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Apple, Tesla, Dick's, Costco, Snowflake, Meta, Dish, and more were the top analysts on Tuesday.

February 28, 2023
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Here are the top Wall Street calls from Tuesday:

Tesla remains a buy, says Mizuho

Prior to the company's analyst day on March 1, Mizuho stated that it was maintaining its buy recommendation.

"Maintain Buy Recommendation on TSLA as we view xEV/ADAS (electric vehicle/advanced driver assistance systems) increasing at a secular 20-30% '22-'30 CAGR and TSLA in a leading position," the research firm said.

Apple is once again given equal weight by Barclays.

Low growth in the App Store is the "new norm," according to Barclays, for Apple.

According to our estimations, the App Store generates the most income in the Services sector (33%). Although making up only 6% of total revenues, we calculate that App Store accounts for 11% of all AAPL gross profits.

Arconic is downgraded by Goldman Sachs from neutral to sell.

For Arconic, Goldman stated that it anticipates demand uncertainties.

"Downgrade to Sell" due to the near-term uncertainty surrounding European demand and the postponement of growth initiatives.

Morgan Stand says Dick's is overweight again.

In advance of Dick's earnings report on March 7, Morgan Stanley stated that it is maintaining its overweight rating.

Lack of clarity on the post-reversion floor makes it possible for the stock path to be choppy; however, we think DKS can maintain its sales and profit improvements and that the stock is currently inexpensive.

FuboTV is downgraded by Evercore ISI from outperform to in line.

Shares of the streaming subscription service company are expected to remain volatile, according to Evercore, which downgraded the company.

According to FUBO, "the company benefited from the World Cup in addition to solid NFL and political ad seasons, efficient marketing spend, and improving churn rates, reporting a Beat practically across the board, on Revenue, EBITDA, Subscribers, and ARPU in Q4."

Structural Therapeutics is introduced by BMO as an outperform

In launching the biopharma company, BMO stated that it anticipated a substantial advancement in the market for obesity therapies.

Current progress in obesity therapies is not a passing trend; rather, it represents a major change in the way a common metabolic condition is treated. We consider this a paradigm shift, and Structure Therapeutics seems poised to dominate this market.

Alphabet, Apple, Microsoft, and Meta are among the top AIs according to Bank of America. picks

Alphabet, Apple, Microsoft, and Meta were listed as Bank of America's top artificial intelligence options.

Apple - iOS licensing for default search engine (Google vs Microsoft); Microsoft - OpenAI ChatGPT integration into Bing search engine; Alphabet - Google search ecosystem; DeepMind Sparrow LLM; Bard AI chatbot; Meta - LLaMA big language model; GPU powered AI research supercluster;

Credit Suisse changes Celsius Holdings' rating from neutral to outperform.

The energy drink company has potential for long-term growth, according to Credit Suisse.

"Every beverage company, including Coke, PepsiCo, Keurig, as well as Coke bottlers CCEP and CCH, noted energy strength in December quarter results. The strongest energy sub-segment is Celsius.

Dish is downgraded by Bank of America from buy to underperform.

According to Bank of America, the satellite TV provider is under pressure from inflation.

"The second part of our DISH thesis analyzes the company's financing requirements and free cash flow. Due to unfavorable pay TV trends, increasing marketing costs, and inflationary pressure, we anticipate falling EBITDA.

As an overweight person, Piper Sandler launches Clean Energy Fuels.

In launching the renewable natural gas company, Piper stated that it saw promising potential.

"For OPAL and CLNE, the implied valuation of just their upstream RNG businesses exceeds that of the entire current corporate Enterprise Value (EV), even though the upstream business only accounts for 75%/45%, respectively, of 2025 EBITDA, suggesting material upside potential from continued consolidation in the RNG space," the report stated.

Citi downgrades Dick's from buy to neutral.

Prior to its reporting the next week, Citi downgraded Dick's, citing the company's dismal gross margins.

"Ahead of the 4Q EPS on March 7, we are lowering shares from Buy to Neutral" (BMO). Although we foresee a higher EPS ($2.98 vs. cons $2.90) due to higher sales, we predict lower GM (gross margins) compared to expectations.

Snowflake is still a buy, according to Wells Fargo.

Wells stated that it will maintain its overweight rating going into Wednesday's earnings.

"We regard SNOW as a high-quality co-investors ultimately aim to come back to for longer," the statement reads. "Although the growth discussion is expected to persist in the NT."

Costco continues to outperform, according to Bernstein

Going into Costco's earnings the next week, Bernstein indicated it's bullish.

"We continue to expect good performance from Costco going into Q2 23 earnings," said the statement.

Wells Fargo reiterates its overweight rating of Goldman Sachs.

Wells claims that it will continue to be bullish on the stock going into Tuesday's investor day at Goldman.

How far GS can change its business model is the key question. As a result of Goldman's business strategy requiring more capital (on a percentage basis) than any other major bank, regulators continue to penalize it.

Abbott Laboratories is added to the list of tactical outperformers by Evercore ISI.

Evercore advised investors to purchase Abbott stock as it fell.

Given the recent pullbacks, we are expanding our TAP (tactical, actionable, positional) Outperform list to include ABT and EW.

Airbnb receives an upgrade from hold to buy.

The stock was upgraded by Argus, which stated that demand will likely continue "high."

"We anticipate continued robust demand for Airbnb rentals in the United States, driven by longer stays and expansion in metropolitan markets."

Tencent Music Entertainment is identified by Morgan Stanley as a research tactical idea

Shares of the Chinese music company are compelling and are expected to climb, according to Morgan Stanley.

"In the past month, TME has corrected 9%. Our 2023–24 EPADS forecasts are 5-9% above consensus, driven by robust music revenue growth, and our 4Q22 EPADS estimate is 4% over consensus (TME is scheduled to release 4Q22 results on March 21).

Salesforce is still a buy, according to Deutsche Bank.

In advance of Salesforce's earnings report on Wednesday, Deutsche Bank stated that it stands by its shares.

The fundamentals seem to still be difficult, based on our field checks, even though activist demands for higher profitability and a leveraged recap have dominated the equity narrative (see our note, Unlocking Value, Leverage is a Key).

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