Here are Monday’s biggest calls on Wall Street: Wells Fargo upgrades target to overweight of equal weight Wells said the market is too pessimistic about target stocks. “TGT sell-offs provide the opportunity for proven gains from the stock to recoup an undervalued dividend, in our view. Read more about this call here. UBS downgrades Weber’s sell rating from UBS neutral as it downgrades its grill company Concerns about slowing growth.” We downgraded WEBR to Neutral Selling with PT by $4 (previously $8), as we revise EBITDA estimates for next year to $173 million, below 19 levels, and well below $222 million ST. We are modeling -0.4% sales for the year 23, however, we could see a further decline in net profit. “Atlantic Equities downgraded AbbVie to neutral from Atlantic Equities which outperformed Atlantic Equities and said it sees a more balanced risk/return for AbbVie.” Upside trend of key growth drivers across immunology, hematology and aesthetics franchises along with more balanced risk/return from valuation perspective and downgrade to neutral. “After SIRI reported a line 2Q result, repeat full-year financial guidance, and an unsurprising reduction in the 22 self-paid net add-on forecast, we lowered the forecast for new self-paid subscribers ‘22’ and underestimated the rise in self-paid subscribers/ARPU/ Announcement in ’23+ to account for what we think will be a major recession in the first half of 2013. Certainty is a bit high for Stanley Black & Decker.” The dramatic swing in demand trends for outdoor and gadgets during the second quarter has lowered the average price By approximately 50%. Management responded with big cost plans. Stable demand from here and execution on cost lead to good earnings strength for 2023. However, it is too early, in our opinion, to call for stable demand trends. In particular, we are concerned that the segment of professional customers may be closer to mitigating. Wolf launched Palo Alto Networks where Wolff said in his inception of the cybersecurity firm that it is a good place to “hide.” “In our opinion, PANW is a consensus as long as investors look to hide in security names that can drive growth margins and free cash flow at an attractive valuation.” Read more on this call here. Jefferies cuts Bumble’s rating to hold him buy, Jefferies said the dating app company’s stock valuation is no longer convincing.” Finally, we no longer view BMBL’s valuation multiple of 26x EBITDA as particularly convincing compared to MTCH’s at 18x . We have lowered our EBITDA estimate for fiscal year 22 by 1% to account for increased forex headwinds.” Quinn downgraded American Eagle Outfitters to an outperforming market and Quinn said he sees a “near-term slowdown” for American Eagle. “Queen appreciates Aerie’s competitive ditches highlighted by our proprietary survey, but caution in the near term based on downward pressure, rising input costs, waning consumer demand and a near-term slowdown in Aerie.” Jefferies downgrades Deckers for holding on to buying, Jefferies said in a statement. Its downgrade to Deckers that it sees slowing margin growth for the footwear company.“Assuming on hold with a $300 pinch on a more moderate view of sustainable pandemic-driven growth and slowing margins due to overall risk.” Barclays downgraded Comcast to equal weight from overweight and chartered to underweight equal weight. Barclays said it expects slower subscriber growth for the cable giants.” With full-year broadband subsidiaries at Comcast and Charter now growing at about 300,000 and 200,000 respectively, this year (versus our previous Covid forecast of 1.2-1.4 mm each), increased debate is likely to revolve around the potential for negative broadband sub-growth next year and beyond given that the overall background and competitive environment is likely to worsen.” Read more about this call here. Disclosure: Comcast is the owner of NBCUniversal, the parent company of CNBC. Morgan Stanley reiterated Apple as Morgan Stanley said Apple’s 10-Q statement shows “display improvements and confirms an App Store slowdown.” “While advertising remains a key driver for services, we are more cautious about the near-term outlook. Advertising primarily represents Google’s CPA payments for Apple, as well as revenue from Apple’s App Store search advertising business.” Wells Fargo upgrades Colgate-Palmolive to an equal weight of underweight. Wells said there is potential for “improving earnings going forward”. “We think CL being positive is now (and was) a consensus among many investors. We’re not exactly there – EPS has been maintained with MSD down this year, and a lot should go right until that recovery unfolds next year; however, It may unfold, and we’ve specifically become more comfortable with CL’s fermenting gross margin story.”
Apple, Target, Compact, Bumble, Weber