Here are Tuesday’s biggest calls on Wall Street: Mizuho reiterates Tesla as buy Mizuho said in a note Tuesday that China lockdowns remain a production headwind for Tesla , but that a rebound could happen later this year. “Gigafactory Shanghai Partial Lockdown a Near-Term Headwind, Though Potentially Stronger SepQ/DecQ Rebound. … That said, we believe a potentially stronger SepQ/DecQ rebound is possible with improved supply chains and Berlin ramping.” Morgan Stanley names Nio a tactical research idea Morgan Stanley said the China electric vehicle company is well positioned as China begins to reopen. “The stock has traded off lately partially due to lingering concerns over the suppressed sales amid the lockdown in Shanghai, which made up 15%+ of the company’s sales in 2021. The associated production disruption also adversely affects the ramp-up/launch of NIO’s new models and aggravates the market’s concerns over NIO’ s sales momentum.” Daiwa upgrades Zoom to outperform from underperform Daiwa said investors should buy the dip on the stock. “Recent tech pullback resets our view on the stock; upgrading rating. We like Zoom’ s core business, but shy away from ancillary products. After a marked slowdown, growth expectations seem more realistic Read more about this call here. Benchmark adds World Wrestling and Imax to the top picks list Benchmark said shares of World Wrestling are compelling at current levels. The firm also said Imax should benefit from the release of more blockbuster-type movies. “In FY19, 15/15 top grossing films of 2019 were release on IMAX. We expect an exceptionally strong domestic performance through FY23, given the enormous blockbuster film slate, surging moviegoer demand, and a market share shift toward premium. IMAX. … We believe WWE offers a compelling reopening trade and continues to deliver significant growth.” Mizuho reiterates Rivian as buy Mizuho said the electric vehicle company is well-positioned for a better second half of 2022. “We believe RIVN’ s 1) chassis production lines, 2) battery modules, and 3) inverter/powertrain production/supply are healthy, BUT some specific commodity chip shortages are limiting ramps. RIVN noted it is working to assure allocation from suppliers.” Oppenheimer naming Estee Lauder a top pick Oppenheimer said it sees “pricing benefits” and a China recovery driving shares of Estee Lauder higher. “Following improvement in China’s Covid-19 situation, including the loosening of restrictions in key cities including Shanghai and Beijing, we are adding EL back to top pick status.” Truist upgrades Dish to buy from hold Truist said it likes the company’s “spectrum holdings” and “discounted price points.” “With the DISH Network investor day now in the rearview mirror, the stock is now beginning to rebound after investors digest the lack of detail associated with the likely $20 billion+ build plan. We once again reconsider the investment prospects for the stock trading near 20-year lows.” Read more about this call here . Evercore ISI upgrades Linde to outperform from in line Evercore said it sees “double digits returns” for shares of the chemical company. “A volatile year for LIN’s stock, for what is one of the most stable businesses in the Global Chemicals sector (or our broader coverage for that matter).” Morgan Stanley names Trane a top pick Morgan Stanley said on Tuesday that it’s taking a more “defensive view” of the heating and air conditioning company. “Our Top Pick is now Trane as we navigate higher uncertainty and limited group catalysts in what appears to be an achievable guidance ramp, a strong secular growth story in building efficiency, and de-rated valuation. This is a more defensive view while we wait for 2H expectations for reset elsewhere.” Credit Suisse initiates Sherwin-Williams as underperform Credit Suisse said the paint company could be negatively affected by higher interest rates. “A rising interest rate environment could negatively impact residential/commercial paint demand. SHW is by far the leading firm in the North American pro-applied residential & commercial paint market, among 4 major providers of DIY (Do-It-Yourself) house paint in North America, and a leader in selected industrial paint markets.” Morgan Stanley downgrades American Eagle Outfitters to underweight from equal weight Morgan Stanley said in its downgrade of American Eagle that it sees more “sales & margin misses.” “Mgmt cut its 2022 guide significantly as its optimism proved excessive. We see room for further, material downside as 2H implied guide appears unachievable. We see room for further sales & margin misses, while 2023’s lofty targets need a cut, too.” Read more about this call here. Credit Suisse initiates Linde as outperform Credit Suisse called the chemical company a defensive play. ” LIN has a greater than average diversity, to both gases (oxygen, nitrogen, hydrogen, etc.), applications (health care, electronics, etc.), regions, and size of customers (onsite/pipeline, bulk liquid or cylinders).” Jefferies reiterates Amazon as buy Jefferies lowered its price target on the e-commerce giant to $3,250 per share from $3,700, adding that an economic slowdown will hurt stocks such as Amazon. “Macro indicators appear to be deteriorating at a faster pace. The resulting negative sentiment across both consumers and businesses is likely to result in more cautious spending patterns, with headwinds worsening as the economic slowdown deepens. For consumers, that means less discretionary spend on pricier physical goods and more price sensitivity to service items.” Bernstein upgrades Grab Holdings to outperform from market perform Bernstein said in its upgrade of the Southeast Asia tech company that it sees an attractive risk/reward. “Grab has corrected 18% over the past month and 76% from its listing, led by weaker-than-expected CY21 and stock flow due to the phased lockup expiry. Despite the gloomy backdrop, we upgrade Grab to Outperform, as we see risk-reward attractive and see it as a beneficiary of the post-pandemic reopening.”
