Here are Tuesday’s biggest calls on Wall Street: Berenberg initiates General Motors as buy Berenberg initiated the automaker with a buy, saying it sees robust free cash flow over the next several years. The firm also said it’s bullish on the company’s future in electric vehicles. “We expect GM to meet its 400,000 EV target sales by 2023 and to exceed its 1m before 2025 goal, putting it on course toward EV leadership in North America.” Read more about this call here. Berenberg initiates Tesla as hold Berenberg said in its initiation of the stock that accelerating demand is already priced in to the stock. “We think that Tesla’s cost structure benefits from deep vertical integration, high automation, and low product complexity, coupled with high component overlap.” Read more about this call here . Berenberg initiates Ford as hold Berenberg said that it sees risks in Europe and China for Ford . “Despite the company’s long-term potential, we expect increased cost pressure to weigh on the stock, with additional risks in its Europe and China businesses.” Read more about this call here . RBC downgrades Palantir to underperform from sector perform RBC downgraded the data analytics software company after its earnings report on Monday, noting it has “decreased confidence” in the stock. “Although we expected PLTR near-term upside from U.S. federal budgets being passed in mid-March and ongoing geopolitical tensions overseas, results were disappointing to us given: 1) 1Q topline lacked upside to consensus; 2) 2Q guide missed consensus on both revenue growth & profitability;” Read more about this call here. Evercore ISI downgrades GoodRx Holdings to in line from outperform Evercore said in its downgrade of the prescription drug pricing company that it’s concerned about a loss of revenue after an unnamed chain said it would no longer accept GoodRx benefits. ” GDRX expects to experience a $30MM revenue hit in Q2 due to a large grocery chain’s decision to stop accepting discounts from most PBMs (pharmacy benefit managers) for a subset of drugs.” HSBC reiterates Apple as hold HSBC said in a note to clients that it’s concerned about regulatory headwinds for Apple in the near future. ” Apple has built and keeps enriching a very efficient and profitable ecosystem, predicated on seamless integration of hardware and services. This may prove efficient from a technology point of view but makes regulators, especially in Europe, worry about the entrenched position a company like Apple may have.” DA Davidson reiterates Coinbase as buy DA Davidson said ahead of the company’s earnings report that the bad news for Coinbase is likely already priced in. “Based on publicly available exchange data, COIN average daily volumes are down another 28% QTD and we’re less optimistic about a big 2H22 rebound. Indeed, we think mgmt. may already need to revisit its aggressive 2022 hiring plans.” Piper Sandler downgrades Upstart to neutral from overweight Piper said there are too many uncertainties for the AI lender. “Overall loan volumes are expected to decline, given elevated loan rates (and the likelihood of them being moved higher). In our view, the range of outcomes for UPST has increased, given macro uncertainties, and we are thereby downgrading UPST to Neutral, lowering our PT to $44.” Bank of America upgrades O’Reilly to buy from neutral Bank of America said in its upgrade of O’Reilly Auto Parts that “defensive retailers deserve another look.” “In light of the recent downturn in stocks across our hard-line retail coverage, we reassess valuations and growth outlooks for the auto parts retail stocks in particular, which are often considered more defensive, ‘staples-like’ stocks within the Consumer Discretionary sector.” Read more about this call here . Oppenheimer upgrades RingCentral to outperform from perform Oppenheimer said it has a “very optimistic outlook” on the cloud sector. ” RingCentral should be a beneficiary of our very optimistic outlook on the overall cloud communications sector, which we predict will grow fourfold to $100B within six years.” Raymond James upgrades Clean Energy Fuels to outperform from market perform The firm said in a note to clients that, after a decade on the sidelines, it’s getting more bullish on stocks such as Clean Energy. “We still have some concerns — this is an incentive-sensitive business, and CNG (clean nat. gas) will need to contend with electric buses and trucks — but the risk/reward is finally at a point where we can rationally recommend the shares. After a decade on the sidelines, we are raising our rating from Market Perform to Outperform.” Read more about this call here . Canaccord upgrades Maxar Technologies to buy from hold Canaccord upgraded the space satellite company after its earnings report on Monday and says Maxar shares are undervalued now. “The key revenue growth driver in the quarter was the Space Infrastructure segment, along with consistent revenue activity in Earth Intelligence due to the limited capacity of the current constellation.” Citi reiterates Robinhood as buy Citi lowered its price target to $13 per share from $24 on the stock trading company, but said investors should continue to buy the stock. “We continue to like HOOD given its longer-term opportunities, such as a broad-based money app and expansion beyond the U.S.” Stephens downgrades Affirm to underweight from equal weight Stephens said in its downgrade of the fintech company that investors require a “higher return” than the stock offers right now. “While we would avoid AFRM into its 1Q22 earnings print, we are also broadly negative on capital markets-reliant fintechs, especially from those who appear willing to time the market like both Affirm and Upstart.” MKM reiterates AMC as sell MKM reiterated its sell rating on the movie theater chain after its earnings on Monday and says AMC’s capital structure is “upside down.” “The box office should get better from here, but it’s still the capital structure which drives our negative view toward the company’s shares.” Read more about this call here . Bernstein downgrades Altria to market perform from outperform Bernstein downgraded the tobacco company on valuation. The firm also says it has concerns about Altria’ s competitors getting stronger. “However, with the stock trading at its highest absolute and relative multiple since 2018, we prefer to wait for a better entry point.” KeyBanc downgrades Sunrun to sector weight from overweight KeyBanc downgraded the solar company due to uncertainty over California’s decision on net metering which is a billing system that credits solar owners. “We are downgrading the shares of RUN to SW from OW due to significant uncertainty presented by the recent proposed decision related to net-metering reform in CA.”
Vlad Tenev, CEO and co-founder Robinhood Markets, Inc., is displayed on a screen during his company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021.
Brendan McDermid | Reuters
Here are Tuesday’s biggest calls on Wall Street:
