By | April 3, 2023

Bank of America adds Lowe’s to US 1 list Bank of America added the home improvement giant to its list of top ideas. “We add Lowe’s Cos Inc. (LOW). We renew Thomson Reuters Corp (TRI) after 52 weeks on the list. We remove Wex Inc. (WEX).” Bank of America Names Netflix One of Top Picks for Q2 Bank of America said it is bullish on the streaming giant as the second quarter begins. “Backed by its world-class brand, leading global subscriber base (> 230 million) and position as a leading innovator, we believe Netflix is ​​poised to outperform driven by four main drivers: (1) a crackdown on password sharing, (2) the introduction of a value-oriented, ad-supported tier that expands TAM and monetization.

JPMorgan upgrades Macy’s to overweight from equal weight JPMorgan said it sees a favorable risk/return outlook for Macy’s. “The key takeaway from our meetings was clear confidence in the FY23 top and bottom line plan and multi-year low double-digit EBITDA margin profile with 5 ‘self-help’ growth vectors (private label, out-of-mall expansion, digital marketplace, luxury brands, personalization) driving a return to low single digit top line growth and increasing EBITDA margin expansion YOY in FY24.” Read more about this conversation here. Credit Suisse Downgrades LPL Financial to Neutral from Outperform Credit Suisse said it sees reduced upside for the financial stock.

Downgrade LPLA to Neutral (from Outperform) – And cut our SOTP-derived target price to $205 (from $245). Thesis downgrade focuses on reduced upside cuts post-EPS.” Goldman Sachs reiterates Tesla on buy Goldman said it is sticking to its buy rating after Tesla reported its delivery numbers over the weekend. “Tesla reported preliminary 1Q23 vehicle deliveries of approximately 423,000 (up 4% quarter-over-quarter and up 36% year-over-year) and production of approximately 441,000 vehicles.” Stephens upgrades US Bancorp to overweight from equal weight Stephens said in its upgrade of the bank that it sees an attractive risk/reward. “We upgrade USB from EW to OW with a price target of $47 (from $52). In light of industry-wide concerns about funding and the build-up risk of an economic downturn, we view USB’s risk/reward as attractive after ~24% sales since March 1.” Morgan Stanley downgrades Marqeta to equal weight from overweight Morgan Stanley said in its downgrade of the card payments and solutions company that it sees too many negative catalysts. “MQ is working through a host of headwinds over the next ~12 months, including SQ contract renewal, non-SQ stagnation, uncertainty about gross profit growth and path to profitability.

Goldman Sachs upgrades Vulcan Materials and Martin Marietta to buy from neutral Goldman upgraded several construction materials companies on Monday, saying the risk/reward is too attractive to ignore. “we see attractive risk-reward for Vulcan Materials and Martin Marietta Materials (upgrading both names to Buy) on a mid-cycle and P/B basis. We note that this call may be early as our estimates remain 10% below near-term consensus , but with valuation, volumes and price/cost closer to the bottom than the middle of the cycle, we see attractive risk-reward Read more about this call here Mizuho reiterates Coinbase as an underperformer Mizuho said it sees a lack of growth for Coinbase and is concerned about crypto contagion from regional bank fallout.”In the wake of the bank failures of Silicon Valley Bank (SIVB), Signature Bank (SBNY), and Silvergate (SI), there is an understandable reluctance among US commercial banks to increase exposure and/or engage with crypto-related businesses .

Evercore ISI Reiterates Amazon Outperform Evercore said it is “being patient with the long thesis on Amazon.” “We maintain our outperform on AMZN in the wake of several key updates, even as we lower our estimates and PT (from $160 to $155 ) based on a more conservative approach to the AWS segment.” William Blair Upgrades Allstate to Outperform Market Performance William Blair said in his upgrade of the insurer that it is well positioned. “We suggest investors buy Allstate because the stock is poised for good upside in the short and long term.” Bernstein Upgrades Intel to Outpace Market Performance Bernstein said things are slowly improving for Intel.

However, while it still looks bad, tactically we think the medium-term setup is finally improving a bit, as the company’s problems are known, and the numbers (for the first time in a while) may be low enough to withstand.” Bank of America Downgrades ADP and Paychex to Underperform from Neutral Bank of America downgraded several stocks in payment solutions companies, noting that they tend to “lag as unemployment starts to rise.”

Our analysis suggests that both ADP and PAYX tend to underperform the S&P 500 during the initial phase of a rising unemployment cycle. BofA Global Research’s economic team forecasts that unemployment will begin to rise in 3Q23 and peak in 2Q24 and also predicts only one to 25bps rate hike before reductions begin in 1Q24.” Raymond James Upgrades Alaska Airlines to Strong Buy from Outperform Raymond James said in its upgrade of the airline that it has a “relatively undamaged balance sheet.” “We upgrade ALK from Outperform to Strong Buy as it exits its seasonally weakest quarter (generally experiencing a weaker 1Q than most US peers) and is in a position to unlock the benefits of the A320/Q400 fleet transition, which is expected to be completed in May.”


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