Amazon, FedEx, Tesla, Apple, Snowflake
Here are Friday’s biggest calls on Wall Street: KeyBanc reiterates Apple as overweight KeyBanc said Apple shares remain attractive. “We recommend owning AAPL. Our KFLD (KeyBanc First Look Data) shows that indexed consumption was +2.0% m/m August, versus the three-year average of +1.0%. On a positive note, QTD data appears to be tracking + 15% where September should be strong given the extra week of iPhone sales this year.”[ads1]; Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it sees a big boost to Tesla earnings from the Inflation Reduction Act. “We estimate that Tesla will produce > 3.1mm EVs in the US by 2030. Assuming the $10,000 IRA ‘boost’ per unit could be worth > $30B to the company, nearly 50% potential upside to our $65B FY30 auto EBIT .” Jefferies downgrades International Paper to underperform from team Jefferies said in its downgrade of the paper company that a containerboard price cut is “nourishing”. “We downgrade IP and PKG to Underperform and reduce estimates for WRK as well, to reflect the massive inventory glut in containerboard, with our checks indicating that orders are slowing sharply and broad-based downtime taken even by the smaller players.” MKM initiates CrowdStrike as buy MKM said the cybersecurity company is in a “league of its own.” “We believe CrowdStrike has one of the most comprehensive cloud-based platforms in the industry.” Citi reiterates Netflix buy Citi raised its price target on Netflix to $305 a share from $275, saying the streaming giant is the best way to play streaming video-on-demand. “We expect SVOD sentiment to improve and maintain our Buy rating on both Netflix and Disney. However, Netflix is our preferred way of expressing our positive view of SVOD.” JPMorgan downgrades FedEx to neutral from overweight JPMorgan downgraded FedEx after its disappointing earnings report on Thursday. “More worryingly, the results likely had a significant tailwind from fuel additions similar to F4Q22, masking the underlying weakness in the F1Q23 results and F2Q23 guidance; it’s a sobering thought to consider Express could have lost money (ex- fuel) during the quarter.” Read more about this conversation here. Morgan Stanley upgrades Alcoa to overweight from equal weight Morgan Stanley said it sees “deep value” in the mining company. “Despite strong balance sheets and cheap valuations at spot prices – even, in some cases, lower commodity forecasts – we only selectively upgrade mining stocks, those where we see deep values and/or self-help stories amid persistent macro/China extraction uncertainty. . ” Needham initiates Snowflake as buy Needham said in his initiation of the cloud computing company that Snowflake has “massive scale.” “The company benefits from its Cloud-Native Data Platform, which has (1) massive scale thanks to Cloud’s latest innovations, (2) a large, growing opportunity in a CY26 TAM that management estimates at $248 billion.” Read more about this conversation here. UBS reiterates Amazon as buy UBS said Amazon shares remain attractive. “We feel good about AMZN stock, especially on retail growth/margins; less so about AWS. Between Census data and a possible 2nd Prime Day, we feel good about retail, especially in North America.” Stifel starts Canoo as buy Stifel said it sees a positive risk/reward for electric car startups. “We are encouraged by GOEV’s focus on the most profitable automotive market segments, namely compact SUVs, pickup trucks and last mile delivery.” Bank of America Downgrades Adobe to Neutral from Buy Bank of America said it is beginning to have long-term concerns about the stock. “We’re stepping aside on Adobe, and our timing is driven by receiving the second set of survey data focused on Adobe’s Creative Cloud, not the upcoming quarter. We have a more balanced view of Adobe based on the results of our survey and channel feedback. ” Read more about this conversation here. Bank of America Downgrades FedEx to Neutral from Buy Bank of America said in its downgrade of FedEx that it sees volumes collapsing. “The company attributed its miss to higher fixed costs as volume slowed (both internationally and in the US), noting macroeconomic trends worsened later in the quarter and spending lagged in weaker demand.” Deutsche Bank reiterates Tesla as a buy Deutsche raised its price target on Tesla to $400 per share from $375 and said the automaker is well positioned for 2023. an analysis of the large potential cost benefits from the ramp-up of Berlin and Texas and the Inflation Reduction Act’s US battery production credits, following our recent tour of the Berlin factory.” UBS initiates Baidu as buy UBS said in its initiation of the Chinese technology company that it sees a positive risk/reward. “We think Baidu’s risk/reward looks attractive, as investors assign little value to its new cloud and automotive initiatives.”
