Here are Friday’s biggest calls on Wall Street: Oppenheimer initiates International Flavors as outperform Oppenheimer said it sees “continued execution and balance sheet milestones” for the fragrance company. “We are initiating coverage on shares of International Flavors & Fragrances (IFF) with an Outperform rating and $116 price target.” Wells Fargo initiates UPS as overweight Wells said it’s bullish on shares of the shipping giant. “Initiate at OW, $156 target. Following a rocky ’23 and early ’24, we think the bar is too low. UPS has a number of costs initiatives that de-risk its market assumptions for LT guidance, making above-consensus EPS appear achievable by 2026.” TD Cowen reiterates Amazon as outperform TD said it’s bullish on Amazon’s cloud service company, Amazon Web Services. “We forecast AWS revenues to grow 17.1% annually from 2024 to 2029, rising from ~$106.2BN in ’24 to ~$233.65BN in ’29.” Wolfe reiterates Nvidia as outperform Wolfe said it’s sticking with its outperform rating on the stock after hearing from the company earlier this week. “Networking is expected to be an important driver of both performance and differentiation, and NVDA appeared very bullish for that product.” Wells Fargo initiates Norfolk Southern & Union Pacific as overweight Wells said it sees outsized growth for shares of Union Pacific and Norfolk Southern. “We’re initiating coverage of North American rails with a selective bias focused on idiosyncratic opportunities for outsized EPS growth. That said, we model a return to EPS growth in ’24 & acceleration in ’25 making the group attractive post pullback.” Loop upgrades Lyft to buy from hold Loop upgraded the stock following Thursday’s analyst event. “We are upgrading our rating on Lyft to Buy from Hold following a positive update and new long-term targets provided at yesterday’s analyst event.” Oppenheimer reiterates Microsoft as outperform Oppenheimer raised its price target on the stock to $500 per share from $450. “Microsoft’s platform supports on-prem (hybrid cloud) and is the best at data privacy, both key issues for enterprises. Combined, Microsoft has unsurpassed network effects, the true barrier to entry of any technology company.” Deutsche Bank reiterates Take-Two as a top pick. Deutsche raised its price target on the video game company to $190 per share from $180. ” Take-Two remains our top pick in the video games space based on (1) the company’s strong track record of creative execution, paired with a robust development pipeline, which should lead to multiple commercially successful titles in the coming years; and (2) the potential for further margin expansion as the business adds scale and captures the benefits of its transformation initiatives over time.” Morgan Stanley reiterates Colgate-Palmolive as overweight “CL remains our preferred pick in HPC [household products consumer], as we see a sustained OSG [organic sales growth] inflection above peers/consensus/what the market is pricing in and clear NT EPS upside.” Morgan Stanley reiterates Nio as overweight Morgan Stanley said the “stock sell-off is overdone” for Nio following earnings for the China EV company. “While 1Q print fell slightly shy of market expectations with smaller non-operating gain, 2Q volume guidance of 54-56k was largely in line and double-digit 2Q vehicle gross margin, regardless of recent promotions, surprised on the upside.” BTIG initiates Ally Financial as a top pick BTIG said it’s bullish on shares of the auto loan bank holding company. ” ALLY shares are frequently shorted as a pure-play way to express a negative view on auto loans (there is no other public large-cap pure auto lender), but we think Ally will perform better than peers for a number of reasons.” Mizuho reiterates Oracle as buy Mizuho said it’s sticking by shares of Oracle. ” ORCL trades at a 38% discount to its peers, which appears attractive given the resiliency in the business, coupled with accelerating growth potential from AI. We reiterate our Buy rating.” Deutsche Bank reiterates Adobe as buy Deutsche said it’s sticking with its buy rating ahead of earnings next week. “Adobe heads into F2Q earnings on Thursday, June 13th with the stock pressured by competitive concerns and underwhelming near-term genAI monetization.” JPMorgan initiates United Rentals as overweight JPMorgan said the equipment rental provider is a “key beneficiary of multi-year non-residential and infrastructure projects in the US.” ” URIs scale should drive above industry-average growth and returns. HRI should benefit as well, though near term growth is projected to be slower.” Loop reiterates Best Buy as buy Loop said it’s sticking with its buy rating on the stock. “We maintain our above consensus Best Buy estimates, reiterate our Buy rating, and are raising our price target to $100 from $93.” Morgan Stanley reiterates Walmart as overweight Morgan Stanley said it’s standing by its overweight rating on the stock. “We believe the market’s narrative on WMT will keep getting better.” Barclays reiterates Netflix as equal weight Barclays says Netflix need to start thinking about the company like an “institutional flywheel” like Disney. ” Netflix is one of the few companies that can combine its distribution and content scale to create a unique Disney like institutional flywheel. However, this will require the company to think more broadly about its opportunity set compared to its present path.” JPMorgan downgrades Vail to underweight from neutral JPMorgan said in its downgrade Vail following earnings. “Providing an update – CEO Lynch cited season pass trends through 5/28 were down -5% in units and +1% in sales dollar y/y with the decline in units primarily due to less “new pass holders and revenue spread tied to 8% YOY pricing pass through.” Truist downgrades Exxon to hold from buy Truist downgraded the stock mainly on valuation. “Similarly, while we appreciate the announced increased shareholder return program, we forecast XOM’s FCF yield will trail peers well into 2025.” Bank of America upgrades Skechers to buy from neutral Bank of America called the shoe company a “consistent compounder.” “We are upgrading Skechers (SKX) to Buy (from Neutral) on the basis that the wholesale environment is improving, broader footwear trends remain solid, and implied 2H sales guidance could prove conservative.” Bank of America upgrades Lyft to buy from underperform Bank of America said it sees an “attractive entry point” for the stock. “Lyft could also see outsize multiple expansion given lower rates. We like greater focus on fixed cost savings, share count, and Media growth, making discounted valuation at 0.9x 2025E revenues an attractive entry point.” Bank of America upgrades 3M to buy from neutral Bank of America said in its upgrade of the stock that it’s bullish on the company’s new leadership team. “We are upgrading shares of 3M to Buy from Neutral with a $120 PO. We see the new CEO refocusing the company on growth and operations.” Citi names AT & T a top pick Citi said it sees a “runway for better financial performance” for the telecommunications company. “We are updating our ranked recommendations for our coverage. Buy-rated AT & T i s our new top-ranked pick within our coverage groups as we believe AT & T is establishing a runway for better financial performance, including annual service revenue growth, from its strategic product investments and performance.” Redburn Atlantic Equities upgrades Unilever to buy from neutral Redburn said it sees a growth recovery for the home products and care company. “Although the latter approach is fraught with risk, as many a turnaround can fail to deliver, we do see such an opportunity at Unilever , as portfolio actions, organisational change and the arrival of new management kickstart a long-awaited growth recovery.”
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