Here are the biggest calls on Wall Street on Thursday: Morgan Stanley reiterates Ferrari as overweight Morgan Stanley said shares of the luxury automaker are underappreciated. “For years, the pushback on RACE was its lofty valuation. Now that the stock trades near parity with Hermès (and is widely held in portfolios), the stock’s multiple is seen as more reasonable with the investor refrain: ‘Ferrari’s always been expensive and always will be.'” Mizuho reiterates Nvidia as buy Mizuho said the stock is a top pick in May. “With the push for greater AI adoption, we believe NVDA could potentially see a ~$280B revenue opportunity by C27E, [calendar year 2027] up > 6x from the $47.5B we saw in F24.” UBS upgrades Burlington to neutral from sell UBS said the outlook for Burlington is improving. “We see risk rising, long-term supply chain, freight, and labor costs offset the progress BURL is making its business more efficient.” Jefferies reiterates Netflix as buy After a change in analyst coverage, the firm said it’s standing by its buy rating. “We are positive on NFLX, given our view that advertising, price hikes, and password sharing crackdown can sustain low- to mid-teens rev growth over the next few years.” Rosenblatt upgrades Extreme Networks to buy from neutral Rosenblatt said revenue is bottoming for the networking equipment company. “We downgraded EXTR to Neutral a few months ago on lack of near-term catalysts. We are now upgrading to Buy because 3Q24 (March) was the bottom for revenues and margins, Cisco’s (CSCO, Neutral) execution in the Enterprise Networking space is not improving, and Juniper’s (JNPR, Neutral) and HPE’s are deteriorating.” Jefferies upgrades Trade Desk to buy from hold Jefferies said in its upgrade of Trade Desk that the digital marketing company is at an inflection point. “In our view, the street’s FY24 rev ests, which assume no acceleration in growth vs. 2023, are conservative given the tailwinds of U.S. political elections and a significant amount of new programmatic CTV [connected TV] supply becoming available.” UBS upgrades TJX Companies to buy from neutral UBS says the off-price retailer is a “growth stock with surprising upside.” “We believe Off-Price retailers like TJX will take more share from Department Stores than previously thought.” TD Cowen downgrades Wolfspeed to hold from buy TD Cowen said it sees too much uncertainty for the silicon carbide company. “Factors In And Out Of Wolfspeed’s Control Have Weighed On Results, But Capped Long- Term Potential And High Leverage Move Us To The Sidelines.” Raymond James upgrades Parsons to strong buy from outperform Raymond James said in its upgrade of Parsons that shares of the digital solutions provider have plenty of room to run. “Raising rating to Strong Buy from Outperform and raising target to $95 from $82. Budget certainty, strong business development, and numbers that we think will exceed $7B in sales by 2025 (with future M & A) set the stage for the stock to approach $100 per share over the next 12 months.” BTIG upgrades Upwork to buy from neutral BTIG said it sees “more good things to come” for the freelancing job platform company. “We are upgrading shares of UPWK to Buy from Neutral after a very constructive 1Q24 report.” UBS downgrades CVS to neutral from buy UBS said it sees too much uncertainty for shares of CVS. The firm said Medicare Advantage is weighing on the stock. “Time is Needed to Know if the Guide is Fully De-Risked.” JPMorgan upgrades Ziff Davis to overweight from neutral JPMorgan said investors should buy the dip in shares of the digital media company. “We are upgrading Ziff Davis from Neutral to Overweight ahead of earnings.” JPMorgan upgrades Carvana to overweight from neutral JPMorgan upgraded Carvana following earnings on Wednesday. “Move to OW from N and Raise Dec 2024 PT to $130 After 1Q24 Results Show Continued Rapid Progress on All Fronts.” Compass Point upgrades Tanger to buy from neutral Compass upgraded the real estate investment trust and operator of malls following earnings. “We are increasing our PT for SKT to $32 as a result of 7.8% expected earnings growth and we are raising our rating to Buy despite a higher relative valuation to mall peers.” KBW upgrades Synchrony Financial to outperform from market perform KBW said it sees plenty of upside for the financial services company. ” SYF Is the Easy Way to Play Upside – Trading at 7x earnings and probably being able to offset adverse impacts within 12 months or so, we see SYF managing through late fee pains in short order.” Susquehanna upgrades MGM to positive from neutral Susquehanna said it sees a favorable risk/reward for shares of the casino and hotel company. “If you buy MGM, you better be right on LV [Las Vegas], and we finally have enough valuation support in light of the more significant value drivers MGM has in LV. Maybe we are early, but we are on-board and see a favorable risk/reward trade-off.” Bank of America downgrades Fastly to underperform from buy Bank of America double-downgraded the cloud computing networking company and said it sees too many negative catalysts. “We downgrade Fastly from Buy to Underperform as the near-term risks outweigh the longer-term positive catalysts.” Piper Sandler upgrades New York Community Bank to overweight from neutral Piper upgraded the regional bank following earnings on Wednesday. “More important than the company’s reported earnings this quarter, the new management team at NYCB unveiled their much-anticipated go-forward plan for the bank.” Cantor Fitzgerald initiates Tesla as buy Cantor initiated the automaker and said it’s bullish on full self-driving. “Full Self-Driving, Robotaxis, and Plans to Introduce Low-Cost Vehicles. Initiating Coverage on Tesla with an Overweight Rating and a $230 Price Target.” Loop downgrades Etsy to sell from hold Loop downgraded the stock and said it lacks a “growth catalyst.” “We are downgrading our rating on Etsy from Hold to Sell and lowering our price target from $70 to $50.”
