Here are Wednesday's biggest analyst calls: Netflix, Apple, Dick's, Meta, Amazon, Charles Schwab and more
Here are Wednesday's biggest calls on Wall Street: Deutsche Bank reiterates Charles Schwab as buy Deutsche Bank said it sees an even "more" attractive risk/reward for Charles Schwab shares after Tuesday's sell-off. "On Tuesday, SCHW shares dropped nearly 5% (as of this writing) vs. a ~2% drop in the BKX banking index and a slight drop in the S & P 500." Read more about this call here. Wells Fargo reiterates Signet as overweight Wells Fargo said investors should buy the dip in shares of the jewelry company. "We raise FY numbers and are buyers of SIG ahead of next week's 2Q EPS print as we see a catalyst-rich path to getting paid over the next several months. Most notably, we are NOT concerned with recent credit fears that have surrounded the stock." Morgan Stanley reiterates Apple as overweight Morgan Stanley said Apple has "surpassed MSFT as the most under-owned large-cap tech stock exiting the second-quarter." "However, AAPL is now the most under-owned large cap tech stock we track, while META saw its ownership gap vs. the S & P widen more than any large cap peer in 2Q." Oppenheimer reiterates Netflix as outperform Oppenheimer said it's standing by its outperform rating on shares of Netflix and that the bear case has been "derisked." "Our analysis indicates a clear path back to double-digit revenue growth, which should support ~25x PE." Morgan Stanley upgrades Brown-Forman to overweight from underweight Morgan Stanley said the spirits and beverage giant's stock's valuation is "compelling." "We are double upgrading BFb from Underweight to Overweight, with GM headwinds likely to turn to a tailwind, reduced concerns over earlier US spirits industry softness, and a compelling relative valuation." Read more about this call here. Loop reiterates Amazon as a top pick Loop raised its price target on Amazon to $200 per share from $180 and said the "retail margin story has legs." "The retail margin recovery is playing out with meaningful headroom." Edward Jones upgrades Dollar General to buy from hold Edward Jones said the dollar retailer has "attractive fundamentals." "We are upgrading shares of Dollar General to a Buy from a Hold and adding shares to the Edward Jones Stock Focus List." Bank of America reiterates Meta as buy Bank of America said it sees more upside for shares of Meta. "We believe the stock could see renewed enthusiasm on 2024 upside potential once Street has greater certainty on 2024 spending targets." Barclays initiates Duke Energy as overweight Barclays said the energy company is well-positioned. " DUK is nearing a transition out of the unregulated renewable generation and refocusing on core regulated growth, while executing on a large capex plan of $65bn over 5 years." Bank of America reiterates Five Below as buy Bank of America said it's standing by shares of the discount retailer. "Given FIVE' s potential for a comp reacceleration in 2H, long-term store growth potential, and recession resiliency, we reiterate our Buy rating and $242 PO based on 36x '24 P/E." Wells Fargo reiterates Bank of America & JPMorgan as overweight Wells Fargo said it's standing by its overweight rating on Bank of America but lowered its price target to $40 per share from $43. The firm also lowered estimates on shares of JPMorgan . "We lower ests. due to less-than-expected est. loan and capital markets growth, as well as less buybacks due to reg changes which, for the group, makes us more cautious short-term." UBS upgrades Avery Dennison to buy from neutral UBS said it sees an earnings inflection for the adhesives company. "We upgrade AVY to Buy, lifting our LT est's and raise our PT to $222 (~25% upside). AVY stock has been stuck in $160-190 range for most of the last 2 years; we believe the stock can break out of this as earnings inflect meaningfully positive Y/Y in 4Q23/2024." Bank of America downgrades Dick's to neutral from buy Bank of America downgraded the stock after its disappointing earnings report Tuesday. "Post 2Q results, we see increased risks to DKS sales & margin outlook due to: (1) normalization of spending on categories that outperformed during COVID-19 (incl. Outdoor apparel & equipment, bicycles, etc.), (2) years of high grocery inflation crowding out spending on discretionary purchases." Read more about this call here . DA Davidson upgrades Louisiana-Pacific to buy from neutral DA Davidson said it sees an attractive entry point for the building materials company. "We are upgrading shares of LPX from Neutral to BUY, believing that the recent weakness in the in response to a reset in near-term expectations for the Siding business creates a compelling entry-point." Goldman Sachs initiates Safehold as buy Goldman Sachs said shares of the real estate investment trust are "attractive." "Over time (as restructuring activity picks up in the near term, and as refinancing and transaction activity recovers over the medium term), we expect SAFE's earnings and value growth will be driven by investment volumes(and yield), where we forecast +10.6% average EPS growth per year in 2024 through 2025." Read more about this call here. Goldman Sachs initiates Infosys as buy Goldman Sachs said in its initiation of the India IT company that the stock is attractive. " Infosys ( INFY.BO/INFY): Under-appreciated growth recovery; attractive valuations; initiate at Buy." Susquehanna reiterates Marvell Technology as positive The firm said it's cautious heading into Marvell earnings Thursday. "We expect generally in-line results, but an uncertain guide as we believe the growing AI opportunity may not be enough to offset continued softness in traditional networking, storage, comms infra, and consumer."