Here are Wednesday’s biggest calls on Wall Street: Canaccord downgrades Thomson Reuters to hold from buy Canaccord said it’s waiting for a better entry point for the media and financial data company. “TRI now trades at a forward PE (2024E) of 32.8x vs 23.7x for peers. While aggressive shareholder returns policies and strong execution operationally have driven up the price, we believe much of the good news is already priced in. We therefore prefer to wait for more compelling entry points.” UBS downgrades Logitech to sell from neutral UBS said in its downgrade of Logitech that it sees “structural risks” for the computer products company. “Recently many (larger) consumer companies have increased the focus on smart peripherals (incl. AR/VR) and according to experts, there will be likely various new product launches this year.” Read more about this call here. Roth MKM initiates FIGS as buy Roth said FIGS has a “healthy” brand and business. “While the stock has been a rollercoaster for investors since the IPO in May’21 (+100% from IPO price to peak, then -85% from peak to present-day), we view the business and brand as healthy, despite some missteps in a tough 2022, and a widely expected transitional 2023.” Bank of America upgrades Pearson to buy from underperform Bank of America said the selloff in the British education company is overdone. “Chegg’s recent Q1 results citing the negative impact of ChatGPT on its outlook led to a sell-off across the education space as broader AI disruption fears came into focus. But the read-across to Pearson feels overly harsh – we tweak our PO to 895p (prev. 885p), and with shares down 15% upgrade to Buy.” JPMorgan reiterates Apple as overweight JPMorgan said it’s standing by its overweight rating on the tech giant heading into earnings Thursday. “The question of whether Apple can follow the other Big Tech companies, which have outperformed on their recent prints, and raise the likelihood of a more favorable year for Big Tech over the rest of the market, is tricky as while there exist many similarities in relation to broad drivers, there are at the same time different fundamental drivers in play.” Evercore ISI reiterates Disney as outperform Evercore said it’s standing by its outperform rating on the entertainment giant heading into earnings next week. “We believe DIS could see upside to FY23 estimates later in the year as cost cutting measures progress faster than originally expected. There is also likely ~7% upside to FY24 consensus if macro holds up as expected (ad recovery in H2 CY23 and no macro impact on theme parks), however, there is ~8% downside if the macro environment deteriorates.” Bank of America downgrades Advanced Micro Devices to neutral from buy Bank of America downgraded the stock after its earnings report on Tuesday, saying it sees a more balanced risk/reward. “On a relative basis we are now Buy on NVDA, Neutral on AMD and UP on INTC, within the compute end-market. While AMD stock could be under pressure near-term, we expect some recovery as the company outlines its AI vision and potential for growth in its unique converged AI (MI300) product.” Read more about this call here. Bank of America upgrades Cogent to buy from underperform Bank of America upgraded the internet services provider and says it sees “new sales growth.” “We are upgrading CCOI to Buy from Underperform as we believe 1) new FCF generation from the Sprint Wireline acquisition, 2) related EBITDA accretion, and 3) new sales growth vectors are collectively, newly, under-represented in the stock.” Bernstein upgrades Marriott to outperform from market perform Bernstein said the hotel giant has the “highest quality” earnings stream. ” Marriott is the cleanest asset light US hotel group with lower owned and leased exposure, higher margin and lower reimbursed cost losses than Hilton or Hyatt.” Susquehanna upgrades Uber to positive from neutral Susquehanna upgraded Uber after its solid earnings report Tuesday. “Another solid quarter and guide, as profitability continues to ramp. Upgrade to Positive. $48 price target.” Mizuho reiterates Coinbase as underperform Mizuho said investors should “brace for impact” as Coinbase trading volumes decline. “We estimate COIN generated $144bn of volume on the platform in 1Q, or an average $1.6bn per day. This declined to just $1.16bn in April.” Craig- Hallum upgrades Advanced Micro Devices to buy from hold Craig-Hallum upgraded AMD after its earnings report Tuesday and said the stock is an AI beneficiary. “Potential To Become An Artificial Intelligence Winner Over Time. Upgrading Shares To BUY And Raising Our Price Target To $100.” Read more about this call here. Raymond James upgrades Chewy to outperform from market perform Raymond James said in its upgrade of Chewy that it sees a “favorable setup on easing headwinds.” “Growth in active customers has been under pressure as the big uptick in new customers acquired during COVID in 2020 go through the churn cycle.” Citi opens a positive catalyst watch on AT & T Citi said it sees multiple expansion in the months ahead for the telecom giant. “We are adding AT & T to Citi’s Positive Catalyst Watch list as we expect disclosures over the next few months to improve market confidence on the opportunity for AT & T to generate FCF of $16 billion or better during 2023 as well as reduce capital spending significantly during 2024 that can support multiple expansion from the current level.” JPMorgan upgrades Molson Coors to neutral from underweight JPMorgan said it sees further share gains for the beverage giant. “We are upgrading shares of TAP to Neutral from Underweight for two key reasons: (1) recent material market share gains within domestic premium light beer to the company’s Miller Lite and Coors Light brands as well as (2) stronger than expected 1Q23 performance.” Wolfe upgrades Prosperity Bancshares to outperform from peer perform Wolfe said the regional bank offers a “flight-to-quality.” “We view PB as a flight-to-quality name that provides investors with an attractive place to hide amid the current market tumult and upgrade shares to Outperform.” Read more about this call here. Evercore ISI reiterates Wells Fargo as outperform Evercore said it’s sticking with the larger banks as regional concerns continue. “Given persistent earnings pressure – and amid the prevailing investor concerns post the FRC seizure/sale – we remain selective in the space & continue to favor the larger banks, including WFC and PNC as our top picks.” Berenberg upgrades HSBC to buy from hold Berenberg said in its upgrade of the UK bank that it’s “structurally attractive.” ” HSBC’s footprint is structurally attractive. As well as providing the bank with access to faster-growing markets.”
Wednesday’s biggest Wall Street analyst calls: AAPL, DIS, AMD, COIN
