These are the biggest calls on Wednesday on Wall Street: Credit Suisse upgrades Foot Locker to outperform neutral Credit Suisse says it sees a “profitable path” ahead for Foot Locker. “Although FL stock is up +15% YTD, we think sentiment on the stock is still overly bearish and focused on the negative argument of Nike’s exit from FL. We see consistent evidence that the relationship with Nike is improving, and we are increasingly convinced that the planned pullback from FL will be much less damaging than we initially expected. .” Goldman Sachs downgraded Hasbro to neutral from buy and Funko sold from neutral Goldman downgraded Hasbro and Funko primarily due to execution risk. “High execution risk to consensus growth expectations with rich valuations” Read more about this call here. UBS downgraded Snap to neutral from its purchase UBS downgraded Snap following Tuesday’s earnings report, noting that it sees a more balanced risk/reward. “On the plus side, we see the potential to accelerate the rotation thanks to solid user growth and attraction to ad technology that drives end-of-spend. On the other hand, we see competition today. increasing everywhere.” Read more about this call here. Bank of America reiterates Exxon as top pick Bank of America said the oil and gas giant remained top pick after Tuesday’s earnings report. The company said it liked the company’s growth prospects. “We see XOM as set apart from its peers by a host of strong organic investment opportunities driving countercyclical growth in an environment of rising commodity prices.” Morgan Stanley reiterates PayPal is overweight Morgan Stanley said it favors a stake in PayPal but Apple Pay is a formidable competitor to the company. “However, Apple Pay has unique advantages in terms of technology, demographics, and the ability to maintain a long-term to-do list for PayPal. Loop recalls Apple when it bought Loop said it remained the same. its buy rating on Apple, but it sees some “risky downside.” “In short, while we believe Street continues to have high iPhone estimates from Q’22 December – Q’23 December, but we also continue to see the possibility of future downside risk.” Morgan Stanley initiated Rocket Pharmaceuticals overweight Morgan Stanley said at the start of Rocket Pharmaceuticals that it liked company process. Start at Overweight”. undervalued.” Deutsche Bank recalled Amazon when it bought Deutsche said it was cautious when looking at Amazon’s earnings on Thursday. “We believe Q4 earnings could be a mixed bag. We expect a better holiday season to support Q4 sales on the Street and we’re leading the Street by about 2%. significant opportunity to improve its profitability.” “We stayed at EW as we waited for a capital discipline story to emerge.” Bank of America initiated New Fortress Energy as buy “Ranking Buy and Our $67 PO reflects what we consider significant to consensus estimates given New Fortress Energy’s significant LNG supply position amid a favorable commodity price environment.” ratings on AMD stock following the company’s better-than-expected earnings report on Tuesday.” The consolidated strength in the Embedded business was offset by seasonal declines in Customers and Games and a double-digit (%) quarter-on-quarter decline in Data Center.” Read more about the Called here. believes it will continue to capture market share.” Bernstein reiterated Nike outperforming Bernstein said the stock is bullish in the long run. higher means that the DTC change will make Nike a much more attractive stock over time.” JPMorgan recalls Caterpillar as overweight JPMorgan said it still favors Caterpillar stock after the company “we’re” I believe this stock is falling after earnings, we believe, driven by the stock’s price appreciation with high expectations, while management Management made no comment on volume growth in 2023 as CAT lost $2.4 billion from dealer replenishment in 2022, which further impacted results.” Morgan Stanley reiterated Amazon is overweight Morgan Stanley says it is optimistic about Amazon’s Buy with Prime service for sellers. “We believe Buy with Prime shipping is competitively priced compared to industry peers and offers the fastest delivery.” Deutsche Bank reiterated Salesforce when it bought Deutsche said it was standing by a stake in Salesforce. “There are opportunities for Salesforce to become a healthier, more streamlined version of itself that could set the company up for a long-term future; most obviously, a more disciplined capital allocation.” Craig-Hallum downgraded Advanced Micro Devices to not buy AMD downgraded Craig-Hallum primarily based on valuation following the company’s earnings report on Tuesday. “In addition to the broader macro difficulties the company is facing in the near term on PCs and cloud customer digests, we believe it may be difficult for the company to drive growth.” revenue in 2023, after years of very strong double-digit revenue growth, so with the stock trading at 20x our lowered 2024 EPS estimate, we is on the sidelines and downgraded the stock to Hold.” Morgan Stanley reiterates Walmart is overweight Morgan Stanley says growth remains strong for Walmart’s subscription service, Walmart+. “The Walmart+ strategy may be evolving from optimizing the experience to driving faster membership growth.” Morgan Stanley Reiterates Overweight McDonald’s Morgan Stanley said the fast food giant is well-positioned for 2023 after reporting strong earnings on Tuesday. “Q4 ended an outstanding year for MCD in terms of top revenue, well positioned as we head into ’23 with new LT plans to be launched later this year.”
