Here are Tuesday’s biggest calls on Wall Street: Barclays repeats Microsoft as overweight Barclays said in a memo on Tuesday that Microsoft Teams is a “$85 billion opportunity.” “Recently we have seen increased investor concern regarding future growth opportunities for the Microsoft O ice franchise. However, we believe that recognizing the significant opportunity the company has by increasing teams’ deeper penetration should allay these concerns. Reasserting Microsoft as an excellent investment in the world of Our software.” Piper Sandler upgraded Advanced Micro Devices to overweight Piper neutral, and said AMD has a competitive advantage and Investor Day on June 1 should be a positive catalyst. “In our view, the company’s core business is doing really well and continues to benefit from secular trends. Within PC, we’re seeing continued gains in market share in the broader PC market, along with very strong traction in the commercial market.” Read more about this call here. Credit Suisse reiterated that Fisker is outperforming Credit Suisse as he said the electric car company is well positioned to benefit from “the growing global EV reflection”. “Following our launch in FSR last November, we are reconsidering our investment thesis on FSR. We remain positive about FSR stocks, as we believe they are poised to benefit from increased global EV reversal, while also benefiting from a risk-free strategy.” UBS lowered Workday’s rating to neutral from UBS buying, who said on Tuesday that the on-demand human capital management software company is vulnerable to recession conditions. “We are moving to a neutral rating from buy before Workday earnings print for the first quarter of April on May 26 after speaking with 9 Checkers (including 8 partners) to assess the current demand background and how vulnerable Workday is in the downturn. Read more about this contact here. Goldman Sachs rating Nerdy to Neutral from Buy Goldman and said in its downgrade to the online learning platform that it sees a lot of headwind for Nerdy stock.” As a result, we downgraded our rating from Buy to Neutral and downgraded our PT. $8 to $3 due to lower financial expectations to reflect such adverse revenue and investments and a slightly lower growth multiplier approach (on lower estimates). . “Multiple vectors of power transmission pass through electrical equipment, where we now see ETN, our top pick, growing 6.5% through 2030. Since our initial work in 2021, ed growth has accelerated with increased EV and solar penetration.” Stronger growth offsets slower market and higher expectations. “Morgan Stanley reiterated Rivian as Morgan Stanley lowered the electric car company’s price target to $60 per share from $85, but said it saw attractive risk/return.” RIVN spending plans dedicated to 1 to 2 mm units in size by the end of the decade. Fast forward 6 months and the company struggles to find the pieces to run one full shift. The stock is trading at ~1x 2030 EV/EBITDA (vs Tesla at 8x) which leaves a positive risk/reward skew making us OW. “KeyBanc reiterates to Apple as being overweight and KeyBanc said it believes the tech giant can still increase users.” The biggest risk to Apple in F3Q is from China and a lack of supply, in our view, both of which should be temporary, while US demand appears to be steady. These risks appear embedded in the consensus, since even as the iPhone may drop, Apple can still increase the number of users, which is most important, in our opinion. Earnings next week. “Barring any unforeseen supply issues, we expect NVDA to outperform FQ1 (April) and head F2Q (July) at/above consensus expectations.” Bank of America cut Maxar’s rating to underperformance from neutral Bank of America downgraded the satellite space technology services company, stating that it sees too many downside risks for Maxar. “We don’t see capex reaching the $100 million reported leave year-over-year. We also see risk to management’s 2023 EBITDA target. We have reduced our purchase order to $25 based on an EV/EBITDA multiple of relative to the 2023 revised estimate.” Read more about this call here. Benchmark JB Hunt kicks off as the transportation and freight giant buy Benchmark with a buy rating, saying it has “competitive” advantages. “We believe intermodal volume growth will turn positive in 2022 with easing of congestion on rail and JBHT taking additional containers to its fleet.” Multimodal pricing should remain strong in the first half of the year given the strong bidding season. “Bernstein downgraded Molson Coors to a market outperformer, and the beer company downgraded to a ‘European recovery’ largely achieved,” Bernstein said. We started covering Molson Coors a year ago, and one of the key tenets of our outperforming thesis was the upcoming European recovery which was underappreciated (by the market). We firmly believed that trade over commerce would return, because socializing over alcohol is a human desire rooted in thousands of years of culture. “Truist Ball Corp upgrades purchase from Truist Neutral said the company’s jar and can downgrades are exaggerated.” During the report, Ball cited a number of issues that we consider temporary and that do not change our basic thesis about supply/demand potential for narrow brews.” Morgan Stanley Home Depot reiterated Morgan Stanley also said in a note to clients on Tuesday morning that Home Depot’s earnings results were “strong.” A better first-quarter provides comfort and challenges the market’s perception of an impending slowdown. 22 Estimates point to a rise of at least 2%. Good result, but probably doesn’t change the narrative for now. “Wolf names Amazon, Alphabet and Meta in the second half of the year Wolfe names Amazon, Alphabet and Meta Platforms as the best stocks for the second half of 2022 and said they have strong budgets and “favourable” cost structures.” Against this background, we build selection criteria Our equity is on four axes: a) diversified revenue streams and competitive leadership, b) stable profit margins and appropriate cost structure, c) a sound balance sheet, d) valve support under EPS/FCF. Based on these criteria, our top twenty-two hour clock ideas are AMZN, GOOGL, BKNG, and FB. “
Rivian, Amazon, Apple, AMD, Maxar