Here are Wednesday’s biggest calls on Wall Street on Wednesday: Goldman Sachs upgrades Shoals to buy from neutral Goldman said the solar company is very attractive. “Upgrade to Buy as gross margin upside potential paired with attractive valuation look compelling.” Wells Fargo initiates WillScot as outperform Wells said the mobile trailer office company has “sustained pricing strength.” “A sticky model w/ idiosyncratic growth drivers and margin initiatives supports our above-consensus FY24; meanwhile, flexible capex and high returns enable strong FCF, which funds repo & accretive M & A.” TD Cowen reiterates Netflix as outperform TD lowered its price target on the stock to $500 from $515 but said it’s standing by its outperform rating heading into earnings next week. “Near-term, we think investors will look for net adds in 3Q & color around 4Q net adds, updates on NFLX’s monetization efforts (paid sharing & ad tier) when the co reports 3Q results, and color around intermediate term margins & FCF.” Stephens initiates Sprout Social as overweight Stephens called the software company a market leader in its initiation. “With over 32,000 customers, Sprout Social’ s social media management platform is the leading workflow solution, capable of providing customers with a holistic view of their social media presence across various apps. Raymond James upgrades Take-Two to outperform from market perform Raymond James said it’s bullish on the video game company’s upcoming releases. “Following a relatively slower period in front-line releases, we see a number of reasons to become incrementally more optimistic in the company’s near- and medium-term path forward.” Morgan Stanley upgrades Cava to overweight from neutral Morgan Stanley said it’s gaining confidence in the restaurant chain. “We’re shifting our relative preference to CAVA where we have somewhat more confidence in the catalyst path and near term estimates, as well as the long term fundamental growth story, keeping in mind our ratings are not an explicit call on the 3Q.” JPMorgan upgrades CSX to overweight from neutral JPMorgan said that rail concerns have already played out. “We are also upgrading CSX to OW as the concerns we outlined in our July 2022 U.S. rail downgrade have largely played out.” TD Cowen reiterates Nvidia as outperform TD raised its price target on the stock to $700 per share from $600 and said the company is well positioned for AI. “We believe the industry is in the early innings of two transformational paradigm shifts toward ubiquitous acceleration and Generative AI, with NVIDIA’s wide moat potentially expanding. Outperform, Top Pick, PT $700.” JPMorgan upgrades Iris Energy to overweight from neutral JPMorgan said the bitcoin mining company is “best-in-class.” ” Iris Energy (IREN) builds, owns and operates data centers and electrical infrastructure, primarily powered by renewable energy, for the mining of bitcoin.” UBS initiates Boeing as buy UBS said it sees “above consensus” free-cash flow for the aerospace giant. “Orders support higher deliveries and cash, which drive stocks. For BA, pricing and mix support above consensus FCF, with supply chain risk priced in. Read more about this call here. UBS downgrades Morgan Stanley to neutral from buy UBS said it sees too many headwinds for the bank. “We are downgrading MS to Neutral as we see headwinds that make it harder to exceed consensus estimates.” Read more about this call here. Oppenheimer downgrades Texas Instruments to perform from outperform Oppenheimer downgraded Texas Instruments ahead of its earnings report later this month on rising China competition. “We see 3Q print/4Q guide in line, following four Qs of correction-led cuts.” Needham initiates Robinhood as hold Needham initiated Robinhood with a hold and says it sees a balanced risk/reward. “We see a balanced risk reward profile given still-declining crypto trading volume and uncertainty around the return of the ‘retail stock trader’ on MAUs [monthly active users]. Truist reiterates Amazon as buy Truist said Amazon’s move into “Logistics-as-a-Service Could Unlock the Next $100B Opportunity.” “With Amazon controlling ~46% of US ecommerce, growing Chinese competition and AWS and Ad growth normalizing, we believe the company is putting together the building blocks for its next major area of growth, Supply Chain by Amazon.” Piper Sandler downgrades Arista Networks to neutral from overweight Piper downgraded the stock mainly on valuation. “We are downgrading shares of ANET from OW to Neutral primarily due to our concerns around 2024 networking spend (both from a cloud + enterprise perspective), and valuation reflecting a more balanced risk-reward profile at these levels.” JPMorgan initiates CleanSpark as overweight JPMorgan said the bitcoin miner offers “relative value.” “We believe CLSK, our top pick, offers the best balance of scale, growth potential, power costs, and relative value.” Barclays upgrades Ball Corp to overweight from neutral Barclays said the glass and jar lid company is well positioned. “Historically a steady well-run business, we think beverage can growth returns to LSD% volume growth in ’24; outsized headwinds over the last 18 months should start to ease; Mizuho reiterates SoFi as buy Mizho said investors should buy the dip in shares of SoFi. “We believe that the weakness in SOFI’s stock stems from investor concerns that SOFI has limited lending capacity, and may need to raise equity. We are not concerned and see 6-7 quarters of lending runway without the need to raise capital.” Leerink upgrades Amgen to outperform from market perform Leerink said it sees earnings upside for Amgen. “Our upgrade is both a multiple-expansion and earnings-upside call. We expect the P/E multiple to expand due to accelerating pipeline newsflow, including oncology, obesity, and cardiovascular disease. Piper Sandler reiterates Apple as overweight Piper said in its teen survey shows that Apple is the top choice among teenagers. “Apple’s share of smartphone ownership remains near record highs in Piper Sandler’s Taking Stock with Teens Fall 2023 survey.” Morgan Stanley reiterates Walmart as overweight Morgan Stanley said customer engagement is increasing at Walmart despite a decrease in food spend due to the obesity drug impact. ” Walmart customers taking GLP-1 drugs are spending more in total with Walmart, even as their food spend is down slightly.” Deutsche Bank downgrades CBOE to hold from buy Deutsche downgraded the global markets company company mainly on valuation. “However, we are downgrading Cboe Global Markets (CBOE) to Hold from Buy with this report, as we see the stock’s recent outperformance as fairly reflecting its growth prospects, and thus we no longer see significant upside in the shares, despite our relatively positive fundamental outlook.”
