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Here are Monday’s biggest analyst calls: Gap, Eli Lilly, Nvidia, Ralph Lauren, Amazon & more


Here are Monday’s biggest calls on Wall Street: UBS reiterates Apple as buy UBS said that its survey checks show a “modest downtick” in iPhone demand. “Key takeaways from the survey pertaining to Apple are: 1) China iPhone purchase intent was up ~600 bps YoY, reaching its highest level in six years suggesting the iPhone 13 series is driving share gains from local brands. 2) In the US, iPhone purchase intent was down 400 bps YoY, the softest level in two years” SocGen downgrades Chevron to hold from buy SocGen downgraded Chevron mainly on valuation. “The stock’s recent substantial outperformance, in our view deserved, leaves the 12-month TSR (total shareholder return) at only 7.5% – hence our downgrade from Buy to Hold. Yet, this remains one of our most financially resilient majors, as it is capital-efficient, investor-friendly, cash-generative – and for us, still a core holding in any portfolio.” Mizuho reiterates WeWork as buy Mizuho said it sees several positive catalysts ahead for WeWork and that the work sharing space company is executing well. “We continue to anticipate strong execution and several mini-catalysts ahead, including breakeven EBITDA by year-end.” Cowen initiates Hain Celestial as outperform Cowen said that the food and personal products company is a “high-growth health & wellness captain.” “The transition to a streamlined operator has yielded share growth, margin improvement, and a healthier balance sheet–all of which effectively position Hain as a high-growth health & wellness captain.” Bank of America reiterates Advanced Micro Devices as a top pick Bank of America said that AMD is in the “early stages” of further share gains. “We maintain Buy/a top cloud compute pick on AMD ahead of its Computex tradeshow keynote (May-23, Zen 4 unveil) and Analyst Day (Jun-9, new financial model).” UBS reiterates Nvidia as buy UBS said it’s bullish heading into Nvidia earnings later this week. “We expect another strong set of results and see guidance biased higher again on the back of data center strength and gaming unlikely to fall off enough quite yet to create the risk to numbers that many investors fear.” Piper Sandler downgrades Dow to neutral from overweight Piper said that it sees supply and logistics problems for Dow. “Logistics continue to be a major problem. … .Supply remains high in the absence of greater export movement. This affects the ability of producers to raise prices. The market is simply loosening as far as we can tell.” Citi downgrades Hewlett Packard to neutral from buy Citi downgraded Hewlett Packard due to slowing PC demand. “We are materially lowering our expectations for the PC market. Supply chain challenges, exacerbated by recent lockdowns, combined with the macro inflationary woes are likely to temper PC unit demand.” Read more about this call here. Citi downgrades Abercrombie & Fitch, Kohl’s, American Eagle Outfitters and Ralph Lauren to neutral from buy and downgrades Gap to sell from neutral Citi downgraded several retail stocks on Monday morning and said it should be a “wake-up call” following last week’s disappointing retail earnings reports. “Following a year (2021) when the retail stars were all aligned, last week’s earnings reports represented a wake-up call for retail that showed the stars are now misaligned for F22. On the demand side, lack of stimulus and the burden of higher food and fuel prices are squeezing lower income consumers, leading to a pullback in discretionary categories (like apparel/home). We are downgrading ANF, AEO, KSS, and RL from Buy to Neutral. We are downgrading CRI from Buy to Sell. We are downgrading GPS and PLCE from Neutral to Sell.” Citi downgrades Corning to neutral from buy Citi downgraded the glass company due to a “weakening consumer demand backdrop.” “We are downgrading Corning to Neutral from Buy. We are reducing our estimates in glass substrate consumption given lower PC and tablet demand, coupled with lower visibility in demand recovery for premium/large size TVs.” JPMorgan initiates Porch Group as overweight JPMorgan initiated the professional home services company with an overweight rating on Monday and says the stock is well positioned in a tougher real estate market. “We think PRCH’s B2B strategy is differentiated and positions PRCH well for sustained 30%+ growth, even in a tougher real estate market, with profit turning positive in 2H23.” Read more about this call here. Morgan Stanley upgrades Motorola Solutions to overweight from equal weight Morgan Stanley said it sees upside potential for the telecom and software company. “Our $300 Bull case valuation on MSI is achievable on a 2-year view and offers a 20% compound return. Near term, the stock offers 15% upside potential and defensive earnings growth; upgrading to OW.” SVB Securities initiates Eli Lilly as outperform SVB Securities said in its initiation of the pharmaceutical company that the market is underappreciated Eli Lilly ‘s obesity drug. “We believe that consensus underappreciates the sales potential for Lilly’s recently-approved tirzepatide (brand name Mounjaro) for diabetes and obesity, and we expect upward estimate revisions to drive stock outperformance.” Read more about this call here. Goldman Sacks reiterates Amazon as buy Goldman said the e-commerce giant was well positioned to withstand a tougher economic environment. ” AMZN -(remains our top pick for 2022) as we view this recent EPS report as fully reflective of investor concerns on both revenues & profitability into 2022 (with AMZN exposed to a multitude of broader secular growth themes incl. eComm, advertising, cloud computing, media consumption & consumer subscription adoption).”

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