Here are Wednesday's top Wall Street predictions:
Red Robin is upgraded by Benchmark to buy from hold.
Red Robin is on a turnaround, according to Benchmark.
"We think the RRGB's new senior management group, under the direction of G.J. With a focused operational approach, Hart and the hand-selected group of senior leaders he is developing are the perfect team to advance the Red Robin brand's operational and financial performance.
Bernstein raises Kinder Morgan's rating from market perform to outperform.
The sentiment toward the shares of the energy infrastructure company is improving, according to Bernstein.
"For as long as we can remember, the bear case on KMI has been 'leaky bucket' or 'death by a thousand cuts' or some similar phrase decrying that every year, there would be roll off of ~$250mm of EBITDA, largely in, but not limited to, gas pipelines.".
JPMorgan declares Eve to be obese.
The provider of urban mobility was cited by JPMorgan as one of the industry's top competitors.
"We see Eve as one of the strongest players in the expanding Urban Air Mobility (UAM) industry and the eVTOL market, which should benefit from aircrafts' lower noise, zero emissions, superior safety, and potential for autonomy, and gain market share from helicopters due to a stronger penetration in crowded metro areas," the authors write.
Palantir is started by DA Davidson in neutral mode.
Palantir's profit visibility, according to DA Davidson, is restricted.
Palantir is a powerful, mission-driven company with substantial intellectual property, but we think that its particular focus and mission could limit its chance and ability to see earnings.
Sarepta is now upgraded by Morgan Stanley to overweight from equal weight.
SRP-9001, the company's gene therapy medication, is a strong buy, according to Morgan Stanley.
'During SRPT's 4Q results call, mgt. After the mid-cycle evaluation of SRP-9001, recent comments was noted that suggested the FDA was satisfied with the surrogate endpoint and had no safety-related concerns.
Apple is still viewed as overweight by JPMorgan.
According to JPMorgan, demand for the iPhone 14 is still robust.
Latest Wave7 Research polls of US sales trends across different carriers in January 2023 revealed that overall demand for the iPhone 14 series remained high in comparison to peers. The iPhone share at all three carriers is still higher than it was before the introduction and is also seasonal compared to previous product cycles.
Piper Sandler affirms Tesla as a purchase
In light of the start of the company's investor day, Piper stated that Tesla is still a core holding.
"We continue to consider TSLA as an essential holding within our coverage, and we are as thrilled as everyone for [today's event]."
Guggenheim announces AbbVie as a purchase
In launching the stock, Guggenheim stated that it liked the product pipeline for AbbVie.
The strength of the rest of AbbVie's business, including products like Skyrizi, Rinvoq, and Vraylar, which we believe can each drive further upside through recent or upcoming line extension opportunities, has, in our opinion, been overlooked by investors who have been naturally focused on Humira's erosion curve as it loses market exclusivity in the US.
Reiterating that Rivian is overweight, Morgan Stanley
After the EV manufacturer's earnings report on Tuesday, Morgan Stanley stated that it was maintaining its overweight rating on the company, but that it is now a "show-me" story.
Although though RIVN's 4Q22 showed progress in cost management, the FY23 guidance disappoints in terms of output, gross margins, and cash usage. We believe FY23 will be crucial for RIVN in demonstrating their ability to achieve a route to GM (gross margin) breakeven in FY24.
Kontoor Brands is upgraded by Stifel to buy from hold.
In its upgrading of the company that makes Lee and Wrangler jeans, Stifel stated that Kontoor has "brand momentum."
"Our more positive outlook reflects evidence of strong brand momentum, market share improvements in both core denim and non-denim styles, gross margin potential in 2H23 and into 2024, and conservatism incorporated into the FY23 guidance," the company said in a statement.
Silvergate is downgraded by KBW from outperform to market perform.
Because of the stock's poor visibility, KBW downgraded it.
In light of the deleveraging of the cryptocurrency industry and the consequences of the FTX bankruptcy, SI's shares are still volatile, which makes it difficult to use basic valuation models when analyzing SI's 12-month prognosis.
