Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley reiterates Zoom as equal weight Morgan Stanley said it’s seeing signs of progress at Zoom after the company’s earnings report on Monday, but not yet enough to change the firm’s rating. ” ZM reported upside to FQ2, largely as upsells in the enterprise were better than expected and operating margins came in better than expected.” Bank of America reiterates Lululemon as buy Bank of America said it’s standing by its buy rating on the stock heading into earnings next week. “The macro picture in China has deteriorated, but LULU is underpenetrated versus other athletic brands and we expect this catch-up to offset weaker economic conditions.” Bank of America adds Jazz Pharmaceuticals to the US1 list Bank of America added the pharmaceutical company to its top picks list. “We are adding Jazz Pharmaceuticals (JAZZ) to the US 1 list and removing R1 RCM Inc (RCM).” UBS initiates GXO Logistics as buy UBS said the logistics company has resilience and growth. ” GXO has built a strong track record over the past four years with revenue and EBITDA growth CAGRs of 10.3% and 13.9%.” UBS upgrades Aramark to buy from neutral UBS said it sees a “margin inflection” for the food service company. “With moderating food inflation and continued pricing traction, we believe Aramark is approaching margin inflection in FQ4 (Sept) with average gross margin expansion potential of nearly 200bps yoy over the next four quarters.” Bernstein initiates Surf Air Mobility as outperform Bernstein said in its initiation of the regional air mobility company that Surf is “unique.” “The company presents a unique opportunity to scale in an under-capitalized and under-served segment of the air travel market, and its investments in hybrid aircraft technologies will not only help lower the emissions-footprint of regional flying but also catalyze growth through the opening of new markets.” RBC upgrades Iron Mountain to outperform from sector perform RBC said in its upgrade Iron that it has upside potential. “We are increasing our PT to $68 (from $58) on a combination of 2Q results flow-through, roll-forward impacts in our updated model, and less conservative valuation metrics.” JPMorgan upgrades Emerson Electric to overweight from neutral JPMorgan said in its upgrade of Emerson that it’s “underappreciated.” “In a Sector that is at best fairly valued, we see an attractive GARP setup as the dust settles on what should be close to a final round of mostly dilutive portfolio moves, but where we think the underlying quality of core value driving franchises is under-appreciated.” Read more about this call here. Mizuho upgrades Edison to buy from neutral Mizuho said the utility company has earnings power. “We upgrade EIX to Buy from Neutral as we believe investors are underestimating its earnings power as the company continues to rerate and delivers on its forecast 5-7% EPS CAGR.” Raymond James upgrades Shift4Payments to outperform from market perform Raymond James said it sees a “compelling share gain opportunity” for the payments company. “Additionally, the greater emphasis on profitability and away from growth at all costs from close peers is creating a compelling share gain opportunity for FOUR , and recent promotional activity will only add fuel to the fire.” Wedbush adds Amazon to the best ideas list Wedbush said growth is starting to stabilize for the e-commerce giant. “We are adding AMZN to the Best Ideas List. We believe the backdrop for Amazon is beginning to strengthen with improving or stabilizing growth across the eCommerce, advertising, and web services verticals.” Read more about this call here. Morgan Stanley reiterates Apple as overweight Morgan Stanley said it’s standing by its overweight rating on Apple. “Based on the latest disclosures from Sensor Tower, we estimate that App Store net revenue is growing +10% Y/Y MTD through August 17th, a 2 point acceleration from July.” Stifel reiterates Nvidia as hold Stifel said it’s standing by its hold rating heading into earnings Wednesday. ” NVDA expectations have been steadily moving higher in recent weeks (we raised our estimates on August 8th) and the investor debate appears centered on supply rather than demand. We think results and guidance are less important than the investment cycle ahead.” Jefferies upgrades AppLovin to buy from neutral Jefferies said in its upgrade of the stock that it sees more share gains for AppLovin. “We are upgrading AppLovin to Buy from Hold on 1) greater confidence in market share gains and price taking in its mobile ad tech segment (Software Platform); 2) higher near to medium term growth outlook for software.” Read more about this call here. Goldman Sachs upgrades Jefferies to buy from neutral Jefferies said the investment bank has “best-in-class near-term revenue growth.” ” JEF offers underestimated structural, longer-term growth tailwinds, combined with best-in-class near-term revenue growth.” Bank of America initiates Madison Square Garden Entertainment as buy Bank of America said the “growth-oriented, pure play on live entertainment” company has “strong financials.” “We initiate coverage of The Madison Square Garden Entertainment Co. (MSGE) with a Buy rating and a 12-month price objective (PO) of $41, implying ~30% potential upside.” Read more about this call here . Bank of America initiates Gulfport Energy as buy Bank of America said the energy company is undervalued. “With a portfolio that is 90% gas and as one of the largest natural gas producers in the US GPOR is a clear beneficiary of our constructive view on US gas.” Bank of America downgrades Xcel Energy to neutral from buy Bank of America said in its downgrade of the stock that it sees “regulatory setbacks” and “wildfire liabilities.” “We downgrade shares of Xcel Energy (XEL) to Neutral after regulatory setbacks in Minnesota & Colorado and potential wildfire liabilities that will make a positive re-rating challenging.” Stifel reiterates Bowlero as buy Stifel said it’s standing by its buy rating on the bowling company. “While investors remain nervous about a possible consumer pullback, we think what gets overlooked is BOWL’s ability to generate significant operating leverage in good times as well as bad.”
