Here are the biggest calls on Wall Street on Friday: Wedbush adds Tesla to the best ideas list Wedbush added the stock to its top picks list and says investors are starting to “recognize the underlying value in the Tesla EV ecosystem into 2024 and beyond.” “We are also adding Tesla to the Wedbush Best Ideas List this morning as the Street starts to better recognize the underlying value in the Tesla EV ecosystem into 2024 and beyond.” Wells Fargo upgrades Adobe to overweight from equal weight Wells said it’s bullish on the company’s AI opportunity. “The AI debate continues to drive ADBE . We come away from recent work more confident Gen AI is a tailwind to ADBE as we expect much of the early value to accrue to established platforms & see potential for further break-out as products are monetized.” Read more about this call here . UBS reiterates On Holding as buy UBS said it sees stock outperformance for the athletic footwear company. “We think On’s focus on innovation, performance, athletes, sports, direct-to-consumer selling, and maintaining a premium, full-price brand image should lead to industry leading sales growth and earnings beats. Our view is this will drive stock outperformance.” Morgan Stanley reiterates General Motors as overweight Morgan Stanley said GM and Tesla’s charging agreement could be a game changer. “We see the agreement between GM and Tesla as [a] potentially profoundly significant in narrative change.” KeyBanc reiterates Apple as overweight Key said its survey checks shows iPhone sales remain “muted” for Apple. “Results from our May monthly carrier survey indicate muted iPhone sell-through trends, which were largely in line with lowered store expectations, while Key First Look Data indicates sales of iPhones (-8% m/m, -14% y/y) were below historical seasonal trends.” Citi downgrades Target to neutral from buy Citi said in its downgrade of the stock that it sees a more balanced risk/reward for Target. “Despite the recent stock pressure, we cannot recommend investors buy the stock given these dynamics and now believe the risk/reward is more balanced, but risk is more to the downside near term.” Read more about this call here. Morgan Stanley reiterates Carvana as equal weight Morgan Stanley said it’s getting a little more constructive on the stock after the company announced improved second-quarter guidance. ” Carvana had already reached EBITDA profitability in 2021, but on a leaner and structurally more sound base, can they make it stick this time? Could this be the inflection point we have been waiting for?” Roth MKM initiates Vision Marine as buy Roth said the electric boating company is a “unique Play in EV drivetrain and boat tech.” ” Vision is working to bring the benefits of drivetrain electrification to the performance and environmentally-minded boating world. Mgmt introduced the E-Motion outboard electric motor in Dec. ’22, and we expect this product to materialize as the primary driver of future growth as commercial deliveries begin in late FY23.” Atlantic Equities reiterates Tapestry as overweight Atlantic Equities said Tapestry is a “mis-priced stock with strong fundamentals.” “We believe that even through a recession, Tapestry can protect earnings much more meaningfully than the market believes, as we have seen the company’s strong execution through a deeper disruption in the pandemic.” Jefferies reiterates Walmart as buy Jefferies said Walmart is well positioned in the current environment. “Our consumer survey points to a stretched consumer that plans to spend more on needs vs. wants with a strong propensity to trade down into private label. Given this dynamic, we are incrementally more bullish on WMT as it is the value leader in grocery with a strong private label offering and is currently investing to improve omni-order economics and the customer experience.” Pivotal reiterates Netflix as buy Pivotal raised its price target on the stock to $535 per share from $420 and says it’s a “unique growth story.” “We raised our YE’23 target price from $425 to a Street High $535 mostly driven by an increase in our terminal (’27) EBITDA multiple from 16X to 19X and to lesser extent the effects of increases in our free cash flow expectations in ’23 and beyond.” Loop reiterates Best Buy as buy Loop said Best Buy could be a long-term beneficiary of virtual reality after Apple announced its launch earlier this week. “On a separate note, while we do not expect the recently unveiled Apple Vision Pro mixed reality headset to ‘move the needle’ much for Best Buy in the near term, we think the company will benefit from raised consumer awareness of virtual and augmented reality (VR and AR) and accelerated investments by existing and new players.” Citi adds Meta to the focus list Citi added the stock to its focus list and says it sees revenue growth accelerating. “Key here, we believe Meta can deliver accelerating revenue growth and improving profitability as it remains relatively early days in fully benefiting from its ads innovations and AI innovation.” Canaccord initiates Joby and Archer as buy Canaccord initiated several urban air mobility company’s on Friday and says they are well positioned for the long term. “In our view, JOBY and ACHR are the closest to having their respective aircraft types certified by regulators, with years of flight tests under their belts and final approvals expected in 2024 (ACHR) and 2025 (JOBY). EVEX, which is backed by aircraft OEM Embraer, has yet to fly an aircraft but has amassed a massive $8.3B order backlog. JOBY, ACHR and EVEX also remain well-capitalized.” UBS names Ulta a top pick UBS said it sees an attractive risk/reward. “After ULTA’s shares have pulled back by 20% in the last month, we think the risk-reward is firmly tilted to the upside.” Read more about this call here. Morgan Stanley upgrades Corning to overweight from equal weight Morgan Stanley said in its upgrade of the glass company that it sees an attractive risk/reward. “We upgrade GLW to OW as believe estimates and valuation are derisked.” Read more about this call here . BMO reiterates Microsoft as outperform BMO raised its price target on the stock to $385 per share from $347 and says it’s very bullish on the company’s AI opportunity. “We are increasingly confident that MSFT is establishing its position as a leader in AI, and we reiterate views from our Generative AI Part 1, 2, and 3 notes that AI can drive incremental revenue opportunities over the next few years.” Guggenheim reiterates Nike as buy Guggenheim said it’s standing by its buy rating heading into Nike earnings later this month, but is getting more cautious. “While we are taking a more cautious and conservative stance on FY24, we believe the company’s brand portfolio remains very strong, the company’s competitive position remains envious and the company’s financial strength remains robust.”
