Here are the biggest calls on Wall Street on Monday: Loop downgrades Apple to hold from buy Loop said in its downgrade of Apple that it sees “downside risk to Jun Q revenue.” “Downgrading to Hold while leaving our PT at $180 after we’ve now seen AAPL reduce its builds (and we believe shipment forecasts) for essentially the second time in the last 4 weeks.” Read more about this call here. UBS upgrades DraftKings to buy from neutral UBS said in its upgrade of the fantasy sports betting company that it sees burgeoning revenue growth. “We are upgrading DKNG to Buy from Neutral with a price target of $30 ($19 prior) based on higher revenue growth and greater flow through to EBITDA.” Piper Sandler names Microsoft, Snowflake and Oracle top AI picks Piper said that Microsoft, Snowflake and Oracle are the next “all-stars” in AI. “Net-net, we see three AI All-Stars on our coverage list as having the greatest opportunity to capitalize on the next $100B+ revolution in tech: MSFT, SNOW, ORCL.” Citi adds a negative catalyst watch on Nike Citi said Foot Locker’s negative earnings report last week does not portend well for Nike. “Following FL’s results, we believe a slowdown/inventory overhang in the NAM (North American) athletic market reflects poorly on NKE’s F24 prospects.” Read more about this call here. Citi downgrades Foot Locker to neutral from buy Citi downgraded Foot Locker after its disappointing earnings report last week and says shares are not fully de-risked. “We note that while F23 guidance was lowered significantly, we don’t view it as fully de-risked. For these reasons, we are downgrading shares from Buy to Neutral and lowering our TP from $48 to $30.” Citi upgrades Norfolk Southern and Union Pacific to buy from neutral Citi upgraded several railroad’s on Monday and says it sees a recovery and upside to valuation building. “We are upgrading TL carrier Knight to Buy along with the US rails (CSX, NSC , UNP ), as we believe Transport fundamentals are running at/near lows for this cycle and second-derivative improvement in 2H23 will be a catalyst.” Read more about this call here . Wells Fargo upgrades Norfolk Southern to buy from neutral Wells says it see a “favorable setup” emerging for the railroad company. “Previously NS faced a challenging valuation, an inflexible cost structure and pessimistic volume outlook. Currently, bottoming intermodal volumes, lagging productivity and an accommodating valuation drive a favorable setup.” Read more about this call here. Deutsche Bank reiterates Snowflake as buy Deutsche says it’s “constructive” heading into Snowflake earnings on Wednesday. “The setup for F1Q looks ok to us with mgmt. now embedding expansion rates for recent cohorts below historical levels and near-term cyclical cloud spending headwinds we think were broadly understood when guidance was set in late-Feb.” Bank of America reiterates Deckers as buy Bank of America said the shoe company remains one of the “best growth stories” in retail. “We continue to view DECK as a compelling beat/raise story, a rarity in today’s environment for retail stocks.” Cowen names Microsoft a top AI Pick Cowen says the tech giant is one of the firm’s favorite AI stocks. “Combined with its massive installed base and knowledge graph to tap into, MSFT has many avenues to monetize GenAI, ranging products such as Azure OpenAI Service, Bing/Edge, Microsoft 365 apps, GitHub Copilot and much more.” KeyBanc reiterates Nvidia as overweight KeyBanc raised its price target on Nvidia to $375 per share from $320 and says it’s bullish ahead of earnings later this week. “We expect earnings to reflect: 1) cloud and enterprise capex cuts, offset by increasing demand for AI; and 2) weakness in China with limited signs of a recovery, resulting in a push-out of the cycle trough into 2H.” Evercore ISI names Amazon a top pick Evercore says it sees further “revenue growth acceleration and margin expansion” for the e-commerce giant. “Coming in new @ #3! Consistent with our Q1 EPS note, we believe it’s now time to lean in on AMZN . Our view is that the 2nd derivative call on AWS is very likely to turn positive going into Q3, due in part to easing comps and in part to the later-innings stretch of the Cloud optimization cycle.” Bank of America reiterates Alphabet as buy Bank of America says the internet search giant is “well positioned for mobile.” “We think traffic data for the ChatGPT app will be important for Google sentiment, and our read on initial data is that there is early interest in the app, but still no evidence of a traffic impact on Google.” Truist upgrades Moog to buy from hold Truist said in its upgrade of the precision control and components systems company that it sees “sustained operational improvements.” “We are upgrading MOGA to BUY from HOLD and raising our PT to $130 (from $85) as we believe it’s now or never for MOGA mgmt to start driving sustained operational improvements.” Wells Fargo reiterates Palo Alto Networks as a top pick Wells says it’s bullish on the stock heading into earnings on Tuesday. “While investors remain concerned with a potential weak quarter, we are expecting strong positive results and PANW remains one of our top picks.”
