Here are the biggest calls on Wall Street on Tuesday: Deutsche Bank reiterates Roblox purchase Deutsche says it expects a strong earnings report for Roblox when the online gaming platform company releases results on Wednesday. “Strong data points to strong Q3 results with fast bookings and DAU (direct active users) growth compared to Q2, marking a reversal from engagement softness recently observed in the first half of 2022 and alleviated investor concerns around slowing booking and user trends.” JPMorgan reiterates Carvana is JPMorgan’s neutral said the auto company has used remains challenging after last week’s disappointing earnings report. “Net-net, the opportunity exists is not a reason to get into the stock right now, and we believe that CVNA is far from leaving the jungle, because even if the industry bottoms out, we don’t see a rebound in the stock market. V-shaped recovery in the industry, especially with challenging medium-term supply dynamics for 1-5 year old cars and negative equity risk, coupled with CVNA’s growing debt burden .” Read more about this call here. Jefferies downgraded Six Flags to retain acquisition Jefferies said in downgrading the amusement park company that “short-term earnings capabilities are being challenged.” “Based on the increasingly negative economic outlook and our expected ‘transition’ in Q3 22 for SIX, we believe a more cautious approach is warranted.” Deutsche Bank upgrade Dave & Buster’s to buy from its Deutsche holding said in the stock upgrade that it found the risk/reward “attractive”. “As we scan our entire restaurant coverage for opportunities, in an area that is still a difficult macro (or at least in what logically it should be a macro). very tough on consumer spending), we think the Risk Reward on PLAY now stands out to be quite attractive and therefore we are upgrading the stock to Buy, from the former Hold. Read more about this call here. Deutsche Bank downgrades Jack in the Box to retain its purchase Deutsche said in downgrading Jack in the Box that it sees a more balanced risk/reward for shares of the fast food chain. “Overall, this is a Reward and Risk Valuation call, and nothing more than that.” Barclays Upgrades Scotts Miracle-Gro to the Same Weight Scale Barclays said during the lawn care manufacturer upgrade that it enjoys the company’s strong free cash flow. “We expect SMG to decline rapidly from here even over a wide range of macro scenarios.” Read more about this call here. Evercore ISI downgrades Lyft to Better. The company said it called the stock wrong and it noticed a “lack of late-cycle traction” following Lyft’s earnings report on Monday. “We are downgrading LYFT’s stock from Outperform to Good following Q3 EPS results.” Read more about this call here. Bank of America reiterates that Bank of America’s neutral bank Meta said it sees too much trouble for Meta stock right now. “However, we expect unusual pressure on E-Commerce spending in Q4 (with a shift to travel/entertainment), a cautious ad channel test in 2023, and a potential for growth. the possibility of a tax loss over the next two months will limit enthusiasm for the stock” Oppenheimer named Freshpet a top pick pet food. “We’re adding FRPT back to top pick status and raising our PT to $80. We view last week’s report as a clear positive on many fronts given the CEO’s announcement Proven CPG is Todd Cunfer on CFO role. top motivator, reiterates 2025 sales target and resets Streets to new adjusted EBITDA metric.” Morgan Stanley reiterated Palo Alto Networks when Morgan Stanley said that this setup is attractive for the cybersecurity company’s stock and it “smashes the table” for investors to buy shares. “With a lower growth outlook largely reflected in valuation, the setup looks much better from here. Put the table on PANW, while beaten-up names like OKTA are starting to look attractive.” Morgan Stanley reiterates that Apple is overweight The price-to-earnings ratio is the relationship between the company’s stock price and earnings per share. “The opportunity to ‘buy at a discount’ presents itself, but flexible iPhone production tracking remains key.” Wedbush downgraded Williams-Sonoma to neutral versus outperforming Wedbush said it sees a “dark” macro outlook for earnings next week. “We move to the sidelines of WSM into Q3 FY22 earnings likely Nov. 16 AMC. Although we expect a slight drop for Q3, the macro outlook is dark and the inventory industry is too heavy. causing us to drastically reduce our future estimate.” Bank of America reiterated Nvidia when it bought Bank of America said it is on the edge of Nvidia stock that will hit earnings next week. “NVDA trades at a 32x PE of premium FY24/CY23, which leaves the stock vulnerable to market volatility/rising rates and losing interest in large-cap technology.” Macquarie upgrades Block to outperform neutral Macquarie said during the payments firm upgrade that it sees an “improved bullish/bearish position” for Block’s stock. “Upgrading to Better with active leverage, although we acknowledge the Buy Now, Pay Later (BNPL) story remains uncertain.” Read more about this call here. Deutsche Bank reiterates Electronic Arts as a top choice. Deutsche says it’s optimistic about the company’s upcoming release. “EA remains our top pick in video games this year, based on (1) strong underlying growth across major franchises (including EA Sports and Apex Legends), (2) a pretty strong release vehicle for fiscal year 23’s balance, including additional sports and another Star Wars game.”
