Analyst calls Friday: Rivian, Teladoc, Bed Bath & Beyond, Walmart

Analyst calls Friday: Rivian, Teladoc, Bed Bath & Beyond, Walmart

Here are Friday’s biggest calls on Wall Street: DA Davidson initiates Teladoc as a buy DA Davidson said it sees benefits for the telemedicine company. “COVID has created unprecedented tailwinds for the market that has turned into headwinds; we believe we are now at stable to increasing penetration rates for telemedicine and that Teladoc is well positioned to continue to lead the growth and development of the market and look up inventory to date.” Read more about this call here Guggenheim Initiates Purchase of Oracle Guggenheim said Oracle has strong momentum and could see a re-rating of the stock.”After several years of low-single-digit growth, Oracle posted a significant uptrend in FY22, driven by the acceleration in organic cloud revenue and the best Database performance for 8 years.” KeyBanc downgrades Six Flags from overweight to equal weight KeyBanc said Thursday’s earnings report from Six Flags was “unsustainable.” “We don’t like reactionary downgrades, but we had Q2 as an ‘Up or Shut Up” quarter, so here we are and the results were our ans Goldman Sachs downgrades Utz to neutral from buy Goldman said in its downgrade of Utz that it sees “strong momentum offset by a premium valuation.” “The results from Utz were solid. Management continues to do a good job both behind its core business and recent acquisitions to drive a consistent beat-and-raise cycle with exceptional growth and margin delivery in 2Q22.” Wedbush downgrades Lennar to neutral from outperformance Wedbush said it sees it no short-term positive catalysts for the home builder. “We are downgrading Lennar to NEUTRAL from OUTPERFORM. At current levels, shares are within 5% of our unchanged price target of $88 and we see no new catalyst to increase our target.” Loop reiterates Bed Bath & Beyond as Loop said the recent “meme stock short squeeze” craze does not change the company’s long-term fundamental view of the company. “While we’re aware of the old Wall Street adage, ‘Markets can stay irrational much longer than you and I can stay solvent,’ we nonetheless reiterate our Sell rating and $1 price target.” Read more here about this call. Bank of America Repeats Rivian as Purchase Bank of America said the electric vehicle company was in the “right place/right time with the right product/right strategy.” “Despite what appears to be a tougher 2022 than originally projected and volatility in stock markets that has challenged some start-up EV OEMs to raise much-needed low-cost capital, our buy recommendation for RIVN is based on our view that the company one is one of the most profitable among start-up electric vehicle automakers and also a relative competitive threat to established automakers. Loop reiterates McDonald’s as purchase Loop said its surveys show same-store sales are ahead of expectations. “Our latest reviews of McDonald’s franchisees in the US show that Q3 same-store sales growth exceeded previous expectations.” Morgan Stanley Upgrades Ciena to Overweight from Equal Weight Morgan Stanley, the telecommunications and electronics company, said Network software is well positioned for the future. “We believe that CIEN is well positioned in the coming Qs given a strong service provider and cloud spending environment coupled with seemingly depressed supply chain conditions.” Read more about this call here. Wolfe initiates Bunge and Archer-Daniels-Midland as outperformers Wolfe initiated several biofuel companies on Friday and said it sees “long-term long-term demand.” “We are incorporating BG and ADM as an extension of our biofuel coverage and expanding into feedstock and related markets. We outperform both stocks as we see secular long-term growth in demand for vegetable oils driven by biofuels, which is the focus Sub-sector note.” Cowen downgrades The RealReal to market performance from outperformance Cowen said in his downgrade of The RealReal that it sees a “bumpy path” to profitability for the online luxury fashion business.”We step to the sidelines as revenue growth volatility and work pressures in 2H cloud visibility target longer-term 2024 profitability targets.” Telsey reiterates Target as an outperformer Telsey said it is bullish on earnings next week and that shares will rise later this year and into 2023. “In our view, Target’s near-term challenges are already reflected in its current P/E rating of ~ up 13x on our 2023 EPS estimate of $13.51 r its typical trading range of 17x-18x over the past few years.” Cowen downgrades Sally Beauty from outperformance to market performance Cowen said in his downgrade of the cosmetics retailer that it saw “slowing trends”. “We downgrade SBH to Market Perform as we rate risk to Street’s FY23 estimates as stable positive given weaker consumer sentiment at the lower end, risk of gross margin compression due to higher promotional activity and a heavy focus on hair color/care see, but this could become a risk when compared more harshly.” Bank of America Adds GlobalFoundries to US1 List Bank of America has added the semiconductor manufacturing company to its top picks list. “We’re adding GlobalFoundries Inc. (GFS) and removes Broadcom Inc. (AVGO) from US-1 list. AVGO remains Buy.” Morgan Stanley reiterates Walmart as overweight Morgan Stanley said in a note to clients Thursday night that Walmart’s margin squeeze is likely to be temporary. “We don’t know how much excess inventory WMT will have to work off in 2H, and margins could still be weighed down by price discounts – but it shouldn’t drag on into next year, according to our calculations.”