Here are the biggest calls on Wall Street on Tuesday: Morgan Stanley initiates LatAm Airlines at overweight Morgan Stanley says shares of the Latin American airline are undervalued. ” LTM emerged as a stronger company from bankruptcy. Profitability is above pre-pandemic levels driven not only by favorable industry dynamics, but also by its leaner cost structure.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley says it’s sticking with Tesla ahead of the company’s robotaxi day. “As Tesla’s CEO makes further progress on building out its inference swarm (cars, robots) and AI/compute infrastructure (including xAI), we believe investors will see a clearer picture of the overlapping ‘surface area’ between Tesla and other parts of the Muskonomy, particularly the evolving relationship between xAI and Tesla.” Bank of America upgrades Alcoa to buy from neutral The firm says the aluminum company is uniquely positioned. “AA should also benefit from stronger alumina prices, the precursor to aluminum. As the largest third-party producer, AA uniquely benefits.” Oppenheimer initiates Shift4Payment at outperform Oppenheimer says the payment technology company is well situated for stock appreciation. “We initiate coverage of Shift4 Payments (FOUR) with an Outperform rating and $109 price target, offering 27% upside potential.” Barclays reiterates Apple as underweight The bank says its survey checks show iPhone 16 demand is weak for Apple. “Cutting iPhone 16 Builds Likely Indicative of Weak Demand.” Citi upgrades Anheuser-Busch InBev to buy from neutral Citi said it’s bullish ahead of its next earnings report. “We upgrade ABInBev to Buy (from Neutral). Although weakness in the U.S. and a slowing Mexico mean our Q3 volumes are below consensus, on-going tight cost control in the U.S. means the group is on track to deliver FY24E organic EBITDA growth above its 4-8% guidance range.” Goldman Sachs upgrades Ford to buy from neutral Goldman says it likes the auto giant’s “opportunity in software and services.” “We’re upgrading Ford to Buy from Neutral, in part driven by its opportunity in software and services, including to commercial customers. Raymond James upgrades Atlassian to outperform from market perform Raymond James sees “opportunity amidst chaos” for the software company. ” Atlassian has been going through a cloud transition, meaning growth in its cloud segment is a key metric for investors.” Citi downgrades Hewlett Packard to neutral from buy Citi said it sees a slowing PC recovery hurting shares of HP. “We downgrade HPQ & CDW on a more cautious view of PC recovery in 2H’24.” Pivotal initiates Meta Platforms at buy Pivotal says it’s bullish on shares of Meta. “In Zuck We Trust: Initiating with BUY and $780 YE’25 Target.” Pivotal initiates Alphabet at buy Pivotal says it’s bullish on shares of the Google and YouTube parent. ” GOOG : Attractive Valuation in Any Realistic Scenario; Initiating with a BUY Rating.” Jefferies upgrades Clorox to buy from hold Jefferies says the household products company’s transformation is underway. ” Clorox hasn’t been itself lately. We see this changing. Going forward we expect Clorox to return to its past, a company delivering peer-leading economic profit growth and return on capital.” UBS initiates Equifax at buy The bank is bullish on shares of the credit monitoring bureau. “Buy Equifax amid $1b+ 2024-26+ potential revenue, $700m EBITDA and ~ $4 EPS as mortgage normalizes — positive on higher mortgage exposure and greater capital return not priced in.” KeyBanc reiterates Netflix as overweight KeyBanc raised its price target on the entertainment streamer to $760 per share from $735. “We believe Netflix is poised for more balanced growth between subscribers and monetization over the MT [medium term].” Oppenheimer initiates SharkNinja at outperform The Wall Street firm says the consumer products company is an “attractive global consumer growth play.” “We are initiating coverage of SharkNinja (SN) with an Outperform rating and $120 PT.” DA Davidson upgrades DataDog to buy from neutral DA says the software stock has an “increasingly rare growth profile.” “We are upgrading DDOG to BUY as we increase focus on the select few companies that can carry 20%+ growth into 2025 and beyond.” Raymond James initiates Patrick Industries at outperform Raymond James says it’s bullish on shares of the RV and marine parts company. ” PATK reflects our view that while the timing and magnitude of recovery in end market demand remains uncertain, we believe the company is well-positioned to benefit from any improvement over the balance of 2024 and 2025.” Wells Fargo upgrades Range Resources to overweight from equal weight The bank says the crude oil company has an “attractive investment outlook.” “We upgrade RRC from EW to OW and raise our PT from $35 to $39.” Morgan Stanley reiterates Nvidia as overweight Morgan Stanley says it’s standing by the dominant maker of AI processors. “The market remains worried about Nvidia’s Blackwell-related uncertainties in terms of both supply and demand. This is likely to remain the case before shipments start. However, we see the supply chain continuing to progress to mass production toward year-end.” Goldman Sachs adds Pinterest to conviction list and removes Amazon The investment bank added Pinterest to its top picks list but removed Amazon. “We add Pinterest (PINS) to the Americas Conviction List, while removing Amazon.com (AMZN) and Guidewire (GWRE). Raymond James downgrades Disney to market perform from outperform The Florida-based investment bank is starting to see too many headwinds for the entertainment giant. “We are downgrading DIS to Market Perform from Outperform, as we believe several headwinds, particularly in Parks, will likely keep the stock range-bound and not able to meaningfully outperform over the next ~12-18 months, especially after the recent ~12% bounce.”
