Listed here are the most important calls on Wall Road on Thursday: Morgan Stanley upgrades Salesforce to obese from equal weight Morgan Stanley stated it sees a gorgeous danger/reward for the inventory. “Low investor expectations vs potential top-line upside drivers in price increases, product bundling and Data Cloud adoption frame an attractive risk/reward for CRM.” Morgan Stanley initiates Rollins as equal weight Morgan Stanley stated traders ought to look ahead to a greater entry level for the pest management firm. ” Rollins is a leading pest control provider, which has best-in-class growth and strong margins, but we think this is already priced into the stock and we would wait for a better entry point.” Morgan Stanley upgrades JFrog to obese from equal weight Morgan Stanley stated the software program firm is coming into a interval of “durable growth.” “As a play on the volume of software updates, we see JFrog benefiting from a rebound in software development initiatives.” Morgan Stanley reiterates Ford and Basic Motors as obese Morgan Stanley is standing by shares of each automakers heading into 2024. “We expect continued EV investments in Detroit, but at a far lower rate than projected. In our view, the core ICE [internal combustion engine] business can generate strong free cash flows for materially longer than the market anticipates, and we believe both GM and F can participate in the EV theme at some scale through a more measured and collaborative approach while returning capital to shareholders.” Citi reiterates Boeing as purchase Citi stated the aerospace large is a high concept in 2024. ” Boeing on top — Rising production, higher cash generation, and a de-risking of the balance sheet are all on the horizon.” JPMorgan upgrades Glaukos to obese from impartial JPMorgan stated in its improve of Glaukos that it sees upside for the opthalmic illness firm. “We see upside to today’s valuations even with shares set to end the year meaningfully outperforming other high-growth peers.” JPMorgan names Constellation Manufacturers a high choose JPMorgan is bullish on Constellation Manufacturers heading into 2024. “With strong F1H24 results, accelerating tracked channel volume performance and market share gains and easing comparisons into F4Q24, we expect the company to at least point to the high-end of its FY24 Beer guidance with F3Q24 results.” William Blair initiates J.Jill as outperform William Blair stated in its initiation of the clothes retailer that it sees enticing shareholder returns. ” J.Jill has a relatively simple model, now stabilized: roughly 250 stores, U.S. only; close to a 50:50 online-to-retail split; and a financially sound, highly loyal customer.” Canaccord upgrades Advantage Medical Techniques to purchase from maintain Canacccord stated the medical system firm has EPS upside. “We believe that Merit is entering 2024 in a strong position and has potential upside to both revenue and EPS estimates.” Deutsche Financial institution provides Greenback Basic to the contemporary cash listing Deutsche added the low cost retailer to its high concepts listing for the primary quarter of 2024. “We believe DG has a favorable setup in 2024 given the return of Todd Vasos as CEO with a plan to address what have largely been self-inflicted execution challenges.” Baird upgrades Insulet to outperform from impartial Baird stated in its improve of the inventory that it sees GLP-1 considerations easing for the med tech firm. “…[W]e upgrade PODD to Outperform on strong 2024 growth/easing GLP-1 concerns, and we remain cautious across most of dental other than ALGN.” Financial institution of America reiterates Micron as purchase Financial institution of America is standing by its purchase score after Micron’s earnings report post-market Wednesday. “We believe the memory market is at an inflection point heading into CY24, and expect MU to return positive EPS in FQ3/Q4.” Wedbush reiterates Amazon as a high choose Wedbush raised its worth goal on the inventory to $210 per share from $180 and is bullish heading into 2024. ” Amazon is on pace to generate $46.5B of advertising revenue in 2023, and we think the company is well positioned to continue taking share of global digital advertising spending over a multi-year period.” Baird names Nvidia a high choose in 2024 Baird stated in a be aware earlier this week that the corporate is on the forefront of AI. ” Nvidia is at the center of the secular demand for AI ahead.” Pivotal upgrades Spotify to purchase from maintain Pivotal stated in its improve of Spotify that it sees “renewed” monetary self-discipline. “The increased target price is driven by: 1) higher forecast medium/long term EBITDA/Free Cash Flow on SPOT’s renewed focus on financial discipline vs. what we view as a very large margin expansion opportunity, 2) continued strong results and what appears to be an ability to take price without significant churn.” Morgan Stanley upgrades Regency Facilities to obese from equal weight Morgan Stanley stated the mall actual property funding belief is a high choose in 2024. ” REG has one of the highest quality portfolios in the open air center space as measured by rent per SF of $24.25 and occupancy of 94.6%.” Morgan Stanley downgrades Simon Property to equal weight from obese Morgan Stanley stated in its downgrade of Simon Property that estimates are too excessive for the true property funding belief. “The discount to open air center peers has narrowed significantly from lows of -40% to -16% current.” Wedbush reiterates Netflix as outperform Wedbush is standing by the main streaming inventory heading into 2024. ” Netflix remains on Wedbush’s Best Ideas List, given our view that the company can generate significantly more free cash flow than its guidance suggests.” Wedbush upgrades Cava to outperform from impartial Wedbush sees one other quarter of upside for the Mediterranean quick informal meals chain. “While we view lower grocery inflation as an incremental threat to the fast casual category in 2024, we also believe CAVA’s relative value proposition and maturation cycle contribution to comp positions it to overcome the incremental headwind.” Wedbush provides Dutch Bros to the perfect concepts listing Wedbush added the espresso chain to its finest concepts listing and sees margin development. “We add BROS to the Wedbush Best Ideas List. We believe the magnitude of sales transfer to have peaked in 2023, and to gradually decline in 2024 and thereafter.” UBS names Coterra Power a high choose UBS stated in a be aware on Thursday that the power firm is a “top gas pick.” “CTRA has demonstrated positive execution YTD in 2023, achieving solid oil growth, and we look to the company’s updated 3-year plan, to be laid out on its 4Q23 earnings call, as the key catalyst in helping the company’s valuation re-rate higher.” Needham names CrowdStrike a high choose Needham sees the cyber safety firm as a high concept heading into 2024. ” CRWD shares performed well in CY23 and we think the company is in an even better position going into CY24 as share gains continue, new ARR [annual recurring revenue] growth returns and margins and profitability expand.” UBS names UnitedHealth a high choose UBS stated the healthcare large is a favourite concept heading into 2024. “[W]e view UNH as well-positioned heading into 2024. UNH’s fundamentals remain strong despite a mixed macro environment (including an adverse 2024 Medicare Advantage rate notice, economic uncertainty, inflationary pressures, etc.).” Bernstein reiterates Caterpillar as market carry out Bernstein stated the inventory’s valuation is simply too “stretched” proper now. “…[W]e are putting CAT on negative watch given the stretched valuation and deteriorating earnings/backlog growth picture.”
