Here are Monday’s biggest calls on Wall Street: Canaccord reiterates Tesla as buy Canaccord said Tesla’s “FSD (full self driving) product and AI leadership are significantly underappreciated.” “Over the last few days, Tesla has received good news on the EV subsidy front in both the US and China. The news is welcome as it comes at a time when data points suggest EV demand generally continues to remain subdued.” Oppenheimer reiterates Meta as outperform Oppenheimer raised its price target on the stock to $350 per share from $285 and said it’s well positioned. “We are raising our target to $350 (was $285) and reiterating our Outperform rating as we believe META is well positioned to drive higher pricing and engagement from AI investments.” TD Cowen initiates Liberty Formula One as outperform TD Cowen said shares of Formula One racing are underappreciated. “We think the market is underappreciating that FWON is still in the early laps of improving asset utilization of the commercial rights.” Deutsche Bank upgrades Rio Tinto to buy from hold Deutsche said shares of the metals and mining company are very attractive. “We upgrade RIO to Buy for the first time in over two years. With the shares down > 20% from the YTD high we see attractive value underpinned by a high quality, cash generative business.” Bernstein initiates NetEase as outperform Bernstein said it’s bullish on the video game developer’s AI opportunity. “Video game developers like NetEase grow through product expansion, while an expanding legacy game library continues to contribute profits.” Needham reiterates Coinbase as buy Needham said it’s standing by the stock despite declining volumes. “We went deeper into COIN’ s May key metrics. We found that 1) volumes not only declined 23% MoM, but alt-coin volume declined to its lowest level in ’23, indicating more erosion in retail. 2) COIN saw modest ETH staking deposit withdrawals over the month, while Lido and Binance saw increases.” Morgan Stanley reiterates Disney as overweight Morgan Stanley lowered its price target on the stock to $110 from $120 but said it’s standing by the shares. ” Disney is in the midst of restructuring its Media operations and earnings optimization will take time. However, we see the implied value of its content as too low here and remain OW. Disney’s primary earnings engine continues to perform, as we again bump up our Parks estimates.” KeyBanc downgrades Target to sector weight from overweight Key said it sees increasing consumer headwinds for Target. “While we still believe in the LT margin recovery story, we downgrade TGT to SW given increasing consumer headwinds over the next 12-18 months (including student loan payments, slated to resume in 3Q).” Read more about this call here. Oppenheimer names Costco a top pick Oppenheimer said investors should buy any weakness in Costco shares. “Given the pullback in shares since then, the company’s better than expected delivery of bottom-line profitability on a sub 4% comp vs. our forecasts, and more muted buyside N-T comp expectations, we see an improved nearer-term outlook for outperformance.” Jefferies names Oracle a top pick Jefferies said the stock can “grind higher with continued execution.” “We believe ORCL can accelerate organic rev growth in FY24.” Wolfe adds Palo Alto Networks to its Alpha list Wolfe said it’s bullish on the cyber security company and added the stock to its Alpha list. “After wrapping up earnings season for our Security coverage, we are updating our price target for PANW and adding the name to our Wolfe Alpha List to reflect our conviction in the name.” Citi names Micron a top pick Citi named Micron a top pick and said the company is a beneficiary of the CHIPS act passed in 2022. “We believe the China ban on Micron should put the company in a position to get more money from the CHIPS Act, given that most companies appear to be opting for the minimum $150.0 million given costly contingencies.” Wells Fargo names Nike a top pick Wells said investor interest in Nike is picking up. “Incomings on NKE have been ticking up, as investors digest slowing wholesale commentary from peers (VFC, SKX, UAA, among others), stubbornly elevated athletic inventories now including footwear (and not just apparel), and a slowing North American macro.” Oppenheimer downgrades Estee Lauder to perform from outperform Oppenheimer said shares are “less compelling” right now. “Following the company’s report in early May, recent developments on the consumer and beauty fronts, and another leg down in shares, we spent time revisiting our investment views on EL . Based on our work, we now see a less favorable risk/reward scenario.” Read more about this call here. Morgan Stanley downgrades Dollar General to equal weight from overweight Morgan Stanley said in its downgrade of Dollar General that it sees too many risks right now. “Thesis-shifting quarter: Too many uncertainties on macro, market share, investments, execution, capital allocation & N-T EPS power to recommend the stock.” Read more about this call here. Bank of America reiterates Apple as neutral Bank of America raised its price target on the stock to $190 per share from $176 and says its bullish on the company’s upcoming mixed reality headset unveil. ” Apple’s mixed reality (MR) apps could command a premium.” Morgan Stanley upgrades Equitrans Midstream to overweight from underweight Morgan Stanley said the energy company is better positioned after the debt ceiling raise. The bank said it should allow for the completion of the company’s Mountain Valley Pipeline project. “Clarity around Mountain Valley Pipeline (MVP) should support convergence of stock to fair value as project is completed, leverage is reduced, and strategic priorities articulated.” Stifel adds Bowlero to the select list Stifel said shares of the bowling company are undervalued. “We recently hosted BOWL’s Vice Chairman and President, Brett Parker, for a series of investor meetings. We come away with an even higher conviction of this story/stock and believe shares remain massively undervalued.” Barclays reiterates Meta and Alphabet as overweight Barclays said both stocks still have more room to run. “We like the current backdrop for both GOOGL and META shares, both are benefiting from a re-accelerating ad market, higher incremental margins, and the new AI product cycle.” JPMorgan upgrades Valley National to overweight from neutral JPMorgan said commercial real estate fears for the regional bank are overdone. “With VLY shares trading below TBV (0.9x) and with an elevated implied cost of equity (17% vs. peers 14%), we view concerns over Valleys CRE risk as overblown.” Read more about this call here.
