Monday’s biggest analyst calls: Nvidia, Boeing, Alphabet, Okta, Costco, Dick’s, Tesla & more

Here are the biggest calls on Wall Street on Monday: Goldman Sachs upgrades Teledyne to buy from neutral Goldman said the conglomerate, whose products include aerospace electronics and digital imaging sensors, is a cash compounder. ” TDY is one of the highest quality, most consistent, best managed companies we cover that compounds cash flow over time.” Bank of America upgrades Parsons to buy from underperform Bank of America said the design and engineering firm is a key beneficiary of infrastructure spending. ” PSN, a design and engineering firm for defense, intelligence, and critical infrastructure sectors, will benefit from improved market sentiment on government services and upside opportunities from the U.S. Infrastructure Bill.” Evercore ISI reiterates Tesla as in line Evercore said Tesla may cut prices further in the U.S., which could lead to margin pressure. “We believe similar select cuts may come in the U.S. & EU shortly, which may lead to ~100bps of sequential margin pressure in Q3.” Bank of America reiterates Morgan Stanley as buy Bank of America said the investment bank is “best-in-class.” “At its core , Morgan Stanley remains a best-in-class global financials franchise, well positioned to tap into secular growth opportunities.” Goldman Sachs upgrades Okta to buy from neutral Goldman said in its upgrade of the identity access management company that it sees an attractive risk/reward for Okta shares. “Upgrade to Buy: Risk/reward now favorable with subscription revenue likely to trough in 2H.” Read more about this call here. Morgan Stanley reiterates Nvidia as overweight Morgan Stanley said it sees an attractive entry point in Nvidia shares before it next reports earnings later this month. “We think the recent selloff is a good entry point, as despite supply constraints, we still expect a meaningful beat and raise quarter – and, more importantly, strong visibility over the next 3-4 quarters.” HSBC initiates Monster as buy HSBC said it likes the beverage maker’s “growth opportunity.” “Initiate at Buy with a Street-high target price of USD72; we like Monster for its market positioning and growth opportunity.” Barclays reiterates Target as equal weight Barclays says it’s staying cautious heading into earnings later this week. “We are generally constructive on the recoverability of TGT’ s recent weakness over time, but we still see some cross currents that may push out the EPS improvement story required for the stock to move higher from here.” JPMorgan reiterates Carvana as underweight JPMorgan raised its price target on Carvana to $20 per share from $15, but stood by its underweight rating. “As such, we now see 2023/2024/2025 EBITDA of $325 mn/$350 mn/$525 mn vs $280 mn/$225 mn/$380 mn prior and raise our Dec 2023 PT to $20 from $15.” Bank of America reiterates Dick’s as buy The firm raised its price target on Dick’s to $180 per share from $170 and says it’s bullish heading into earnings next week. “We raise our 2Q EPS estimate to $3.83 (vs. consensus $3.82), as we now expect same-store sales growth of +4.0%.” Bernstein downgrades Marriott to market perform from outperform Bernstein downgraded the hotel owner on valuation. ” Marriott’s multiple has rapidly converged with Hilton and at 15x EBITDA we see limited shorter term upside, but it remains a great long term holding.” Telsey initiates Academy Sports as outperform Telsey said the sporting goods retailer is well positioned. “We view ASO as a unit and sales growth story driven by market share gains as the company expands in existing markets and enters new markets with a better assortment, customer service and go-to-market strategy.” UBS reiterates Ulta as buy UBS said it’s bullish heading into earnings next week. “We think ULTA’s upcoming 2Q print will put to rest some of the questions that arose from its last report.” UBS reiterates Eli Lilly as buy UBS raised its price target on the drugmaker to $612 per share from $526 and says it’s the “best fundamental story in U.S. Large Cap. “While valuation is an obvious source of pushback on LLY, the growth profile is an outlier for the group (18% top-line CAGR) and based on de-risked drivers.” Evercore ISI adds a tactical outperform on Walmart Evercore is bullish heading into earnings later this week. “We are adding Walmart to the Tactical Outperform List or TAP (Outperform, Base Case $180) ahead of earnings on 8/17.” Evercore ISI adds a negative tactical call on BJ’s Evercore sees near term downside heading into earnings next week. “We are adding BJ to the Underperform Tactical Trading List or TAP (In Line – $69 Base Case) ahead of earnings on 8/23. Stifel reiterates Costco as buy Stifel said Costco is one of the best positioned retailers “in an increasingly competitive U.S. spending environment.” ” Costco remains our favorite retailer and we maintain our Buy and $575 price target, 22x F2024E EBITDA, with additional potential catalysts including a membership fee increase.” Barclays downgrades Mosaic to underweight from equal weight Barclays downgraded the potash mining company mainly on valuation. “While we turned more optimistic on MOS ahead of this year’s crop season, we now see minor downside from current share price levels.” Bank of America adds Boeing to the US1 list Bank of America added the stock to its top picks list. “We are adding Boeing Co. (BA) to the US 1 List. We are removing Northrop Grumman Corp. (NOC) from the US 1 list following a 52-week term.” Citi downgrades Urban Outfitters to neutral from buy Citi said expectations are too high heading into Urban’s earnings next week. “We are downgrading shares from Buy to Neutral. While we anticipate a 2Q EPS beat vs consensus driven by stronger sales/GM and above-consensus 3Q guidance, we believe market expectations are high and the risk/reward is more balanced at current levels.” Bank of America reiterates Alphabet as buy Bank of America said it remains “constructive” on Alphabet’s AI-driven ad products. “July data suggests that Google’s web traffic remains stable and elevated vs peers, and that Google search is seeing limited impact on share (both mobile & desktop), which reduces the potential need for rapid LLM [large language model] integration into search results.” Wedbush adds Western Digital to the best ideas list Wedbush added the stock to its best ideas list and said Western Digital’s flash memory business, known as NAND, may have bottomed. “Finally, we believe there is a strong probability that WDC realizes a strategic outcome, which could accelerate shareholder value creation in light of the seemingly discounted value of its NAND asset using a sum of the parts basis.”

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