Tuesday’s biggest Wall Street stock calls
Here are Tuesday’s biggest calls on Wall Street: Piper Sandler initiates Colgate-Palmolive and Church & Dwight as overweight Piper said both consumer products company offer an attractive risk/reward. “We’re constructive on the overall sector, but when taking a deeper look into some key attributes that could greatly differentiate one company from another amidst the current macro backdrop as well as valuation state and tendencies, we see more positive risk/reward for CHD / CL and more balanced risk/reward for PG.” Baird initiates ResMed as outperform Baird said in its initiation of ResMed that it’s bullish on shares of the sleep apnea company. “Breathing Life Into Future Upside Despite GLP-1 Risks.” Piper Sandler upgrades Salesforce to overweight from neutral Piper said it sees an attractive risk/reward for the stock. “We are upgrading CRM to Overweight based on a favorable risk-reward given the potential for FCF per share to double to $20+ by F2029 from $9.65 in F2024, even if top-line growth remains at subdued levels of 8-9%.” Jefferies initiates Kenvue as buy Jefferies said it’s bullish on the consumer health company. ” Kenvue is in the early stages of a transformation. A business that was run for cash is now being primed for growth.” Raymond James reinstates Uber as strong buy Raymond James said the ride sharing company is a top idea. “Rather, we see Uber’s scale as a critical ingredient to improve autonomous utilization and are particularly bullish on the Waymo autonomous tech strategy and Uber/Waymo partnership potential…” Goldman Sachs names AT & T as a top pick Goldman said the stock is a top pick heading into earnings in late October. “T is our top pick heading into the quarter as we expect positive wireless results and potentially a capital allocation announcement with the initiation of a buyback.” KeyBanc initiates Dayforce as overweight KeyBanc says it’s bullish on shares of the human resources software company. “As one of the strongest executors in HCM, [human capital management] we believe continued execution from Dayforce could help drive estimate upside and modest multiple expansion towards other high quality HCM software peers and 20% software growers.” Morgan Stanley upgrades BioNTech to overweight from equal weight Morgan Stanley said immuno-oncology is the next important category for the biotech company. “We upgrade BNTX to OW from EW as we add sales for BNT327 for cancer to our model and our PT goes to $145 from $93. Oppenheimer upgrades Lowe’s to outperform from perform Oppenheimer said Lowe’s has a “discounted share valuation.” “We assume a somewhat more constructive stance on home improvement retail and shares of leading chains. Jefferies downgrades Starbucks to underperform from hold Jefferies said the Starbucks CEO change will take time to take hold. “While the new CEO suggests necessary strategic change is now on the table, we believe execution will be challenged as issues like ops, culture, value perception and tech take time to fix.” Goldman Sachs initiates Avidity Biosciences as overweight Goldman said the biotech company is well positioned in rare infectious diseases. “We initiate coverage on RNA at Buy with a 12-month price target of $59.” Redburn Atlantic Equities downgrades BP and Exxon to neutral from buy Redburn said it’s taking a more “cautious” view and downgraded several oil stocks on Tuesday. “The macro backdrop for oil has deteriorated and our updated supply-demand modelling suggests that OPEC+ will have to further delay the unwind of voluntary cuts. … .We see sector buybacks coming under pressure next year as a result and we take a more cautious view on the sector, downgrading BP and Exxon from Buy, to Neutral.” Truist downgrades Costco to hold from buy Truist said it sees “sales friction” for Costco shares. “Downgrade to Hold; changes may add sales friction; catalysts behind and valuation stretched.” Truist upgrades Walmart to buy from hold Truist said Walmart is best positioned for share gains. “We are upgrading WMT to Buy. Walmart continues to gain share across income levels, due to its focus on price, convenience and assortment.” Baird downgrades McKesson to neutral from outperform Baird said in its downgrade of McKesson that it sees too many negative catalysts for the healthcare company. “Wall of worry may mount into November reporting. Two bad prints, two talk downs of FY2Q, and other concerns and frustrations mounted over last several months.” Needham reiterates Apple as buy Needham said Apple is a good place for investors to hide. “Investors need a liquid stock to hide in during 2025 when AMZN, GOOGL, MSFT, and META are investing tens of billions of dollars in LLMs [large language model] and other GenAI infrastructure which has no visible rev upside.” Oppenheimer initiates Pinterest as outperform Oppenheimer said Pinterest is the one of the “fastest growing digital ad platform(s).” “Initiating coverage of PINS with an Outperform rating and $45 target.” Leerink downgrades Regeneron to market perform from outperform Leerink said in its downgrade of the biotech company that it’s taking a more cautious approach on the pipeline of products from Regeneron. “In addition, investor enthusiasm for REGN’s ability to innovate has increased and driven stock outperformance. Although the innovation behind the company’s pipeline is exciting, we view the product profiles and commercial prospects for a number of programs as TBD.” Guggenheim initiates GE Vernova as buy Guggenheim said it sees more upside potential for the power and renewables company. “Our research suggests that GEV is still in the early stages of a multi-year improvement in profitability, and we believe that GEV is an attractive way for investors to participate in electricity load growth in the US.” UBS reiterates Tesla as sell The firm said it’s standing by its sell rating ahead of delivery numbers on October 2. “We expect TSLA to report 3Q24 deliveries on 10/2. We now forecast 3Q24 deliveries at ~470k, which would be +8% y/y and +6% q/q.” Bernstein reiterates Amazon as outperform Bernstein said advertising is “key to the bull case once again” for Amazon. “While product search ads continue to make up the bulk of ad revenues, Prime Video ad dollar contribution is skewed heavily towards 2H24, and particularly 4Q, as dollar commits from the Upfronts, which only wrapped 3rd week of August, get deployed alongside more NFL ads and higher subscription revenues.” Citi reiterates Mastercard and Visa as buy The firm said it’s sticking with its buy rating on both stocks but is switching its preference to Mastercard due to regulatory overhangs. “The U.S. DOJ reportedly plans to file a lawsuit that accuses Visa of anticompetitive conduct related to the U.S. debit market, likely pertaining to routing practices.” Wedbush upgrades Comerica to outperform from neutral The firm added the regional bank to its best ideas list. ” CMA is the most liability sensitive bank in our regional bank coverage, and should benefit from a lower rate environment, in our view.”
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