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Here are Monday’s biggest calls on Wall Street: UBS reiterates McDonald’s as buy UBS said McDonald’s is “well positioned to drive further sales growth and market share gains.” “With investors focused on easing MCD US sales trends following 1Q strength, we expect underlying demand will remain largely resilient and market share gains will continue.” JPMorgan upgrades Petrobras to overweight from neutral JPMorgan said shares of the Brazilian petroleum company are undervalued. “We believe that, while new management will change strategy, these changes are not that material, which means that Petrobras remains as an undervalued stock generating substantial FCF.” JPMorgan upgrades Carnival to overweight from neutral JPMorgan said it sees an “attractive risk/reward” for the cruise operator. “CCL has an opportunity to drive improved brand clarity and pricing power with increased investment in advertising (vs. historical underinvestment vs peers) and given a smaller capacity growth profile, this provides a faster pathway for mgmt to focus on de-levering the balance sheet.” Read more about this call here . Bank of America upgrades Carnival to buy from neutral Bank of America said it’s getting bullish on cruise demand. “Following our meetings, we upgrade CCL to Buy from Neutral, raise CCL’s price objective to $20 from $11 while also raising price objectives on RCL ($95 from $82) and NCLH ($19 from $17). In our opinion, the cruise industry’s long booking window and strong current demand could allow it to be less susceptible to a slowdown in the leisure consumer relative to other areas of travel.” Morgan Stanley downgrades Bill.com to equal weight from overweight Morgan Stanley cited the “potential for structural limitations” as part of the downgrade. “With shares up ~40% since earnings, we downgrade BILL to EW on potential for structural limitations, increased competitive risk from Intuit, and continued macroeconomic pressure on TPV (total payment volume).” Wolfe upgrades Oracle to outperform from peer perform Wolfe said it sees a re-rating for shares of Oracle . “We believe shares have the ability to rerate through accelerating top-line growth as well as margin expansion back to the mid-40% range over time.” Read more about this call here. JPMorgan reiterates Disney as overweight JPMorgan said it’s standing by its overweight rating on the stock. “Our Overweight rating is driven by continued strength at Disney’ s theme park segment – domestically and internationally – despite a potential slowdown due to macro uncertainty.” Bank of America reiterates Amazon as buy Bank of America raised its price target on Amazon to $154 per share from $139 and said it sees “retail margin upside.” “Since the February bottom, 2024E Op Income is up just 3%, and while expectations have moved higher, we think margin upside can still drive outperformance. We raise our sum-of-parts PO to $154, reflecting recent SaaS comp multiple expansion.” Read more about this call here. Wolfe reiterates Tesla as peer perform Wolfe said it’s sticking with its peer perform rating on the stock but that it’s bullish on the company EV charging opportunity. ” Tesla – EV Charging is a growth opportunity, but the Auto business will continue to dominate earnings.” Nomura downgrades Nio to neutral from buy Nomura downgraded the stock after the company reported “lackluster” delivery numbers. “NIO guides for 2Q23 delivery volumes at 23,000-25,000 units implying 10-12k units in June.” Read more about this call here. Citi opens a negative catalyst watch on US Bancorp Citi said it sees a risk to guidance for U.S. Bancorp . The firm kept its long neutral rating on the stock. “We are opening a 90-day negative catalyst watch as we see downside risk to guidance, which is not yet reflected in consensus estimates.” Morgan Stanley upgrades Sentinel One to overweight from equal weight Morgan Stanley said the cybersecurity company has an attractive risk/reward. “Despite recent missteps, we believe the market is now mispricing the inherent value of SentinelOne as a long-term share gainer and the potential for meaningful margin upside. Risk-reward is favorable with S trading at a 50% valuation discount to peer group.” Read more about this call here. Evercore ISI upgrades AutoZone to outperform from in line Evercore said it sees an attractive entry point for AutoZone. “We see the stock’s 6% price decline since reporting F3Q results as an attractive entry point for an industry leader in a favored auto aftermarket retail sub sector.” Wedbush reiterates Advanced Micro Devices as outperform Wedbush raised its price target on the stock to $145 per share from $95 and said the company is a share gainer. “Net, we continue to believe AMD will take share in the datacenter CPU market. Morgan Stanley reiterates Home Depot as overweight Morgan Stanley said it’s bullish on the company’s long-term growth outlook. “We expect HD’s long-term outlook to include slightly faster EBIT growth than sales growth.” Argus upgrades Abercrombie & Fitch to buy from hold Argus said the retailer is gaining market share. “Upgrading to BUY with $41 target. Abercrombie has been transitioning away from larger-format, tourist-dependent flagship stores to smaller stores that cater to local customers. It has also broadened its offering to include office and special occasion clothing, as well as active apparel.” Jefferies initiates Saia as buy Jefferies said in its initiation of the transport company that it sees margin improvement. “We’re bullish on SAIA’s ability to see above-peer top-line growth and margin gains as it (1) improves its network density through ongoing terminal additions and (2) closes the noticeable price gap vs. peers.”
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