Here’s the biggest voice on Wall Street on Wednesday: Morgan Stanley reiterates its claim that Costco is overreach The company says the introduction of membership card scanners is a “Netflix moment” for Costco. “With Costco rolling out membership card scanners in its U.S. clubs, we could soon have a Netflix-like moment. Our channel research shows that after the scanner rollout, some Morgan Stanley Reiterates Spotify as Overweight Morgan Stanley raises its price target on Spotify from $400 to $430. , claimed to be a top pick. “We are confident that Spotify will continue to be successful in terms of: 1) Spotify’s best-in-class product offering and associated pricing power; 2) continued runway for user growth; and 3) management’s commitment to driving financial discipline and profitability. We remain bullish because of our conviction.” Citi embarks on Acquisition of Corteva Citi says it expects further growth for the agrochemical company. “Starting with a buy rating and $68 price target on CTVA.” Citi reiterates Amazon as top pick The bank says Amazon stock is a top pick ahead of next week’s earnings. AMZN remains a top pick: Although the 2024 holiday shopping season (starting with Black Friday) has five fewer shopping days compared to last year, overall consumer and advertiser spending will increase based on analysis of 2019 results. I don’t think it should have any impact. Bernstein reiterates that Apple will outperform Bernstein said he is sticking with Apple ahead of next week’s earnings call. “We believe a gentler iPhone 16 cycle (and potentially a more powerful iPhone 17 cycle) is increasingly built into expectations, and that the combination of longer replacement cycles and AI features will lead to strong upgrades over the next two years. Baird downgrades McDonald’s from outperform to neutral The company says it sees too many food safety risks. “We are concerned that reports of E. coli outbreaks associated with McDonald’s restaurants in multiple U.S. states may pose a significant threat to consumer sentiment and MCD’s U.S. results.” Details of this call For more information, please click here. JMP upgrades Snap to market, outperforms market performance JMP says social media company is well positioned for growth. “As Snap plans to roll out Simple Snapchat and launch Sponsored Snaps, we believe we can expand engagement in the U.S. and North America and drive more ad load with our new ad products, driving strong impression growth.” Learn more about this call. Citi reiterates its intention to acquire Microsoft.Citi lowered its price target to $497 per share from $500, but said it remains committed to Microsoft ahead of next week’s earnings report. “Microsoft stock has lagged the previous quarter as investors struggle to rationalize huge capex amid overwhelming Azure growth (capacity constraints and macro) and slowing EPS growth. ” RBC launches Oracle in line with division’s performance RBC says it is concerned about the database management software provider’s future growth drivers. “We initiate coverage of Oracle Corp. with a Sector Perform rating and $165 price target.” Baird Upgrades Quest Diagnostics to Perform from Neutral He said he liked the facilities. “Make no mistake, we didn’t like our closest peers in Multiple Premium and DGX, but we like the Labs set up in 2025 and there’s no reason to shy away from one just because it’s cheaper. Bank of America Reiterates Starbucks Acquisition The bank said EPS growth is “still possible” following the company’s preliminary announcement on Tuesday. “SBUX’s situation is similar to CMG’s reputational issues prior to Brian Nicol’s appointment, with widespread bearish events surrounding both (e.g. negative price perceptions, increased competition, Bank of America reiterates its intention to buy GE Aerospace. It states that. “As we highlighted in our Q3 preview, expectations for the aftermarket are high, and rising multiples are starting to raise concerns about how long the aftermarket can remain this strong. We believe the market’s reaction has been overdone.”Wells Fargo reiterates Carvana as an overweight, with Wells increasing his price target from $175 to $250 per share ahead of next week’s earnings. I pulled it up. “Despite CVNA outperformance, we expect pot units/adjusted EBITDA to be on the uptrend with an extended third quarter and signs of improving fundamentals and stronger stock selection.” Morgan Stanley, Morgan Stanley reiterated its underweight rating on General Motors, raising its price target from $42 to $46 per share, but said it would maintain its underweight rating following GM’s results. “GM’s strong third quarter, raised outlook and confident share buyback comments have helped reassess the company and keep the stock rising as the best company on a rough block.” Bank. Of America reiterates its view of Uber as a buy The bank raised its price target on the ride-hailing service provider to $96 a share from $88 a share ahead of next week’s earnings report. “In our view, Uber has one of the best large-cap growth stories in the Internet industry, with estimated revenue growth of 30% and free cash flow in 2026 compared to 23x for FANG Group. Tesla is trading at an attractive valuation of 17x.” Canaccord reiterates Tesla as a buy The company says it remains firm on the stock ahead of Wednesday afternoon’s earnings call. “Despite the macro turmoil, Tesla continues to perform relatively well.” Piper Sandler upgrades BXP from neutral to overweight as the company formerly known as Boston Properties The company upgraded its rating and stated that it sees strength in the real estate investment trust DC market. “BXP is currently experiencing increased leasing power in D.C. not seen since quarantine more than a decade ago, as new supply halts and tenants seek well-located luxury buildings with strong financial sponsors. Bank of America upgrades Amyrix Pharmaceuticals from neutral to buyout Bank of America is bullish on the biopharmaceutical company’s blood sugar treatment. It shows. “Based on our view of the outlook for abexitide in development for glycemic control, we upgrade Amyrix from Neutral to Buy and raise the PO to $10 (from $4.20).”
