These are Thursday’s biggest calls on Wall Street: Piper Sandler downgrades G-III to neutral due to overweight Piper said in downgrading the apparel company that it has limited visibility. “GIII’s sudden loss of PVH license (transitional agreement, license renewed 2025-2027) limited visibility and we downgraded to Neutral.” Barclays Upgrades Pentair from Equal Weight to Equal Weight Barclays says shares of the water treatment company are cheap. “We expect the near-term numbers to weaken amid a sharp drop in consumption volumes, but the normalization of ‘from home’ operations is essentially complete and PNR valuations show no improvement. any improvement in revenue trends in 2023. Shares remain very cheap due to high margins and any pullback in US interest rates will likely cause this ratio to widen.” Bank of America recalled Chipotle when buying Bank of America said Chipotle has “earnings strength at steady state.” “Although CMG has recently pursued a strategy of increasing price stability over time, the management team has previously used large, rapid rallies. This strategy in our view is not optimal. , but it has the benefit of providing some historical periods of relatively high prices for analysis.” Morgan Stanley downgrades Capital One and Ally Financial to less than equal weight Morgan Stanley said in downgrading Capital One and Ally Financial that it sees “significant risk” to both stocks. “Our view on Consumer Finance is currently Cautious. While equity PE looks cheap compared to history, there is significant risk to 2023 EPS, particularly from reserve building. higher.” Read more about this call here. Piper Sandler Reiterates Apple Is Overweight Piper said it’s attached to the tech giant and that it’s still a “serious” brand. “We believe Apple remains a formidable brand and reiterate Overweight despite our temporary reduction of unforeseen events.” Morgan Stanley Reiterates Tesla Is Overweight Morgan Stanley says it stands by its overweight rating for Tesla but is concerned that 2023 could be a disappointing year overall for electric vehicles. “We expect 2023 to be a disappointing year for EVs. The combination of slowing demand and rising supply could adversely affect profitability across the EV value chain.” Morgan Stanley, which started Vizio with the same weight as Morgan Stanley, said it was concerned that the TV technology company lacked the scale to keep up with larger rivals. “We believe Vizio is still early in the monetization process, showing strong revenue and adjusted EBITDA growth in the coming years.” Citi, which initiated GoodRx when it bought Citi, said the telemedicine platform company was an “incumbent disruptor”. “In our view, GDRX will continue to play an important role in bringing transparency/consumerism to a historically unshopable market.” Read more about this call here. Deutsche Bank, which initiated NeoGames when it bought Deutsche, says solutions company iLottery has a “unique growth story”. “NGMS in an iGaming niche, with iLottery & iCasino exposure.” Cowen reiterated Amazon outperforming Cowen said it saw “increased returns” on Amazon’s stock. “Amazon has several drivers that will deliver strong global revenue growth with rising margins over the next few years, namely (i) further increase in B2C eCommerce market share in major retail industries ; (ii) emerging eCommerce verticals such as B2B; (iii) significant opportunities in existing and newer international markets such as India, Mexico and Australia.” Cowen calls United Airlines a top pick for 2023 Cowen says the airline company is a “show star”. “We’ve chosen United Airlines as our top pick for 2023. The airline has performed well in 2022, significantly outperforming the S&P 500 and NYSE ARCA Airline YTD indexes. ” Morgan Stanley Reiterates Salesforce Is Overweight Morgan Stanley said it sided with Salesforce shares following the company’s disappointing earnings report on Wednesday. “Significantly higher revenue growth than its peers raises the question of whether Salesforce is seeing pressures beyond the macro.” Bank of America recalled Honeywell when it bought Bank of America saying it sees “material growth opportunities” for Honeywell’s stock. “UOP, HON’s technology and catalyst business, accounts for ~7% of total revenue and has long been considered one of the company’s crown jewels.” Citi reiterates McDonald’s is neutral Citi said it is concerned about undervalued macro risks. “We continue to believe that (a) the macro risk in the IOM (internationally exploited) segment of Europe/MCD is undervalued by a market that is more focused on US growth. The US and (b) negative IOM SSS revisions would require the US SSS to increase meaningfully above already high expectations.” Citi downgrades SiriusXM to sell from buy Citi said the satellite radio company’s stock looks “less attractive”. “We suspect higher leverage at SIRI will prompt investors to move from leveraged FCF multiples to EV-EBITDA multiples as their primary valuation metric.” JPMorgan downgraded Victoria’s Secret to neutral due to overweight JPMorgan said it was concerned about the deteriorating macro situation. “Although VSCO is the market leader in the US lingerie categories (~20% market share) and mass-market women’s fragrances (~30% market share), it also outlined ~$250 million in structural cost reductions over the next 3 years – dollar top line growth and declining gross profit consistently tied to an increasingly cautious macroeconomic backdrop.” Read more about this call here. Janney that started Sunnova when it bought Janney says they see a long-term growth opportunity for the solar company. ” Sunnova is an American residential solar installation company with ~250,000 deployed customers and currently serving customers in 56 US states and territories. We expect numbers NOVA’s customer base will outpace its peers over the next few years with cumulative customer base increasing by 44%, 42% and 36% between 2022-2024.” Oppenheimer reiterates Costco is outperforming Oppenheimer has removed the stock from its top picks list, but said it will keep the stock unchanged after the company releases its sales report on Wednesday. “As we await a complete reset of the Street figures, and as major ticket headwinds are likely to persist, we will remove COST from top pick status. For players In the long term, we will continue to take advantage of the COS stock reduction.” Morgan Stanley Reiterates Snowflake Is Overweight Morgan Stanley said investors should stick with Snowflake stock long after Wednesday’s earnings report. “Despite 67% product-turnover growth in Q3, a slowing consumption pattern in October resulted in the below-first Q4 guidance picking up pace again after the recession.” Goldman Sachs initiated Altimmune when it bought Goldman said the biotech company has “blockbuster” revenue potential. “Altimmune is a clinical-stage biopharmaceutical company focused on the development and commercialization of treatments for various metabolic diseases.” Read more about this call here. Morgan Stanley upgraded Tencent Music Entertainment to overweight from the same weight Morgan Stanley said during the upgrade of the Chinese music entertainment company that it saw “sustainable growth” of Tencent Music. “From 2023, we see increased profits from the music segment more than offset the decline in the social segment, resulting in a compound annual growth rate of > 10% durable EPS 2022-24E At a P/E of 2023 x 14 and a FCFF yield of 9% with recurring payback, we upgrade to OW.”