Here are the biggest calls Thursday on Wall Street: Credit Suisse launched the WeWork initiative with Credit Suisse debuting the stock saying he is well positioned to capitalize on the phenomenon of working from home. “Following a cost-effective restructuring (approximately $2.6 billion) after the failed initial public offering, we believe WeWork is well positioned to capitalize on the structural demand drivers of the flexible office industry, as we view working from home as a long-tail demand burden for a traditional office space. “. Read more about this call here. Goldman Sachs launches Veeva Systems as a purchase of Goldman Dubbed the cloud computer company “the long-term founder”. “We view Veeva as a long-term founder because of its competitive moat and exposure to technology adoption in the life sciences.” Read more about this call here. JPMorgan upgraded Snowflake to outperform neutral JPMorgan and said the stock is attractively priced and the company has excellent standing among clients. “In addition, we are increasingly confident that Snowflake is reaching an inflection point in terms of physical FCF generation, and believe that the trendline has the potential to positively surprise, creating an initial framework toward supporting FCF-based valuation.” Read more about this call here. Loop cuts Leslie’s credit rating for holding on to buying, and Loop said she doesn’t see any positive catalysts in the near term. “For LESL, we are struggling to find a catalyst in the coming year especially as we expect sales growth rates to slow, customer profile growth starting to reflect more normal periods, and the company will face tough comparisons in the year ahead.” Quinn named Deckers an important idea, Quinn called the shoe company a brilliant idea, stating that it had excellent brand awareness. “Our estimates are somewhat in line with the consensus and guidance for fiscal year 23, but our confidence level in DECK’s multi-year growth profile relative to the consensus forecast is higher compared to our coverage list.” Raymond James upgraded Southwest to strong buy from outperform Raymond James said in his update to the airline that investors should buy the dip. “We view the recent pullback as an attractive entry point, and are therefore upgrading LUV stock from Outperform to Strong Buy.” Bernstein repeats Apple as an equalizer Bernstein said he is concerned about slowing growth for the tech giant in the coming months. “On the web, we see some opportunities for Apple to modestly outperform the next few months on its historical pattern, but we believe that the risk/reward over the next 6 to 2 years is neutral to somewhat negative.” Bank of America repeats on Netflix that Bank of America lowered its price target on Netflix to $196 a share from $240 and says it sees “macro getting worse”. “As local subscription to Netflix appears to have peaked or is very close to it, the availability of more services as well as more compelling value propositions to competitors has pushed customers to sign up for more services overall while keeping Netflix.” Read more about this call here. MKM launched O’Reilly, Advance Auto Parts and AutoZone MKM said its debut in O’Reilly, AutoZone and Advance Auto Parts said the companies had pricing power. “We prefer the safer auto parts dealers at the moment, due to a number of secular factors that remain intact and huge pricing power.” Bank of America is repeating Disney’s as Bank of America cut its target price on Disney to $122 a share from $140, but said it is committed to its buy rating on the entertainment giant. “We will continue to monitor near-term trends for any signs that inflation or moderation in travel is impacting long-term bookings. We have also revised our linear advertising forecast for fiscal year 23 to flat (from +1%) to reflect the weak advertising market.” Citi reiterates Spotify that Buy Citi maintained its buy rating on the streaming company and said it sees further gross margin expansion. “For several years Spotify has been building a broader audio ecosystem that includes both music and podcasts. So far, these investments haven’t helped – or hurt – gross margins. However, with the larger tailwinds from Marketplace and smaller headwinds from Podcasting, we expect an expansion in total Margin in 2023 and beyond.” JPMorgan has upgraded Funko to overweight from neutral JPMorgan and said in its update to the toy company that the stock has an attractive valuation. “We are upgrading FNKO to Overweight and raising it on December 22 to $28 based on: Expected upside to Street 2022 revenue estimates due to strong content rebound as FNKO stabilizes evergreen properties providing steady business weight.” Wolfe has upgraded MetLife to outperform peer, Wolfe said in his update to the insurance company that it should benefit from higher rates. “We have upgraded MetLife to Outperform from Peer Perform, and our $74 target price is based on a sum of the parts analysis. We view the MET risk-adjusted free cash flow forecast as the most attractive for valuation, and we believe the company is best positioned to benefit From higher interest rates + lower preparation for the stock markets.” Morgan Stanley downgraded AGCO to equal weight overweight Morgan Stanley downgraded agriculture company due to “peak commodities”. “Our reductions of both GCO and WAB to cyber warfare are primarily driven by reduced exposure to the consumer complex, Europe and the potential commodity backdrop, all of which are expected to ease in a more severe macro-recession scenario.”
Snowflake, Southwest, Apple, Disney, Netflix