Here are Tuesday’s biggest calls on Wall Street: Evercore ISI reiterates Apple as outperform Evercore said it’s bullish on Apple’s venture into augmented and virtual reality. ” AAPL’s Vision Pro provided consumers a glimpse into the future of compute as we potentially shift away from mobile.” Credit Suisse upgrades Melco to outperform from neutral Credit Suisse said it’s bullish on the gambling company. “With a better-than-expected recovery in 1H23, we note four positive key structural trends and are turning more constructive on the sector: (1) a supportive government; (2) increasing per-player value; (3) successful non-gaming events so far; and (4) an early recovery sign in the VIP segment. … Shorter term, MLCO should offer the most positive earnings surprise in 2Q23.” Piper Sandler reiterates Tesla as overweight Piper said it’s standing by shares of Tesla despite constant reports of the ” legitimacy of China’s EV sales.” “For years, media reports have questioned the legitimacy of China’s EV sales, citing abandoned cars in vast parking lots. We have received investor questions on this topic recently, and as we’ve noted in past research, some skepticism is likely warranted.” Morgan Stanley upgrades Baidu to overweight from equal weight Morgan Stanley said the China multinational tech company is the “best AI play in China.” “We believe China’s AI evolution is at an inflection point, and BIDU is the best play to capture the US$7.4tn AI internet opportunity. Read more about this call here. Citi upgrades Philip Morris to buy from neutral Citi said shares of the tobacco company are undervalued. ” PM is at the forefront of the transition away from combustibles. Read more about this call here. Raymond James downgrades Palantir to outperform from strong buy Raymond James downgraded the stock mainly on valuation. “While we remain enthusiastic about Palantir’ s positioning in AI we are downgrading our rating to Outperform from Strong Buy, as shares have ascended ~$12 B in market cap and appreciated > 60% since its early May 1Q print and the launch of its AI platform (AIP) and now reflects a material element of our near term bullishness.” Citi adds a positive catalyst watch on Delta Citi said it’s bullish on shares of the airline. “A positive, catalyst watch on Delta — Delta checks several boxes, including having strong, international-long-haul exposure, a new pilots’ contract in place and no significant capex outlays over the coming years.” Bank of America adds Amazon to the US1 list The firm added the stock to its top ideas list. “We are adding Amazon.com Inc. (AMZN) to the US 1 list.” Morgan Stanley upgrades U.S. Foods to overweight from equal weight Morgan Stanley said in its upgrade of the stock that it sees “optionality.” “We’ve been looking to become more constructive on USFD following management changes and the potential for new thinking/initiatives after management’s agreement with an activist shareholder last year.” Read more about this call here. Morgan Stanley initiates Everest Re Group as overweight Morgan Stanley said it’s bullish on shares of the insurer. “The current reinsurance hard market (period of concentrated pricing power) is unlikely to dissipate in the near term. Everest Re is well positioned to benefit from the trend and successfully grow premiums and expand underwriting margins.” Morgan Stanley initiates Arch Capital as overweight Morgan Stanley said the insurance company is “best positioned for secular growth opportunities.” ” Arch Capital should be the secular growth winner as the company takes advantage of efficient capital allocation. Morgan Stanley upgrades Avis Budget to overweight from equal weight Morgan Stanley said it likes the company’s profitability potential. “With its proven track record of fleet risk management and lower opex as % of sales, we upgrade CAR to OW, PT to $230.” Read more about this call here. Evercore ISI reiterates Nvidia as outperform Evercore raised its price target on the stock to $550 per share from $500 and said Nvidia is just in the “early innings” of AI. “Following NVDA’s blockbuster guidance for Data Center revenues to roughly double in 2Q23, we have built an updated Accelerated server model and target model reflecting the potential for accelerated compute attach rate to inflect meaningfully higher led by AI proliferating across workloads.” BMO initiates Entegris as outperform BMO said the chemicals and materials company is a “multi year growth story.” ” ENTG provides specialty chemistries, materials, filtration and other process solutions to the semiconductor and high-end electronics industries.” SVB Securities reiterates Disney as outperform The firm said the Disney Bundle can “save” direct-to-consumer. “In short, one hard Disney bundle that includes content from Hulu, Disney+, and ESPN+ will deliver enough premium content to reduce churn, aggregate engagement, and generate substantial non-programming cost savings.” Goldman Sachs initiates Atmus Filtration as buy Goldman said the filtration and media solutions company is a “global leader.” ” Atmus Filtration is a $1.7 bn manufacturer of filtration systems that enable trucks and off-highway machines to efficiently operate at increasingly stringent air emissions levels.” Canaccord reiterates Rivian as buy Canaccord said it’s standing by shares of the electric vehicle company. “While Rivian’s operational issues since its 2021 IPO have proven frustrating, its vehicles remain highly desirable and well reviewed. We see the operational clouds breaking as production ramps and financials improve.” Evercore ISI reiterates Anheuser Busch InBev as outperform Evercore said its checks show that Bug Light is showing little signs of sales improvement. “No sign of Bud Light improvement as overall beer volumes slip sequentially.” Raymond James reiterates Chipotle as outperform Raymond James raised its price target on the stock to $2,300 per share from $2,100 and said demand trends remain strong. ” CMG shares have been strong YTD (+47%), and we believe can continue to Outperform given strong comp momentum, accelerating unit growth and best-in-class unit economics, and potential upside to 2024 estimates. As such, we are raising our price target to $2,300.”
