Here are Thursday’s biggest calls on Wall Street: Bank of America reiterates IBM as buy Bank of America said the “portfolio is delivering” despite the company’s mixed earnings report on Wednesday. “IBM reported a mixed F2Q with revenue and FCF exceeding expectations as Software and Infrastructure outperformed, while Consulting was weaker. The upside was partly driven by strong Transaction Processing revenues while areas like RedHat were weaker.” Mizuho reiterates ServiceNow as buy Mizuho raised its price target on ServiceNow to $850 per share from $820 and said it’s “evolving into a True Software AI Beneficiary” following earnings. “Evolving into a True Software AI Beneficiary; Raising PT to $850.” Morgan Stanley reiterates Ford as overweight Morgan Stanley said it’s sticking with Ford as a top pick following earnings on Wednesday. “With the stock down 11% after 2Q results, Ford ranks 494 out of S & P 500 stocks on FY24 PE multiple.” KeyBanc reinstates Shopify as overweight KeyBanc resumed coverage of the website for business company with an overweight rating. “We are resuming coverage at OW with an $80 PT, based on ~11.7x FY24E EV/S. Our revenue estimates are slightly below the Street, reflecting tough comps, and our margin expectations are slightly behind the Street due to the continued penetration of Shopify Payments.” Baird reiterates Apple as outperform Baird said it’s sticking with the stock ahead of earnings on Aug. 1. “We reiterate our Outperform rating of AAPL and are raising our target price from $200 to $240. We have recommended AAPL for years on the back of its expanding eco-system, growing services contribution, strong cash flow and innovation leadership. BMO reiterates Amazon as outperform BMO said it’s standing by shares of Amazon. “Reiterate Outperform and Top Pick; raising estimates and Target Price to $230 from $220.” Citi downgrades Lululemon to neutral from buy Citi said it sees “further deceleration.” “We are downgrading LULU from Buy to Neutral and lowering our TP from $415 to $300. After years of benefitting from outsized growth in active apparel, trends in the category have slowed in F24 with Citi’s credit card data in Yoga & Active apparel pointing to a further decel 2Q QTD vs 1Q.” Goldman Sachs reiterates Dell as buy Goldman said it’s sticking with Dell in an earnings preview note ahead of its quarterly report in late August. “We are Buy-rated on DELL with a 12-month target price of $160 (unchanged) reflecting 16.5X our NTM+1Y [next twelve months] EPS.” Baird upgrades Roper Technologies to outperform from neutral Baird said investors should buy the dip in the software company. “After 7% selloff in stock following 2Q24 update (S & P -2%) and muted guidance adjustment, we believe Roper is essentially receiving ‘trough’ valuation on “trough” estimate revisions, creating attractive risk/reward.” Morgan Stanley initiates CBRE as equal weight Morgan Stanley said the real estate company’s shares have a “premium valuation.” ” CBRE is well positioned with 1) steady double-digit growth from recurring revenues (GWS), 2) potential for improving margins on expense efficiency…” Bank of America reiterates Meta as buy Bank of America said it’s bullish heading into earnings on July 31. “We remain positive on Meta & think Reels, Messaging, & AI driven ad improvements are still early, and could lead to positive product surprises & revenue upside.” Bank of America reiterates CrowdStrike as buy Bank of America lowered its price target to $365 per share from $400 but said it’s sticking with the stock. “We flag the high quality and efficacy of CrowdStrike’s cloud-based solution and note that the issue was related to an error to a simple update process that caused major disruptions yet did not change the technical leadership of CrowdStrike or the value of its solutions.” Susquehanna reiterates Advanced Micro Devices as positive The firm said it’s standing by the stock heading into earnings next week. ” AMD stock has underperformed the SOX (-1,080 bps) since its last report, indicating sentiment is low vs. peers into the print.” JPMorgan names GE Vernova a top pick JPMorgan said the company has “electrification and power momentum.” ” GEV reported 2Q EBITDA above expectations and raised FY24 guidance slightly.” Bank of America downgrades Lamb Weston to neutral from buy Bank of America said in its downgrade of the food processor that it has “oversupply” and pricing issues. “We downgrade shares of Lamb Weston (LW) to Neutral and lower our PO to $66 from $109..” Deutsche Bank reiterates Chipotle as buy Deutsche said it’s sticking with its buy rating following earnings on Wednesday. “We continue to have conviction in the near-term and long-term story, and given relative valuation and an outsized ~19% pullback over the last month, we believe CMG offers a favorable risk/reward.” Barclays reiterates Super Micro Computer as overweight Barclays said it’s sticking with its overweight rating heading into earnings in early August. ” SMCI just [yesterday] issued a press release, announcing June-Q earnings date of Aug. 6th AMC [after market close], implying no pre-announcement.” Citi downgrades Sirius XM to sell from neutral Citi said the streaming media company could be seeing a short squeeze. “We believe the recent appreciation in SIRI’s equity may be a result of a short squeeze. In parallel, we believe shares of LSXMA may be more indicative of the value of the pro forma SiriusXM entity.” DA Davidson upgrades Polaris to buy from neutral DA said it sees a compelling entry point for shares of the outdoor terrain vehicle company. “We are upgrading PII shares to BUY with a $87 PT, after the company prudently reset FY24 EPS expectations and a recent sell-side downgrade created an attractive entry point for investors.” Piper Sandler reiterates Marvell as overweight Piper says Marvell is well positioned heading into earnings in August. “At this point we see numbers de-risked across much of the business as end markets such as networking and storage slowly return to growth. We reiterate our OW rating.” Bank of America reiterates Birkenstock as buy Bank of America said the stock “warrants a higher multiple.” “In a backdrop where earnings beats are becoming increasingly rare, we think BIRK’s sustained sales momentum and strong margins will be rewarded with a higher multiple.”
