Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley names Taiwan Semiconductor an idea fueled by catalysts Morgan Stanley said said the semiconductor company’s stock has more room to run. “TSMC is the leading supplier of global AI chips, the business outlook of which will be read as having significant implications for global AI demand.” Wolfe initiates Meta, Amazon and Alphabet as better than Wolfe initiated Meta, Amazon and Alphabet and said he is bullish on all three stocks. “Overall, we are selectively positive on the sector and see pockets of opportunity.” Jefferies reiterates Microsoft after buy Jefferies said it is bullish on Microsoft earnings next week. “We expect MSFT to execute well on its strongest seasonal Q and are fans of the LT and AI consolidation story.” Wells Fargo reiterates Goldman Sachs after Overweight Wells raised Goldman Sachs’ price target after earnings to $550 a share from $504. “For us, more important than the light top and bottom line pace of 2Q24 are the expectations for a significant improvement in IB activity and the proportional effect of the multiplier, especially given the much higher QoQ backlogs and ongoing customer activity.” Baird reiterates Tesla has outperformed Baird said he is bullish on Tesla earnings next week. “We are buyers of the stock ahead of Q2 EPS. We like the setup and think there is a high probability of an EPS beat.” Bernstein reiterates that Nvidia has surpassed Bernstein said the company’s data center opportunity is huge. “NVDA (OP, $130): Data center opportunity is big, and still early, with upside still possible, in our view.” TD Cowen launches Lamar Advertising as I buy TD Cowen said it is bullish on the billboard advertising company’s stock. “Lamar is the largest U.S. billboard company by a wide margin and well positioned to maintain leading market share as the category continues to grow.” Loop downgrades Reddit to maintain buy form Loop downgraded the stock primarily for valuation. “RDDT shares are now trading at 10 times our estimated 2025 earnings and are approaching our price target of $75. Even assuming potential upside at our 2024 and 2025 valuations, we do not believe the reward upside meaningfully outweighs downside risk.” Goldman Sachs reiterates Amazon after Goldman’s acquisition raised its price target on the stock to $250 per share from $225. “While AMZN shares have outperformed the S&P and Nasdaq over the past 12 months, performance has been driven entirely by higher earnings estimates (during a period of large positive earnings revisions) as multiple compression was a headwind for returns of equity. Piper Sandler Downgrades Dollar Tree to Overweight Piper said the company is “at a distinct disadvantage.” We are downgrading DLTR to Neutral and reducing our PT to $112. While DLTR shares have already been under significant pressure YTD at -27% – suggesting that too much bad news is already priced in – we believe the company is uniquely disadvantaged regardless of the outcome of the presidential election.” Morgan Stanley upgrades Chegg to equal weight from underweight Morgan Stanley said the risk/reward is balanced for the education company. “CHGG Upgrade to Equal Weight – Market Expects Negative Rating Revisions and Slowing Negative Growth.” Morgan Stanley upgrades Sweetgreen to equal weight from underweight Morgan Stanley said the restaurant chain’s stock is starting to become compelling. “SG upgrade in EW – we think sales/options/automation could be short/mid-term catalysts in contrast to our past concerns; balanced against valuation/TAM debate.” Evercore ISI downgrades Yum and Starbucks in line with outperformance Evercore said in its downgrade of Yum and Starbucks that trends are softening. “For both Starbucks and the Yum brands, we are lowering domestic calendar 2H SSS estimates and are increasingly concerned about consumer and competitive dynamics in China heading into 2025.” Evercore ISI adds better tactical performance to IBM. Evercore said it is bullish on earnings next week. “We are adding IBM to our Tactical OP list ahead of the announcement of their Jun-qtr results on Wednesday July 24th after the market close.” Bank of America upgrades Shopify to buy from neutral Bank of America said Shopify has turned a corner. “After years of declining margins, we believe the company has turned a corner of balanced growth and margins under new CFO Jeff Hoffmeister.” Mizuho upgrades Datadog to outperform from neutral Mizuho said “momentum” is building for the stock. “We believe DDOG appears to be strengthening its position as a clear leader in the surveillance market with multiple product areas at scale and newer products growing rapidly.” Mizuho Downgrades Palantir to Underperform from Neutral Mizuho said the stock’s valuation is too “rich.” ” PLTR has performed generally well in recent quarters. While encouraging, we remain concerned by the lack of visibility in PLTR’s business, we note that some of the strikes have been of lower quality, and we have limited confidence in the ability of the co. deliver consistent results consistently.” Jefferies upgrades Epam to buy from hold Jefferies says the software engineering company is a “high-quality asset.” “We upgrade EPAM to Buy from Hold based on demand likely to have bottomed out, medium-term opportunity from a cost recovery, long-term opportunity from AI and an attractive valuation for a high-quality asset.” Bank of America repeats Broadcom after buy Bank of America called Broadcom a “high-quality growth” company after its stock split. “We note that AVGO remains one of the best and most consistent cash generators at 45-50%+ of sales.” Oppenheimer reiterates Integer Holdings outperformed Oppenheimer said the medical device company is defensive. “We are initiating coverage of Integer Medical with an outperform rating and a $135 PT estimate. Evercore ISI reiterates Netflix as an outperform. we are long-term NFLX Bulls, we would be cautious entering this print.”
Tuesday’s top analyst calls on Wall Street like Nvidia