Here are Tuesday’s biggest calls on Wall Street: Morgan Stanley upgrades Carvana to overweight from equal weight The firm said investors should buy the dip in shares of Carvana. “A sharp pull-back in the share price offers a unique opportunity for investors to gain exposure to a leader in auto retail and fleet fulfillment.” Bank of America upgrades Cloudflare to buy from underperform Bank of America said it sees “improving fundamentals” for the web security company. “The company offers a differentiated approach to AI, and we place a high probability on Cloudflare becoming the leader in AI-as-a-Service (AIaaS), which we expect will be the AI consumption method of choice for Enterprises.” JPMorgan upgrades Miniso to overweight from neutral JPMorgan said the China retailer is well positioned for overseas expansion. “We upgrade Miniso to OW from Neutral, mainly on: (1) China SSSG [same store sales growth] to recover; (2) robust overseas expansion.” Morgan Stanley reiterates Nvidia as overweight The firm said Nvidia’s AI Chip, known as H20 is a beneficiary of China’s AI capex. “Expect H20 to be strong again in the April quarter for Nvidia , with company commentary suggesting that China will make up ~10% or so of the data center segment in April…” Deutsche Bank initiates Clearway Energy as buy Deutsche said the clean energy company is well positioned. “We initiate coverage on Clearway Energy (CWEN) with a Buy rating and our 12- month Price Target is $38/sh. Implied upside is 26%.” Baird upgrades Pentair to outperform from neutral Baird said the water treatment company is “best-in-class.” “Upgrading PNR to Outperform on a meaningful margin expansion opportunity to at/near best-in-class levels (higher conviction around execution/progression of internal initiatives/cultural buy-in) and attractive long-term cycle dynamics/end market exposure.” Berenberg initiates Coty as buy Berenberg said it sees a slew of positive catalysts ahead for the beauty company. “With the stock nearing trough relative valuation multiples, we believe the story at Coty is about to become more interesting.” BTIG upgrades CrowdStrike to buy from neutral BTIG said Street estimates for the cybersecurity are too low. “We are upgrading CRWD from a Neutral to a Buy Rating for two primary reasons. First, with the 7/19/2024 IT outage now eight months in the rearview mirror, we think CRWD has much better visibility on forecasts.” Redburn Atlantic initiates Marsh & McLennan as buy Redburn says the insurance giant is one of the best positioned. ” Marsh McLennan leads the industry with over $24bn in annual revenue, leveraging its global presence, diversified offerings and deep client relationships.” Bank of America upgrades Alcon to buy from neutral The firm said the eyecare med tech company is on the verge of an accelerated earnings cycle. “We believe Alcon is on the cusp of an earnings upgrade cycle driven by product launches. In our view, investors were expecting too much, too soon from the product pipeline until management rebased expectations at the end of 2024 and more recently with the FY25 guidance.” Piper Sandler reiterates Microsoft as overweight Piper said Microsoft is best positioned to weather a bumpy macro. “Buy the weakness.” Piper Sandler reiterates Tesla as overweight The firm said brand damage is “overdone” for Tesla shares. “However: we think it’s incorrect when investors and/or journalists point to politics as the primary driver of Tesla’s double-digit y/y delivery declines (in Q1).” Bernstein reiterates Amazon, Walmart and Costco as outperform The firm named several stocks on Tuesday that are best positioned in ecommerce in a choppy macro. “We generally view the likes of AMZN, WMT , and COST as the best positioned to ride a macro storm given the combination of a defensive category mix, relative value, and membership lock-in that comes with each platform. In some ways, an extension of what we’ve seen in recent years. BTIG upgrades Capital One to buy from neutral The firm said the stock is cheap as it awaits word on the fate of its merger with Discover. “Our positive view of Capital One regardless of the merger outcome relies primarily on the significant excess capital that Capital One has built up since the merger was announced.” Goldman Sachs reiterates AT & T as buy Goldman said in a note on Tuesday that the “upside case is increasing.” “We have gained incremental conviction on our bull thesis on AT & T – and continue to see upside to both Street estimates and the stock’s multiple – which in our view justifies healthy double-digit annualized returns for the stock.”
