Here are Friday’s biggest calls on Wall Street: Bank of America reiterates Netflix with Buy Bank of America announcing that it sees a “strong growth opportunity” pending its password-sharing service Netflix. “Our survey of over 1,000 US/UK Netflix users (in appendix below) indicates that most households would pay for password sharing in some form and that a significant proportion were amenable to downgrading their service to an ad-supported category.” Goldman Sachs SQM Started to Sell It Goldman said the Chilean chemical company is vulnerable to continued weakness in lithium prices. “Our more cautious view is supported by a combination of 1) GS’ expectations on multi-year lithium oversupply and price pressure; 2) uncertainties regarding SQM franchise renewal and/or new terms/costs in the event of renewal.” Read more about this call here. Cantor Fitzgerald started Intuitive Machines as Buy Cantor said the space exploration company has a “first mover” advantage. “We believe LUNR benefits from a disruptive business model with a first-mover advantage, four different revenue streams that provide diversification and help de-risk the company and support bipartisanship.” Credit Suisse upgraded TE Connectivity to outperform neutral Credit Suisse, and said the consumer electronics company is a beneficiary of the inflation-lowering law. “Flexible vehicle production, elevated electric vehicle mix, relatively low exposure to telecom markets, tailwinds to margins from restructuring, and an improving FX and commodity outlook, combined with the decline in inventory since Q2 2013 results, is driving us to upgrade TEL.” Evercore ISI adds Dell to its list of tactical outperformers Evercore said it headed higher for earnings on June 1. . Consensus estimate of $20,299B/86c driven by conservative evidence paired with better performance in the underlying storage business.” JPMorgan upgraded Bloom Energy to Overweight from neutral JPMorgan and said the energy company’s sell-offs are “overweight.” “We upgrade BE to Overweight from Neutral. We believe the recent pullback, which has been down 45% since mid-February, is overdone and that investors can take advantage of volatility to add deals in stocks that we believe will be long-term beneficiaries of the energy transition.” Read more about that call here. RBC launched the Planet Initiative Fitness RBC excelled and said it sees an attractive entry point for the gym stock.”New store growth will continue to be a major point of discussion in the near term, but we believe the recent pullback is an attractive entry point for PLNT shares.”Read more about that call here.Repeat Deutsche Bank Tesla Buying Deutsche said it stands with a Buy rating on the stock after visiting the company’s Giga plant in Texas.”Overall, we’ve come out encouraged and encouraged that Tesla can deliver cost and efficiencies improvements in the next quarter, which may help offset some of the pressure, but we’re what we don’t know. We remain concerned that the company may have to make additional price cuts in a weak environment, which could put further pressure on earnings.” Argus upgraded Wendy’s to buy out Argus upgraded the restaurant chain based on strong growth prospects. Wendy’s from unit expansion, strong international growth, and investments in its digital business.” Macquarie downgraded Disney to neutral from outperforming Macquarie and said it sees a lot of uncertainty for the media giant. “We downgraded DIS from Outperform to Neutral as we see near-term uncertainties impacting earnings, valuation and sentiment.” Bank of America has added R1 RCM to its US1 list Bank of America has added the management services company to its list of top picks, and said it’s moving in the right direction. “The end of 2022 was clearly challenging for RCM, with customer issues/longer payment cycles/management change weighing on inventory. However, we believe these three factors are moving in the right direction.” Home Depot’s Oppenheimer reiterated that the outperforming Oppenheimer cut its price target for the stock to $360 a share from $400, but said investors should buy the dip. “As we take into account the recent, weaker-than-planned results in HD, we find a number of medium- and long-term positives for the company and the stock, including: prospects for a re-establishment of top-line trends, such as weather and lumber price turmoil, easing.” Citi upgraded Gap to Neutral from selling Citi upgraded Gap before earnings next week and said it sees a more balanced risk/reward. “Expect 1Q Miss, Weak Q2 Sales Outlook, But Risk/Reward is More Balanced; Upgrade to Neutral.” Evercore ISI has launched Gen Digital as Evercore outsmarted the startup formerly known as NortonLifeLock and said it was underappreciated. “For those who view GEN (formally NortonLifeLock) as just another consumer (antivirus) company, this is a misconception we hope to clear up and why we believe O/P and 27PT are justified.” Morgan Stanley upgraded the Shake Shack to an equal weight underweight. The company said it’s getting a little more positive on Shake Shack stock. “The agreement with an active investor provides potential operating/cost changes and greater accountability, and catalysts in the coming years which we believe will no longer warrant our UW rating on the stock. Uncertainty about the timing, and discussions about the longer term continue to prevent us from being more bullish yet.” Citi launched Apollo Global, Blue Owl and KKR as Citi began buying several alternative investment firms on Friday and says it likes the “structural tailwinds and growth potential.” “We prefer alternatives over tradition due to the more favorable structural tailwinds and growth potential. Top picks include: Buying from KKR, APO and OWL.”
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