Wall Street analysts' biggest calls on Friday
Here are Friday's biggest calls on Wall Street: Bank of America reiterates Netflix as buy Bank of America said it sees a "strong growth opportunity" ahead for Netflix's password sharing service. "Our survey of 1,000+ Netflix users in the US/UK (in Appendix below) suggests that most households would pay for password sharing in some form and a large percentage were amenable to downgrading their service to an ad-supported tier." Goldman Sachs initiates SQM as sell Goldman said the Chilean chemical company is exposed to ongoing lithium price weakness. "Our more cautious view is supported by a combination of 1) GS expectations of a multiyear lithium oversupply and price pressure; 2) uncertainties related to SQM's concession renewal and/or new terms/costs in case of a renewal." Read more about this call here. Cantor Fitzgerald initiates 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 first-mover advantage, four different revenue streams that provide diversification and help to de-risk the company, and bipartisan support." Credit Suisse upgrades TE Connectivity to outperform from neutral Credit Suisse said the consumer electronics company is an Inflation Reduction Act beneficiary. "Resilient auto production, rising EV mix, relatively low exposure to communications markets, margin tailwinds from restructuring, improving FX and commodity outlook, combined with the pull back in the stock since Q2-23 results lead us to upgrade TEL ." Evercore ISI adds Dell to the tactical outperform list Evercore said it's bullish heading into earnings on June 1. " Dell will report its Apr-qtr results on June 1st after market close and we expect the company to report generally in-line to modest upside vs. consensus estimates of $20.299B/86c driven by a conservative guide coupled with better performance on the core storage business." JPMorgan upgrades Bloom Energy to overweight from neutral JPMorgan said the selloff in the the energy company is "overdone." "We are upgrading BE to Overweight from Neutral. We believe the recent pullback, down 45% since mid-February, is overdone and that investors can take advantage of the volatility to add to positions in a stock that we believe will be a long-term beneficiary of the energy transition." Read more about this call here. RBC initiates Planet Fitness as outperform RBC said it sees an attractive entry point for the gym stock. "New store growth will remain a key point of debate near-term, but we believe the recent pullback presents an attractive entry point for PLNT shares." Read more about this call here . Deutsche Bank reiterates Tesla as buy Deutsche said it's standing by its buy rating on the stock after a visit to the company's Giga factory in Texas. "All in, we came away encouraged that Tesla could deliver cost improvements and efficiencies in the quarter ahead which may help offset some of the pressures, but we still worry the company may have to take additional price cuts in a weakening environment, which could put further pressure on earnings." Argus upgrades Wendy's to buy from hold Argus upgraded the restaurant chain on strong growth prospects. "We expect Wendy's to benefit from unit expansion, strong international growth, and investments in its digital business. Macquarie downgrades Disney to neutral from outperform Macquarie said it sees too much uncertainty for the media giant. "We downgrade DIS from Outperform to Neutral as we see near-term uncertainties weighing on earnings, valuation, and sentiment." Bank of America adds R1 RCM to the US1 list Bank of America added the management services company to its top picks list and said it's heading in the right direction. "The end of 2022 was clearly challenging for RCM, with the customer issues/longer payer cycles/management change all weighing on the stock. Yet, we think all three of these factors are moving in the right direction." Oppenheimer reiterates Home Depot as outperform Oppenheimer lowered its price target on the stock to $360 per share from $400, but said investors should buy the dip. "As we consider recent, weaker than planned results at HD, we find a number of notable intermediate, longer-term positives for the company, and shares, including: prospects for top-line trends to re-solidify, as weather and lumber price dislocations abate." Citi upgrades Gap to neutral from sell Citi upgraded Gap ahead of earnings next week and said it sees more balanced risk/reward. "Expect 1Q Miss, Weak 2Q Sales Outlook, but Risk/Reward More Balanced; Upgrade to Neutral." Evercore ISI initiates Gen Digital as outperform Evercore initiated the company formerly known as NortonLifeLock and said it's underappreciated. "For those that view GEN (formally known as NortonLifeLock) as just another consumer AV (anti-virus) company, that's a misperception we hope to clear up and why we believe our O/P and $27PT is justified." Morgan Stanley upgrades Shake Shack to equal weight from underweight The firm said it's getting slightly more constructive on shares of Shake Shack. "Agreement with an activist investor offers potential operational/cost changes and greater accountability, catalysts in the coming years which we think no longer warrant our UW rating on the stock. Timing uncertainty, and debates about longer term still keep us from being more bullish yet." Citi initiates Apollo Global, Blue Owl and KKR as buy Citi initiates several alternative investment companies on Friday and says it likes their "structural tailwinds and growth potential." "We favor the alternatives over the traditionals given more favorable structural tailwinds and growth potential. Top picks include: Buys on KKR, APO , and OWL. "
Source: CNBC
