Here are Tuesday’s biggest calls on Wall Street: Wells Fargo downgrades Boeing to underweight from equal weight Wells said in its downgrade of the aerospace giant that it’s a “cash opportunity missed.” “We think BA had a generational FCF opportunity this decade, driven by ramping production on mature aircraft and low investment need. But after extensive delays and added cost, we now see growing production cash flow running into a new aircraft investment cycle, capping FCF a few years out.” Deutsche Bank upgrades Bank of America and Wells Fargo to buy from hold and downgrades JPMorgan to hold form buy The firm said it’s getting bullish on several banks on Tuesday. Deutsche also downgraded JPMorgan citing “less upside.” “While we continue to view the overall bank group as somewhat in no man’s land, we see some shifting in opportunities within our coverage. As part of this, we are downgrading JPM from BUY to HOLD and upgrading both BAC and WFC from HOLD to BUY.” Evercore ISI upgrades Southwest to outperform from in line Evercore said it sees several positive catalysts ahead for the airline. “Our rating on LUV shares is raised to Outperform from In Line given the long-awaited transition to capacity discipline (culling least productive flying), new revenue initiatives to be outlined at upcoming Sept. 26 investor day (assigned seating, premium economy) and strong underlying fleet value.” Piper Sandler downgrades Simon Property to neutral from overweight Piper said it’s worried about slowing earnings growth for the real estate investment trust mall operator. “Our rating change is based on anticipated slower earnings growth for SPG versus shopping centers over the next 2 years and represents the first time we haven’t had an OW rating since late 2009.” JPMorgan upgrades M & T Bank to overweight from neutral JPMorgan said the regional bank is a beneficiary of lower rates. “We would note that in the many years we have covered MTB, we’ve not seen an opportunity such as this one (with the peer group poised to continue to re-rate higher and MTB shares further poised to also regain their historical wide relative premium over and above a revaluing peer group). Along these lines, we are upgrading MTB to Overweight.” Mizuho upgrades International Flavors to buy from neutral Mizuho said it’s bullish on shares of the flavors and fragrance company. “We’re adding IFF to our list of recommended short-cycle specialty chemicals that are downstream/closer to consumers.” Barclays upgrades Deutsche Bank to overweight from equal weight Barclays said it sees upside to consensus for the German banking giant. “The combination of supportive fundamentals, significant upside risk to consensus forecasts, > 30% capital return paid in ’25-27E, and high multiple re-rating potential leads us to upgrade our rating on DBK shares to OW.” Morgan Stanley upgrades Unity Software to overweight from equal weight Morgan Stanley said shares of the software company are now derisked. “Growth Expectations for U Now Look Derisked, With Clear Potential Upside Drivers Ahead.” Goldman Sachs upgrades Coca Cola Femsa to buy from neutral Goldman said the Mexican beverage company is well positioned. “We lean into KOF as: Its demand is stable and growing: Soft drinks per capita consumption in Mexico is higher than in any other country in the Americas, and has been growing on average by 0.8% p.a. post-pandemic.” Loop upgrades NetApp to buy from hold Loop said in its upgrade of NetApp that it’s bullish on the data infrastructure company. “We’re upgrading to Buy and $150 PT on a stock we’ve been chasing for > 12 months. Last summer we tried to get cute and wait an additional 90 days to about this same time, the stock began to run on us and we’ve been out of position ever since.” Raymond James upgrades nCino to outperform from market perform Raymond James said investors should buy the dip in the software company. “We’re upgrading NCNO to Outperform from Market Perform following a pullback post-F2Q25 results on what we believe was more ‘noise’ than any change in fundamentals.” B. Riley upgrades Redfin to buy from neutral B. Riley said fundamentals are improving for the real estate company. “We’re upgrading Redfin Corporation from Neutral to Buy to reflect improving business fundamentals, including a) structural improvements in the core brokerage business with the introduction of Next, which position the business favorably for growth and profitability as real estate cycle turns, b) likelihood of a more favorable macro backdrop as interest rates are lowered over the next several months…” HSBC upgrades AutoDesk to buy from hold HSBC upgraded the software company following earnings. ” Autodesk’s 2QFY25 profit was well above forecasts.” Bernstein reiterates Apple as outperform Bernstein said it’s bullish heading into the company’s iPhone event next week. “On September 9th, Apple is expected to unveil its next generation iPhone 16, updated Apple watches and Airpods, and make further announcements regarding Apple Intelligence.” Melius upgrades Lockheed Martin to buy from hold The firm said the defense company is well positioned. ” Lockheed Martin has the most international exposure relative to its large cap defense hardware peers, meaning that it is well-positioned for Europe’s defense recapitalization.” Bernstein reiterates Ferrari as outperform Bernstein said the luxury car company is well positioned. “We are raising our TP on Ferrari from $488 to $599 and reiterate our Outperform rating.” UBS upgrades Forge Global Holdings to buy from neutral UBS said it sees a “path to profitability” for the investment company. “We are upgrading FRGE to Buy as we have increased confidence in further improvement in FRGE’s core private company shares trading business, while new cost savings initiatives now present a path to profitability.” UBS initiates Allegro Microsystems as buy UBS said it’s bullish on the auto semis supplier. “To our eyes, the Street appears to be underestimating the cyclical recovery ahead estimates seem to bake in no pricing or share gain potential, and ALGM’ s autos revenue appears among the most de-risked in the entire analog universe.” Oppenheimer initiates Fair Isaac as outperform The firm said it’s bullish on the provider of credit scores. “We are initiating coverage of FICO with an Outperform rating and $1,967 PT.” Cantor Fitzgerald reiterates Nvidia & Broadcom as overweight The firm said both semis stocks are top picks throughout the rest of 2024. “Our Top Picks heading into year-end are now NVDA, AVGO, MU, WDC, NXPI, ASML, and TER.” Goldman Sachs adds IBM and Conagra to the conviction list The firm added both stocks to its conviction buy list. “We add Conagra (CAG), International Business Machines (IBM), and Insmed (INSM) to the Americas Conviction List, while removing Ally Financial (ALLY), Dollar General (DG), Installed Building Products (IBP), and Royal Caribbean Cruises (RCL).” JPMorgan reiterates Amazon, Meta and Uber as best ideas The firm said it’s sticking with all three stocks as top picks. “We continue to prefer large- cap companies w/strong secular growth potential & company specific drivers ( AMZN, META, UBER ), along w/subscription names that we believe are more macro resilient (NFLX, SPOT).” H.C. Wainwright initiates Joby Aviation as buy The firm said the “sky’s the limit” for the electric aviation company. “J oby Aviation is an electric vertical take-off and landing (eVTOL) aircraft company based out of Santa Cruz, CA.” Bank of America initiates Ero Copper as buy Bank of America said it’s bullish on shares of the Brazilian copper company. ” Ero Copper has dramatically increased output at its assets since taking them over in 2017.” RBC initiates HA Sustainable Infrastructure Capital as outperform RBC said the climate investment solutions company is well positioned. ” HASI partners with energy project developers, owners and operators, utilities, and energy service companies to fund projects that facilitate the energy transition.” Jefferies downgrades Novartis to hold from buy Jefferies said in its downgrade of Novartis that the pharma company’s pipeline launches will take longer to come to fruition. “Sales of key launches need to demonstrate a robust ramp-up to drive confidence in potential for longer-term upgrades.”
Source Agencies
