Here are Thursday’s biggest calls on Wall Street: Morgan Stanley upgrades Freyr Battery to overweight from equal weight Morgan Stanley said that “recent share price underperformance and greater transparency around execution has improved the risk/reward” for Freyr. “We see next 3-6 months as a catalyst window for unlocking shareholder value.” Read more about this call here. Goldman Sachs reiterates Micron as buy Goldman said it’s standing by its buy rating on the chipmaker after its earnings report on Wednesday. “To the market’s surprise, Micron provided a much better-than-feared FY4Q (August) revenue and earnings outlook as the biggest concern shared by many investors ahead of the print — i.e. share loss in China associated with the recent ruling by the Cyberspace Administration of China — is expected to fully materialize over multiple quarters, per management.” JPMorgan reiterates Amazon as overweight JPMorgan said it’s bullish heading into Amazon Prime Day in July. “We project Prime Day will drive incremental revenue of ~$5B, up +13% Y/Y from the ~$4.4B of incremental revenue Amazon disclosed for last year’s Prime Day in 3Q22.” Bank of America reiterates Nvidia as buy Bank of America said it sees “AI networking upside” after a meeting with company management. “We virtually attended a meeting hosted by NVDA CFO Collette Kress and SVP of Networking Gilad Shainer, detailing NVDA’ s $60bn AI networking TAM and impacts from potential US DoC trade restrictions.” JPMorgan downgrades Citizens Financial to neutral from overweight JPMorgan said it’s concerned about commercial real estate loan losses. “In addition, Citizens is being pressured by high losses on its CRE loans due to high level of maturities of office CRE loans in 2023 and 2024 – it recently increased its outlook for 2Q NCOs (net charge off’s) to 40ish bp range.” Citi opens a positive catalyst watch on Netflix Citi raised its price target on Netflix to $500 per share from $400 and said it’s bullish heading into earnings in mid-July. “Our update makes us more bullish on the Ad Tier. We now expect 82 million new subs and $10.6 billion of incremental revenue. However, we continue to believe the Paid Sharing may add very little incremental revenue.” Read more about this call here. UBS reiterates Warner Music as hold UBS said AI remains a risk for the music distributor. “That said, WMG’s revenue growth has recently been below industry levels due to a delayed release slate and a choppy advertising market. The impact of AI has also weighed on the group, a risk we expect the industry to manage through but remain an overhang for now.” Deutsche Bank adds a catalyst call buy on Oshkosh Deutsche said it sees a “material EPS beat this quarter” for the specialty truck company. “OSK has underperformed the group materially YTD, registering a 6% decline in its share price vs. an 11% median gain for our coverage universe. But we see the potential for the company to deliver a material EPS beat this quarter, as management gets its execution back on track after a difficult 2021-22.” Piper Sandler initiates TJX Companies as overweight Piper said the discount retailer is a top idea for the second half. “Execution here has remained consistently strong, and we see an opportunity for TJX to benefit in 2H as industry promotions normalize.” KeyBanc downgrades Disney to sector weight from overweight Key said Parks expectations are too high. “While this note might call the bottom, we have our doubts, as: 1) DIS Domestic Parks expectations appear high; 2) DIS DTC subscriber growth has stalled, and DIS has failed to differentiate its DTC churn vs. peers.” Read more about this call here. Loop downgrades RH to hold from buy Loop downgraded the stock mainly on valuation. “Our downgrade is based on RH’s current valuation as opposed to a more bearish view of the company’s fundamentals.” Credit Suisse downgrades Pfizer to neutral from outperform Credit Suisse said it sees too much uncertainty for the pharma giant. “As Pfizer enters a period of uncertainty and limited pipeline catalysts, we see greater opportunity for growth among other US Major peers.” Read more about this call here . Bank of America reiterates Spotify as buy Bank of America raised its price target on the stock to $185 per share from $165 and said it’s bullish heading into earnings in late July. “We remain bullish on SPOT’s long-term potential, which should benefit from improvement in advertising and deeper penetration in existing markets. Furthermore, management’s recent commentary and actions on expenses should improve the business’ underlying margin trajectory Deutsche Bank reiterates Pentair as buy Deutsche said Pentair is more than just a pool company. “We see PNR as being unfairly penalized for being a ‘resi name’ amid a backdrop with recession concerns. Oppenheimer initiates C3.ai as perform Oppenheimer said the stock has run too far, too fast. “Due to ChatGPT and all-time-high interest in AI, C3.ai’s stock is up ~200% YTD vs. S & P 14%. We are sidelined as C3.ai’s risk/reward is relatively neutral at 16x ’24E FV/revenue vs. its five-year average of 5.7x.
