Apple, Tesla, Carvana, Nvidia, Netflix, Zoom, Meta, And More Made Big Analyst Calls On Tuesday

Analysts made the following calls on Tuesday:

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Tesla is equally weighted by Wells Fargo

According to Wells, Tesla's bid for Sigma Lithium would "secure capacity & capture profits".

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The Li supply would be secured & the margin would be captured. Nevertheless, there would likely be new operational risks if the location won't be eligible for US IRA."

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Apple is a buy for UBS

Apple TV+ interest has "flatlined" according to UBS survey checks.

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Only 22% of iPhone owners subscribed to AppleTV+ in the fourth annual survey, essentially the same percentage as in January 2020 before Covid."

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Apple's performance is reaffirmed by Bernstein

As Bernstein notes, Apple's Q2 revenue growth is unlikely to be positive in FY 23.

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Services growth is most vulnerable to regulatory issues (Google payments and App Store), as well as slowing iPhone installation growth due to weaker sales or fewer switchers.

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The top A.I. picks of Baird include Amazon, Alphabet, and Nvidia

Among the biggest beneficiaries of artificial intelligence will be Amazon, Alphabet, and Nvidia, Baird said.

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Although this list is not exhaustive, we believe that companies included here not only possess advanced AI capabilities, but they will also benefit from the ‘tidal wave’ of AI in consumer and/or enterprise applications, which is expected to take place in the near future.”

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Constellation Energy downgraded from buy to neutral by Bank of America

According to Bank of America, the company's valuation is the main reason for the downgrade.

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“It's a longstanding consensus that the Federal Production Tax Credit (PTC) provides protection on the "pricing" element of the nuclear industry. However, with the recent increase in operating costs, maintenance costs, and nuclear fuel investment, the PTC can only provide protection on the "costs."

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A sell rating is given to DocuSign by UBS

Having downgraded the stock due to dwindling growth, UBS says it is concerned.

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As a result of last week's announcement of a 10% staff reduction (after the 9% reduction announced in September), we downgrade our rating to Sell from Neutral, believing that it sends a negative signal about FY24 growth that may not have been accounted for."

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Target is a buy according to Citi

In advance of Target's earnings on Feb. 28, Citi said it stands by its buy rating.

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We see gross margin recapture opportunities in F23, but sales risks against tough multi-year comparisons." "The big picture is we see gross margin opportunities in F23," he said.

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Carvana's performance is reiterated by Raymond James

As Carvana's earnings are due later this week, Raymond James said it will be cautious.

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Although CVNA stock plunged 98% in 2022 (including a -41% decline in December), it has climbed 140% YTD in 2023 and is now trading in the $10-11 range, which we believe to be a fair price."

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Workday catalyst call buy added by Deutsche Bank

Despite the ongoing economic uncertainty, Deutsche expects to be bullish in its earnings report for this month's on-demand financial management company.

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In F4Q, we expect a healthy result, with a very likely overachieve our expected 24-month growth of 19% y/y, as partner checks have significantly increased from last quarter. According to field reports, WDAY has been receiving healthy ME (Medium Enterprise) demand, most of which is incremental for them, winning accounts with as few as 500 employees or fewer."

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Caleres is upgraded from neutral to overweight by Piper Sandler

"Strong earnings growth" was the keyword Piper used in upgrading the footwear company.

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As a result of the pre-announcement on 2/15, we have upgraded CAL to OW based on the 2023 earnings reset and our continued confidence that EPS gains are structural.

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AutoNation is downgraded from neutral to underweight by JPMorgan

AutoNation is downgraded from neutral to underweight by JPMorganNation .

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At current levels, we do not expect to change our 2025 normalized margin/EPS view, which reflects an overall balanced risk-reward environment.

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Meta reiterated as a buy by Bank of America

Recently announced Meta Verified subscription service is a bright spot for Bank of America.

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“Our subscription offering is a high margin business with marginal incremental costs, which we view as an opportunity to increase earnings." Meta continues to take aggressive action to grow earnings in the year of efficiency."

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Alphabet is a buy recommendation from Bank of America

A ChatGPT thread to Alphabet didn't affect Bank of America's buy rating.

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In the near term, we expect Microsoft to continue to perpetuate the overhang as a result of the ChatGPT threat to Alphabet. We have heard both mixed and credible opinions from well-informed investors about the ChatGPT threat to Alphabet.

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Generac is downgraded from a buy to a hold by Truist

As the company is experiencing macro headwinds, Truist downgraded it.

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“It has been discussed at length by management over the last several quarters how GNRC will address its internal challenges, both that pertain to the core business of home standby generators (HSB) and to the emerging Clean Energy products business.

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Vir Biotechnology has been upgraded to buy by Goldman Sachs

Shares of Vir are viewed as having a favorable risk/reward ratio by Goldman Sachs.

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Bringing a new leg of growth to the market is a compelling risk/reward opportunity due to the underappreciated catalyst."

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Netflix reiterated as overweight by JPMorgan

According to JPMorgan, Netflix faces a near-term risk as a result of the password sharing crackdown.

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Our expectation is that NFLX will make certain policy and customer service tweaks along the way despite the N-T pushback and confusion around its one household approach, work through these headwinds (as it has done in the past), and generate more revenue by combining Extra Members with standalone accounts.

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Nvidia's equal weight is reiterated by Morgan Stanley

The price target for the stock has been raised at Morgan Stanley from $175 to $246 as the company prepares for earnings on Wednesday.

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In our view, NVIDIA's quarter and outlook went in line with expectations, with gaming recovering from the lows and training offerings buffering the company from datacenter weakness.

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Microsoft is reiterated by BMO as a market performer

AI is a key benefit for Microsoft, according to BMO Capital Markets.

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In addition to MSFT's reach, scale, and access to data, we believe it will also generate competitive differentiation for MSFT through the development and training of AI models."

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Zoom is reiterated as equal weight by Barclays

The Bank of America said Zoom earnings are expected to be low later this month.

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ZM bears believe that revenues for FY24 will flatten or decline, and bulls are hoping that recently implemented headcount reductions will facilitate non-GAAP operating margin enhancements of 300-400bps, as well as better revenues for FY25."