Here are Thursday's biggest analyst calls of the day: Verizon, Meta, Shopify, Qualcomm, AMC & more
Here are Thursday's biggest calls on Wall Street: Piper Sandler downgrades Shopify to neutral from overweight Piper downgraded the e-commerce company after its earnings report, saying it sees too many "execution risks." "Ultimately, we see the balancing act of growth investments & efficiency targets as posing new execution risks — on top of navigating a normalization in e-com growth rates that we do not yet have visibility into stabilizing. Thus, we are lowering our rating on SHOP to Neutral with a $32 PT." Read more about this call here. Bernstein names Hess a top idea Bernstein named the oil company a top idea for the third quarter and said it's the "premier E & P growth story." " Hess is the premier E & P growth story and, at our numbers, has the 4th to best cash flow per share growth outlook in the S & P 500." MKM initiates Tractor Supply as buy MKM said it sees multiple catalysts in the months ahead for the home and garden store. "In our view, Tractor Supply is now at the rare intersection of growth and productivity whereby the company is set to unlock significant sales and operating profit potential in the years to come." Stifel upgrades Kraft Heinz to buy from hold Stifel said it sees solid upside from current levels after the company's earnings report. "We are upgrading the shares of Kraft Heinz to Buy and maintaining our $43 target price, which suggests strong upside for the shares from this level. We are taking advantage of some near-term dislocation in the stock and a discount valuation (15% discount to its peers), against the backdrop of a solid and improving operating environment for the business." JPMorgan reiterates Caterpillar as overweight JPMorgan said it's cautiously optimistic heading into the company's earnings report next week. The firm also said it sees a margin recovery for shares in the second half. "We believe CAT's earning power and FCF conversion continue to merit our Overweight rating. Jefferies downgrades Best Buy to hold from buy Jefferies downgraded the stock after its pre-announcement Wednesday, noting it has concerns about a softening macro environment. "Following yesterday's pre-announcement, we revisited the BBY bull case and believe initiatives to drive market share & profits likely to be overshadowed by a softer macro. ... With downside to 2H fundamentals and capped multiple expansion, we're downgrading to Hold from Buy." Goldman Sachs downgrades Teladoc to neutral from buy Goldman downgraded the telehealth company due to disappointing guidance. "While TDOC posted solid results that were ahead of expectations for 2Q22, their guidance for the 3Q22 in terms of adjusted EBITDA was considerably below our expectations by 38%." Morgan Stanley downgrades LegalZoom to equal weight from overweight Morgan Stanley said in its downgrade of the legal help website that it sees a less favorable risk/reward outlook. "Reduction of Covid tail winds against rising recession headwinds results in an unfavorable environment for new business starts, LZ's main catalyst to acquire customers. Slowing demand & lower visibility in transaction-based revenue presents risk to ests & less favorable risk/reward." Edward Jones upgrades Qualcomm to buy from hold Edward Jones said the stock doesn't fully reflect the firm's growth outlook. " Qualcomm's high-profit-margin licensing business generates strong and stable cash flow and increases the financial flexibility of the company." JPMorgan reiterates Beyond Meat as underweight JPMorgan said its checks show that Beyond Meat's McPlant Burger is not on the menu at many McDonald's locations that the firm surveyed. The analyst went on to say that it's a negative catalyst for Beyond Meat. "We believe that McDonald's has broadly discontinued its U.S. test of the McPlant burger made with Beyond Meat. We recently spoke with MCD employees at 25 locations that previously carried the product; each said that the item is no longer on the menu." Bank of America downgrades Verizon to neutral from buy Bank of America said Verizon's near-term outlook is too cloudy. " Verizon gambled again in the last several years that 5G would give birth to a similar degree of novel consumer and/or business demand. It has not. Verizon's understandable fixation, therefore, on 'what is next' led it down a path where, unfortunately, it now falls short on 'what is now.'" Read more about this call here. Credit Suisse upgrades Enphase Energy to outperform from neutral Credit Suisse said it likes the solar product maker's strong execution. " ENPH beat higher end of Q2 guidance/estimates and guided Q3 above expectations, driven by pricing power for IQ8 microinverter products in the U.S. and stronger demand in the U.S. and Europe." MKM reiterates AMC as sell MKM said ahead of the movie theater company's earnings report next week that the stock's valuation is still too "irrational." "As a result of a 400% increase in AMC's shares outstanding since the start of the pandemic along with a sizable $5.5bn debt load, it will likely take a number of years for the company to grow into its capital structure." Goldman Sachs reiterates Meta as buy Goldman said in a follow-up note after Meta's earnings report that the stock remains a "show me story." "Going forward, META's commentary reflects an inverse of its Q2 results — macroeconomic volatility is expected to put pressure on the forward revenue trajectory (despite easier YoY comps in 2H '22) while a reexamination of costs (especially hiring) could lead to better margin/EPS outcomes in the quarters ahead. As a result, we see META remaining a 'show me story.'" Read more about this call here.