Here are Wednesday’s biggest calls on Wall Street: Goldman Sachs upgrades Endeavor Group to buy from neutral Goldman said it sees an attractive entry point into the media and talent company. “Endeavour’s shares are down 30% since the IPO and 45% year-to-date, driven by i) fundamental concerns that a slowing economy will hurt demand for its live events, talent advocacy services and promotional products, and ii) technical concerns , including higher interest rates in our view, IPO lockups and investor positioning.” Piper Sandler endorses Tesla as the overweight Piper Sandler cut its price target on Tesla to $1,035 per share from $1,260 per share, but said the stock is still a “cornerstone.”We are lowering our estimates and price target to reflect COVID-related weakness in China as well as a higher WACC (weighted average cost of capital) assumption in our DCF model “advanced mobility” portfolio.” Goldman Sachs Initiates Visa, Mastercard as Purchase Goldman said it sees more upside in Visa and Mastercard, adding that i that the shares are undervalued. “We are extremely constructive on V/MA as we believe these companies are underearning cross-border revenue, while on recovery paths, are still weak which, coupled with higher inflation, is a idiosyncratic growth driver and partial Compensation for any macro should provide weakness. Read more about that call here. Wells Fargo Repeats Disney Overweight Wells said in a note to clients that it sees more upside in Disney stock as the company continues to add streaming subscribers estimates for the next few quarters, and these two already have some of the highest net growth forecasts in our coverage for Q2/Q3. Wells Fargo reiterates Netflix as equal weight Wells said Netflix stock should come under “further pressure.” “While already battered, we believe NFLX could face further negative estimate revisions in the coming weeks/months driven by higher employee cash comps, investments in AVOD, restructuring etc. We believe that 2022 with NFLX v2.0 will not be a year of rebuilding until sometime next year. If investments continue to weigh on margins, we think the stock could come under further pressure.” Evercore ISI upgrades Cardinal Health for better performance Evercore said Cardinal Health stock was an “undervalued comeback.” “Though If we agree that the Medical segment needs to make significant improvements in fiscal 2023 and beyond, the company is likely worth in excess of $0 per share and our new price target of $68 per share reflects a more reasonable valuation both anti-companies, while still considering structural differences to competitors.” Berenberg initiates US Foods as a purchase Berenberg said it likes US Foods’ “superior front-end technology compared to competitors and differentiated omnichannel presence.” “USFD is a large grocery retailer with a national presence, offering a wide range of products, e-commerce, technology and business solutions expertise to a well-diversified customer base. Our advantage is driven by scale and superior front-end technology compared to competitors and differentiated omnichannel presence.” Guggenheim names Paramount and Meta Platforms’ top picks The company also named Meta a top pick and said it was optimistic about metaverse growth. “At Paramount, we are highlighting the possibility of greater potential margin expansion than currently reflected in consensus estimates. … The enterprise [Meta] remains focused on the long-term (i.e., the late 2030s) as its metaverse-focused initiatives evolve, but is increasing its discipline on current investments. We concluded that the continued market share losses in the US are a concern and that we would like to see improvement in US market share data before becoming buyers. Over the past three months, performance has improved rapidly and MNST has even been gaining market share of late.” Baird calls Block a new choice Baird called the company, formerly known as Square, a new choice and said it was a “Long-term large-cap tech winner.” “There are still some uncertainties (post-payment impact of consumer weakness/rising interest rates, seller hits the law of big numbers, CashApp hard comps), yet this is a long-term large-cap tech Winner with likely 20-25%+ revenue growth for years.” Wells Fargo initiates ServiceNow as Wells is overweight he likes ServiceNow’s “balanced growth profile” those companies with strong platform positioning and balanced growth profiles.” Jefferies upgrades Penn to from Hold to buy Jefferies said in his stock upgrade that regional gambling was a beneficiary in “uncertain times”. “We upgrade PENN to f Hold on to recent weakness that took shares to $30 levels, conveniently reflecting the stable cash generation of the land-based casino business while providing marginal value to digital prospects Goldman said it sees “less upside potential” for the eyewear company. “While we continue to view several of these drivers as longer-term opportunities, following multiple earnings releases where revenue growth and profitability prospects have disappointed our expectations, we have waning confidence in the prospects for revenue outperformance and the underlying GAAP profitability timeline more balanced risk/reward trade-off with less upside to valuation.” Read more about this call here. Bank of America downgrades carrier to neutral from buy Bank of America said in its downgrade of the air conditioning, heating and cooling company that she sees headwinds in the residential environment.”Of the HVAC stocks we cover, Carrier has the highest relative exposure to residential HVAC equipment. … CARR stock (down 26% year-to-date) has already sold off and valuation is in about our coverage.” UBS reiterates Peloton as a sale UBS lowered its price target on Peloton to $13 per share from $30, saying the deal was too “capital intensive” and the company needed to scale back its marketing spend. “We are lowering our price target for Peloton to $13 from the previous $30 reflecting lower revenue and EBITDA in subsequent years and lower than expected profitability in the fourth quarter.” Roth initiates Five9 as a purchase Roth said that the rating for the software company for cloud contact solutions is now “tastier”. “We believe that FIVN remains one of the leading publicly traded SaaS (Service-as-a-Software) players. … Now that we’ve sidestepped the fireworks of its near-acquisition in mid-2021 (when we stopped reporting), we see its 9.3x rating as more palatable.”
