Here are Tuesday’s biggest calls on Wall Street: Loop launches AppLovin buy Loop calls the software publisher “vital infrastructure for the mobile gaming industry.” “We are initiating coverage on AppLovin with a Buy rating and a PT of $181.” Bernstein has launched Costco because of Bernstein’s outperformance, which the company says is the “highest quality” in the company’s coverage. “Despite COST’s expensive valuation (~50x P/FE), we believe its consistent earnings potential and the longevity of its growth trajectory are undervalued.” Bernstein has launched that Walmart is outperforming. The company said the best big box store is located. ” WMT is our top pick (Outperform, $95.00 TP) as we expect the company to leverage its scale to deliver great value to consumers and grow e-commerce profitably. Growth to significantly outpace sales growth.” Citi Renews First Solar to Buy Neutral Citi said the solar company is a winner regardless of whether it wins the election. “We expect FSLR to benefit from whichever candidate wins the presidential election. A Democratic win could trigger the sharpest recovery in FSLR stock in the sector, while a Republican victory will push higher rates leading to a longer-term recovery.” Read more about this call here. Mizuho has launched Cadence and Synopsys, which Mizuho said is auspicious for both software companies. “We’re starting our coverage of the Electronic Design Automation (EDA) software industry with Outperform ratings for Synopsys ( SNPS ) and Cadence ( CDNS ).” Jefferies reiterates Tesla as Jefferies raised its price target on the stock to $195 from $165 a share. “Tesla remains a fascinating business in terms of innovation and momentum, but more than ever, it looks like an unbalanced VC portfolio funded solely by an auto business under pressure.” Morgan Stanley confirms Apple as first choice. Morgan Stanley said it is next to Apple to reach earnings next week. “The thesis of the LT (long-term) AI update cycle is complete, the NT (near-term) configuration is more difficult.” Loop repeats itself as purchased by Microsoft. The company said the trend is positive for Microsoft’s earnings increase next week. “Overall, we expect strong F1Q (September) results, with many key drivers of growth showing at least modest acceleration in the quarter and likely to continue to accelerate at the end of CY.” Bank of America repeats Meta With Bank of America’s acquisition, Meta is well positioned for AI ahead of next week’s earnings. “Meta stock is up 63% YTD and remains a top AI pick in our coverage: 1) data points suggesting AI is driving core ad growth, 2) multi-year usage growth opportunities in Gen-AI, 3 ) is growing in the use of core apps. Younger users face terminal value risk…” Redburn Atlantic Equities launched by Mondelez is a new idea for the food products company, Redburn said. “Mondelēz is our best choice. It is best positioned to take advantage of attractive opportunities in emerging markets and the growing snacking trend, offering top-line growth and margin expansion potential.” KeyBanc Launches Zeta Global as Overweight KeyBanc said the marketing software company has an attractive platform. “We are initiating coverage of Zeta Global (ZETA) with OW rating and $40 PT.” Stifel Launches Braze Stifel said the software company is best positioned. “We see Braze as well-positioned to capture share in the customer engagement software space, and believe the company has built a cutting-edge multi-channel marketing platform that is difficult to replicate.” Stifel to start buying Klaviyo Stifel said it is bullish on the software company. “We are initiating coverage on KVYO stock with a Buy rating and a $45 target price. Morgan Stanley Reiterates Overweight Disney Morgan Stanley said it sees more upside in Disney stock. “We see positive risk/reward here on the stock. Parks’ current muted growth and high capex is reflected in the consensus and Disney is set to accelerate growth on the 26th.” Citi Upgrades Fluor to Buy from Neutral Citi said the engineering and construction firm has “nuclear upside.” “Ultimately, although we believe that FLR forecasts/executions continue to evolve positively, and that the improvement has been and will continue to be rather slow, we cannot ignore the larger delay in FLR in recent quarters (from 2024 to mid-2024). nor has it improved its overall execution.” JPMorgan downgraded Hertz to Underweight from Neutral. The firm said “financial leverage is high” for the car rental company. “Downgrade Hertz Global Holdings (HTZ) shares to Underweight from Neutral and remove price target as we lower . estimates show softer travel trends and faster fleet mix…” BTIG downgrades Deckers to neutral from buy BTIG downgrades footwear company as growth moderates As more balanced: A slower start to UGG’s holiday season, and the likelihood that upside will come more from wholesale than DTC, we see it as unlikely that investors will be rewarded at current valuation levels…” Jefferies upgrades Paylocity to buy from hold Jefferies- said the payroll systems company is well positioned, “Why upgrade PCTY now? Resetting expectations for FY25, we see a path to organic performance.” Guggenheim calls Itron a top idea The company said the water technology solutions company is currently the company’s best idea. “Reiterating a Buy recommendation and a $128 price target on Itron we are, and we are confident that reserve strength should be realized in the second half of 2024.” KeyBanc Launches Flex as Overweight The company said the multinational manufacturing company is well positioned. “FLEX is increasing its exposure to large, diverse and higher-value markets to improve its resistance and profitability”.
