Here are Tuesday’s biggest calls on Wall Street: Citi reiterates Disney as buy Citi said it’s bullish heading into Disney earnings Wednesday. “We believe the focus will be on profitability, DTC (direct-to-consumer) net additions, and any updates to the company’s strategic priorities (as it relates to Hulu, DTC or ESPN). We maintain our Buy rating and $145 target price.” Credit Suisse upgrades Lockheed Martin to outperform from underperform Credit Suisse said in its double upgrade of the aerospace and defense company that it sees room for a “multiple rerating.” “The rationale for our upgrade focuses on our updated sector outlook improved confidence in LMT’s growth inflection and estimate upside opportunity, as well as out-year alignment in our EBIT growth forecasts between LMT and NOC, which we believe argues for a relative multiple rerating. Wedbush reiterates Bed Bath & Beyond as underperform Wedbush said it sees a “low probability” that the company will be able to raise equity. ” BBBY proposed a series of moves to generate additional liquidity, satisfy its defaulted loans/missed interest payments, and, most importantly, buy it more time. Unfortunately, we see a low probability that the company will be able to raise equity and view this as a “last gasp” before filing for bankruptcy protection.” Goldman Sachs downgrades Tyson Foods to neutral from buy Goldman downgraded the poultry company after its earnings report on Monday and said it sees cyclical headwinds for Tyson. “Fundamentally, results revealed a sharp deterioration in profitability across the organization, most notably in Chicken, that undermines our confidence that the cumulative effect of recent operational and strategic changes could sustainability improve margins and earnings for the company.” Read more about this call here. JPMorgan reiterates Amazon as overweight JPMorgan said it’s staying bullish on shares of the e-commerce giant. “However, we remain positive on AMZN shares as: 1) we believe Retail growth will accelerate through 2023; 2) N.America is returning to positive operating income — roughly 2% margin in 4Q ex-restructuring — helping to offset AWS pressure; 3) capex should decline this year.” UBS reiterates Meta as buy UBS said it’s staying bullish on shares of Meta. ” Meta trading at 14x ’24 EPS has a path forward beyond just cost discipline with Reels and is our top pick in Internet.” Bank of America reiterates Apple as neutral Bank of America kept its neutral rating on the stock after reviewing Apple’s 10-Q quarterly report, noting it sees “another buyback authorization and div increase.” “In our opinion, the lower level of purchase commitments likely relates to lower demand for Apple’s products as a result of lower consumer confidence, and weaker global macro.” Bank of America reiterates Alphabet as buy Bank of America said it’s sticking with shares of the internet giant and that the “AI war is heating up as product visibility [is] taking a step forward.” ” Google announced that its new conversational AI service, Bard, would be opening to trusted testers, and then available to the public ‘in the coming weeks.’ The service aims to generate detailed answers when given simple prompts, such as what to make for lunch or how to plan a friend’s baby shower.” Cowen downgrades Sweetgreen to market perform from outperform Cowen said it sees “deteriorating value perceptions” for Sweetgreen. “We worry the external environment presents risks to SSS that will challenge the organic path to profitability as we lower 2023-25E adj EBITDA below consensus.” Oppenheimer naming Church & Dwight a top pick Oppenheimer said it’s even more bullish on Church & Dwight shares after attending the company’s recent analyst day. “Last Friday, we attended CHD’s analyst day. We overall walked away even more positive on the longer-term CHD bull case and are re-adding to top pick status.” Jefferies reiterates Target as buy Jefferies said it sees “comp sales upside” ahead for Target. “Within Value Retail, TGT’s comp sales have shown the strongest relationship with labor market tightness, which could indicate comp sales upside ahead.” Wells Fargo initiates iRhythm Technologies as overweight Wells initiated the digital health care cardio company and said it sees upside and share gains. “We initiate on IRTC at Overweight, $150 price target. A leading player in the ~$2B US ACM (arrhythmogenic cardiomyopathy) market for arrhythmias, IRTC holds potential to nearly double its US market penetration by 2027 and has significant option value from entry into adjacencies.” BTIG initiates Foot Locker as buy BTIG initiated the shoe company with a buy and said it’s “found its footing.” “We see opportunity for FL as new CEO Mary Dillon leverages her depth of experience from Ulta (ULTA, Not Rated) to drive change across areas of FL’s business where the company has historically been under-invested.” Goldman Sachs reiterates Pinterest as buy Goldman said it’s standing by shares of Pinterest after its earnings report on Monday. “While Pinterest remains exposed to the broad brand advertising slowdown in Q4 (which has remained a relatively steady headwind into Q1), we don’t believe temporary macro headwinds alter the company’s medium to long term opportunity around platform evolution against which management is executing against.” Read more about this call here.
