Listed here are the most important calls on Wall Road on Friday: Stifel initiates Boeing at purchase Stifel stated it sees a “favorable” setup for Boeing shares. “As we look forward, we think the bar is still low for aircraft producers to keep sentiment rising, and we are currently in what we view as the mid-cycle stage in the commercial aero cycle when Boeing and its suppliers typically see their supply chains reboot and monthly production head toward target levels.” TD Cowen names Delta a high choose TD Cowen stated the airline is a high choose for 2024. “Delta Air Lines is our 2024 Best Idea. We believe Delta’s strong balance sheet and intent to pay down debt, as well as its return of capital plan will be rewarding for shareholders.” Citi downgrades Spotify to impartial from purchase Citi stated in its downgrade of Spotify that the chance/reward is much less compelling. “While we like Spotify’s strategy and execution, we no longer believe the risk-reward is compelling. And, when we look at consensus estimates, we see a few reasons to be a tad more cautious.” RBC upgrades Chemours to outperform from sector carry out RBC stated in its improve of the chemical firm that the expansion outlook appears stable. “We believe CC’s earnings are currently at bottom, and TT [titanium technologies] volumes should grow in 2024 on easy comps and potential tariffs on Chinese imports into Europe.” Morgan Stanley downgrades Alibaba to equal weight from chubby Morgan Stanley stated it is turning extra cautious on shares of the China e-commerce firm. “Our previous OW thesis on Alibaba was premised on the assumptions of a fundamental turnaround in core businesses, reorganization to unlock shareholder value, and sizeable capital management potential. However, we have turned more cautious on each of the above given recent developments.” Citi initiates Western Alliance as a purchase Citi initiated the regional financial institution with a purchase on Friday and stated Western Alliance is a high choose. “We remain constructive on the sector given the juxtaposition of discounted valuations coupled with our view that the best time to buy bank stocks is the transition from late-cycle to early-cycle when we believe credit will fare better than market concerns.” Morgan Stanley reiterates Tesla as chubby Morgan Stanley stated after Tesla’s unveiling of the cyber truck that it is an “exciting avant-garde art truck but worth putting into perspective.” “We expect ‘Cybertruck’ will be supplemented by a range of ‘Rivian-looking’ pickups and SUVs in the latter part of the decade with a design language more consistent with prevailing Teslas. ” Cantor Fitzgerald initiates Novo Nordisk as a purchase Cantor stated in its initiation of Novo that the pharmaceutical firm has a “long runway” for weight problems medication. “We see the runway for obesity remaining attractive for years to come. It is already annualizing sales at > $10B, and we estimate this could grow to $100B over the next 5-7 years.” Jefferies initiates Arcos Dorados as a purchase Jefferies stated the Latin American McDonald’s franchisee is a “consistent compounder.” “Arcos Dorados is the world’s largest McDonald’s franchisee with respect to system-wide sales (5% of global sales) and number of restaurants (7% of McDonald’s franchised restaurants worldwide).” Piper Sandler downgrades Texas Roadhouse to impartial from chubby Piper downgraded the restaurant chain primarily on valuation. “We are moving our rating on TXRH to Neutral, from our previous rating of Overweight. This is a valuation call pure and simple; as TXRH has simply achieved and moved through our $110 price target, and we are trying to maintain discipline with our ratings.” Evercore ISI initiates Crescent Power as a purchase Evercore stated in its initiation of the vitality firm that it sees present costs as a sexy entry level. ” CRGY is a unique acquisition focused E & P positioned to benefit from the continued consolidation of mature upstream assets.” Evercore ISI upgrades Fortrea Holdings to outperform from in line Evercore sees a sexy danger/reward for the drug and system developer. “We are upgrading shares of FTRE with a new price target of $36 (10.5x ’25 EBITDA). We see the risk-reward on shares as more favorable post this week’s pullback as well as seeing upside to longer-term estimates.” Wells Fargo upgrades Elastic to chubby from equal weight Wells stated in its improve of the Dutch software-as-a-service firm that it is an AI beneficiary. “We are upgrading