Here are Tuesday's biggest analyst calls: Nvidia, Rivian, Amazon, Airbnb, Warby Parker, HP, FedEx and more
Here are Tuesday's biggest calls on Wall Street: KeyBanc reiterates Nvidia as overweight KeyBanc raised its price target on Nvidia to $750 per share from $670 and said it sees "outsized growth." "Our quarterly supply chain findings are mixed. China demand remains weak but does not appear to be getting meaningfully weaker, while we are seeing pockets of recovery within the PC and smartphone markets. Additionally, we're seeing progress being made associated with inventory destocking in the channel." Read more about this call here. Evercore ISI initiates Aclaris Therapeutics as outperform Evercore ISI said the biopharma company is a "true biotech binary." "As we continue to search for attractive investment opportunities in I & I [inflammation & immunology], we're initiating coverage of ACRS with a $22 PT (200%+ upside) and Outperform rating." Citi names Arista Networks a top pick Citi said Arista shares are too attractive to ignore. "We continue to see attractive risk-reward on communication equipment stocks following our June launch." Bank of America adds FedEx to the US1 list Bank of America added the stock to its top picks list. "We are adding FedEx Corp (FDX), Blue Owl Capital Inc (OWL), and RenaissanceRe (RNR) to the US 1 list. We are removing Knight-Swift Transportation (KNX). KNX remains Buy-rated." Evercore ISI adds Ally Financial to the tactical outperform list The firm added the home and auto loan company to its tactical outperform list and said it sees an attractive entry point for Ally. Evercore ISI also reiterated its long-term in-line rating. "However, we believe emerging efforts to contain expense growth, coupled with stabilizing-to improving used car values, bode well and could present near-term upside to the stock's discount valuation." Stifel initiates Churchill Downs as buy Stifel said the horse racing company is one of the best growth stories around. "While horse racing viewership continues to face secular headwinds, we see potential for high-growth OSB operators to expand the TAM while CHDN continues to develop a unique flywheel & moat as the market leader in live, historical, and online horse racing." Raymond James upgrades Clean Energy Fuels to strong buy from outperform Raymond James said the clean energy company is on the verge of a re-rating. "Upgrading Clean Energy Fuels (CLNE) from Outperform to Strong Buy, with the company on the cusp of ramping up in-house RNG production." JPMorgan reiterates Amazon as a top pick JPMorgan said ignore the noise and buy the dip in shares of Amazon. "We hear a number of concerns in our investor conversations including: 1) AWS growth given recently slowing 3P data; 2) state of the US consumer & retail; 3) increased competition; 4) rising fuel costs; 5) magnitude of holiday hiring; & 6) the FTC lawsuit." Baird initiates Vestis as outperform Baird said in its initiation of the uniform rental company that it's a "self-help story." "We believe Vestis has been under-managed and under-invested during Aramark's ownership with new management energized with a thoughtful plan in early stages." Piper Sandler reiterates Alphabet as overweight Piper Sandler said Alphabet is an "AI winner." "Shares have outperformed despite the onset of a DOJ trial and seemingly ramping infrastructure investment. The market may be telling us i) new product opportunities are forthcoming; and ii) valuation remains undemanding." Bank of America upgrades HP Inc. to buy from underperform Bank of America said in its double upgrade of the stock that it finally sees a "bottom" in free-cash flow for HP Inc. "In our opinion, as goes FCF so go the shares for HPQ. We see the following levers for FCF improvement (1) recovery in PCs driving growth in the negative cash conversion cycle business that will generate higher FCF in 2024 and beyond, (2) cost actions that should improve profitability." Read more about this call here. JPMorgan reiterates Tesla as underweight JPMorgan raised its price target on the stock to $135 per share from $120 but said it's standing by its underweight rating after the company reported delivery numbers Monday. "While this represents a fairly material reset of expectations, actually the decline in deliveries outlook is the least meaningful of expectation resets for Tesla this year because it has come despite large declines in average selling price which have exacerbated the impact of the volume shortfall on all other performance metrics." UBS initiates Interactive Brokers as buy UBS said the multinational brokerage company is an "insulated and attractive growth profile with a unique footprint." "Also, IBKR' s trading business has actually proven more resilient than brokerage peers, with commission revenue only down 6% YTD vs. a record 2021 trading environment driven by larger derivative order sizes and a higher commission mix." UBS initiates CDW as buy UBS said it sees "double-digit EPS growth and cash flow optionality mispriced in shares" for the tech products company. "Through a pivot to more software and service centric offerings, we forecast CDW organic revenue CAGR of at least 6% over the next several years following a modest decline in CY23." Morgan Stanley reiterates Rivian as overweight Morgan Stanley said it's standing by its overweight rating after the company reported delivery numbers. " Rivian reported 3Q deliveries came in 6% above our forecast while reiterating its FY23 production guide of 52k units which we see as supportive of our current FY delivery forecast of 48k units." Evercore ISI upgrades Warby Parker to outperform from in line Evercore ISI said it sees upside to estimates for the eyewear company. "But we see 1) a fundamental inflection story based on product & marketing developments, 2) positive survey results, 3) upside to Street estimates." Read more about this call here. KeyBanc downgrades Airbnb to sector weight from overweight KeyBanc said margins have peaked for the short-term home rental stock. "We believe this could create an overhang on shares as ABNB transitions from a growth to GARP investor base." Bank of America upgrades Booz Allen Hamilton to buy from neutral Bank of America said in its upgrade of the management consulting company that it likes the "AI implementation." " BAH's unique exposure to rapidly growing technologies and modernization efforts supports strong organic growth in the near term." KeyBanc initiates Emerson Electric as overweight KeyBanc said the electric company's transformation works. "Newly Transformed Pure Play Automation Company with Underappreciated Catalysts from Recent M & A." Goldman Sachs initiates Trex as buy Goldman Sachs said the wood decking and railing manufacturer is well-positioned. "In our view, Trex is well positioned to leverage favorable secular shifts along with company-specific initiatives to drive growth and profitability ahead of our broader building products coverage." Goldman Sachs upgrades AllianceBernstein to buy from neutral Goldman Sachs said in its upgrade of the investment management company that it sees improving growth. "With the stock down 12% YTD we think the market is under appreciating AB' s industry-leading organic fee growth prospects and its differentiated operating margin expansion, resulting in a more durable EPS growth outlook over the next 2 years." UBS upgrades Warner Music Group to buy from neutral UBS said investors should buy the dip in shares of the music company. "We see WMG as a LT beneficiary of secular industry trends in music and see the recent pullback as a buying opportunity." Read more about this call here. Citi reiterates Apple as buy Citi said iPhone demand remains strong for Apple. "We tracked the iPhone 15 series delivery times from Apple online store in select countries and compared with iPhone 13 and iPhone 14 series. Overall, demand appears strong in a softened overall smartphone market." Wedbush adds Constellation Brands to the best ideas list Wedbush said it sees numerous positive catalysts ahead for the stock. "We see multiple upcoming catalysts on the horizon for STZ which adds to our overall conviction on the company's ability to continue to outperform and drive strong topline and earnings growth, while unlocking multiple expansion." Bank of America initiates Dycom as buy Bank of America said in its initiation of the telecommunications infrastructure company that it's uniquely positioned. "We are positive on DY because 1) it enjoys a strong infrastructure project backlog, 2) it is well positioned to monetize incremental telecom and cable company wireline buildout initiatives."