Apple, Tesla, First Republic, Charles Schwab, Match & More Make Big Analyst Calls On Tuesday

Wall Street's biggest calls on Tuesday were:

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Match is upgraded to overweight from equal weight by Barclays

Match's cash flow generation has been cited as one of Barclays' strong points in its upgrade.

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“It is fair to say that MTCH shares have been a large underperformer YTD with shares down 15% versus an upward trend in the S&P 500, mainly due to concerns that the growth of Tinder payers has peaked.”

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Academy Sports is initiated as a buy by Jefferies

The sporting goods retailer is rated as one of the best in the industry by Jefferies.

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“In terms of sporting goods retail, ASO is our top pick. The company has a value-oriented market positioning, best-in-class unit economics (>40% higher EBITDA per store than DKS), the longest unit growth runway (>3x), and an attractive valuation.”

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Apple is rated as an outperformer by Evercore ISI

As a result of its analysis, Evercore believes Apple's premium is justified.

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“However, in the current macro environment, we would argue that AAPL's premium is not only justified, but it could also grow further in the future, based on AAPL's premium efficiency metrics (ROIC, ROE, and so on) and solid FCF and capital return.”

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PNC is rated overweight by Wells Fargo

An increase in quality should benefit PNC, Wells said.

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“The meetings we had with top executives of PNC were remarkable for the degree to which all of them felt like any other day in the midst of such turmoil in the market at that time. A flight to quality should benefit PNC in the long run.”

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Roku is upgraded to peer perform from underperform by Wolfe

In its upgrade of Roku, Wolfe stated that profit margins were improving.

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“We upgrade Peer Perform with a beatable advert, guidance, & a new attitude when it comes to expenses.”

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Tesla is rated underperform by Bernstein

Tesla shares remain overvalued, Bernstein said.

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“Tesla's volume target for 2023 is anticipated to be 1.8 million units, which seems achievable. However, we believe that Tesla will likely have to further reduce prices in order to achieve volume expectations for 2024 and beyond, as competition will intensify in the coming years.”

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Charles Schwab is reiterated as a buy by Deutsche Bank

Charles Schwab's liquidity risks are overstated, according to Deutsche Bank.

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“There has been a credible risk of SCHW suffering a rapid and substantial drawdown of deposits from its clients, posing a significant threat to its liquidity throughout this banking crisis, which commenced Thursday.”

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First Republic Bank remains overweight according to Stephens

As for shares of the regional bank, Stephens said it stands by them.

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“Changing market expectations around future interest rates should benefit FRC, though estimating the EPS upside is premature. Rating OW.”

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Western Alliance Bancorp is rated overweight by Wells Fargo

In a statement, Wells Fargo said it stands by its regional bank shares.

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“Considering WAL shares are currently trading at 60% of TBV, we consider the risk/reward to be attractive and come away with a new renewed sense of optimism after our conversation with management.”

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Netflix is reiterated as a market performer by MoffettNathanson

Despite concerns about the model of the streaming giant, Moffett said it is still cautious about it.

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“We would all be happy in a perfect world where there would be enough company disclosures and publicly accessible information available to produce a Netflix model that would be extremely reliable in the long run. Unfortunately, that is not the case at the moment.”

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American Express is rated overweight by Wells Fargo

Investing in American Express shares at a bargain price is a good idea, according to Wells.

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“As part of our investor relations efforts, we hosted an investor meeting with Chairman & CEO Steve Squeri / CFO Jeff Campbell. In the end, we came away with a sense of confidence in our Top Pick company and believe that they are on track to meet the 23rd quarter revenue guidance. Taking advantage of the pullback in the stock, we are buyers of the stock.”

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TrueCar is upgraded by Needham to buy from hold

The new and used car website company said in its upgrade that it was playing offense.

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“With TRUE's combination of leverage to new vehicle sales during a slow recovery in the auto industry and changes in TRUE's business model, we are able to play offense more confidently, while TRUE's cash balance and further prospects from strategic industry partners make TRUE more comfortable on the defensive front.”

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Newmont Mining is upgraded to buy from hold by Canaccord Genuity

Canaccord said in its upgrade of the gold miner that it sees opportunities for upside and growth.

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“In our view, Newmont is a company that offers investors a steady gold production profile, based on geopolitically stable jurisdictions, with a large project pipeline, a strong balance sheet, strong free cash flow generation, and a proven operating team.”

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Estee Lauder is initiated as an outperformer by Cowen

Cowen said in its initiation of Estee Lauder that it would be a resilient icon that can be reinvented in the future.

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“With EL's iconic brand portfolio, geographic and category diversification, and deep customer loyalty, sales are growing at +HSD% (high single digit). EL's prestige focus, M&A track record, innovation, and seasoned management make it a standout company in the industry.”

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Amazon is a buy for Bank of America

According to Bank of America, the company's buy rating for Amazon shares remains unchanged.

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“Our top large-cap stock idea for lower inflation and lower interest rates scenarios is Amazon because it has built out its retail distribution advantage during the pandemic and has continued to do so. With higher inflation and a shift to leisure spending, the company is experiencing a negative impact on eCommerce sales. It also has long-term cash flow that could benefit from lowering discount rates.”

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Alphabet is reiterated as an outperformer by Bernstein

It believes Alphabet's cloud business will become profitable soon.

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“It's time for Google's cloud business to change the narrative and prove to investors that the expensive bet was worth it in the midst of a sea of unknowns. Our prediction is that Google's Cloud business unit will become profitable by 2H23, well ahead of the consensus estimate.”