Apple, Tesla, SVB Financial, United, Roblox, JPMorgan Chase, Meta & More Analysts Call On Friday

Here is Friday's top Wall Street calls.

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Apple has been downgraded by LightShed to sell from neutral

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LightShed said in its downgrade of Apple that it sees the company's growth slowing down in the near future.

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“The rating for Apple has been downgraded to Sell from Neutral, with a price target of $120. We believe our estimates are below consensus due to more conservative outlooks for iPhone sales and a more moderate growth expectation for revenues from services.”

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Tesla remains a top pick for Baird

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It is expected that Tesla will introduce home heat pump technology in the future, according to Baird.

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“The company has previously stated that the integration of heat pump technology into a home is similar to the integration of a vehicle, with the integration of a vehicle being even more challenging. The comments made by TSLA at investor day suggest that a heat pump home offering is likely in the near future.”

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United is downgraded from equal weight to overweight by Barclays

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United's demand is expected to remain robust, according to Barclays, which said Southwest will be equal weight from overweight.

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“It seems that the airlines are going to benefit from strong demand this Spring; we are switching our 'safe' airline recommendation from Southwest to Alaska and taking on more leverage risk with United while stepping back from Allegiant's increasingly complex business model.”

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KeyCorp has been upgraded by Baird to outperform from neutral

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Regional banks have an attractive risk-reward profile, according to Baird.

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“As the risk/reward trade-off for regional banks is very attractive at current prices, upgrading KEY to Outperform would enable the company to add bank exposure more aggressively during this selloff.”

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DocuSign has been downgraded to underweight by JPMorgan from a neutral rating

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There is uncertainty among management and increased competition in the market, according to JPMorgan.

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“In its FQ3 earnings call, DocuSign provided a preliminary FY24 outlook that investors likely saw as conservative and setting a high bar for growth that would be achievable. In its full-year guidance, DocuSign falls a bit short on the top line, and in its operating margin guidance, it does not appear that much of the recent headcount reductions will be reflected.”

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Netflix reiterated as an outperformer by Evercore ISI

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As of today, Evercore is standing by its buy rating on Netflix shares and has no plans to change it.

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“There is an overall cautious tone for Core Netflix trends in the U.S., with Penetration, Sat Score, and Retention taking a slight dip from December's exceptionally strong performance. Core Netflix trends in Japan are largely neutral.”

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Roblox has been upgraded to a buy by Jefferies

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The analysts at Jefferies said Roblox is one of the fastest-growing internet companies, earning multiple expansions, higher estimates, and investment interest from investors.

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“In our view, RBLX is a strong investment opportunity, supported by a compelling narrative (top-line growth with margin inflection & advertising option) that is supported by strong net bookings expansion and underlying user metrics.”

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SVB Financial Group is downgraded from buy to hold by Truist

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There is too much uncertainty about the deposit risk of SVB, according to Truist, which downgraded the company.

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“Our recommendation is to stay on the sidelines until there is more clarity on the outflows of deposits and the proposed capital raise of $2.25 billion, given the risks involved.”

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Chewy is initiated as a buy by Roth MKM

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The online pet food company is billed as the next big thing in e-commerce, according to Roth.

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“In spite of the complex consumer environment, Chewy's core business is proving to be strong, particularly in relation to the limited "giveback" period it faces, in contrast to the majority of other eCommerce companies.”

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Meta is reiterated by Needham as an underperformer

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There is no change in Needham's underperforming rating for the stock as it stands.

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“Due to the fact that Meta doesn't control its content creators (who are moving over to TikTok and YouTube) and it doesn't control its distribution (which is subject to iOS and Android), we fear that it may not have a terminal value as a company."

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Zimmer Biomet is upgraded from neutral to overweight by Piper Sandler

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There are upsides to the medical device company in Piper's view, according to the firm.

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“We raise our rating on ZBH from Neutral to Overweight due to the strong commentary we have heard regarding the large joint market and what we believe to be beatable revenue guidance for the year.”

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SolarEdge and Enphase are being purchased by Citigroup

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A number of solar companies have been started by Citi, and they claim to be gaining market share as a result.

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“Among our top picks, we have the Buy-rated ENPH, NETI, SEDG, and SHLS. This is a group of companies that are leaders in their respective fields, gaining market share, and growing faster than the overall growth rate in the industry.”

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Caterpillar is downgraded from neutral to sell by UBS

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There is a belief that the industrial giant is overvalued, according to UBS.

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“CAT has been downgraded to Sell, as we do not believe there is enough cyclical momentum to justify the current valuation of this stock.”

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Allbirds is downgraded to neutral from outperform by Baird

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In response to the footwear company's disappointing earnings report, Baird downgraded the stock.

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“Despite weaker demand and promotional headwinds, Allbirds missed the sales/adjusted EBITDA projections for the fourth quarter. In comparison to the prior playbook, management's strategy to improve growth and profitability (targeting EBITDA breakeven by 2025) represents a significant departure from the company's business model.”

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Spotify is a buy recommendation from Bank of America

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As part of its continued bullishness on Spotify shares, Bank of America has raised its price target for the stock to $143 per share from $120.

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“Our company continues to forecast that gross margins will improve in 2023, as a result of judicious investment spending initiatives, in part.”

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Charles Schwab has been rated overweight by Morgan Stanley again

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There is an overreaction in the selloff of Schwab shares, according to analysts at Morgan Stanley.

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“Concerns about the cash sorting and overdosing of the block sale sell-off.”

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JPMorgan is reiterated by Citi

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There is a trading opportunity for stocks such as JPMorgan, Wells Fargo, and Goldman Sachs as Citi says it's a good time to buy these stocks.

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“Our view is that this is an attractive time to be buying the group, as it is currently priced in at an implied cost of equity of 12%.”

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Exxon reiterated as a buy by Mizuho

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There is the bullish sentiment on shares of Exxon Mobil at Mizuho Financial Group.

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“Oil prices are expected to remain unchanged in 2023, according to our outlook. Overall, we lower our price targets by ~5%, but we still estimate that the sector will produce FCF yields of ~10% - well above the market average of ~3.8%. This is why we remain positive about the sector.”

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Pool Corp is reiterated as an outperform by Oppenheimer

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Shares of the pool company are at a compelling entry point, according to Oppenheimer.

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“Initiating coverage with an Outperform rating/$408 target, we are drawn to Pool Corp.′s long-term growth profile as a leading wholesaler in an industry that is benefiting from migration to warmer climates that have a higher propensity for pool ownership, a higher interest in backyard living features, and increased expenditures on higher-value technology-enabled pool accessories.”