Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley names Taiwan Semiconductor a catalyst driven idea Morgan Stanley said it said shares of the semis company have more room to run. ” TSMC is the major supplier of global AI chips, the business outlook for which will be read as having important implications for global AI demand.” Wolfe initiates Meta, Amazon and Alphabet as outperform Wolfe initiated Meta, Amazon and Alphabet and said it’s bullish on all three stocks. “Overall, we are selectively positive on the sector and we see pockets of opportunity.” Jefferies reiterates Microsoft as buy Jefferies said it’s bullish heading into Microsoft earnings next week. “We expec t MSFT to execute well in its seasonally strongest Q, and are fans of LT consolidation & AI story.” Wells Fargo reiterates Goldman Sachs as overweight Wells raised its price target on Goldman Sachs following earnings to $550 per share from $504. “To us, more important than the slight 2Q24 top and bottom line beat are the expectations of a meaningful improvement in IB activity and the commensurate multiplier effect, esp. given much higher QoQ backlogs and continued client activity.” Baird reiterates Tesla as outperform Baird said it’s bullish heading into Tesla earnings next week. “We are buyers of the stock ahead of Q2 EPS. We like the setup and think there is a high probability of an EPS beat.” Bernstein reiterates Nvidia as outperform Bernstein said the company’s data center opportunity is huge. ” NVDA (OP, $130): The datacenter opportunity is enormous, and still early, with material upside still possible, in our view.” TD Cowen initiates Lamar Advertising as buy TD Cowen said it’s bullish on shares of the billboard ad company. ” Lamar is the largest US billboard company by a wide margin and well positioned to maintain leading market share as the category continues to grow.” Loop downgrades Reddit to hold form buy Loop downgraded the stock mainly on valuation. ” RDDT shares are now trading at 10x our 2025 estimated revenue and are approaching our $75 price target. Even assuming likely upside to our 2024 and 2025 estimates, we do not believe the upside reward meaningfully outweighs the downside risk.” Goldman Sachs reiterates Amazon as buy Goldman raised its price target on the stock to $250 per share from $225. “While AMZN’s shares have outperformed the S & P and Nasdaq over the past 12 months, performance has entirely been driven by higher profit estimates (during a period of outsized positive earnings revisions) as multiple compression was a headwind to equity returns.” Piper Sandler downgrades Dollar Tree to neutral from overweight Piper said the company is “uniquely disadvantaged.” “We are downgrading DLTR to Neutral and reducing our PT to $112. While DLTR shares have already been under significant pressure YTD at -27% – suggesting a lot of bad news is already priced in – we believe the company is uniquely disadvantaged regardless of the outcome of the Presidential election.” Morgan Stanley upgrades Chegg to equal weight from underweight Morgan Stanley said the risk/reward is balanced for the education company. “Upgrading CHGG to Equal-weight – Market Expects Negative Estimate Revisions & Decelerating Negative Growth.” Morgan Stanley upgrades Sweetgreen to equal weight from underweight Morgan Stanley said the restaurant chain’s stock is starting to become compelling. “Upgrading SG to EW – we think sales/ops/automation can be near/medium term catalysts in contrast to our past concerns; balanced against valuation/TAM debate.” Evercore ISI downgrades Yum and Starbucks to in line from outperform Evercore said in its downgrade of Yum and Starbucks that trends are softening. “For both Starbucks and Yum Brands, we are lowering domestic calendar 2H SSS estimates and are increasingly concerned about China consumer and competitive dynamics heading into 2025.” Evercore ISI adds a tactical outperform on IBM Evercore said it’s bullish heading into earnings next week. “We are adding IBM to our Tactical OP list ahead of their Jun-qtr results announcement on Wednesday July 24 after market close.” Bank of America upgrades Shopify to buy from neutral Bank of America said Shopify has turned a corner. “Following years of declining margin, we believe that the company has turned a corner on balanced growth and margin, under new CFO Jeff Hoffmeister.” Mizuho upgrades Datadog to outperform from neutral Mizuho said “momentum” is building for the stock. “We believe DDOG appears to be solidifying its position as a clear leader in the observability market with multiple product areas at scale and newer products growing rapidly.” Mizuho downgrades Palantir to underperform from neutral Mizuho said the stock’s valuation is too “rich.” ” PLTR has performed generally well in recent quarters. While encouraging, we remain concerned by the lack of visibility into PLTR’s business, we note that some of the beats have been lower quality, and we have limited confidence in the co.’s ability to deliver consistently strong results.” Jefferies upgrades Epam to buy from hold Jefferies says the software engineering company is “high quality asset.” “We upgrade EPAM to Buy from Hold based on demand likely having bottomed, the medium-term opportunity from a recovery in spend, the longterm opportunity from AI, and an attractive valuation for a high-quality asset.” Bank of America reiterates Broadcom as buy Bank of America called Broadcom a “high quality growth” company following its stock split. “We highlight AVGO remains one of the best and most consistent generator of cash at 45-50%+ of sales.” Oppenheimer reiterates Integer Holdings as outperform Oppenheimer said the medical device company is defensive. “We are initiating coverage of Integer Medical with an Outperform rating and a $135 PT. Evercore ISI reiterates Netflix as outperform Evercore said it’s cautious heading into earnings later this week but that it’s sticking with its outperform rating. “The bar is high, and while we’re long-term NFLX Bulls, we’d be cautious going into this print.”