ESTC to OW from EW as we believe revenue growth will bottom out in 4Q24 and reaccelerate in FY25…” Loop upgrades Aspen Know-how to purchase from maintain Loop stated in its improve of the software program firm that it sees “merger synergies.” “Our rating change and more positive view is based on recent conversations with Emerson that give us increased confidence that the joint Emerson- AspenTech product and go-to-market synergies are likely to be a greater source of upside during FY24 and beyond than we initially anticipated.” Oppenheimer reiterates Amazon as outperform Oppenheimer raised its worth goal on the inventory to $200 per share from $170 after its sturdy Black Friday and cyber week. ” Amazon.com is one of the few large-cap companies benefiting from the secular shift to E-commerce.” JPMorgan downgrades BioNTech to underweight from impartial JPMorgan stated in its downgrade of the German biotech firm that it is “waiting for a more catalyst-rich period.” “Further, while expectations for the return on R & D spend are low, we do not see the near-term data points needed to shift the markets cautious point of view on the pipeline as the majority of BNTXs oncology pipeline is in earlier-stages development and will take time to advance.” Goldman Sachs provides Constellation Manufacturers to conviction purchase record Goldman added the inventory to its high picks record and says it sees the wine enterprise stabilizing. “We add Constellation Brands ( STZ) to the Conviction List on the back of Bonnie Herzog’s deep dive into the company’s beer distribution opportunity and her belief in the stabilization of its wine business.” UBS downgrades MarketWise to impartial from purchase UBS downgraded the software program options firm primarily on valuation. ” MKTW shares have outperformed significantly recently, as 3Q results showed further signs of stabilization.” Oppenheimer downgrades Lemonade to carry out from outperform Oppenheimer downgraded the insurance coverage firm primarily on valuation. “We are downgrading LMND to Perform from Outperform after the 67% increase in the share price from recent lows vs. Nasdaq’s +13%. We believe this increase has been driven by a short squeeze (34% of float) following better 3Q results/4Q outlook, on less weather impact and initial rate increases driving gross margin improvement.” Financial institution of America upgrades Norfolk Southern to purchase from impartial Financial institution of America stated in its improve of the railroad that it is “overcoming service setbacks.” “We raise our rating on Norfolk Southern’s shares to Buy (from Neutral) and increase our [price objective] to $248 (from $204), on 19.0x our 2024e EPS.” Jefferies initiates CGS Techniques as purchase Jefferies stated in its initiation of the software-as-a-service firm that it sees burgeoning development. “CSG’s revenue mainly comes from Communication Service Providers (CSPs), though the business is growing in other verticals such as Financial Services, Technology, Healthcare, and Retail.” Jefferies initiates Amdocs as purchase Jefferies stated it sees alternative for the Israel-based software program and methods integration provider. ” Amdocs provides software functions critical to the delivery of telecom services and performs complex systems integration work to incorporate those solutions into telecom networks.” Susquehanna initiates Wabtec protection at optimistic Susquehanna stated in its initiation of Wabtec, as soon as referred to as Westinghouse Air Brake, that it is a “high quality industrial business.” “We view WAB as a high-quality industrial business at a reasonable price, with potential for significant earnings upside over 3-5 years if regulations or rails’ reinvestment plans move further in their favor.” Redburn Atlantic Equities initiates Interactive Brokers as a purchase Redburn stated in its initiation of the monetary companies firm that it has strong “competitive positioning.” “Interactive Brokers has competitive positioning in the fast-growing self-directed market and a compelling valuation.” UBS upgrades Johnson & Johnson to purchase from impartial UBS stated it is getting bullish on the inventory heading into an analyst day scheduled for subsequent week. “We are upgrading JNJ to Buy ahead of the upcoming Dec. 5th Analyst Day given our increasingly bullish view on the company’s Innovative Medicine (formerly Pharmaceutical) business, and expectations for MedTech growth at least in line with the market [mid single digits].”
