Tesla, Dish, Nio, Zoom, Rivian, Imax
These are the top Wall Street calls Tuesday: Mizuho reiterates Tesla’s status as “buy”. Mizuho stated Tuesday in a note that China lockdowns continue to be a headwind for Tesla, however that they could rebound later this year. “Gigafactory Shanghai Partially locked down a short-term headwind but potentially stronger SepQ/DecQ recovery. However, we think a potential stronger SepQ/DecQ recovery is possible due to improved supply chains. We also believe Berlin ramping will make it more likely. Morgan Stanley names Nio as a tactical research concept Morgan Stanley stated that the China-based electric vehicle manufacturer is in a good position once China reopens. Due to the uncertainty over sales, the stock traded down recently. This is due in part to concerns regarding the Shanghai lockdown. In 2021, Shanghai accounted for 15 percent of NIO’s total sales. NIO’s new models are also being delayed due to the production interruption. Market concerns regarding NIO’s momentum in sales have been exacerbated by this. Daiwa upgrade Zoom to outperform and underperform Daiwa suggested that investors buy the stock dip. The stock’s recent tech pullback changed our outlook and we are now upgrading the rating. Zoom’s core business is our favorite, however we are cautious about ancillary products. The growth outlook is more realistic now that there has been a noticeable slowdown. You can read more about the call here. Benchmark names World Wrestling, Imax and Imax as top picks. Benchmark stated that World Wrestling’s shares were compelling at their current level. According to the firm, Imax would benefit from more blockbuster movies. “IMAX released 15/15 highest-grossing films in FY19. Due to the blockbuster films, surging movie-goer interest, and market shift towards premium, we anticipate a very strong domestic performance for FY23. IMAX. “…We believe that WWE has a compelling trade opening and is continuing to provide significant growth.” Rivian’s buy reiterated by Mizuho. Mizuho claimed that electric vehicle maker is in a good position for the second half 2022. RIVN’s 1) chassis production, 2) battery module production, and 3) inverter/powertrain/supply production/supply lines are all healthy. But, there are some particular commodity chip shortages that are hindering the ramps. RIVN said it was working with suppliers to guarantee allocation. Oppenheimer named Estee Lauder as a top choice Oppenheimer indicated that the company sees “pricing and economic benefits” in China, which will help Estee Lauder’s shares rise. “We are restoring EL top pick status in China, due to improvements in China’s COVID-19 conditions, such as the lifting of restrictions in key areas like Shanghai and Beijing.” Truist upgrade Dish to purchase from hold Truist stated that it enjoys the company’s “spectrum holdings” and “discounted prices points.” The DISH Network Investor Day is over. Now, investors have digested the details of the $20 billion+ construction plan. “The stock is beginning to recover after the DISH Network Investor Day.” Once again, we reexamine the prospects of stock trading close to 20-year lows. This call is available here. Evercore ISI upgrade Linde to outperform in line Evercore stated that it expects double-digit returns for the shares of this chemical company. “A volatile year was experienced by LIN’s stock for one of the largest businesses within the Global Chemicals industry (or the wider coverage). Morgan Stanley names Trane top pick Morgan Stanley stated Tuesday that the company is taking a less defensive view of Trane, an air conditioner and heating manufacturer. As we face higher uncertainty, limited group catalysts, as well as a possible guidance ramp and strong secular growth story, Trane is our Top Pick. We are taking a defensive stance while we await 2H forecasts for reset elsewhere. Credit Suisse initiates Sherwin Williams as an underperform Credit Suisse stated that higher interest rates could negatively affect the paint company. “A rising interest rate environment could negatively impact residential/commercial paint demand. SHW is by far the leading firm in the North American pro-applied residential & commercial paint market, among 4 major providers of DIY (Do-It-Yourself) house paint in North America, and a leader in selected industrial paint markets.” Morgan Stanley downgrades American Eagle Outfitters to underweight from equal weight Morgan Stanley said in its downgrade of American Eagle that it sees more “sales & margin misses.” As its optimism was excessive, Mgmt significantly reduced its 2022 guide. There is still room to make material losses, as the implied 2H guide seems unattainable. We see room for further sales & margin misses, while 2023’s lofty targets need a cut, too.” Learn more about the call. Credit Suisse initiated Linde because it outperform Credit Suisse called Linde a defensive move. LIN is more diverse than the average in both gas (oxygen and nitrogen as well as hydrogen).Application (healthcare and electronics), etc.), regions, and size of customers (onsite/pipeline, bulk liquid, or cylinders).” Jefferies confirms Amazon as a buy Jefferies has lowered its price target for the ecommerce giant from $3,700 to $3,250 per shares. This is in addition to concerns that an economic slowdown could hurt stocks like Amazon. “Macro indicators seem to be declining at a quicker pace. Both consumers and businesses will feel more anxious about spending, which could lead to a decrease in confidence. The economic slowdown is expected to worsen this trend. Consumers will feel less inclined to buy pricier goods or more price sensitive service items. Bernstein upgraded Grab Holdings in order to exceed market performance Bernstein stated that Grab Holdings is attractive because it perceives a good risk/reward ratio. Grab has seen a decline of 18% and 76% since its initial listing. This was due to weaker-than-expected CY21 results and the loss in stockflow from the phased lockup expiry. Grab is upgraded to Outperform despite the grim backdrop. We see Grab as an attractive investment and a potential beneficiary of post-pandemic recovery.