Here are Tuesday’s biggest calls on Wall Street: BMO downgrades Adobe to market perform from outperform BMO said it has structure concerns around the durability of the company’s Creative Cloud product. “We are moving to the sidelines on Adobe, and our timing is driven by receiving the second set of survey data focused on Adobe’s Creative Cloud, not the upcoming quarter. We have a more balanced viewed on Adobe based on the results of our survey and channel feedback.” Read more about this call here. Credit Suisse downgrades Oatly to neutral from outperform Credit Suisse said it’s concerned about consumer inflation in Europe and Asia. “Inflation and unpredictable lockdowns have already hurt Oatly’s ability to compete against peers with more capacity. These headwinds should strengthen with colder months ahead, delaying the growth and margin story yet again.” JPMorgan reiterates Robinhood as underweight JPMorgan said Robinhood’s most recently monthly metrics report is “uninspiring.” “Given underperformance and the lack of evidence of substantial platform growth, we maintain our Underweight rating.” Wells Fargo reiterates Bank of America as overweight Wells Fargo said the banking giant has “improved industry positioning in terms of interest rates.” ” BAC is one of the best examples of improved industry positioning in terms of interest rates — best NII (net interest income) growth among the largest banks.” Bernstein reiterates Apple as market perform Bernstein said that Apple’s iPhone lead times is not a good indicator of iPhone strength. “Have lead times been a good predictor of iPhone cycle strength? The short is answer is no. There appears to be little to no correlation with initial lead/wait times on iPhones and the strength of the cycle, likely because supply is equally important as demand, and in part because Apple is generally (very) conservative in its estimated delivery dates.” Barclays initiates BYD as overweight Barclays said in its initiation note of the Chinese automaker that Tesla should “watch out” as BYD is a formidable competitor. ” BYD (Build Your Dream) became the #1 global EV maker in terms of deliveries in 2Q22, dethroning Tesla from that pedestal for the first time, and its triple-digit revenue growth rate is likely to continue for the rest of 2022, despite its already sizable base.” Read more about this call here. Credit Suisse downgrades Rent the Runway to neutral from outperform Credit Suisse said in its downgrade of the rent and buy apparel e-commerce platform that it sees slowing active user growth. “We thought 2Q could showcase solid consumer trial amid a multiyear peak in social events (weddings, parties, travel). The significant deterioration in Active Customer trends in the quarter suggest that RENT is more susceptible to macro pressure on the aspirational consumer than we expected.” Read more about this call here. Loop reiterates Chipotle as buy Loop said it sees “substantial EPS upside ahead” for shares of Chipotle. “Furthermore, we arrive at this upside potential under the conservative assumptions CMG elects not to take any additional price increases beyond the latest 4% hike taken last month and that the company faces nearly 10% commodity inflation in 2023.” Deutsche Bank initiates Blue Owl as buy Deutsche said the alternative asset manager has a “solid mix of favorable attributes.” ” Blue Owl is a global alternative asset manager with a differentiated business profile that focuses on three main areas: 1) direct lending to middle-market, mostly private equity-sponsored companies, 2) providing capital solutions to private capital managers, mostly via taking minority equity stakes.” Jefferies downgrades Dow to hold from buy Jefferies said in its downgrade of the stock that it sees too many negative catalysts for the chemical company. “Demand risks, pressure from competitor capacity additions, and a flatter olefins cost curve will likely keep Dow rangebound near term, with more downside risk as rising interest rates further erode customer confidence.” Deutsche Bank adds a catalyst call buy on XPeng Deutsche added a catalyst call on the China electric vehicle maker and said it sees the stock bouncing back. ” XPeng has certainly faced a rough few months as we detailed in prior reports. The stock deserves to be down in our view but we anticipate a temporary bounce back with the official launch of the G9 (shares already -33% over the past month vs. NASDAQ -6% and NIO +3%).” Deutsche Bank adds a catalyst call buy on Rocket Lab Deutsche added a catalyst buy idea on shares of the space satellite company and noted it’s bullish heading into the end of the year. “We are initiating a near-term Buy Catalyst Call ahead of Rocket Lab’s investor day next week on Wednesday 9/21. The stock has underperformed over the past month (-19% vs. NASDAQ -6%) despite what we believe is a strong trajectory heading into year-end and 2023.” Argus downgrades Tyson Foods to hold from buy Argus noted that inflationary headwinds and a strong dollar are headwinds for the stock. “In order to stretch their food dollars, U.S. customers have been purchasing less costly generic products rather than Tyson ‘s relatively expensive goods. Internationally, a strong dollar and an increase in hog prices are likely to cause pork volumes to drop.” Truist reiterates Amazon as buy Truist sees quarterly trends heading higher for Amazon. “We maintain a positive view on AMZN as we believe that the quarter is trending to the higher end of expectations in the U.S., reflecting sustained demand driven by AMZN’s superior value proposition in this challenging environment.” Loop reiterates Best Buy as a buy Loop said shares of the big box giant are “attractively valued.” “We are encouraged by Best Buy’s extremely competitive prices, particularly given ongoing multidecade high inflation. We also continue to believe Best Buy is attractively valued relative to other ‘market-leading, relatively slow-growing’ retailers — most notably, Target. We reiterate our Buy rating and $110 price target.” Morgan Stanley reiterates Meta as overweight Morgan Stanley said it sees early indications of declining user engagement trends at the Facebook parent company, but that investors should wait for more information on the next earnings call in October. “In our view, it is important for META to be clear about trends on the upcoming 3Q earnings call in October to clearly describe whether U.S. time spent is actually growing and if these third party data are inaccurate.”