Marqeta is downgraded by JPMorgan from overweight to neutral.
JPMorgan claimed that the card issuer has too many challenges.
We feel it is time to move to the sidelines on the stock given the trade-off of lower near-term growth with longer-term certainty due to stepped up renewals, including Visa that surprised us to the downside, even though we like the strategic value and long-term operational improvements being put in place at Marqeta.
Procter & Gamble receives an upgrade from UBS to buy from neutral
The P&G stock selloff, according to UBS, has gone too far.
P&G has had the worst YTD performance of any stock in our HPC covering universe, which is partly attributable to the group's unwind but also to worries about the company's future capacity to provide outsized EPS growth and positive revisions.
Philip Morris is upgraded by UBS to buy from neutral.
The tobacco company's stock, according to UBS, is interesting.
Although some investors may be turned off by the margin dilution, we believe that PMI's setup for the second half of 2023 and beyond is attractive.
Empire State Realty Trust is upgraded by Bank of America to purchase from neutral
The real estate investment trust was upgraded by Bank of America, which also stated that it expects upside potential from a New York City recovery.
"We move ESRT from Neutral to Buy. Despite having difficult near-term prospects, we believe that its valuation is the most enticing among its competitors. ... Notwithstanding this, we think there is room for growth in profitability due to lower operational costs and the ongoing tourism recovery in New York City.
Redburn ups the buy from hold setting on Spotify.
Redburn argued that the general opinion on Spotify is overly circumspect.
The major levers for the gross margin reaching 26.7% in 2023 and 30.4% in 2026, which is 100bp and 160bp higher than estimate, respectively, are "waning headwinds from investments, publishing royalty rises and Currency with rising marketplace."
Citi reduces Warby Parker's rating from buy to neutral.
The growth prognosis, according to Citi, is "very hazy" for Warby Parker.
"WRBY has been downgraded from Buy to Neutral. Although the 4Q performed well compared to expectations, certain aspects of the 4Q and F23 projections have caused us to become less optimistic about the near- and long-term growth prospects.
Ambarella is downgraded by Roth MKM from buy to neutral.
Upon downgrading the semiconductor design company, Roth stated that it is observing "inventory digestion."
We believe that end demand, notably in the automotive sector, is still strong and anticipate that AMBA will have a very minor inventory adjustment in its target markets.
Morgan Stanley maintains Eli Lilly as their first choice.
According to Morgan Stanley, the stock is best-in-class, and the company is optimistic about the diabetes medication Mounjaro.
"We continue to expect Mounjaro and LLY's other new product cycles to deliver a best-in-industry rev/EPS growth profile," says the company's stock thesis.
JD.com is cited by Morgan Stanley as a catalyst-driven notion.
In anticipation of the Chinese e-commerce company's earnings report on March 9, Morgan Stanley expressed its optimism.
"We think the market has exaggerated the additional costs, and statements about margins that are favorable could boost share prices. The catalyst is what, and when? On March 9, JD is expected to announce its 4Q22 financial results.
Microsoft is still considered overweight by Morgan Stanley.
Microsoft stock is still in its favor, according to Morgan Stanley.
"The launch of a new Bing powered by an OpenAI-based large language model made a significant marketing impact and unlocked the possibility of search market share increases. But, as OpenAI functionality permeates the MSFT portfolio, we see larger (and more likely) opportunities.
Coupang is upgraded by Deutsche Bank to buy from hold.
In its upgrade of the South Korean e-commerce business, Deutsche noted that it liked the "double digit margin boost."
"Coupang's 4Q net income of USD102 million was aided by an increase of nine percentage points in adjusted EBITDA margin year over year. Adjusted EBITDA totaled USD 211 million, a USD 0.5 billion YoY decline. Coupang grew at a quadruple the market rate during the quarter when the online market in Korea is slowing down, and its cost efficiency has been exceptional.
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