Bullish Calls on Sunrun, Upgrades for Apple & Airbnb Highlighted

Key Takeaway

• Goldman Sachs and JPMorgan make bullish calls on Sunrun and SolarEdge, while Affirm gets an upgrade due to its recent dip.
• Analysts highlight strong fiscal results for Arm Holdings and positive adjustments for Airbnb, emphasizing growth in tech and travel sectors.
• Bank of America upgrades Fox and Costco, with Apple also receiving a buy rating due to iPhone cycle and services growth.

Analyst Ratings and Market Movements

Wall Street analysts have made several significant calls, affecting stock valuations and investor strategies. Goldman Sachs reaffirmed its buy rating on Sunrun, citing its performance exceeding installation guidance despite revenue falling short of expectations. Similarly, JPMorgan maintained its overweight rating on SolarEdge, noting mixed first-quarter results with revenue surpassing forecasts but gross margin and EPS underperforming. In a notable shift, JPMorgan upgraded Affirm to overweight from neutral, suggesting investors capitalize on the stock's recent dip, influenced by external factors rather than company fundamentals.

Redburn Atlantic Equities upgraded Live Nation to buy from neutral, dismissing breakup concerns as exaggerated and presenting an attractive investment opportunity. JMP Securities shifted its stance on Shopify to market outperform from market perform, encouraged by the company's investment strategy and potential for new merchant cohorts to contribute significantly in the future. Mizuho labeled Robinhood's earnings report as "as good as gold," expressing high satisfaction with the company's quarterly performance.

Financial Sector and Technology Updates

Goldman Sachs adjusted its price target for Arm Holdings, maintaining a buy rating and highlighting strong fiscal fourth-quarter results driven by royalty revenue growth and licensing revenue. Deutsche Bank upgraded Emerson Electric to buy from hold, anticipating upward earnings per share revisions and noting the stock's attractive valuation compared to peers. Citi reiterated its buy rating on Airbnb, slightly adjusting its target price while acknowledging the healthy broader travel environment despite short-term visibility challenges.

JPMorgan reiterated its overweight rating on Instacart, adjusting its price target based on updated EBITDA expectations. DA Davidson downgraded TripAdvisor to neutral from buy, citing a slowing recovery in the travel sector. Raymond James upgraded Cheesecake Factory to outperform from market perform, pointing to the company's valuation and potential for margin improvement.

Media, Entertainment, and Consumer Goods

Bank of America upgraded Fox to buy from neutral, highlighting the company's positioning to accelerate earnings. Cantor Fitzgerald shifted its rating on EVGO to overweight from market perform, mainly based on valuation and reaffirmed revenue guidance. Citi upgraded Select Water Solutions to buy from neutral, seeing significant upside potential. Deutsche Bank initiated coverage on Barclays with a buy rating, optimistic about the bank achieving its financial targets.

UBS maintained its buy rating on Costco following an April sales report that showcased strength in discretionary categories, particularly in jewelry and home furnishings. Bank of America reiterated its buy rating on Apple, emphasizing the expected iPhone upgrade cycle and growth in services revenue. Wolfe downgraded Skyworks to peer perform from outperform, expressing concerns over its dependency on Apple amid sliding iPhone demand.

Street Views

• Goldman Sachs (Bullish on Sunrun):

  "RUN reported mixed 1Q24 results, with revenues below expectations but solar and storage installations exceeding the high end of guidance."

• JPMorgan (Overweight on SolarEdge):

  "SEDG reported mixed 1Q results with revenue ahead of expectations while gross margin and EPS were lower."

• JPMorgan (Bullish on Affirm):

  "Investors we’ve spoken with believe shares were down in sympathy with Shopify and/or in response to a less than flattering Bloomberg article about the dangers of BNPL [buy now pay later] financing."

• Redburn Atlantic Equities (Bullish on Live Nation):

  "However, we argue that break-up concerns are overblown, creating an attractive entry point for those willing to take a calculated risk. With the shares trading on 14x FY24E EV/EBITDA and our new $115 price target offering 19% potential upside, we upgrade Live Nation to Buy."

• JMP (Bullish on Shopify):

  "Shopify Is Investing Behind Its Strength As We Upgrade Shares to MO."

• Mizuho (Bullish on Robinhood):

  "We could not have asked for a better 1Q."

• Goldman Sachs (Bullish on Arm Holdings):

  "Arm delivered strong FY4Q (March) results driven by an acceleration in Royalty revenue growth and upside in Licensing revenue."

• Deutsche Bank (Bullish on Emerson Electric): > "We see two ways to win with EMR: 1) Continued positive EPS momentum...and 2) The stock trades at just 20x NTM [next twelve months] P/E..."

• Citi(** Bullish **on Airbnb): > "And while we acknowledge visibility is somewhat muted S-T, we believe the broader travel environment is relatively healthy..."

• JPMorgan(** Overweight **on Instacart): > "We remain Overweight & increase our Dec-24 PT to $47 (from $45 prior)..."

• D.A. Davidson(** Neutral **on TripAdvisor): > "We are lowering our rating...following the company’s 1Q′24 earnings results.”

• Raymond James(** Bullish **on Cheesecake Factory): > "We are upgrading CAKE shares to Outperform with a price target of $42..."

• Bank of America(** Bullish **on Fox): > "Fox is now well-positioned to accelerate earnings in FY25.”

• Cantor Fitzgerald(** Bullish **on EVGO): > "EVGO reported another revenue beat...and reaffirmed its FY24 revenue guidance..."

• Citi(** Bulllish **on Select Water Solutions): > We upgrade WTTR to Buy...

Deutsche Bank(*** Bulllish on Barclays* ): > *"Upside potential relates..." * UBS( Bbulllish n Costco* ): > *"This marks..." * Bankk off Ameriica( Buuy n Apple* ): > *"Our Buy rating..." * Wolfe( Neuttral **n Skyworks ): > "Downgrading SWKS..."