Here are Monday’s biggest calls on Wall Street: KBW upgrades Bank of America to market perform from underperform KBW upgraded the banking giant with long-term rates declining. “We are upgrading BAC’s shares to Market Perform from Underperform, partly due to the recent decline in long-term rates following the better-than-expected productivity report followed by a weaker-than-expected jobs report.” KBW upgrades Key Corp to outperform from market perform KBW said in its upgrade of the regional bank that it has increased visibility on capital. “We are upgrading KEY to Outperform from Market Perform with the stock trading at an 18% discount to peers on 2025E and 14% discount on current TBV [tangible book value]. Deutsche Bank downgrades BJ’s to hold from buy Deutsche said it sees limited earnings per share upside for the wholesaler. “While we remain constructive on BJ’s model and the club space in general, we are moving to the sidelines as we see limited EPS upside in 2024 vs. consensus or the multiple to provide the next leg for the stock at current valuation. Mizuho initiates Bilibili as buy Mizuho said it’s bullish on shares of the Chinese video company. ” Bilibili is a leading video entertainment platform in China with > 300m MAUs [monthly active users.] We expect BILI to successfully transition its products to more than double the TAM, accelerate top-line growth to double digits, and reach profitability in FY24E.” UBS reiterates Amazon as buy UBS raised its price target on the stock to $180 per share from $178 and said it’s still a top pick. “We identified AMZN shares as our top idea into the print and we maintain Amazon as our top idea across the Internet overall given the compelling 2.9x bull/bear skew by our analysis.” Citi reiterates Disney as buy Citi lowered its price target on the stock to $110 per share from $120 but said it’s standing by its buy rating heading into earnings later this month. “We expect DIS to provide its FY 2024 outlook. Previously, the company has called for Disney+ to hit profitability by the end of FY 2024.” Bank of America downgrades Paramount to underperform from buy Bank of America said the backdrop is too challenging for the media stock. “While we recognize management should try to extract maximum value, shares of PARA are down over 40% since May 1st. Our concern is the longer it takes to execute potential asset sales, the less value they could ultimately garner.” Barclays upgrades Kontoor Brands to overweight from equal weight Barclays said it sees “tangible market share gains” for the maker of Lee jeans. “We are upgrading KTB to OW based on gross margin recovery in the intermediate term, wholesale channel normalization, and tangible market share gains within U.S. denim.” Bank of America reiterates Nvidia as buy Bank of America said it’s bullish on the stock heading into earnings later this month. “We expect NVDA to beat/raise consensus when it reports on Nov-21. Compelling valuation at 26x CY24 PE vs 34x historical (and AMD at 29x) plus ongoing market seasonality remain favorable.” Barclays upgrades Dominion energy to overweight from equal weight Barclays said in its upgrade of the energy company that it’s at an inflection point. “We are upgrading D shares to Overweight, from Equal Weight, following the 3Q23 earnings call which we see as driving a positive inflection point for the stock, with EPS revisions likely to bottom over the next quarter.” Goldman Sachs initiates Birkenstock as buy Goldman initiated the shoe company with a buy and said Birkenstock shares are compelling. “We forecast a sales CAGR of 18% CY23-26E and 16% adj EBITDA, and the shares look attractive, in our view, on growth adjusted metrics.” UBS upgrades Clorox to neutral from sell UBS said in its upgrade of the stock that it sees a more balanced risk-reward outlook. “We are upgrading shares of CLX to Neutral from Sell following the company’s F1Q results and guidance update.” Goldman Sachs initiates Legend Biotech as buy Goldman said the biotech company is “best-in-class” with its use of its multiple myeloma, Carvykti. “We initiate coverage on two CGT [cell and gene therapy] players at Buy-rating – Legend Biotech and GenScript.” UBS downgrades Albemarle to neutral from buy UBS downgraded the lithium company due to “higher uncertainty.” “We are downgrading ALB to Neutral as we see a greater risk to lithium volume growth and more downside earnings risk to 2024.” JPMorgan downgrades Nutrien to neutral from overweight JPMorgan said in its downgrade of the ag company that it’s concerned about EBITDA heading lower. “We lowered our rating on Nutrien from Overweight to Neutral. Nutrien’s EBITDA continues to make its way lower, as a base case from the peaks reached during the early days of the Russia/Ukraine conflict. Citi upgrades Visteon to buy from neutral Citi said in its upgrade of the automotive electronics supplier that it sees an attractive entry point. “We’re upgrading Visteon shares to Buy from Neutral (maintaining $149 target) as we believe recent weakness presents a more compelling entry point.” Raymond James downgrades Bloomin’ Brands to market perform from outperform Raymond James said in its downgrade of the owner or brands like Outback that it has low visibility. “We are downgrading our rating to Outperform from Strong Buy on BLMN following the company’s 3Q earnings release on Friday.” HSBC upgrades Palantir to buy from neutral HSBC said in its upgrade of Palantir that it has increased conviction in the company’s business model. “Upgrade to Buy from Hold; TP up to USD21.00 (from USD16.00) on increased conviction in the business model.” Barclays upgrades Ferrari to overweight from equal weight Barclays upgraded the stock after its robust earnings report. “Upgrade to OW (from EW) on better price-mix-personalisation and above-consensus 2024-26e forecasts: Following strong Q3-23 results we ‘take the plunge’ and u/g Ferrari to OW.” RBC initiates Confluent as outperform RBC said the software company is an AI beneficiary. “We believe having access to real-time data will be more important in a GenAI world and think that Confluent, which acts as the plumbing layer for data, is in a good position to aid the growing cloud application ecosystem.” Bank of America reiterates Apple as neutral Bank of America said it’s sticking with its neutral rating on shares of Apple . “Maintain Neutral as positives of new product introduction are offset by a weaker consumer spending environment.
