Listed below are Monday’s greatest calls on Wall Road: UBS initiates Okta as purchase UBS mentioned it sees a margin growth alternative for the id entry administration firm. “We see Okta as effectively positioned to profit from continued id tailwinds, a view supported by checks throughout the shopper and accomplice neighborhood highlighting sturdy id spending intentions, detailed TAM evaluation, and UBS Proof Lab information.” Learn extra about this name right here. JPMorgan upgrades HP Inc. to chubby from impartial JPMorgan mentioned in its improve of HP Inc . that it sees “resilient income and margins.” “We anticipate the mix of structural margin enchancment within the Print section on account of a number of initiatives undertaken by the corporate to offset among the margin moderation within the coming quarters with easing provide, though margin moderation ought to be extra muted than beforehand feared on higher supply-demand stability.” New Road downgrades Meta to impartial from purchase New Road mentioned in its downgrade of the inventory that it sees higher alternatives elsewhere. “No main change in view however we see higher alternatives for upside in our protection from right here after META’s outperformance relative to the group.” JPMorgan upgrades Ollie’s to impartial from underweight JPMorgan mentioned it has extra confidence in administration’s same-store gross sales information. “With OLLI underperforming the SPX by ~30% over the past 18 months, now buying and selling 10% beneath its pre-pandemic trough valuation and our latest fieldwork and administration entry pointing to FY23 ‘E’ insulation ( & beat/elevate 1Q near-term setup) given macro/micro prime and bottom-line drivers – we improve OLLI to Impartial elevating our Dec ’23 worth goal to $66. JPMorgan upgrades Lumentum to chubby from impartial JPMorgan mentioned in its improve of the optical and laser tech firm that it sees upside potential. “Upgrading Lumentum (LITE) to Obese from Impartial at the same time as there stays probability of additional draw back to consensus estimates from stock digestion at extra prospects, which is a short lived and cyclical driver relatively than a structural reflection of demand, in addition to share loss to new entrants in 3D Sensing with Apple as a buyer.” JPMorgan downgrades Dell to impartial from chubby JPMorgan mentioned in its downgrade of Dell that HP Inc. is best positioned proper now. “Leveraging our relative score system, we’re expressing our view in relation to the restoration within the second half of calendar 2023 to be extra favorable for HPQ than DELL utilizing our Obese score for HPQ and Impartial score for DELL. ” JPMorgan reiterates Amazon as chubby JPMorgan mentioned it got here away “incrementally constructive” from Amazon’s investor letter final week. “Importantly, we imagine Andy Jassy’s second letter as CEO supplied the deepest insights but into his imaginative and prescient and technique for AMZN because it touched just about all key elements of the enterprise and appeared to extra straight deal with shareholder considerations.” Morgan Stanley reiterates Tesla as chubby Morgan Stanley mentioned it is standing by its chubby score on the inventory heading into earnings later this week. ” Tesla ought to have the ability to eke out a good 1Q end result, however defending that 20% clear auto gross margin ‘flooring’ could also be a distinct story as ‘the world has modified’ with respect to EV demand weakening relative to EV provide.” Piper Sandler upgrades Biogen to chubby from impartial Piper says the biotech firm has too many engaging drivers together with Biogen’s Alzheimer’s drug, Leqembi. “Elevating Leqembi estimates and our worth goal and score on BIIB shares, now consumers to the mid $340s primarily based on what we see as a confluence of constructive catalysts over the following a number of quarters.” Learn extra about this name right here. Citi opens a unfavourable catalyst watch on Zoom Citi says it sees too many unfavourable catalysts forward for the teleconferencing firm. “We open a unfavourable catalyst watch on Promote-rated ZM as we see unfavourable information factors piling up which might additional strain development charges.” Piper Sandler upgrades Enphase Vitality to chubby from impartial Piper mentioned that it sees a positive gross sales outlook for the photo voltaic firm. “We’re upgrading ENPH to OW from Impartial. Our prior January downgrade was pushed by considerations surrounding US [residential] primarily based on indicators on the time. Disclosures from the publics and discussions with privates point out that Q1 originations/gross sales had been extra favorable than we feared thereby suggesting the US is extra more likely to decelerate than decline throughout ’23.” Raymond James downgrades Texas Roadhouse to market carry out from outperform Raymond James downgraded the restaurant firm citing lack of a number of growth alternatives. “We’re downgrading TXRH to Market Carry out from Outperform on valuation because it lately achieved our worth goal – we stay bullish on the corporate’s capability to maintain sturdy market share positive factors, however see restricted room for additional a number of growth given beneath common macro visibility and the danger of elevated beef value inflation over the following 12-18 months.” Susquehanna upgrades Taiwan Semiconductor to constructive from impartial Susquehanna mentioned in its improve of the semiconductor firm that the worst case state of affairs is already baked in. “Upgrading TSM to Optimistic because the worst-case earnings state of affairs is dialed into our estimates/ traders’ expectations.” Jefferies names Uber a prime choose Jefferies named Uber a prime choose and says it has a protracted runway for development. “Our evaluation additionally exhibits UBER has a protracted runway for margin growth, with EBITDA rising ~3x quicker than Bookings over the following 5 yrs.” Learn extra about this name right here. JMP downgrades Penn to market carry out from market outperform JMP downgraded the inventory primarily on valuation. “Buying and selling at 6.3x EBITDA/11% FCF, we discover shares of PENN pretty valued and are downgrading our score to Market Carry out from Market Outperform.” Evercore ISI provides a tactical outperform from Arista Networks Evercore added a tactical outperform name on the cloud networking firm and mentioned the “yr of Arista continues.” “Arista has loved an ideal run because it final reported earnings with the replenish 14% (S & P 500 -1%), as they’ve benefited from investor curiosity round AI in addition to a broader rotation again in the direction of development.” Morgan Stanley reiterates Microsoft as chubby Morgan Stanley mentioned the inventory is “compelling” heading into earnings subsequent week. “On the depth of cyclical impacts (macro & cloud optimization) and forward of a transformational secular shift (Cloud & AI), for which Microsoft persistently screens as greatest positioned to realize market share, we see a shopping for alternative.” Credit score Suisse reiterates Netflix as impartial Credit score Suisse mentioned it is cautious heading into the streaming large’s earnings report on Tuesday. “In our discussions, nearly all traders are constructive on Netflix , although to various levels, with a give attention to upside to Road income estimates as a consequence of password sharing monetization (together with Canada believed to have gone fairly effectively), and margin upside as a consequence of working leverage and price containment efforts (with specific visibility on content material amort), whereas anticipating a modest 1Q23 web add beat.” Wolfe initiates Test Level Software program as outperform Wolfe mentioned the software program firm is a “money producing machine.” “We get it, the macro is clearly throwing a wrench in Test Level’s capability to proceed its thrilling “development” story into 2023. Haven’t any worry although! The corporate is a extremely environment friendly, money producing machine with trade main 40%+ working margins (a rarity in our protection) and mid-40% free money move margins which we expect will allow the title to outperform this yr because the macro worsens.” Morgan Stanley reiterates Alphabet as chubby Morgan Stanley mentioned it is bullish heading into Alphabet earnings subsequent week. “We element anticipated AI-driven conduct change that we see resulting in extra sturdy multi-year e-commerce and on-line advert development, and why we imagine GOOGL is positioned to drive and profit from these adjustments.”
