Here are Monday’s biggest calls on Wall Street: Morgan Stanley reiterates Disney as overweight Morgan Stanley raised its price target on the stock to $135 per share from $110. “By the end of FY24, the two most impactful businesses to DIS shares should be inflecting – with streaming turning profitable and Parks growth accelerating. Piper Sandler upgrades Dutch Brothers to overweight from neutral Piper said the coffee chain is well positioned. “Following BROS’ recent 4Q23 results, and after contemplating several dynamics that we explore further in the body of this note, we are upgrading shares of BROS to Overweight, up from our previous rating of Neutral.” Guggenheim upgrades GSK to buy from neutral Guggenheim said it sees upside potential for the biopharma company. “We are upgrading GSK to BUY from NEUTRAL following key revenue updates, coupled with increased confidence in margin benefits, pointing to attractive upside potential in the stock, particularly if the Zantac overhang resolves.” Baird upgrades Squarespace to outperform from neutral Baird said the website building company is undervalued. “We think there has recently been a meaningful shift in investor sentiment regarding the web building category – and in our view, SQSP has not participated to a sufficient degree despite healthy execution, revenue growth, and margin expansion.” UBS upgrades Norfolk Southern to buy from neutral UBS said it sees margin improvement for the railroad. “We are upgrading NSC to Buy from Neutral because we expect stronger performance in NSC’s merchandise network.” Goldman Sachs initiates Super Micro as neutral Goldman said the stock is an “AI winner” but that valuation is full right now. “We initiate on Super Micro Computer ( SMCI) with a Neutral rating and 12-month target price of $941.” Bernstein reiterates Tesla as underperform Bernstein said the stock remains overvalued. “On one hand, Tesla’s focus on differentiated high volume products has worked, with the Y and 3 delivering record volumes. On the other, one could argue Tesla’s success until recently was that it was early to offer compelling EV models.” JPMorgan reiterates Alphabet as overweight JPMorgan said it’s sticking with Alphabet in the face of numerous headwinds. “Investor frustration has boiled over around the recent Gemini issues, but we believe there is also a manifestation of uncertainty around the growth & positioning of search in a Gen AI world going forward, lack of clear goals & targets in re-engineering the cost structure, calls for bigger capital returns (including a dividend), and simply tough comparisons to Meta, which seems to be doing everything right.” UBS reiterates Eli Lilly as buy UBS raised its price target on the stock to $910 per share from $810. “Ultimately, we expect next-generation GLP-1s with differentiated formulations and/or better efficacy from LLY to come to market in parallel and help offset competitive pressures, while simultaneously raising the bar for standard of care.” UBS reiterates Nvidia as buy UBS said it’s sticking with its buy rating after a series of investor meetings with the company.” “Demand is higher than supply for NVDA’s new products.” Seaport upgrades FuboTV to buy from neutral “We think the risk-reward in FUBO shares is attractive from here, suited to investors who can focus on small-caps and who can be nimble in their trading” Morgan Stanley initiates Kyverna Therapeutics as overweight Morgan Stanley said the therapeutic platform company is well positioned. “Cell therapy for autoimmune disease is an emerging and increasingly competitive space, which represents a potentially large market opportunity, and we believe Kyverna is well positioned given promising early data and potential for differentiation. Baird upgrades Fleetcor Technologies to overweight from neutral Baird said investor sentiment is improving for the payments and spend management company. “We are upgrading to Outperform. FLT is a ~10% organic revenue/mid-teens EPS grower, with high quality of earnings (FCF conversion ~100% of adjusted earnings), and potential for improving sentiment/trends.” Wells Fargo upgrades UDR to overweight from equal weight Wells says shares are compelling of the real estate investment trust ” UDR: Conservative Guidance & Sunbelt Valuation for This Diversified Apartment REIT—Upgrading to Overweight.” Wells Fargo reiterates Starbucks as a top pick Wells says the stock remains a top pick at the firm. ” SBUX sentiment is mixed at best, and shares trade at ~19x our ’25 EPS, considering 1) weak data checks and presumable near-term earnings risk; 2) lingering China macro uncertainty and rising competitive fears; and 3) skepticism surrounding 2H acceleration potential.’ Morgan Stanley reiterates America Health REIT as overweight Morgan Stanley said shares of the healthcare real estate investment trust are “unique.” “Unique healthcare REIT w/ differentiated skilled nursing operating business. We see a compelling self-help story boosted by demographic tailwinds, limited new supply & strong earnings growth.” RBC upgrades Lyft & DoorDash to outperform from sector perform RBC said both stocks are “undervalued separately” but could benefit from a partnership. “We upgrade both DASH and LYFT to Outperform as we think both assets could prove undervalued separately, though with an intriguing option in common on some type of future loyalty partnership.” Melius reiterates Apple as buy Melius said investors need to take a “deep breath.” “Everyone is piling on Apple with shares down -7% YTD and -11% since its peak in December. The lack of growth for 5 of 6 quarters (including this one) is apparently new news. But it’s time for a deep breath.” Citi downgrades Ferrari to sell from neutral Citi downgraded the stock mainly on valuation. “While we like the quality and long-term growth prospects for Ferrari we are downgrading to a Sell on valuation.” Jefferies upgrades BP to buy from hold Jefferies said the oil and gas giant has many “avenues” for more upside. “In the context of the ongoing sector consolidation trend led by US companies, we note that government protection barriers (national champion / ownership) are lower for BP.” Barclays upgrades BRF to overweight from equal weight Barclays said it sees “better days ahead” for the food processing company. “While BRF’s sales were just below our model, profitability surprised to the upside and management remains confident in an improving consumer environment, pricing, and cost savings.” Barclays downgrades G-III Apparel to underweight from equal weight Barclays said in its downgrade of the stock that it sees too many negative catalysts. “We are downgrading shares of GIII driven by lost revenue from customer store closures, lost licenses which will occur over a 5- year period, and muted interest in owned brands.” Evercore ISI initiates Toast as outperform Evercore said it’s bullish on shares of the restaurant tech company. “We are initiating coverage on Toast Inc. (TOST) with an Outperform rating and $32 price target.” Bank of America upgrades Ball Corp, International Paper and Packaging to buy from neutral Bank of America upgraded several packaging stocks like IP following the company’s ag and materials conference. “And while there have been lower entry points for the names in recent quarters and multiples are high for BALL and PKG , given our POs, upward tension in fundamentals, and a still-Neutral consensus rating for the three, we upgrade.” Rosenblatt reiterates Broadcom as buy Rosenblatt raised its price target on the stock to $1,500 per share from $1,160. ” AVGO shares are up ~50% in the last three months, on AI enthusiasm and cyclical industry recovery trajectory in 2H calendar 2024.” Argus upgrades New York Times to buy from neutral Argus said it sees revenue growth for the newspaper company. ” NYT has grown revenue and earnings through its licensing and affiliate agreements, expanding subscriber base and higher prices for non-bundled products.” Citi reiterates Snowflake as buy Citi lowered its price target on the stock to $240 per share from $290 but said it’s standing by the stock. “While we were caught off guard by SNOW’s weaker revenue outlook and CEO Slootman’s departure, we remain Buy rated following the ~20% share-price decline.”
