Here are Wednesday’s biggest calls on Wall Street: Bank of America reiterates Boeing as neutral Bank of America said Boeing has become a turnaround story. “In our view, the balance of short-term catalysts and longer-term issues and challenges is key to understanding BA stock.” Credit Suisse initiates ChargePoint as it excels. Credit Suisse said it has first-mover advantage in initiating ChargePoint. “We are positive on ChargePoint because it benefits from a low-cap growth model, first-mover advantage with integrated solutions and an attractive valuation.” Read more about this call here. Morgan Stanley downgrades AstraZeneca to equal weight from overweight. Morgan Stanley said it sees a better balance of risk and reward for the biopharma company. ” AZN shares benefited from an attractive GARP profile and positive R&D catalysts in 2022. Despite a forward in 2023, to equal weight to reflect the risk to earnings in the near term, the impact of drug pricing in the US above peers. legislation and relative valuation considerations.” RBC initiates Petco as it outperforms. RBC said the pet retailer is well-positioned to gain share. “Despite short-term noise amid a weakening consumer environment imminent, we believe most of the risk is embedded at these levels.Long-term, we believe the company is well-positioned to gain share in the already fast-growing pet category in the US, given the company’s revised strategy, structurally sound real estate portfolio and vet expansion opportunity.” Wolfe updates Pinterest to surpass outperformance of peers, in his stock update, Wolfe said he sees several positive catalysts. “We are upgrading PINS to outperform from 28 PTs, leveraging 30x EBITDA over FY23. Our bullish view is focused on PINS LT user growth and monetization potential under the new CEO.” Read more about this call here. Jeffries initiates Red Rock Resorts as buy Jeffries said the casino company is a “compelling growth story.” “In our view, Red Rock presents a compelling growth story with valuable real estate assets strategically located in the booming Las Vegas area.” Goldman Sachs reiterates that Apple is neutral. Goldman said investors should keep a close eye on pricing details when Apple announces its products on Wednesday afternoon. “Ahead of Apple’s big annual iPhone event, we’re most interested in how the company will approach pricing. We don’t think it’s likely that Apple will raise the prices of the Pro models because we think that would potentially reduce gross margins by pushing Pro owners to downgrade. in larger quantities to lower the ASP (Average Selling Price) of non-professional devices.” Kantor calls Sprout Social the best idea ever. Kantor said the social media software company’s stock is undervalued. ” SPT is a social media management (SMM) software provider. Essentially, brands rely on SPT to coordinate, execute and ensure transparency of their social media strategy across all major platforms.” MKM Downgrades Electronic Arts to Neutral from Buy MKM said in its downgrade on the video game maker that it sees “further margin compression.” “While the depth of EA’s development pipeline remains significant, we believe a significant acceleration in releases will occur in FY25 rather than FY24 as previously expected.” Barclays reiterates Starbucks overweight Barclays said ahead of the company’s Investor Day next week it is very bullish on Starbucks shares. Starbucks will hold its Investor Day ’22 on Tuesday, September 13th in Seattle. We view Starbucks as a premier, large-cap, high-growth global consumer goods company led by a dominant US retail and consumer goods platform, significant int. Growth is driven by China and a best-in-class digital platform. And we are excited about the new CEO.” Macquarie upgrades Netflix to neutral from underperform Macquarie said the company’s new ad-level platform is becoming more constructive. “Globally, we model the potential for $8.5 billion in ad revenue, or an additional $2.1 billion in total revenue, in 2025 if Netflix ramped up its ad sales efforts internationally, and provided that advertising level will attract an additional 10% to its subjects. bases in EMEA, LatAm and APAC countries. Morgan Stanley calls Biogen a catalytic idea Morgan Stanley called the stock a catalytic idea and said it has a “favorable upside bias and sees positive risk/reward” for Biogen stock. “Topline Ph3 data for lecanemab in Alzheimer’s disease expected in the fall. Our base case is that the study missed market expectations, but we have a more favorable skew and see a positive risk/reward for BIIB.” Telsey reiterates that Bed Bath & Beyond is down Telsey said he remains concerned about declining sales as the company works with an interim CEO and CFO. “Our main takeaway from last week’s strategic update was that Bed Bath & Beyond has improved its liquidity position and is making more aggressive cuts to align its cost structure with lower sales, but there has been no positive change in sales direction. in recent months, from 2Q22 the composition reaches (26%).” DA Davidson reiterates that Amazon is buying. DA Davidson maintained a buy rating on Amazon shares, but said that video content from “The Lord of the Rings” combined with the price increase of Prime could lead to cancellation subscribers. “A large number of consumers may not be interested in LOTR (Lord of the Rings), may not be happy with the increase in Prime membership (to $139 from $119) that reflects the cost of video content (such as LOTR), and therefore may be more likely to cancel their membership.” Bernstein calls Grab Holdings the best idea Bernstein has called the multinational technology company the best idea, noting that it will benefit from the absence of disruptive competitors. “We expect Grab’s ride bookings to grow at a CAGR of 29% over CY22-24, with EBITDA/GMV (gross margin value) to remain at c12%. This level of profitability, even after taking into account overhead and payment costs, still holds. as the best in the world.” Bank of America reiterates that Warner Brothers Discovery and Disney are buying. Bank of America said Warner Brothers and Disney are best positioned to cash in on the video-on-demand advertising platform. “While it is still very early days, in our view, DIS and WBD are best positioned in the AVOD market given their scale, breadth and depth of content. Piper Sandler reiterates that McDonald’s is overweight, Piper said the fast-food giant “dominates the affordability position.” “We reiterate our Overweight rating while raising our price target to $270 per share (up from $263 previously) on MCD stock. McDonald’s dominates the accessibility positioning, which is not a proxy for the industry per se, and is based on their global advantage.”
