Here are Friday’s biggest calls on Wall Street: Bank of America reiterates Netflix as Buy Bank of America said it sees a “strong growth opportunity” for Netflix’s password-sharing service. “Our survey of over 1,000 Netflix users in the US and UK (in the appendix below) suggests that most households would pay for password sharing in some form and that a large percentage were willing to downgrade their service to an ad-supported level.” Goldman Sachs initiates SQM as sale Goldman said the Chilean chemical company is exposed to continued weakness in lithium prices. “Our more cautious view is underpinned by a combination of 1) GS’s expectations of multi-year excess lithium supply and pricing pressure; 2) uncertainties related to SQM’s concession renewal and/or new terms/costs in case of renewal.” Read more about this call here. Cantor Fitzgerald Launches Intuitive Machines as Buyer Cantor said the space exploration company has a “first-mover” advantage. “We believe LUNR benefits from a disruptive business model with first-mover advantage, four different revenue streams that provide diversification and help reduce business risk, and bipartisan support.” Credit Suisse upgrades TE Connectivity to outperform neutral Credit Suisse said the consumer electronics company is a beneficiary of the Cut Inflation Act. “Resilient automotive production, growing EV mix, relatively low exposure to communications markets, favorable margins on restructuring, improving FX and commodity outlook, combined with declining inventory since earnings of Q2-23 lead us to upgrade TEL.” Evercore ISI adds Dell to list of tactical outperformers Evercore said it was bullish heading into earnings on June 1. . consensus estimates of $20.299 billion/86 cents, driven by conservative guidance coupled with better performance on the core storage business. JPMorgan moves Bloom Energy from neutral to overweight JPMorgan said the energy company’s sale was “overweight.” “We are moving BE from Neutral to Overweight. We believe the recent pullback, down 45% since mid-February, is overdone and investors can take advantage of the volatility to add to their positions in a stock that we believe , will be a long-term beneficiary of the energy transition. Read more about this call here. RBC launches Planet Fitness as it outperforms RBC said it sees an attractive entry point for the gym stock. “Growth new stores will remain a key point of debate in the near term, but we believe the recent pullback presents an attractive entry point for PLNT stocks.” Read more about that call here. Deutsche Bank reiterates Tesla as buy Deutsche said that it maintained its buy rating on the stock after a visit to the company’s Giga factory in Texas.”Overall, we came away encouraged that Tesla could make cost improvements and gains efficiency in the coming quarter, which could help offset some of the pressures, but we are still concerned that the company may need to take additional price cuts in a weakened environment, which could put even more pressure on the profits.” Argus upgrades Wendy’s to buy pending Argus has upgraded the restaurant chain on strong growth prospects. “We expect Wendy’s to benefit from unit expansion, strong international growth and investment in its digital business. Macquarie downgrades Disney to outperforming neutral Macquarie said it sees too much uncertainty for the media giant to see near-term uncertainties weigh on earnings, valuation and sentiment.” Bank of America Adds R1 RCM to List US1 Bank of America added the management services firm to its pick list and said it was heading in the right direction. “The end of 2022 was clearly a challenge for RCM, with customer issues/longer payer cycles/management change all weighing on the stock. Yet, we believe all three of these factors are moving in the right direction.” Oppenheimer reiterates Home Depot outperforms Oppenheimer lowered its price target on the stock to $360 per share from $400, but said investors should buy on the downside recent and weaker-than-expected results at HD, we find a a number of notable longer-term interim positives for the business, and actions, including: the outlook for consolidation of revenue trends as the weather and timber price disruptions s ‘mitigate.” Citi Moves Gap to Neutral After Sell Citi updated Gap ahead of earnings next week and said it sees a more balanced risk/reward ratio. Move to Neutral.” Evercore ISI launches Gen Digital as it surpasses Evercore launched the company formerly known as NortonLifeLock and said it was underrated. a misperception that we hope to dispel and why we believe our O/P and $27 PT are justified. “Morgan Stanley upgrades Shake Shack to equal underweight. Activist investor offers potential operational/cost changes and greater accountability, catalysts in future years that we believe no longer justify our rating UW on the title. Temporal uncertainty and long-term debates always prevent us from being more optimistic.” Citi launches Apollo Global, Blue Owl and KKR as buyer Citi launches several alternative investment firms on Friday and says it likes their “structural tailwinds and growth potential.” “We favor alternatives over traditional given structural tailwinds and growth potential. Top picks include: buys on KKR, APO and OWL.”
