Top Calls on Wall Street: Apple, Nike, Microsoft, and More – Analyst Updates and Initiations

Biggest Calls on Wall Street

Morgan Stanley Reiterates Apple as Overweight

Morgan Stanley reaffirms its positive stance on Apple, stating that its iPhone survey checks reveal strong demand in China. The bank highlights that iPhone 15 lead times are longer than the previous cycle, and the company’s Services segment is outperforming expectations. Contrary to concerns, China is showing promising growth for Apple in the near term.

UBS Reiterates Nike as Buy

UBS believes that Nike is in a better position in China than the market perceives. The bank emphasizes Nike’s investments in product innovation, supply chain speed, and digital capabilities, which are expected to drive a 14% 5-year EPS compound annual growth rate.

Morgan Stanley Reiterates Microsoft as Overweight

Morgan Stanley sees an attractive risk/reward opportunity in Microsoft and reiterates its overweight rating. The bank points to the recent dividend increase as a positive catalyst and expects high-teens EPS growth. This supports a durable high-teens total return profile for Microsoft.

Needham Initiates On Holding as Buy

Needham initiates coverage on On Holding, a shoe manufacturer, with a buy rating. The bank identifies On as one of the fastest-growing stories in the retail sector. With its premium and disruptive brand, On is poised for significant growth due to the secular tailwinds of health and wellness.

Needham Initiates Lululemon as Buy

Needham initiates coverage on Lululemon and highlights its superior growth characteristics. The bank expects double-digit top-line growth driven by accelerating technical innovation, which will boost demand across both core franchises and newer Play verticals.

Oppenheimer Downgrades Chewy to Perform

Oppenheimer downgrades Chewy and expresses concerns about the challenging market conditions. The bank expects a difficult environment to persist for a few more quarters due to weakness in the pet food category and potentially muted inflation benefits in the future.

RBC Initiates IBM as Outperform

RBC initiates coverage on IBM and believes the stock is undervalued. The bank is optimistic about IBM’s competitive positioning and its role in enabling efficient digital transformation through consulting and software solutions.

JPMorgan Downgrades Dollar General to Underweight

JPMorgan downgrades Dollar General due to uncertainties in the low-to-middle income macroeconomic landscape. The bank believes the outlook is too uncertain and lowers its price target for Dollar General.

Bernstein Reiterates Boeing as Outperform

Bernstein recommends buying the dip in Boeing shares. The bank attributes the recent decline to concerns about the performance of Spirit Aerosystems and uncertainties surrounding new 737MAX deliveries to China. However, Bernstein sees these issues as temporary and views the current situation as a buying opportunity.

Citi Upgrades Pinterest to Buy

Citi upgrades Pinterest following the company’s analyst day, expressing increased bullishness. The bank expects engagement to continue ramping up, improved monetization trends from advertising innovations, and expanding adjusted EBITDA margins.

JPMorgan Initiates First Citizens Bancshares as Overweight

JPMorgan initiates coverage on regional bank First Citizens Bancshares, stating that its best days are ahead. The bank highlights the strategic acquisition of parts of SVB’s business and believes that First Citizens has a valuable position in the innovation economy.

Jefferies Upgrades Bausch Health to Buy

Jefferies upgrades Bausch Health and anticipates several positive catalysts for the pharmaceutical company. The bank expects Bausch Health to gain momentum as the probability of a spin pathway increases.

Needham Initiates Instacart as Hold

Needham initiates coverage on grocery delivery company Instacart with a hold rating. The bank sees a balanced risk/reward scenario, considering the slowing growth after the pandemic-driven surge and Instacart’s already scaled advertising business.

Rosenblatt Initiates Sonos as Buy

Rosenblatt initiates coverage on wireless home audio company Sonos and expects margin expansion in the future. The bank views Sonos as a category leader in a market poised for growth, driven by the appeal of multi-room music and the increasing popularity of sound bars.

Goldman Sachs Names Azul a Top Pick

Goldman Sachs upgrades Latin America airline Azul to buy, citing its undervalued stock and positive outlook for EBITDA expansion. The bank sees an attractive opportunity for investors, especially after the recent correction in the stock.

Morgan Stanley Downgrades Zebra Holdings to Underweight

Morgan Stanley downgrades computer printing tech company Zebra Holdings due to a longer-than-expected turnaround period. The bank believes that the demand decline will persist for a longer duration, primarily due to overbuilding during COVID-19 and ongoing constraints on consumer spending.

Morgan Stanley Downgrades nCino to Underweight

Morgan Stanley downgrades fintech software company nCino, anticipating revenue headwinds. The bank believes that nCino’s current valuation is too high compared to its peers in the vertical software industry.

Bank of America Reiterates Disney as Buy

Bank of America reaffirms its buy rating on Disney, despite lowering its price target. The bank recognizes Disney’s collection of premiere assets in content, intellectual property, and theme parks. Bank of America expects updates on the strategic outlook for Disney and continued strong demand for its theme parks.

UBS Reiterates Apple as Neutral

UBS maintains a neutral rating on Apple, stating that its survey checks indicate softer high-end demand for iPhones compared to the previous year. Delivery wait times for the Pro variant are lower in major markets, including the US, Germany, Great Britain, and France. In China, wait times for the iPhone 15 Pro are shorter than those for the 14 Pro at the same point last year.

DA Davidson Initiates Build-a-Bear as Buy

DA Davidson initiates coverage on Build-a-Bear with a buy rating, recognizing the company as an iconic brand. The bank sees Build-a-Bear as an underappreciated small-cap growth opportunity.

Wedbush Upgrades Wingstop to Outperform

Wedbush upgrades Wingstop and highlights its unique positioning within the industry. The bank believes that Wingstop can deliver transaction growth outperformance in the medium to long term, even beyond tough year-over-year sales growth comparisons.

Morgan Stanley Reiterates Amazon as Overweight

Morgan Stanley views Amazon’s announcement of seasonal hires as a bullish leading indicator for the company’s expected retail market share gains. The bank’s analysis, adjusted for Amazon’s scale, aligns with historical patterns, indicating strong retail top-line growth that will drive positive earnings surprises.

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