Here are Tuesday’s biggest calls on Wall Street. Citi reiterates Meta as buy Citi raised its price target on the stock to a Street high $360 per share from $315 and said it’s bullish on the company’s Reels product. “With Reels ad loads reaching 17% QTD per our proprietary tracking, and our view that the broader online advertising market is stable-to-improving based on our attendance at the Cannes-Lions Festival of Creativity last week, we are raising our ’24 ad projections and price target to $360 on shares of our top-pick Meta .” Read more about this call here. Bank of America reiterates Roblox as buy Bank of America said Roblox is the “Metaverse” category leader. “We see an extended runway for mid-20% growth as users worldwide adopt Roblox’s Metaverse, in a virtuous cycle that will draw developers, brands, and merchants to the platform.” Goldman Sachs upgrades Kellogg to buy from neutral Goldman said it sees the stock as mispriced. “We upgrade K to Buy, as we see a stock mispriced for the growth potential it offers investors; we see opportunity to exploit the dislocation we believe this exacerbated concern has created and recommend investors buy this secularly advantaged growth stock on sale.” Oppenheimer reiterates Nike as outperform Oppenheimer said it’s standing by its outperform rating heading into earnings later this week. “Overall, as we consider this week’s forthcoming quarterly announcement from NKE , we are optimistic that a combination of now downbeat investor sentiment and prospects for still solid underlying trends should position shares well for potential ‘pop higher’ near term, all the while helping to create a stronger foundation for continued gains, over the next several months.” Bank of America reiterates Disney as buy Bank of America said it’s standing by its buy rating on the stock. “We remain confident that Disney has the proper mix of IP, content library/rights, brand value, park expansion opportunities and leadership to manage through the present challenging environment and position the company for future growth.” Bernstein reiterates Tesla as underperform Bernstein said it’s not very optimistic that Tesla’s entry into EV charging will help the company’s margins. “We see EV charging as a low barrier-to-entry business, which likely points to relatively low margins and ROI.” Wolfe initiates Frontier Communications as outperform Wolfe said the cable and communications company has “leading speed and reliability.” “Our investment thesis hinges on Frontier’s advantages in service of perpetually rising consumer data demand. Frontier’s network passes 15M homes, of which Frontier is upgrading 10M+ to fiber.” JPMorgan upgrades Coterra to overweight from neutral JPMorgan said shares of the hydrocarbon energy company are attractively valued. “We view CTRA’s commentary at our conference as among the most positive in our coverage group, and we come away with increased confidence in the company’s operations going forward.” Bernstein downgrades Alibaba to market perform from outperform Bernstein said the set-up looks too challenging right now for Alibaba. “We upgraded Alibaba a year ago on the basis that the stock had discounted perpetual low growth, and that reopening would help support growth via better category mix. Alibaba’s shares have traded in a range since — but while they remain cheaply valued, perpetual low growth no longer feels like an aggressive bear case.” Citi reiterates Micron as buy Citi said it’s standing by its buy rating heading into earnings on Wednesday. “We expect the company to miss F3Q23 Consensus and guide F4Q23 below Consensus given DRAM market weakness (73% of F22 sales) and the China ban. However, we still believe Micron fundamentals are driven by the DRAM cycle and expect a DRAM recovery in 2H23 driven by undersupply regardless of the China ban.” Bernstein downgrades Alphabet to market perform from outperform Bernstein downgraded the stock mainly on valuation. “To many investors (and sell-siders), Google’s stock is akin to a warm hug. Yet every so often Google’s stock appears fairly valued just as it does today, with a balanced risk/reward and narrative that has quickly caught up to fundamentals, driving Google’s stock up +40% from November lows. It’s time to move to the sidelines.” Wells initiates Unity Software as overweight Wells said in its initiation of Unity Software that it sees an attractive buying opportunity. “Waning metaverse hype and questions around IS (right asset, wrong price, inopportune time) have overshadowed a meaningful mobile cross-sell opportunity, cost synergies, and Industry TAM—creating an attractive buying opportunity.” Evercore ISI upgrades Saia to outperform from in line Evercore said in its upgrade of the transport company that the risk/reward is skewed to the upside. “But in those rare cases where results may actually hold in (beat?!), and a long-term story is improving, the risk does appear skewed to the upside (even if a stock has vastly outperformed YTD). As such, we upgrade SAIA to Outperform.” Barclays reiterates Eli Lilly as overweight Barclays raised its price target on the stock to $500 from $420 and says its oral obesity drug is best-in-class. ” Lilly incretin pipeline bests even high expectations into ADA, emerging with reinforced leadership supported by best-in-class oral.” Northcoast upgrades Wingstop to buy from neutral Northcoast said it’s getting more bullish on the stock after a meeting with company management. “We are raising our rating for Wingstop to BUY from NEUTRAL following our meeting with Wingstop CFO Alex Kaleida last week in Dallas. We left the meeting encouraged that Wingstop’s growth strategy in play will sustain industry-leading performance.” JPMorgan initiates Cars.com as overweight JPMorgan said the online auto marketplace is a “safe place to hide.” “We initiate on CARG and CARS at OW as we believe the auto marketplace sector is a relatively safe place to hide in the current macro backdrop given undemanding valuation and some cyclical support as new car inventory builds and both dealers and consumers look to get increasingly efficient in buying and selling vehicles.” Jefferies initiates Roper as buy Jefferies said in its initiation of the diversified tech company that it provides a “cushion against a softening macro.” ” ROP is a diversified portfolio of 27 businesses serving niche end markets in noncyclical industries. The majority of ROP’s assets are software-based and mission critical to end users, providing cushion against a softening macro. Bank of America reiterates Analog Devices as buy Bank of America said the stock has “best-in-class free-cash flow generation and returns.” “With ADI FCF margin well above TXN, we see room for multiple expansion, especially as ADI reverses 2-3 points of headwinds from various items.”
