Here are Wall Street’s biggest calls on Monday: Loop downgrades Apple to hold from buy. Loop said in its downgrade from Apple that it sees “downside risk to June Q revenue.” “Downgrade to hold while keeping our target price at $180 now that we’ve seen AAPL reduce its builds (and we believe shipping forecasts) for essentially the second time in the last 4 weeks.” Read more about this call here. UBS upgrades DraftKings to buy from neutral UBS said in upgrading the fantasy sports betting company that the company is seeing increasing revenue growth. “We are upgrading DKNG to Buy from Neutral with a price target of $30 (previously $19) based on higher revenue growth and greater flow-through to EBITDA.” Snowflake and Oracle the top AI picks Piper said that Microsoft, Snowflake and Oracle are the next “all stars” in AI. “Net-net, we see three AI all-stars on our coverage list as those with the greatest opportunity to capitalize on the next $100+ billion tech revolution: MSFT, SNOW, ORCL,” Citi observed Nike as a negative catalyst Citi said that Foot Locker’s negative earnings report last week did not bode well for Nike. “Following FL’s results, we believe a slowdown/overstock in the NAM (North America) sports market is a poor reflection of NKE’s F24 prospects.” Read more about this call here. Citi downgrades Foot Locker to Neutral from Buy. Citi downgraded Foot Locker after last week’s disappointing earnings report, saying its shares are not completely risk-free. “We note that while the F23 forecast has been lowered significantly, we do not consider it entirely risk free. For these reasons, we are downgrading the shares to neutral from buy and lowering our TP to $30 from $48.” Citi upgrades Norfolk Southern and Union Pacific to buy from neutral. Citi upgraded several railroad companies on Monday and says it sees a recovery and an upward trend in valuation. “We are upgrading TL-Carrier Knight to Buy along with US Rails (CSX, NSC, UNP) on our view that transportation fundamentals are at/near lows this cycle and a second derivative improvement will be a catalyst in the second half of 2023.” Read more about this call here. Wells Fargo upgrades Norfolk Southern to buy from the neutral company. Wells states that a “favorable constellation” is emerging for the railroad company. “Previously, NS faced a challenging valuation, an inflexible cost structure and a pessimistic volume outlook. Currently, bottoming out in intermodal volumes, declining productivity and an accommodating valuation are leading to a favorable constellation.” Read more about this call here. Deutsche Bank reiterates Snowflake as a buy Deutsche says its outlook on Wednesday’s Snowflake results is “constructive.” “The setup for F1Q looks fine to us as management is now embedding expansion rates for the recent cohorts below historical levels and short-term cyclical cloud spending headwinds, which we think were broadly understood when guidance was set in late February. Bank of America reiterates Deckers as a buy Bank of America said the shoe company remains one of the “best growth stories” in retail. “We continue to view DECK as a compelling beat/raise story, a rarity in today’s retail stock environment.” Cowen Names Microsoft a Top AI Pick Cowen says the tech giant is one of the company’s most popular AI stocks. “Combined with its massive installed base and the knowledge graph it can access, MSFT has many opportunities to monetize GenAI, including products like Azure OpenAI Service, Bing/Edge, Microsoft 365 Apps, GitHub Copilot and more. KeyBanc reiterates its overweight position in Nvidia. KeyBanc has raised its price target on Nvidia to $375 per share from $320 and says it is bullish ahead of announcing results later this week. “We expect gains to reflect: 1) reductions in cloud and enterprise investments offset by rising demand for AI; and 2) weakness in China with limited signs of recovery, pushing cycle bottoms into H2.” Evercore ISI Names Amazon a Top Pick Evercore says there is further “acceleration in growth” for the e-commerce giant Revenue growth and margin expansion”. “Comes in 3rd place! Consistent with our Q1 earnings per share guidance, we believe now is the time to focus on AMZN. In our view, the AWS second derivative call is highly likely to turn positive in Q3, due in part to competitive easing and in part to the later stage of the cloud optimization cycle.” Bank of America reiterates Alphabet as a buy Bank of America says the internet search giant is “well positioned for mobile.” “We believe traffic data for the ChatGPT app will be important for Google sentiment, and our early data shows that while there is early interest in the app, there is no evidence of any impact on Google traffic yet.” Truist upgrades Moog to buy from the queue. Truist said in modernizing the precision control and component systems maker that it sees “sustainable operational improvements.” “We are upgrading MOGA to BUY from HOLD and raising our price target to $130 (up from $85) as we believe MOGA mgmt is now or never about driving sustainable operational improvements.” Wells Fargo reiterates that Palo Alto Networks is a top pick. Wells says it’s bullish on the stock, which is heading into earnings on Tuesday. “While investors remain concerned about a potentially weak quarter, we expect strong positive results and PANW remains one of our top picks.”
