Here are Monday’s biggest calls on Wall Street: Goldman Sachs adds Nvidia to the conviction buy list Goldman said the stock is well positioned to benefit for AI. “Look for NVDA to maintain its status as the accelerated computing industry standard for the foreseeable future given its competitive moat and the urgency with which customers are developing and deploying increasingly complex AI models.” Read more about this call here . Benchmark initiates TKO Group as buy Benchmark said it’s bullish on the combined entity of UFC and WWE. “We are initiating coverage on TKO Group with a Buy rating and a PT of $100. TKO, a top-tier sports and entertainment entity, operates premier combat and sports entertainment brands, managing prized intellectual property within the rapidly expanding global sports and media landscape.” Evercore ISI upgrades Rivian to outperform from in line Evercore said the electric vehicle maker is resonating with consumers. ” RIVN has a brand that has stuck the US landing, and most importantly, within segments everyone already wants (SUV, Truck, Van).” Read more about this call here. Gordon Haskett initiates Instacart as hold Gordon Haskett said that it sees too many headwinds for Instacart . “We see limited multiple expansion opportunity as we believe slightly better margin projections relative to peers on a modest EV/EBITDA discount (’25E) isn’t enough to offset a handful of concerns/headwinds.” Piper Sandler upgrades Datadog to overweight from neutral Piper said the software company is a disruptor. “We favor the disruptive nature of the company’s solutions, think its platform play will continue to resonate and believe its best days are still ahead.” Piper Sandler upgrades Zscaler to overweight from neutral Piper said the IT security company continues to transform. “We are raising our opinion on shares of ZS to Overweight and raising our price target to $190 as we believe the company will continue to benefit from strong trends in security spending and network transformation momentum.” UBS initiates Sunnova as buy UBS said the solar company is best positioned to take share. “We see NOVA as well-positioned to take market share driven by increasing demand for third- party-owned (TPO) residential solar systems which have relatively more favorable tax treatment under the Inflation Reduction Act (IRA).” Read more about this call here. Jefferies upgrades Insulet to buy from hold Jefferies said investors should buy the dip in shares of the diabetes tech company. “Given the underperformance in PODD on GLP-1 fears, we are opportunistically upgrading PODD to Buy from Hold.” Susquehanna upgrades FedEx to positive from neutral Susquehanna said it sees a “re-rating as greater than near-term cyclical risk” for the delivery giant. “We view the long-term upside opportunity in FDX from cost rationalization and valuation re-rating as greater than near-term cyclical risk.” Truist reiterates Meta as buy Truist said it’s standing by its buy rating on the social media giant. “We remain constructive on META based on our expectations for a strong growth recovery in 3Q23, with revenues up 21% Y/Y vs. 11% in 2Q23 and 3% in 1Q23; on the prospects for sustained growth into 4Q23 and on a solid showing of what is to come in terms of AI powered experiences and hardware at Meta Connect last week.” Wells Fargo adds Microsoft to its top picks list Wells said investors should buy any weakness in shares of the tech giant. “With MSFT shares down recently, we now see a favorable path forming ahead of an improving ROY [return on yield] model trajectory with several key catalysts ahead.” Barclays downgrades SolarEdge to equal weight from overweight Barclays said the bad news is not fully priced in yet for the solar stock. “On the 2Q call, we weren’t expecting SEDG’s comments about how high US inventory levels had grown and were also surprised at the level of inventories in Europe, so we admittedly missed the call to downgrade the stock prior to the print.” JPMorgan reiterates Apple as overweight JPMorgan said lead times for Apple products are moderating. “In Week 3 of our Product Availability Tracker, delivery lead times have moderated, as is very typical for the lead time trajectory when compared to prior years.” Morgan Stanley upgrades U.S. Steel to overweight from equal weight Morgan Stanley said in its upgrade of the steel stock that the transformation continues. “Upgrading to OW and making X our Top Pick with a PT of $40/sh on the expected value creation from the company’s transformational investments.” Bank of America downgrades Norfolk Southern to neutral from buy Bank of America downgraded the stock due to continuing service issues. ” NSC experienced a data center outage Friday (Sep 29) evening, which suspended its dispatching, train starts, and terminal operating systems until Sep 30 morning.” DA Davidson upgrades Clorox to buy from neutral DA said the worst is already priced in for the stock. “We believe that when CLX quantifies the financial impacts, uncertainty will be reduced and shares could rally.” UBS reiterates Amazon as buy UBS raised its price target on Amazon to $180 per share from $175 and says it’s bullish on ads in Prime video content. “We think the insertion of video ads into Prime Video content will unlock substantial revs at high incremental margins, bolstering the margin bull case.” Morgan Stanley reiterates TJX Companies as overweight Morgan Stanley said it’s sticking with its overweight rating after a meeting with company management. “We came away positive that TJX’s scale & competitive benefits likely continue to support positive EPS revisions over the NTM [next twelve months], as well as cont’d margin expansion.”
