Here are Thursday’s biggest calls on Wall Street: Truist downgrades Procter & Gamble to prevent a buyout of downgraded Truist from Procter & Gamble on a valuation basis. “We believe the company has done a great job refocusing its product portfolio, cutting nearly $10 billion in overhead and other costs, and improving investor sentiment over the past five years. However, we now believe that the stock’s current valuation fully reflects this shift effort. ” Citi Names Meta a Citi Top Pick Citi said Meta is a new top pick based on the strength of its advertising platforms. “Chief among these include stabilizing trends across online advertising, but those platforms that focus on ad innovation must continue to outperform, and we highlight META, our top new pick overall.” JPMorgan echoed on Netflix as overweight JPMorgan said it was becoming “increasingly positive” on Netflix stock. “Increasingly positive impressions from upfront presentation, with paid engagement launching broadly during Q2; weight gain, $380.” Jefferies echoes Amazon as Jefferies said it sees a “strong AI opportunity” for the e-commerce giant. “AMZN’s advertising platform is still ahead of its e-commerce competition, and all of the data exhaust creates a strong AI opportunity.” UBS has promoted Albemarle to buy from neutral UBS, and said it sees a compelling entry point for the lithium company. “We upgraded ALB to a Buy as we see the current reversal in China lithium prices and the reset for 2023 earnings resulting in an increasingly positive sentiment for the stock.” Read more about this call here. Deutsche Bank names FedEx a stimulus call buy idea Deutsche added a stimulus call buy idea in FedEx and said it is heading higher for earnings next month. “We believe the results coming out of FedEx next month could be a beneficial positive catalyst for stocks. We see little to no risk in the same quarter and are very positive about the 2024 earnings potential and guidance compared to the consensus.” Read more about this call here. Citi adds a negative catalyst observer on Williams-Sonoma Citi adds a negative catalyst observer on Williams-Sonoma and says it is concerned about slowing consumer spending. “We expect SSS to fail based on weak trends in Citi Card data related to home furnishing spending and cautious commentary from retail peers on home demand.” Jefferies promoted Rambus to buy from Hold Jefferies and said the chip interface technology company is underappreciated. “As a provider of IP and chips to accelerate and secure data transmission in the data center infrastructure of the big three DRAM vendors and chip designers, RMBS is an important player for the sustainability of the semi-end value chain.” Susquehanna Reiterates Nvidia as a Positive Bullish Heading for Nvidia’s Earnings Next Week Susquehanna said. “Overall, we expect better results/guidance, largely driven by the ongoing AI gold rush.” Citi echoes Tesla as the impartial Citi said recent surveys show Tesla has an “impressive loyalty lead.” “Tesla continues to sport one of the most impressive loyalty metrics in the industry, having a brand loyalty rate of 67% (LTM as of Q1) versus approximately 46% for luxury brands.” Deutsche Bank names Charles Schwab as top pick Deutsche Bank said it sees Schwab shares rebounding. “We are encouraged by the recent improvement in the pace of decline in balance sheet deposits at SCHW, with client cash sorting continuing to moderate.” Read more about this call here. Jefferies echoes Walmart as Buy Jefferies said the big-box giant remains a top pick after its strong earnings report Thursday morning. “WMT showed strong Q1 results across the board, with Q1 net sales, SSS, GM, EBIT margin and EPS all ahead of the consensus.” Evercore ISI upgrades Teva Pharmaceuticals to outperform its Evercore line that said the drugmaker is underappreciated. “Meanwhile, a very interesting setup has emerged: Despite Teva’s cost-cutting campaign of the past few years, two brand programs are getting close to major clinical events.” Oppenheimer echoed Toll Brothers as the outperforming Oppenheimer said the homebuilder is the top pick heading into earnings next week. “TOL will release its EPS report for fiscal year 2Q23 (end-April quarter) next Tuesday afternoon (24/5). Although we expect a clean cadence and upbeat comments, expectations have been raised since winter and the cap has been lifted for both EPS and orders. Bank of America upgrades Cincinnati Financial to buy from neutral Bank of America and says it sees margin increase for the insurance company. “Beginning in mid-2022, the rise in overall claims affected Cincinnati’s results, resulting in an underperformance compared to the peer group. However, we believe the worst is over.” Seaport launches Array Technologies as Buy Seaport in its solar startup said it sees profits picking up. “As the world’s second largest provider of tracker solutions (equipment, software and support services) for utility-scale solar projects, ARRY earnings should grow on the back of continued upward trend in tracker deployments, with global installations over 2020-30 projected totaling $650 to 700 gigawatts.”
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