Here are Tuesday’s biggest calls on Wall Street: UBS reiterates McDonald’s as UBS said “favourable brand positioning should support sales and sharing flexibility.” “We believe MCD is well-positioned to be a high-quality, defensive compounder that should still prove resilient to relative gains from pressured consumer spending and drivers to support solid sales momentum.” Evercore ISI upgrades Axon to outperform Axon “In terms of energy versus market leading names, the path to doubling income is likely to remain central (and achievable). Read more about this call here. Deutsche Bank upgrades McKesson to buy from Hold Deutsche said the medical and pharmaceutical products are an attractive valuation for the company. “Regarding MCK’s near-to-medium-term earnings outlook, issues that were once a tailwind have turned into a headwind and may now turn back into a tailwind.” Evercore ISI downgrades Occidental Petroleum in line with outperformance Evercore downgrades Hydrocarbon Exploration Company on valuation. “A quality oil leveraged upstream portfolio with some unique growth drivers is complimented by an extended cycle for OXY’s chemicals business, the cessation of midstream headwinds and a growing low carbon business. These tailwinds, in our understanding, contribute to the stock’s outperformance.” Captured. YTD While new headwinds are set to arise, the most visible is pref equity that returns $4/sh annually to shareholders.” Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said that despite the stock’s valuation, Microsoft is still very attractive. “While we continue to see solid demand trends in Microsoft’s commercial segments (>65% of gross margin $), updated FX guidance and weak PC data points prompt us to clean up our forward forecasts, adding to our FY23 EPS bring the estimate down to $0.09. To $10.84.” Berenberg upgrades Liberty Global to buy from Hold Berenberg said in his upgrade of the telecommunications company that the stock is “compelling.” “We are upgrading Liberty Global to buy (from hold) for the first time since we began coverage of the company in 2018. In the near term, price increases will likely improve its growth trend. In the medium term, M&A will increase. The synergies in Realization UK and Switzerland will improve profitability.” Wells Fargo upgrades the Lear to more than a similar weight Wells said in its upgrade to the automotive seat company that it has an electric vehicle “optionality”. “We are upgrading the LEA from similar weight to overweight. The upgrade demonstrates 1) compelling evaluation, 2) strong EPS growth, and 3) EV tailwind and optionality. Morgan Stanley reiterates Uber and Alphabet as overweight Morgan Stanley says its latest survey investigation shows demand for travel continues to rise which bodes well for Alphabet and Uber Rising inflation concerns should be monitored (a field trip that people expect to pull back), but we remain ow UBER, GOOGL and strategically positive EW BKNG.” UBS launched Marketa because UBS said the credit card issuance platform has significant upside potential. “Marketa is poised to gain part of the secular shift from cash to card-based payments, winning new high-growth customers and benefiting from the expansion of its largest customer, Block.” Jefferies upgrades Vale and Rio Tinto to buy from Hold Jefferies on Tuesday upgraded several mining companies and said Vale and Rio Tinto were well positioned to outperform in the slowing US economy. “Clean balance sheet, low valuation, strong cash flow, high yield, structural demand growth, and a built-in baked-in inflation hedge are defensive features.” Read more about this call here. Cowen called Planet Fitness the best idea, with Cowen saying in a note that the fitness company is well-positioned to succeed in a recession or better environment. Tea. “PLNT sits on a nexus of powerful secular changes that will support growth, and its $250MM and growing advertising fund are driving its wheels.” Citi reiterated the purchase of Peloton as Citi said it was still bullish on the turnaround of the company even after naming a new CFO. “Given Mrs. Coddington’s professional experience spanning the software, eCommerce and consumer subscription businesses (including ~5 years at Netflix), we believe she will be the best player to help manage Peloton at the next stage of customer growth.” Well positioned.” Morgan Stanley reiterates Apple as overweight Morgan Stanley said in a note that Apple’s Worldwide Developer Conference was a “thorough innovation engine”. “Apple’s WWDC 2022 keynote went largely as we expected, with highlights focused on feature upgrades to iOS 16, iPadOS 16, WatchOS 9, and macOS Ventura, as well as the debut of a new MacBook Air.” Needham reiterated its buy rating on Apple Tuesday morning as Needham reiterated its buy rating on Apple, but said it was surprised by the “silence” during the tech giant’s presentation at the Worldwide Developer Conference. “The biggest surprise for us from WWDC was the silence. For nearly 2 hours of infomercials, AAPL said nothing about: a) AppleTV (its 2022 Best-Picture Award winner CODA) or the future of sports in their content There is no mention of the role of a) bundle, including a potential NFL deal; b) no more privacy crackdown (; and, c) no mention of an artificial reality OS.” Deutsche Bank reiterated to Oracle as Deutsche said it was going bullish in the company’s earnings report next week. “We reiterate our buy ratings in Oracle’s F4Q results, noting the fundamental strengths reflected in our partner checks.”
