Here are the top Wall Street calls for Wednesday. JPMorgan named Match as a top choice. The firm added Match to its list of focus stocks and said investors were too negative about the stock. “We believe the pendulum is too far in one direction and investors are overly pessimistic about the online dating market, as well as the durability of Tinder’s turnaround. There are a number positive catalysts that could occur in the next few months.” Morgan Stanley confirms Apple as an overweight Morgan Stanley confirmed that it is standing by its overweight ratings after Apple’s iPhone announcement on Tuesday. “Our FY24 estimates remain largely unchanged following the
Wonderlust event. We de-risked our China iPhone forecast, but this was offset by higher than expected iPhone prices.” UBS initiated Ford and General Motors in the buy category. UBS stated that it saw profit sustainability. GM’s (Buy) profitability can be better than feared due to cost-actions and BEV [yesterday’s] scale (even if it is below management targets). F (Buy), earnings more resilient than expected driven by Pro Business.” Click here to read more about this recommendation. Morgan Stanley confirms Darden’s position as an overweight Morgan Stanley is bullish going into Red Lobster owner’s earnings the following week. “Ahead next week’s results, DRI remains our OW selection in full service. Fundamentals are likely to be solid, if not a little better, with resilient summer sales.” Citi launches a positive catalyst on Criteo Citi advised investors to buy the dips in the shares of the internet advertising company. We also launch a 90-day catalyst watch due to the launch of Commerce Max and expected acceleration in 2H23, as well as positive comments made at our conference held last week. Criteo is still our top pick in all of our coverage.” Morgan Stanley confirms Tesla as an overweight Morgan Stanley says it stands by its recent upgrade despite investor pushback. Investor feedback on our Tesla upgrade is skewed to pushback. Tesla’s equity is overvalued if you limit the scope of Tesla to just making and selling automobiles. Click here to read more about this report. Redburn Atlantic Equities reduces Tapestry’s rating from buy to neutral. Redburn says it is concerned about the acquisition of Capri by the company. While we are positive about TPR as a standalone, we do see elevated risks for the company due to the ongoing turnaround at the largest brand in the portfolio, Michael Kors, as well as the risk of disrupting the strong performance of Coach. JPM downgrades Oracle from overweight to neutral JPMorgan stated that the stock is overvalued in its downgrade. Our Generative AI CIO Survey, published in June, raised some questions regarding Oracle’s position. Very recently, we struggled to justify a value that had risen to > 25x EV/uFCF. This resulted in our PT not exceeding $112 despite a recent clustering of ratings upgrades, which temporarily lifted this stock above the level. You can read more about this call. Guggenheim launches TKO Group with a buy Guggenheim stated that the WWE and UFC combined is a very well-positioned company. We are initiating TKO Group Holdings’ (trading under the ticker TKO on the NYSE) coverage with a BUY and $130 target price. TD Cowen introduces Hershey to outperform TD stated that Hershey was a “long term value creator.” “Market leader in a chocolate category with a competitive advantage.” Street is too concerned about short-term market share loss. “Capacity expansion and innovations will allow a rebound in 2024.” Bernstein confirms Microsoft’s outperform status Bernstein stated that the move of Windows desktops to the cloud will be a positive catalyst to Microsoft. The largest driver for this shift will be Azure, and although most people don’t realize it, the move of Windows desktops to the Cloud will be a significant additional tailwind that adds $14B to $30B in 3-5 years. And $75 to $100B with time. Roth MKM initiated Redwire as a buy Roth said that the space infrastructure firm is well-positioned. We believe RDW’s revenue model based on program contracts provides investors with strong visibility and predictability. BTIG says Domino’s is a top choice BTIG has said that it is bullish about Domino’s rewards program. The new program offers new rewards and tiers, which should appeal to more consumers and offer faster redemption of points with a wider range of options. You can read more about this call. TD Cowen reiterates FedEx’s outperform TD stated that it is cautiously optimistic going into FedEx’s earnings next week. “Our EPS is slightly below the consensus. FDX canceled some flights due to low demand. We think they were able to benefit from UPS’s labor problems and Yellow’s bankruptcy. The shares usually drop after earnings but have risen in the week that followed the last three prints. Bernstein confirms Amazon as an outperformer Bernstein stated that it is bullish on Amazon’s fulfillment and shipping strategies. Amazon appears to be aggressively trying to scale up its fulfillment offering beyond Amazon.com, in the US. They have made several changes to their operating network and now have 8 self-sustained US regions. Bank of America confirms Madison Square Garden Entertainment is a buy. Bank of America stated that the live entertainment company was well-positioned for growth. MSGE is a pure-play, growth-oriented live entertainment company that has a large number of venues in one of the largest concert markets in the world. Citi reiterates Lennar’s buy Citi said that it was bullish going into Lennar’s earnings on Thursday. “Overall we see expectations for earnings slightly above guidance following TOL’s F3Q beating & increase in August.” Needham reiterates Alphabet is a buy Needham stated Alphabet’s Youtube was undervalued. YouTube is owned by GOOGL at 100%, so we think it’s being valued at 20%-30% below its true value. “[battery electric vehicles]
