Here are the biggest calls on Wall Street on Tuesday: Citi reiterates Tesla as sell Citi kept its sell rating on the stock heading into earnings on Wednesday but said the setup for Tesla seems “balanced if not slightly positive.” “If Q3 beats and management delivers some reassurance on Q4 and 2023 (IRA impact, cost/unit outlook relative to pricing), the stock likely bounces post the recent pullback. But we are not sure the Q3 update alone can fully address macro concerns into Q4 and 2023, so the stock might quickly revert to trading on macro/industry data points.” Wedbush downgrades Carvana to neutral from buy Wedbush said in its downgrade of Carvana that it sees severe cash burn and deteriorating market conditions. “Indeed, our updated forecasts call for CVNA not being able to maintain enough cash to meet its floorplan requirements and finance its business through 2023 without additional committed liquidity sources.” Read more about this call here . Jefferies upgrades Target to buy from hold After a change in analyst coverage, Jefferies upgraded the big box retailer and said it sees “margin improvement.” “Amid a challenging macroeconomic backdrop, subdued valuation and improvements in supply chain and inventory positioning support our bullish stance on TGT. We believe 2H-weighted risk exists, but that is contemplated in our numbers for ’22, while ’23 will likely realize margin improvement.” Read more about this call here. Bernstein reiterates Apple as market perform Bernstein said it has several concerns heading into earnings next week and that it sees potential downside and “consumer sluggishness.” “More broadly, we worry that AAPL may have been a Covid beneficiary, amid work/learn from home and strong consumer spending, which could reverse, particularly as consumers’ spending priorities change and rising rates potentially pressure demand.” Raymond James upgrades Enviva to strong buy from outperform Raymond James said in its upgrade of the renewable energy company that it sees a compelling entry point for shares of Enviva. “With approximately 50% upside to our target price, plus the healthy and growing dividend, we think that the stock’s recent dislocation provides a compelling entry point.” Read more about this call here. Goldman Sachs reiterates Chipotle as buy Goldman said the stock is too compelling to ignore heading into earnings next week. ” CMG is scheduled to report 3Q earnings on October 25. We continue to view CMG as one of the most compelling growth stocks in the industry given the strong top-line (unit growth and SSS) and leading margin profile.” Deutsche Bank reiterates Microsoft as buy Deutsche Bank said Microsoft is still the “best house on the block” heading into earnings next week. ” Microsoft is set to report F1Q23 results post-close on Oct. 25th; while the high degree of macro uncertainty remains top of mind for investors, we don’t anticipate any big surprises from the print.” Deutsche Bank downgrades International Paper to sell from hold Evercore ISI initiates Clorox as underperform Evercore initiated the cleaning supply company and says it has a lack of visibility. “The 12-month forward outlooks for sales and profits of bond proxies like KMB and CLX have rarely been this unclear.” Barclays initiates Abbott Labs as overweight Barclays said in its initiation of the medical device company that it’s a “safe haven” in a downturn and that it will outperform. “Against this likely backdrop, we would expect the large liquid names in our coverage to continue to outperform the market and our universe, at least in the near term. Names best fitting this theme in our universe include ABT , JNJ and MDT.” Bank of America upgrades Owens Corning to buy from underperform Bank of America said in its upgrade of the building materials company that has it has an “attractive valuation.” “We upgrade Owens Corning to Buy from Underperform and raise our price objective to $95 from $82 based on 5X EV/EBITDA our new 2023 forecast. We believe roofing demand improved in 3Q and early 4Q (partially supported by Hurricane Ian) and tight industry capacity is allowing OC to continue to push through pricing in roofing/insulation.” Morgan Stanley reiterates Amazon and Alphabet as overweight Morgan Stanley said in a deep dive note that it expects Amazon and Alphabet to continue to make an even bigger push for a larger share of connected tv and streaming. “We see GOOGL / AMZN Driving ~28% of the US CTV Industry: We expect GOOGL and AMZN to further their push into CTV (connected TV.)” Barclays reiterates Amazon as overweight Barclays sad investors should buy the stock ahead of earnings later this month. “We think AMZN has one of the better revenue and margin trajectories among mega-cap tech the next few quarters.”
Tesla, Amazon, Alphabet, Carvana, Target
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