Here are Monday’s biggest calls on Wall Street: JPMorgan reiterates Apple as overweight JPMorgan said that it sees a “moderate revenue miss” when the Apple reports earnings later this week. “While our prior revision was driven by a modest haircut to both iPhone and Services revenue, the latest revision is completely on account of preliminary smartphone data for C1Q22, which has tracked below expectations as per industry analyst estimates, partially offset by better-than-expected PC shipments for C1Q22.” Mizuho reiterates Meta as buy Mizuho said it’s concerned about flat ad revenue growth when the Facebook parent company reports earnings later this week. “We recently did a round of checks on FB advertising trends. Key points: (1) The seasonal decline in 1Q22 is about 20% steeper than normal due to macro, continued challenges in iOS privacy, and mix shift to IG Reels; (2) From a vertical perspective, we saw weaknesses in retail, financials and autos that contributed nearly 60% of spending for these ad agencies.” Morgan Stanley initiates DoorDash as equal weight Morgan Stanley said in its initiation of the stock that it’s already fairly priced. “Our work shows how DASH’ s market-leading U.S. restaurant business generates the highest EBITDA/order of any global peer. It drives EBITDA growth while also enabling DASH to reinvest in current/new growth vectors.” Citi downgrades Formula One to neutral from buy Citi said that most of the upside in already priced into the stock. “While we continue to believe F1 is a compelling asset that will benefit from healthy top-line growth, we believe most of the upside is priced into the equity at current levels.” Stifel reiterates Amazon as buy Stifel said that it’s bullish heading into Amazon earnings later this week. “Our 1Q revenue estimate is in line with consensus while our estimate for operating income is slightly ahead. We expect Online Stores sales growth to continue to decelerate in 1Q (-2.0% y/y) against a difficult comp and likely impacted by shifting consumer shopping trends.” Jefferies reiterates Salesforce as buy Jefferies said in a note on Monday that the stock is a great long-term buy. “We est. CRM’s TAM is $184B in ’21 growing to $295B by ’25 at 12.5% CAGR. CRM has a portfolio of products that are the market leaders.” Morgan Stanley upgrades Penn to overweight from equal weight Morgan Stanley said the gaming company’s stock has strong upside. “While we had been concerned about PENN’ s theScore’s ability to take sports betting/iGaming market share in Canada, our recent proprietary analysis suggests that it is the market leader in app downloads, attractive given that we believe investor share expectations have fallen significantly.” Read more about this call here. Morgan Stanley upgrades BioMarin to overweight from equal weight Morgan Stanley said that the pharmaceutical company’s pipeline of products should lead to a rerating of the stock. ” BMRN has lagged peers due to concerns about its long-term growth potential.” Goldman Sachs downgrades Verizon to neutral from buy Goldman said the valuation gap between Verizon and AT & T is widening. “Indeed, we believe that as AT & T shows improved execution and financial performance over the coming quarters this valuation gap with Verizon will compress driving outperformance in AT & T.” Goldman Sachs downgrades ThredUp to neutral from buy Goldman said that it sees too many near-term headwinds right now for the online thrift store. “While we are constructive on the long-term revenue growth opportunity for ThredUP in a large & growing TAM, we expect a number of macro headwinds to create uncertainty & increased volatility on a quarterly basis, leaving us with a more muted near-to-medium term outlook.” Wolfe initiates Snowflake as buy Wolfe said Snowflake is a “top-grade software portfolio” stock. “For context SNOW is trading at the same multiple that PLAN was acquired by PE for if we look out an extra year. For those looking to ‘top-grade’ software portfolios, we think that asset is SNOW and the time is now.” Read more about this call here. Deutsche Bank downgrades Kellogg to hold from buy Deutsche said in its downgrade of the stock that it’s more “cautious.” “Although we’re encouraged by the structural progress K has made thus far we remain cautious (and below consensus) going into 1Q22 results given carryover impacts from the worker strike across K’s U.S. cereal plants in 4Q21 and worsening inflation/supply chain disruptions year to date — not to mention negative Russia/Ukraine impacts and more adverse FX.” Read more about this call here. Piper Sandler upgrades GoDaddy to overweight from neutral Piper called website domain company a top defensive idea. “We are upgrading GDDY to Overweight as our best defensive idea with strong FCF potential and a $3B capital return strategy over the next three years that should provide insulation for shares.” Truist upgrades AutoNation to buy from neutral Truist said in its upgrade of the auto retailer that it’s a “structurally more profitable business post-pandemic.” ” In our view AN , as one of the largest auto retailers in the country, has always set the standard in the industry in terms of consistent solid execution.” Raymond James upgrades Marvell to outperform from market perform Raymond James said the stock that it’s become more attractive. “As cyclical and macro factors drive concerns on the broader group, we took a fresh look at MRVL , with an effort to identify both the sources of growth as well as the probability of that growth amid market uncertainty.” Raymond James upgrades Advanced Micro Devices to strong buy from outperform Raymond James said in its upgrade of the stock that it’s “well positioned” going forward. “As we have become more concerned about cycle risks given potential for slowing consumer demand and elevated inventory levels at customers, we favor those semi companies with strong secular drivers, more muted cyclical exposure and attractive valuations, for which AMD appears well positioned. Wells Fargo downgrades Thermo Fisher to underweight from equal weight Wells said in its downgrade of the scientific instrumentation company that the stock is “expensive with elevated estimates.” ” Thermo is traditionally a large cap favorite and more or less a consensus buy rating across the Street.” Guggenheim upgrades Gap to buy from neutral Guggenheim said in its downgrade of Gap that the company remains in a “strong financial position.” “Overall, we see a multitude of potential (even if unlikely) catalysts that could drive value creation for shareholders. While we are not making a call on any of these happening near term, we believe the company remains in a strong financial position and has significant optionality.” Bank of America downgrades Deere to neutral from buy Bank of America said the good news is already priced into Deere shares. ” Deere ‘s earnings have not peaked, but we believe that a lot of good news is priced into the stock.” Morgan Stanley reiterates Palo Alto Networks as overweight Morgan Stanley said that Palo Alto is poised to to become the first cybersecurity company with a $100 billion market cap. “With a large installed base, strong secular positioning in Cloud Security and improving margins, we think PANW is poised to become the first $100 billion market cap name in cybersecurity within two years.”
Flags flutter outside a distribution centre, during a strike at Amazon’s logistics operations in Italy, in Passo Corese, Italy March 22, 2021.
Remo Casilli | Reuters
Here are Monday’s biggest calls on Wall Street:
