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Here are Friday’s biggest analyst calls: Apple, Tesla, Coinbase, Domino’s, Costco, Meta & more

Here are the biggest calls on Wall Street on Friday. BMO upgrades Domino’s to outperform from market perform BMO said in its upgrade of Domino’s that the stock is now too attractive to ignore. “Against the backdrop of lowered near-term expectations, we see attractive risk/reward reflecting 1) a favorable demand outlook as indicated by our survey; 2) potentially improving labor dynamics with the evolving employment environment; and 3) concerns already discounted into shares.” Read more about this call here. JPMorgan reiterates Coinbase as neutral JPMorgan lowered its price target on Coinbase to $60 per share from $78 and says it’s concerned about weak activity levels and the selloff in crypto. “Cryptocurrency trading activity remains under pressure in 3Q22, deteriorating in September. Market share has declined, similar to what Coinbase has experienced in past down-cycles reflecting a more spot, US, retail centric client base.” Credit Suisse initiates Datadog as outperform Credit Suisse initiated the cloud scale applications company and says Datadog is one of the most attractive stocks in the firm’s coverage universe. “Pure-play on hyperscaler / distributed cloud applications growth. Next generation product-led growth model enabling. 70% growth at $1.5Bn in ARR (annual recurring revenue) with 40% unit economic margins.” Stephens initiates Wendy’s as overweight and names it a top idea Stephens said in its initiation of Wendy’s that the stock is well-positioned for global growth. “We expect ongoing menu and daypart (breakfast) innovation to be an important driver of same-store sales going forward.” JPMorgan reiterates Qualcomm as overweight JPMorgan said after Qualcomm’s investor day that it’s bullish on the company’s opportunity in automotive. “In our view, the key highlights for investors would be: strong expansion of the design-win pipeline to $30 bn, led by ADAS (advanced driver assistance systems), but also underscoring the benefits of bringing its One Technology roadmap to the automotive market.” Goldman Sachs reiterates Costco as buy Goldman says it continues to have increased “confidence” in the stock after the big box retailers strong earnings earnings report on Thursday. “After solid 4Q results, we continue to have confidence in COST’s value proposition resonating with consumers, while the company’s scale and limited SKU model enable it to manage current inflationary cost pressures.” Morgan Stanley resumes Applovin as overweight Morgan Stanley resumed coverage of the software company and says Applovin is a category leader. “We remain constructive on the app economy through macro uncertainty, but take a more pragmatic approach to estimates as we reduce ’23/’24 EBITDA by 15%/19%.” Wells Fargo downgrades Ally Financial to equal weight from overweight Wells said in its downgrade of the bank holding company that’s it’s concerned about inflation. “We are downgrading ALLY to Equal Weight from Overweight, as we believe it will be difficult for the stock to outperform as 1) used vehicle price declines accelerate, 2) NIM (net interest margin) is pressured from Fed hikes, and 3) the consumer works through the headwind of inflation.” Morgan Stanley reiterates Tesla as overweight Morgan Stanley said in a note that competitors should be concerned about Tesla’s gaining strength especially with the passage of the Inflation Reduction Act. ” Tesla’s EV prowess is well known. But what is less known is the company’s potential to drive battery manufacturing efficiencies at tera-scale that investors will value… with a supply chain the DOE may value even more. The more we look at the IRA the more concerned we feel for Tesla’s competition.” JPMorgan reiterates Snap as underweight JPMorgan says it’s sticking with its underweight rating on the social media company and says the company needs to “show strong execution across multiple quarters to rebuild confidence among investors.” “We’re encouraged that Snap has seen real ad improvement through the quarter, but caution that the acceleration is also a function of easier comps and we believe the overall online ad market remains choppy.” Wedbush upgrades fuboTV to outperform from neutral Wedbush said in its upgrade of the streaming service that it sees a compelling entry point “We are upgrading shares of FUBO to OUTPERFORM from NEUTRAL. fuboTV provided bold targets at its recent investor day, but in the near-term needs to focus on raising capital and cutting cash burn rapidly to extend its cash runway.” Read more about this call here . Bank of America reiterates Meta as buy Bank of America says reports of cost cutting at Meta is a positive for the stock. “Ability to cut costs is part of the value thesis on Meta, and as high gross margin companies, we think both Alphabet and Meta are relatively well-positioned to grow earnings per share and FCF/share in 2023 with OpEx cuts, CapEx cuts and buybacks.” Morgan Stanley reiterates Advanced Micro Devices as overweight Morgan Stanley says it’s standing by shares of Advanced Micro Devices but says it continues to see a “broad-based” semis correction. “We continue to see a pervasive inventory correction hitting nearly every company in our coverage – but that is taking a long time to play out, and this quarter should again be somewhat mixed.” Goldman Sachs reiterates FedEx as buy Goldman said it’s sticking shares of FedEx despite the company’s disappointing earnings . “Aside from valuation, and separate from the economic questions – we do think FDX offered near term cost initiatives and potential catalysts that also make it worth keeping an eye on longer term. Morgan Stanley reiterates Apple as overweight Morgan Stanley says its checks continue to show robust demand for Apple’s higher iPhone models and a more muted response for models for the iPhone 14 and iPhone 14 Plus. “Early iPhone 14 Pro/Pro Max lead times remain at or near trailing 6 yr record levels, more than offsetting relatively weaker demand for the iPhone 14/14 Plus, with flat Y/Y C2H22 iPhone builds pointing to upside to our C2H iPhone unit and ASP (average selling price) forecasts.”

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