Here are Thursday’s biggest calls on Wall Street: JPMorgan reiterates Amazon as overweight JPMorgan said growth deceleration concerns are overdone. “Amazon shares are up only 14% over the past 3 years vs. the SPX up 63%, and we continue to believe investor sentiment on AMZN is near multi-year lows.” Baird upgrades Choice Hotels to outperform from neutral Baird said the hotel company has defensive attributes. “Upgrading to Outperform: earnings outlook improving for 2023-2024; uncertainties moving to the rearview mirror.” Canaccord upgrades UiPath to buy from hold Canaccord said it’s “time to get bullish again” on the robotic software company. “Since then, PATH has made significant strides in realigning its sales force to more effectively target enterprise and midmarket accounts with high propensities to increase spend. Stifel upgrades FedEx to buy from hold Stifel said FedEx shares are compelling at current levels. “But emerging consensus around an inventory bottom and pull forward with early signs of execution on two significant tranches of cost savings initiatives ($3.7bn and $4bn, respectively) present a compelling investment opportunity at the current, deeply-discounted valuation, in our view.” JPMorgan reiterates Credit Suisse as overweight JPMorgan said it’s standing by shares of the banking giant. “Firstly and most importantly, Credit Suisse announced that it intended to access a liquidity facility with the Swiss National Bank of up to CHF50bn, a critical factor, in our opinion, that will allay some of the market concerns on liquidity.” Read more about this call here. Telsey upgrades Foot Locker to outperform from market perform Telsey said Foot Locker’s investor day next week will be a key catalyst for shares of the shoe company. “We believe Monday’s investor day could serve as a catalyst for the stock, as new CEO Mary Dillon outlines her transformation plan and financial objectives.” Susquehanna upgrades Qualcomm and Skyworks to positive from neutral Susquehanna said in its upgrade of Qualcomm and Skyworks that it sees the bottom of the semiconductor cycle in sight. “Upgrading INTC, QCOM and SWKS as we believe the acute portion of the semiconductor downcycle for the handset, PC and Consumer end markets has past. Industrial and Auto semis yet to correct.” Redburn initiates Nike as sell Redburn said in its initiation of the stock that it’s concerned about disappointing margins. ” Nike (new Sell) is an outstanding brand with a rich valuation priced for perfection, yet our work suggests that sales slightly and margin more significantly will disappoint.” JPMorgan upgrades Motorola Solutions to overweight from neutral JPMorgan called the telecom equipment company “high quality.” “We are upgrading MSI to OW from Neutral. The stock has retraced back to levels pre-4Q print, and we take advantage of overall market volatility to establish a long term position in this high-quality stock.” Read more about this call here. Mizuho upgrades Block to buy from neutral Mizuho said the company’s “pivot to profitability” is worth an “upgrade to buy.” “Our detailed fixed vs. variable cost analysis shows up to 30% potential upside to SQ’s 2023 EBITDA guide, with 400-500bps further margin growth potential thereafter amid fixed cost leverage and variable cost controls.” Stifel adds Thermo Fisher to the select list Stifel added the scientific instrumentation company to its top picks list and said the stock is attractive at current levels. “We are adding TMO to the Stifel Select List. With the stock on its way towards breaking 20x fwd P/E for the first time since the early days of the pandemic, we see current levels as highly attractive for those with a 12-month view.” Bank of America reiterates Virgin Galactic as underperform Bank of America said too many risks remain for Virgin Galactic shares. “Still on target for 2Q23 entry into service, but risks remain.” Morgan Stanley reiterates Eli Lilly as overweight Morgan Stanley said it’s standing by shares of the pharmaceutical company. “We expect data from the Mounjaro SURMOUNT-2 Ph3 obesity trial over the near-term, which are key to enable LLY to file for an expanded obesity label.” Bank of America upgrades Takeda Pharmaceuticals to buy from neutral Bank of America said called Takeda a “stable value stock.” “We are upbeat on continued growth investment, the top priority, including in-licensing of candidates.” Wells Fargo upgrades HF Sinclair to overweight from equal weight Wells said HF Sinclair has significant potential if the diversified energy company sells off its lubricants business. “We expect DINO will maintain its dividend and share buyback programs and maintain investor confidence.” Wells Fargo upgrades Progressive to overweight from under weight Wells said in its double upgrade of the insurance company that it has defensive attributes in a tough macro. ” PGR has turned the corner on growth, and we think that will drive the stock from here. We also think the market will reward more defensive stocks amid credit concerns.” KBW reiterates First Republic Bank as outperform KBW said it’s standing by shares of the regional bank. “Bloomberg reports that FRC is weighing its options, including a potential sale or shoring up additional liquidity.” Wedbush upgrades On Holding to outperform from neutral Wedbush said the shoe manufacturer is compelling. “We believe that ONON is one of the most compelling growth stories in our space.”
