Tesla, Amazon, Spotify, CrowdStrike, Apple
Morgan Stanley names Monster its top pick Morgan Stanley believes Monster is a highly valued company. “We reiterate our OW for MNST, move it to Top Pick with our topline/margin analytics in this Report giving us more conviction in our higher-than-consensus FY23/24 topline/EPS outlooks, a significant FY23 EPS growth inflection and greater LT Growth than what the market indicates in valuation.” Citi selects Analog Devices to be its top pick Citi claimed that Analog Devices is “defensive.” We are shifting ADI to our top choice, keeping our preference for stocks that have margin upside like Micron, ON, Global Foundries, because of our defensive nature. Morgan Stanley says Amazon is overweight. However, Morgan Stanley stated that investors should continue to support the ecommerce giant but they need to see better profitability. We believe that AMZN will need to deliver and guide towards better than anticipated top and bottom-line retail profitability to win investor trust…and to ensure investors that the structural retail unit economics of AMZN have not changed. Cowen and FedEx are outperforms. Cowen stated that FedEx is bullish going into FedEx earnings this month. We are slightly higher than consensus in most metrics for FedEx. FedEx Ground margins in fiscal 4Q are generally higher than those of fiscal 3Q, which may be a surprise. FedEx could also have profited from retailers stocking up inventory as a shift to just in-time from just-in case. Raymond James upgrade Spotify to outperform the market. Raymond James stated in his stock rating that Spotify has a positive risk-reward outlook. SPOT’s share price has fallen from the all-time highs reached in early 2021. This is due to slower than expected scaling for Spotify’s podcasting service and most recently soft margin guidance given by Raymond James on its 1Q22 conference call. This call is available here. Edward Jones upgrade American Express to buy with hold Edward Jones stated in his upgrade to the credit card company, that American Express is well-positioned because it relies on more wealthy customers. AXP’s faithful base of wealthy customers will not be affected by inflationary pressures. We expect AXP is better equipped to support strong spending patterns relative to its credit card counterparts. Bank of America restores coverage of GoodRx Holdings. The bank stated that the platform’s “appealing value” was why it had been reinstated by Bank of America. ” GDRX remains the leading marketplace for prescription transparency, offering cash pay alternative prices with a burgeoning offering for telehealth/manufacturer services to capitalize on its broad market position.” Stifel confirms Nike’s status as a buy. Stifel reduced its target price on Nike from $160 to $150 ahead of this company’s earnings report. This was due to China restrictions and strengthening the U.S. Dollar. Given multiple compressions and estimate revisions as well as the higher revenue growth ramp to meet FY25 targets, Stifel is taking a less conservative approach to the target price (TP). Deutsche Bank maintained its Disney buy status and lowered the price target to $130 per shares from $191. However, it said that they still expect strong earnings growth. “Despite short term concerns regarding consensus estimate revisions we still see Disney’s earnings growth outlook to be strong over the next few years, even though our near-term concerns.” Goldman Sachs maintains Tesla’s buy rating. Elon Musk comments regarding company headcount have been “incrementally bad,” but Goldman Sachs has reaffirmed its Buy rating. We are rated Buy on Tesla shares because of the company’s cost and market leadership in fast-growing EV and storage markets, as well as the potential to monetize its installed base with software and services. Morgan Stanley upgraded CrowdStrike to overweight from equal weight Morgan Stanley indicated that CrowdStrike is attractive as an entry point. “We are upgrading CRWD from Equal-weight to Overweight based on: 1) defensive positioning in uncertain macro, 2) sustained market share gain & growing evidence of TAM expansion.” You can read more on this call. Bank of America keeps Amazon in buy. Bank of America maintained its Buy rating for Amazon, but stated that Amazon may be unusually levered. Stock sentiment: For the first time in a decade, Amazon has significant excess capacity. The stock might be unusually leveraged to support the perception of consumer health over the next 12 month. JPMorgan reaffirms Apple’s overweight status. JPMorgan stated that it has conducted survey checks that show Apple products have had stable lead times. We found that Apple products lead times have not changed significantly in our Global Product Lead Time Tracker’s second installment. This is consistent with continuing supply problems hardware companies face, such as COVID lockdowns in Shanghai, Beijing and Shanghai. However, restrictions in these cities have been eased over the past few days. Bernstein elevates Lululemon from belowperform to market performance. Lululemon was primarily valued by Bernstein. Lululemon has seen a significant change in just two months. The lofty multiples associated with growthy names are now long gone. Despite positive EPS revisions, the stock is still down 22% YTD. The multiple has been de-rated significantly compared to the market. JPMorgan instigates Volaris Mexico with an overweight rating. JPMorgan started the Mexico airline by giving it an overweight rating. The stock has been rated well going forward. Volaris has a low cost model that allows it to provide competitive fares, concentrate on the development of non-ticket revenues, and offer unmatched units costs. Raymond James launches DoorDash with a market performance rating. Raymond James indicated in the initiation of DoorDash that it believes there is a balance between risk and reward. Although we are optimistic about the future, we feel that there is a balance between risk and reward at current levels. We therefore give our DoorDash company a Market Perform rating.