following a 2022 plagued by ramp delays, macro headwinds, and an ensuing EV price war, investor sentiment around Rivian has been low through 1Q. However, with a myriad of bad news baked into the stock we still believe there can still be reason to be positive on Rivian.” Bank of America reiterates Apple as neutral Bank of America says Apple could be a beneficiary after reports surfaced on Monday in the New York Times that Samsung could change its default search away from Alphabet . “Google has been the dominant search option (especially across mobile). A recent media report noted that Samsung is considering changing default search from Google to Microsoft Bing. This is relevant to Apple as we estimate that Google pays Apple ~$20bn for being the default search engine across iOS devices.” Citi initiates Planet Labs as buy Citi initiated the earth imaging company with a buy rating and says Planet Labs has a tremendous growth opportunity. “Provider of geospatial data and analytics, largely focused on government markets, that we expect to grow 29% through 2025 and to begin generating cash in that year – suggesting a funded business plan. Price target of $6.00 provides ~37% upside from current levels.” Atlantic Equities upgrades Comcast to overweight from neutral Atlantic Equities said in its upgrade of the cable giant that it sees upside to estimates. ” Comcast has underperformed the S & P500 by 30% over the past two years as broadband additions have dried up, and growth investors have exited the stock. However, we believe broadband expectations are now de-risked with some potential upside to estimates as the housing market rebounds.” Disclosure: Comcast owns NBCUniversal, the parent company of CNBC. Deutsche Bank names Pool Corp a top pick Deutsche added the pool company to its top picks list and says the stock’s valuation is “very attractive.” “We reiterate each of our existing Top Picks but add POOL given the pullback from its recent high and very attractive valuation.” Goldman Sachs reiterates Microsoft as buy Goldman says it’s staying bullish heading into Microsoft earnings next week. “We see signs that this growth can potentially stabilize starting in 4Q with pockets of upside driven by: 1) the lapping of optimization trends that began in F4Q22, 2) improvement in new workload growth, and 3) the accumulating need to utilize unused cloud credits.” Wells Fargo downgrades Valero and Marathon Petroleum to equal weight from overweight Wells said in its downgrade of several refiners that it’s raising the “caution flag.” “Rapidly contracting diesel/jet cracks restrict the potential for near-term outperformance. We lower valuation multiples for all refiners. Reduce ratings for VLO and MPC to EW from OW.” Read more about this call here . Citi adds a positive catalyst watch on Discover Citi kept its neutral rating on the stock but says it sees an “upside surprise” when the company reports earnings later this week. “We are opening a 30-day positive catalyst watch for Discover Financials as we see the most potential for an upside surprise to EPS, higher credit costs baked into consensus, and best positioned for buybacks in the near-term.” Deutsche Bank reiterates Disney as buy Deutsche Bank says it sees an “attractive setup” heading into earnings in early May. “We believe that now is an opportune time to revisit Disney as we believe a number of factors, which we discuss below, are setting up the stock for appreciation in the back half of Disney’s fiscal year.” HSBC upgrades Nvidia to buy from reduce HSBC said in its double upgrade of Nvidia that it’s “all about AI.” “AI opportunity more than offsets our previous concerns over a datacentre slowdown and rising inventory levels.” Read more about this call here. Citi upgrades Chubb to buy from neutral Citi said in its upgrade of the insurance company that it has multiple paths to growth. “Based on our analysis of reserves, we believe the 4Q North America charge will prove to be an outlier, creating buying opportunity as we see incremental strength in reserves. CB also has multiple paths for growth, via US property firmness, excess & surplus (not commoditized) as well as in Asia.” JMP upgrades LegalZoom to market outperform from market perform JMP upgraded the do-it-yourself legal website company and says it sees accelerating share gains. “We are upgrading shares of LegalZoom to Market Outperform from Market Perform and establishing a $14 price target (51% upside) as LegalZoom has fully rolled out ‘free’ in its marketing, which we believe can accelerate share gains through 2023.” KeyBanc upgrades Sunrun to overweight from sector weight KeyBanc said in its upgrade of the solar company that the stock is attractive at current levels. The firm also downgraded First Solar to sector weight from overweight and says the stock has found it’s “ceiling.” “We are upgrading RUN to Overweight with a price target of $27: Our upgrade is based on: attractive valuation.” Read more about this call here. Truist initiating Waste Management as buy Truist said in its initiation of the waste company that it has an attractive “industry structure with sustainability initiatives presenting a potential upside catalyst.” ” Waste Management is our favorite name in the group given reasonable valuation which we believe does not reflect potential upside from the company’s aggressive sustainability initiatives.” Goldman Sachs reiterates Charles Schwab as buy Goldman says the risk/reward is “attractive” after the financial services company’s earnings report on Monday. “We reiterate a Buy rating on SCHW following the firm’s 1Q23 earnings release with about 27% upside to our updated $67 12-month price target. SCHW clearly continues to face a challenging near-term earnings trajectory amid significant deposit outflows.” JPMorgan reiterates Meta as a top pick JPMorgan says it’s standing by Meta shares heading into earnings next week. “We recognize the next leg for the stock needs to come from revenue acceleration, and we are encouraged by AI/ad tech improvements, Reels, & Click-to-Message ads, w/some help from near-term easing of comps.” Deutsche Bank reiterates Amazon as buy Deutsche says it’s standing by its buy rating on the e-commerce giant ahead of earnings later this month. “Thus, we look for generally better than expected e-commerce revenue for AMZN in the quarter.” Raymond James reiterates Netflix as market perform Raymond James says it’s staying cautious heading into the streaming giant’s earnings report Tuesday after the bell. “Sentiment for Netflix has risen markedly over the course of 2023 driven by optimism in the company’s paid sharing efforts and the scaling of the ad tier.” Goldman Sachs upgrades PowerSchool to buy from neutral Goldman said in its upgrade of PowerSchool that it sees robust growth for the software education company. “In addition, we expect to see milestones in international that could ultimately drive a 100-200bps tailwind to revenue, likely driving organic growth consistently over 10%.” Evercore ISI adds a tactical outperform on Starbucks Evercore says the coffee giant will “climb the wall of worry” in 2023. “We are raising China SSS (same-store sales) growth forecasts for SBUX and YUM for the rest of the year as mobility appears to be ‘fully back’ per our rail data analysis'” Argus upgrades M & T Bank to buy from hold Argus said in its upgrade of the regional bank that it sees an attractive entry point. “We are raising our rating on M & T Bank Corp. to BUY from HOLD following first-quarter earnings. The results reflected sharply higher revenues following the integration of Peoples United.” Wolfe upgrades Emerson Electric to outperform from peer perform Wolfe says it sees a compelling entry point for the multinational electrical company. ” EMR stock has significantly underperformed on portfolio and capital re-allocation uncertainty.” UBS reiterates Alphabet as buy UBS says the risks for Alphabet are “low” after a report surfaced on Monday in the New York Times that Samsung could change its default search provider away from Alphabet. “We think increasing competition from Bing could help distribution partners (e.g. Apple and Samsung) get more leverage with TAC negotiations with Google , pressuring margins, but we think an actual partner loss (per NYT article Monday) is highly unlikely and we see the cost specific to Samsung as manageable.”
