Morgan, JPMorgan, BMO Adjust Tech & Energy Stocks Outlook

Key Takeaway

• Morgan Stanley raises Netflix target to $700, bullish on its innovation; BMO sees Microsoft strong in gaming.
• JPMorgan downgrades Corteva to neutral, citing lower crop chemical prices impacting 2024 outlook.
• Energy sector upgraded by Morgan Stanley; Rosenblatt cuts Arista Networks to sell over AI data center trend doubts.

Wall Street Updates

Analysts from major financial institutions have provided their latest insights and adjustments on a variety of stocks, reflecting the dynamic nature of the market and the diverse factors influencing company valuations. These updates span across different sectors, including technology, energy, consumer goods, and financial services, offering a broad view of the market sentiment and future expectations.

Key Stock Calls

Morgan Stanley has reiterated its overweight rating on Netflix, raising the price target to $700 from $600, citing the company's successful strategies and innovations. Similarly, BMO maintains Microsoft as outperform, highlighting its strong position in the gaming market. Wolfe has upgraded Mobileye to outperform, pointing out its competitive advantages in autonomous driving systems. On the other hand, JPMorgan downgraded Corteva to neutral due to expected slow starts in 2024, influenced by lower crop chemical prices.

Sector Insights and Adjustments

Morgan Stanley has upgraded the energy sector to attractive, signaling positive catalysts ahead. In contrast, Rosenblatt downgraded Arista Networks to sell from buy, questioning its benefits from the AI data center trend. Meanwhile, Citi has added a positive catalyst watch on Cisco, anticipating benefits from its Splunk acquisition and AI backlog. UBS has upgraded DocuSign to neutral from sell, adjusting its price target to reflect a more fair valuation.

Street Views

• Morgan Stanley (Bullish on Netflix):

  "Netflix’s track record includes pivoting from DVD to streaming, scaling the world’s largest studio, and successfully monetizing password sharing."

• BMO (Bullish on Microsoft):

  "We believe that MSFT is well positioned in the gaming market, particularly since we think leading content and scale are sources of competitive advantage."

• Wolfe (Bullish on Mobileye):

  "We upgrade Mobileye to Outperform from Peer Perform."

• Morgan Stanley (Neutral on Starbucks):

  "We are reducing 2Q/FY estimates to below guidance, investors likely below us, but we continue to see interesting risk/reward skew."

• JPMorgan (Neutral on Corteva):

  "2024 is likely to begin slowly for Corteva. Crop chemical de-stocking continues in South America and Europe."

• Bank of America (Bullish on Amazon):

  "Amazon published its CEO shareholder letter, highlighting the company’s performance in “an uncertain economy” and elaborating on the company’s building block philosophy."

• Piper Sandler (Bullish on Charles Schwab):

  "Charles Schwab’s profitability, earnings growth, and free cash flow yield make it an attractive stock in the Financial sector."

• Bank of America (Bullish on Marvell):

  "Our 12-month price target of $84 (17% potential upside) is unchanged and we maintain our Buy rating on the stock."

• Jefferies (Bullishon Academy Sports): > "ASO's Price/Value Equation Attractive In Current Environment & Private Label Journey Just Middle Innings."

• UBS(** Bullish **on Spire):

  " We are initiating with a Buy rating due to deep discount."

• BTIG(** Bullish **on Hafnia):

  " We are initiating coverage with a Buy rating following NYSE listing."

• Morgan Stanley(** Bullishly Upgrades Energy Sector **):

  " Positive catalysts ahead for energy sector."

• Rosenblatt(** Bearish **on Arista Networks):

  " Downgrading ANET as not benefiting from AI data center trend."

• Raymond James(** Bulllish **on GitLab):

  " Shares now attractive with significant growth runway."

• Mizuho( *bullissh *On Ecolab ): "Upgraded due To earnings visibility."

Citi(*** Neutral *** On Cisco With Positive Catalyst Watch ): "Benefit expected From Splunk acquisition And growing AI backlog."

 UBS(*** Neutral Upgrade *** For DocuSign ):
  *"Now more fairly valued after previous Sell stance.*"

   Goldman Sachs(*** bullish *** On Apple ):
    *"Sticking With buy Rating Ahead Of Earnings.*"

     JPMorgan(*** Neutral *** On Boeing ):
      *"Keeping overweight Despite Lowered Price Target.*"

       Janney(*** bullish *** On First Solar ):
        *"Beneficiary Of Tougher Trade Policy Against China.*"
        
         BMO (****bullissh ****On Novo Nordisk ) :*"Likes obesity product pipeline.*
         
          Citi (****neutral ****On Tesla ) :*"Sees more downside than upside.*