Here are Wednesday’s biggest calls on Wall Street: BMO Downgrades Microsoft BMO downgraded the stock after Microsoft’s earnings report, citing concerns about Azure growth. “Based on continued uncertainty on Azure, we are downgrading MSFT to Market Underperform. We previously placed Microsoft on our negative watch list based on the 2023 outlook note published in December 2022 based on Azure growth.” Read more about this call here. Lowers Oppenheimer to Market “Volumes can be very volatile,” Oppenheimer said of the company formerly known as Square. “We have learned that our advanced rating SQ has been able to maintain Adjusted EBITDA. We have learned that investors are not focused on Adjusted EBITDA and gross profit in the context of high growth.” Wells Fargo launches Diamondback Energy Overweight Wells says it sees “attractive financial return goals” for the hydrocarbon exploration company. “We start with a positive outlook on FANG at OW w/$181 PT. Core Permian, strong performance and leading FCF payout.” Barclays downgrades Surun from weight to equal weight Barclays says it is concerned about declining residential solar demand. “With US residential solar demand expected to decline in 2023, we are adjusting our ratings to reflect our expectations for SPWR and RUN and how they will fare in a changing environment.” Read more about this call here. Bank of America boosts Papa John’s Bank of America said it sees the pizza chain’s stock attractive and returning to growth. “PZZA’s relative valuation of 1.4x sits slightly below the 5-year and 10-year averages of 1.5x, suggesting a more secular outlook for the pizza category.” Bank of America downgrades Booking Holdings from buy to neutral Bank of America says it sees an “undervaluation” for the online travel booking company. “However, the booking stock’s highly outperformed peer comps will continue to strengthen in 2Q, and we downgrade from buy to neutral as we now see undervalued valuations above Street 2024.” Gordon Haskett Downgrades Airbnb Underperforms Gordon Haskett downgrades Airbnb due to “overly aggressive high street top line estimates.” “Downgrade from underperformance; expect to see downward top and bottom line revisions and overly optimistic consensus estimates.” Morgan Stanley Names Tesla New Top Pick Morgan Stanley Names Tesla Its New Top Pick “Profitability, F.C.F. [and] Strong balance sheet. We reduce exposure in EV portfolio while keeping Tesla our top pick.” Read more about this call here. Bank of America Downgrades Union Pacific from Buy to Neutral , the effects of inflation (it’s 4%) and lower fuel/extra margins will help restore service levels, reduce fuel costs and offset excess economic activity.BMO Downgrades Bloomin’ Brands to Market Perform He says he sees less ownership of brands and a more “balanced” risk/reward. Data, as the risk/reward becomes more balanced, is an opportunity to move sideways.” Goldman Sachs upgraded Philip Morris to buy from neutral, saying Goldman sees a “compelling” risk/reward for the stock. Tobacco giant. We see a solid growth algo and compelling risk/reward as PM enters the US market. Bank of America says the Amazon acquisition is driving Amazon’s earnings, but remains concerned about Amazon Web Services following Microsoft’s quarterly results. “Although Azure’s FYQ2 beat gives us a little more confidence in AWS in C4Q (and we think 22% growth is possible for 4Q), we expect the street to be more cautious in C1Q following Azure’s guidance.” UBS downgrades Cheesecake Factory from buy to neutral UBS downgrades the stock due to concerns over a tough 2023 macro outlook. “We are shrinking the cake from neutral to sell: i) shares are up ~16% YTD ii) we expect a more challenging macro this year, which may impact results and earnings visibility; and iii) the view that there is risk” 23 margin guidance.” Mizuho Mizuho echoes Robin when they call 2023 a “transformational year” for Robinhood. BUY.” DA Davidson Starts As It Buys Toast DA Davidson says shares of the next-generation restaurant platform company are compelling. “The product is very compelling, with Toast reaching 11% market share with no signs of slowing down. Despite the macro concerns, we note that Toast has proven its power through tough times.” Loop, the self-driving technology company that launched Loup Mobile, says it’s “best of breed.” “Autonomous is already a reality… and it continues to get ‘real’ We want to invest the best seed into strong, structural long-term social trends and self-interest and MBLY. Loop reforms to buy Fox from takeover Loop has revamped the media company after the Murdoch family said it was abandoning efforts to merge. News Corp. and Fox. “Fox is a media company trading at 4X EBITDA, even at our lowest estimate, and is strategically well-positioned with a focus on news and sports and is not involved in the high-cost streaming business.” Wedbush Downgrades DR Horton to Neutral from Outperform Wedbush downgrades the homebuilder to “lower than expected.” Cost reductions required to maintain sales volume for F2Q23 and F3Q23 may be higher than we previously expected.
.
[ad_2]