Here are Friday’s biggest calls on Wall Street: KeyBanc reiterates Apple as overweight KeyBanc said Apple shares remain attractive. “We recommend owning AAPL. Our KFLD (KeyBanc First Look Data) shows Indexed Spending was +2.0% m/m in August, vs. the three-year avg. of +1.0%. Positively, QTD data appears to be tracking +15% where September should be strong given the extra week of iPhone sales y/y.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it sees a major boost to Tesla revenue from the Inflation Reduction Act. “We est. Tesla makes > 3.1mm EVs in the US by 2030. Assuming $10k IRA ‘boost’ per unit could be worth > $30bn to the company, nearly a 50% potential upside to our $65bn FY30 Auto EBIT.” Jefferies downgrades International Paper to underperform from hold Jefferies said in its downgrade of the paper company that a containerboard price cut is “imminent.” “We’re downgrading IP & PKG to Underperform & cutting estimates for WRK as well, to reflect the massive inventory glut in containerboard, with our checks indicating orders decelerating sharply & broad-based downtime taken even by the smaller players.” MKM initiates CrowdStrike as buy MKM said the cybersecurity company is in a “league of its own.” “We believe CrowdStrike has one of the most comprehensive cloud-native platforms in the industry.” Citi reiterates Netflix as buy Citi raised its price target on Netflix to $305 per share from $275 and said the streaming giant is the best way to play streaming video on demand. “We expect SVOD sentiment to improve and maintain our Buy rating on both Netflix and Disney. But Netflix is our preferred way to express our bullish view on SVOD.” JPMorgan downgrades FedEx to neutral from overweight JPMorgan downgraded FedEx after its disappointing earnings report on Thursday. “What is more concerning is that the results likely had a material tail wind from fuel surcharges similar to F4Q22 which masks the underlying weakness in the F1Q23 results and F2Q23 guide; it is a sobering thought to consider Express could have lost money (ex-fuel) during the quarter.” Read more about this call here. Morgan Stanley upgrades Alcoa to overweight from equal weight Morgan Stanley said it sees “deep value” in the mining company. “Despite strong balance sheets and cheap valuations at spot prices — even, in some instances, lower commodity forecasts — we are only selectively upgrading mining stocks, those where we see deep value and/or self-help stories amid persisting macro/China recovery uncertainties.” Needham initiates Snowflake as buy Needham said in its initiation of the cloud-computing company that Snowflake has “massive scale.” “The company benefits from its Cloud-Native Data Platform, which has (1) massive scale thanks to Cloud’s latest innovations, (2) a large, growing opportunity in a CY26 TAM that management estimates at $248 Billion.” Read more about this call here. UBS reiterates Amazon as buy UBS said that Amazon shares remain attractive. “We feel good about AMZN shares, particularly on retail growth/margins; less so on AWS. Between Census data and a possible 2nd Prime Day, we feel good about the retail business, particularly in North America.” Stifel initiates Canoo as buy Stifel said it sees a positive risk/reward for the electric vehicle automotive startup. “We are encouraged by GOEV’s focus on the most profitable automotive market segments, namely compact SUVs, pickup trucks and last-mile delivery.” Bank of America downgrades Adobe to neutral from buy Bank of America said it’s starting to have longer-term concerns about the stock. “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 our survey and channel feedback.” Read more about this call here. Bank of America downgrades FedEx to neutral from buy Bank of America said in its downgrade of FedEx that it sees volumes collapsing. “The company attributed its miss on higher fixed costs as volume decelerated (both Int’l and in U.S.), noting macroeconomic trends worsened later in quarter, and expenses lagged worsening demand.” Deutsche Bank reiterates Tesla as buy Deutsche raised its price target on Tesla to $400 per share from $375 and said the automaker is well positioned for 2023. “We are boosting our 2023 gross margin estimates for Tesla and raising our price target to $400 (from $375), as we perform an analysis of the large potential cost benefits from the ramp up of Berlin and Texas and the Inflation Reduction Act’s U.S. battery production credits, following our recent Berlin factory tour.” UBS initiates Baidu as buy UBS said in its initiation of the China tech company that it sees a positive risk/reward. “We believe Baidu’s risk/reward appears attractive, as investors assign little value to its new initiatives in cloud and cars.”
