Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley downgrades Adobe to equal weight from overweight Morgan Stanley said it sees slowing earnings per share growth for Adobe . “Beyond Seasonality — Expecting Structurally Slower EPS Growth Ahead; Downgrade to Equal Weight.” UBS downgrades Boston Beer, Keurig Dr Pepper and Molson Coors to neutral from buy UBS downgraded several beverage companies due to potentially slowing growth ahead. “We are moving to the sidelines on TAP, SAM and KDP as we expect growth to moderate looking ahead.” Credit Suisse upgrades Exxon Mobil to outperform from neutral Credit Suisse said it likes the company’s “differentiated growth strategy.” ” XOM always believed that the world will need fossil fuels for much longer and in the medium term demand for oil and gas will be increasing not contracting. As a result, XOM has continued to invest in some of the most attractive Oil & Gas projects globally. Post Russia-Ukraine conflict, where we are short crude, refined products and natural gas, we expect XOM’s differentiated growth strategy will deliver excellent returns for its investors.” Read more about this call here . Wells Fargo upgrades Church and Dwight to overweight from equal weight Wells said it sees a rare buying opportunity for the household products company. “The stock is well off highs, the prospects of a recession (or at least incremental slowing) looks increasingly base case meaning CHD ‘s defensive qualities shine even brighter; and, perhaps most notably, CHD has a ‘micro’ element here too, i.e. a data disconnect which is muddying the narrative.” Read more about this call here . Goldman Sachs downgrades SunPower to sell from neutral and Sunnova to neutral from buy Goldman downgraded several solar stocks, noting it’s concerned about rising interest rates. “To that end, we downgrade shares of SPWR to Sell (from Neutral) given the company’s mix headwinds to these dynamics are most pronounced while we also downgrade NOVA to Neutral (from Buy).” Bank of America initiates Palantir as buy Bank of America said the data analytics software company is a beneficiary in the future of artificial intelligence. ” Palantir’ s dominant position in the AI-powered software market, differentiated end-to-end & highly secure solutions and first mover advantages should support more than 30% annual revenue expansion and improving profits in the midterm.” Read more about this call here. JPMorgan reinstates Caesars as overweight JPMorgan reinstated coverage of the casino and hotel company. saying it sees several positive catalysts including a “best-in-class” management team for Caesars . “We see upside of $20 to our $59 price target and downside of $10 to $27 in a hypothetical recession scenario whereby 2023 EBITDAR is 20% below our (below Consensus) estimates and ascribes modest target multiples in these up/downside scenarios.” B. Riley downgrades Six Flags to neutral from buy B. Riley said in its downgrade of the amusement park company that it’s a concerned about a “deteriorating consumer outlook.” “We feel there are three issues that could continue to weigh on SIX shares over the next 12 months: (1) investors continuing to focus on overall attendance declines vs. 2019 levels given the new premium pricing strategy; (2) reduced in-park spending due to consumer spending headwinds not offsetting the elevated labor and inflationary pressures.” Credit Suisse upgrades Centene to outperform from neutral Credit Suisse said headwinds are already priced in for the managed-care company. “With CNC at 12.2x our 2023 EPS est, we believe the headwinds are reflected in the current outlook, and, as that becomes clear to the market, we believe CNC will be revalued to 14x P/E multiple leading to our $88 six- to 12-month price target.” UBS upgrades Charles Schwab to buy from neutral UBS said in its upgrade of Schwab that the stock is “well positioned to outperform.” “Upgrading to Buy: A de-risked, quality name that is well insulated from credit and market risk.” Read more about this call here. Wells Fargo initiates Virgin Galactic as underweight Wells said it sees too much risk left with the space flight company. “We see further risk left to go for SPCE , as we are doubtful it can develop its new Delta spacecraft and continue to fund operations without a further capital raise, while we estimate the stock currently prices in at least 10x acceleration in ticket sales which we view as unlikely.” Stifel reiterates Netflix as hold Stifel kept its hold rating on shares of Netflix on Monday, but it’s becoming more constructive on the stock. “At the current share price, we believe the market may be overlooking the multiyear opportunity for a return to sustainable subscriber growth, with optionality stemming from the company’s upcoming advertising-supported and password-sharing plans.’ Bank of America upgrades FMC to buy from underperform Bank of America said in its upgrade of the fertilizer company that it sees an attractive valuation. “We double upgrade FMC to Buy as (1) the stock has been the worst performer in our ag coverage on a 3-mth basis making val’n more attractive (+22% to our unchanged PO), (2) we slightly raise our estimates for 2022-23 on the back of favorable results from this ag retailer survey.” JPMorgan downgrades Hyliion to underweight from neutral JPM said in its downgrade of the electrified powertrain company that it sees increasing competition for shares of Hyliion. “Downgrading to Underweight on Increasing Competition and Increased Market Focus on Zero- Emission Trucks.” Citi downgrades International Paper to neutral from buy Citi downgraded the paper company due to supply chain issues. “Growing Questions on Demand as Supply Additions Loom; Downgrading IP & WRK to Neutral.” UBS reiterates Apple as buy UBS reiterated its buy rating on shares of Apple , noting it sees iPhone shipments in China “rebounding.’ “During May, overall smartphone shipments in China decreased ~9% YoY despite an easy comp last year. However, on a month-to-month basis, shipments were up ~16% as data suggests Covid lockdowns and supply chain shortages on the margin are abating, consistent with our recent checks.” Barclays reiterates Nike as overweight Barclays said in a note to clients that it sees China and supply chain risks heading into earnings next week. “With tough compares against March 2021 and the impact of China lockdowns in April/May 2022 as YoY comparisons ease, we believe NKE’s FY4Q22 will be materially pressured.” Cowen downgrades Under Armour to market perform from outperform Cowen downgraded the stock due to inflation and supply chain concerns. ” UAA’s brand momentum has waned relative to peers and the expectation for a re-acceleration in growth into an uncertain macro environment could be challenged.” Mizuho reiterates Micron as buy Mizuho lowered its price target on Micron to $95 per share from $113, but said it sees a buying opportunity. “With strong execution from MU and WDC, long-term secular trends in 5G, and persistent Server strength, we believe negative sentiment and macro headwinds provide an opportunity to step in.” JPMorgan upgrades American Tower to overweight from neutral JPMorgan said in its upgrade of the tower company that it sees “accelerating revenue.” “We still see solid domestic activity from incumbent carriers and a committed contribution from Dish, with the potential for upside over time, as well as easing Sprint churn at AMT before its peers.” Wedbush upgrades Chewy to outperform from neutral Wedbush said the pet company has an attractive valuation. “Along with relatively favorable pet category dynamics, bottoming e-commerce trends and attractive valuation, better risk-reward leads us to upgrade CHWY to OUTPERFORM.”
