Listed below are Friday’s greatest calls on Wall Avenue: Stifel downgrades Twilio to carry from purchase Stifel downgraded the communications firm after its disappointing earnings report on Thursday. “We’re downgrading TWLO shares to Maintain and decreasing our goal worth from $200 to $90. Whereas whole income and non-GAAP working margin beat through the quarter, the corporate provided an outlook for 3Q22 that got here in beneath consensus on the highest and backside traces.” Learn extra about this name right here. JPMorgan downgrades Hyzon Motors to underweight from chubby JPMorgan mentioned it sees a lack of early mover benefit for the maker of hydrogen gasoline cell-powered business automobiles. “Downgrading to Underweight on Subpar Inner Controls, Operational Inefficiencies & Lack of Early Mover Benefit.” Barclays initiates Sunrun as chubby Barclays mentioned sees Sunrun and Sunnova as greatest positioned attributable to “recurring income streams and a extra seen highway to restoration.” “Inside residential photo voltaic we see installers NOVA and RUN as greatest positioned. Each have recurring income streams and a extra seen highway to restoration, with the federal earnings tax credit score doubtlessly being upped and prolonged to 30%, from the 26% right this moment that was slated to drop to 10% over the following 17 months.’ Learn extra about this name right here. JPMorgan downgrades Paramount to impartial from chubby JPMorgan mentioned in its downgrade of the inventory that it sees softer direct-to-consumer income. “At this time we downgrade Paramount to Underweight from Impartial with a $25 worth goal attributable to softer DTC income and better losses this 12 months, in addition to an expectation of weakening EBITDA and money circulation over the following 12 months.” Susquehanna downgrades Twitter to impartial from optimistic Susquehanna downgraded Twitter attributable to an excessive amount of uncertainty and detrimental catalysts. “We’re downgrading TWTR to Impartial given the pending takeover, related uncertainty and disruption, latest monetary outcomes, and restricted visibility into enterprise tendencies.” Truist downgrades Virgin Galactic to promote from maintain Truist downgraded Virgin attributable to money burn and extra flight delays. “Moreover, money burn continues to develop amid increased R & D. We at present mannequin for the corporate to burn by way of its $1.1B money stability by 3Q24 and yesterday’s $300M inventory distribution settlement factors to additional dilutive fairness choices. Amid a scarcity of operational exercise and provide chain dangers we transfer to SELL.” Learn extra about this name right here. Deutsche Financial institution downgrades Ingersoll-Rand to carry from purchase Deutsche mentioned it sees no near-term optimistic catalysts for the economic inventory. “Our determination to downgrade IR to Maintain is by no means indicative of a change in our view concerning the top quality nature of the corporate or the energy of its medium- to longterm technique.” Wedbush downgrades Zillow to impartial from outperform Wedbush mentioned there could also be softening enterprise tendencies for Zillow. “Whereas we’re favorable on ZG ‘s web money stability sheet and the long run partnership with OPEN introduced yesterday (8/4), we can not keep away from the truth that each of ZG’s main enterprise traces, IMT (web, media and expertise) and mortgage, and ancillary traces like closing and title are going through softer tendencies within the close to time period.” Credit score Suisse downgrades Duke Power to impartial from outperform Credit score Suisse mentioned there is a extra balanced threat/reward outlook for the power firm. “We’ve beforehand been bullish on DUK as a result of firm’s measurement & scale advantages to fight inflation in addition to the corporate having one of many largest renewable transition alternatives within the sector. The transition remains to be intact, however the path to comprehend a 5-7% EPS CAGR on the excessive finish within the out years is more and more troublesome in our view.” Needham reiterates Apple as purchase and Meta as underperform Needham mentioned in a be aware on Friday that Meta’ s outlook is now “worse.” The agency additionally believes Apple is constructing a strong ad-tech platform. “The outlook for META acquired worse this week, in our view. We consider AAPL is constructing an AdTech platform that may enable it to put cellular adverts into its iOS ecosystem apps in a privacy-first manner.” Financial institution of America upgrades Teva to purchase from impartial Financial institution of America mentioned a lot of Teva’s detrimental catalysts are starting to dissipate. “Within the aftermath of TEVA’s opioid settlement announcement, we consider TEVA is making materials progress in the direction of cleansing up its authorized litigation overhangs which together with a stable 2023-24 new product cycle needs to be sufficient to shift the corporate again towards EBITDA progress.” SocGen upgrades Chevron to purchase from maintain SocGen cited robust buybacks for its Chevron improve. “Robust 2Q earnings together with a 50% hike to the highest finish of its 2022 buyback vary to $15bn had been spectacular.” Financial institution of America names Callaway Golf a prime decide Financial institution of America mentioned after the corporate’s earnings report that it sees no indicators of a “reversion in golf consumption. “Callaway Golf r eported 2Q22 adj. EBITDA of $207.3mm (vs. our $181.1mm) led by robust Topgolf profitability with phase adj. EBITDA margin growing to 21.4% (vs. 17.5% final 12 months) on advantages from a rebound in increased margin corp. occasions, operational efficiencies, and decrease staffing ranges.” Financial institution of America reiterates Lowe’s and House Depot as purchase Financial institution of America mentioned it is barely extra bullish on House Depot than Lowe’s heading into earnings later this month. “Working prices possible remained elevated in 2Q as in 1Q as wage will increase and investments in retailer enhancements cited final quarter are nonetheless rolling by way of the P & L. … We count on LOW to both keep its full-year outlook as top-line progress stays supported by robust pricing and margins stay top-of-mind for the LOW administration crew.”
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