Here are Wednesday's biggest analyst calls: Apple, Netflix, Nvidia, Alphabet, FedEx, Tesla and more
Here are the biggest calls on Wall Street on Wednesday: Barclays reiterates Coinbase as underweight Barclays said it remains unclear how the U.S. Securities and Exchange Commission's Grayscale bitcoin exchange-traded fund decision Tuesday will affect Coinbase. "A US appeals court overturned an SEC ruling rejecting Grayscale's spot BTC ETF, sending it back for further review. While this reads through positively for spot BTC ETF approvals, it remains unclear if this will be a net positive for Coinbase's P & L." Citi reiterates FedEx as a top pick Citi said FedEx has "parcel pricing power." "A favorable parcel pricing environment alongside tailwinds from diverted customer traffic around UPS' contract negotiations and Yellow's closure likely support upside to consensus' F1Q and F24 EPS estimates, keeping FedEx among our top picks in Transports." Barclays initiates Fluence Energy as overweight Barclays said the energy storage company has margin upside. "We also expect FLNC's Services business to grow at a rapid pace at attractive margins, although not as high as STEM's storage software margins." HSBC initiates Align Technology as buy HSBC initiated the dental tech company with a buy and says it's a market leader. "We prefer ALGN for its faster growth and enhanced exposure to the double-digit growth clear aligner market." Read more about this call here. Morgan Stanley downgrades Centene to equal weight from overweight Morgan Stanley said in its downgrade of the managed health-care company that it sees lower earnings visibility for Centene. "We see lower earnings visibility into 2025+ AND believe their valuation discount is reasonably justified and see LIMITED opportunity for any material multiple expansion in the near term." TD Cowen downgrades Ambarella to market perform from outperform TD Cowen downgraded Ambarella after its earnings report Tuesday. "Another hard expectation cut as customer inventory burn accelerates, leaving the company with little visibility in the near (and intermediate) term." Wells Fargo reiterates Spotify as buy Wells Fargo said it's standing by its overweight rating on shares of the streaming company. "As bulls, we like the setup for the Q3 print + Q4 margin guide. We do not think SPOT will contradict any commentary from its label partners around 'new deals' or changing royalties." Citi reiterates Apple as buy Citi said it's bullish heading into Apple's iPhone event Sept. 12. "We expect major hardware upgrades to iPhone 15 series include 3nm A17 chips for the Pro models, transition to USB-C port, upgraded camera, and increased memory and storage." Bernstein downgrades Texas Instruments to market perform from outperform Bernstein said in its downgrade of the stock that earnings expectations are too high. "However, Street models still do not appear to contemplate the consequences of TXN's plans, and gross margin expectations appear far too high to us." Read more about this call here. Wells Fargo downgrades Rockwell Automation to underweight from equal weight Wells Fargo said in its downgrade of the industrial automation and technology company that it sees slowing sales growth. "Following a review of Industrial automation market trends, we lower our rating on ROK to UW from EW." Wells Fargo reiterates Netflix as overweight Wells Fargo said it's standing by its overweight rating on the streaming giant. "We like the setup into the Q3 print as Street net adds of ~8mm for 4Q23 likely have upside if NFLX pushes a bit more on interventions in a quarter that's typically its seasonally strongest for content drops." Morgan Stanley initiates Atour as overweight Morgan Stanley said the China hotel company is best positioned. "We initiate coverage of Atour with an Overweight rating and a price target of US$36, implying > 80% potential upside." Melius Research reiterates Nvidia as buy Melius Research said in a note Tuesday that Nvidia shares are still cheap. "However, we believe that Nvidia's shares could resume some momentum into CY-end as "digestion" occurs — and even valuation could provide some support." Read more about this call here . Bank of America reiterates Alphabet as buy Bank of America raised its price target on Alphabet to $146 per share from $142 and says it's feeling more bullish on the stock after its Google Cloud Next event. "We maintain our Buy rating and see Cloud as a positive driver for stock given: (1) strong gen-AI capabilities; (2) early signs of customer traction (AI projects up 150x in the last three months); (3) improving margins." Guggenheim reiterates Tesla as sell Guggenheim said it's standing by its sell rating as more price cuts will be needed for Tesla. "Overall, we believe further price cuts are likely near-term, and additional price cuts are likely to adversely impact investor confidence in FY24 numbers, where consensus models imply meaningful volume and pricing growth, which we believe is increasingly unrealistic based on US, Europe, lack of new models and Macro." Read more about this call here. Citi upgrades Sunrun to buy from neutral Citi said in its upgrade of the solar stock that headwinds are priced in. "We highlighted our preference for RUN vs. SPWR in our solar initiation, but volatility in banking sector combined with increasing interest rates meant baby was thrown out with the bathwater despite RUN's proven track record in raising capital during stressed market periods and price increases to offset the impact of interest rate increases." Evercore ISI initiates Gulfport Energy as outperform Evercore said the natural gas company has an attractive cash-return profile. " GPOR is a focused natural gas levered E & P with operations in eastern Ohio Utica and Oklahoma SCOOP play in the Mid-Continent.