Here are the biggest calls for Tuesday on Wall Street: Daiwa upgrades PayPal to outperform neutral Daiwa says it sees more positive catalysts starting to take effect. “We have upgraded PYPL to Outperform as a number of positive catalysts are being put in place including cost reductions and share buybacks in response to Elliott Investment Management’s share increase, appointment of a director new financing and decided to hold the Investor Day Event.” Read more about this call here. Daiwa downgrades Visa and Mastercard to neutral versus outperforms Daiwa says it sees “falling in profits” for credit card companies. “We have recommended MA and V with the goal of reinvigorating cross-border travel, but with border restrictions almost completely lifted, with the exception of some parts of Asia, we are currently sees future earnings growth, prompting us to downgrade to Neutral.” UBS downgrades Snowflake to neutral from buying UBS downgraded the stock after a series of field tests showed spending growth slow down. “Summary Before Snowflake’s 2Q/7 print on August 24, we caught up with 7 audits (3 partners, 4 customers) to better gauge how demand for Snowflake tracked This round of field tests is like a sale from previous rounds, with many customers flagging efforts to cut discretionary data analytics spending.” Read more about the call here. B. Riley downgrades Bed Bath & Beyond for sale from neutral Riley said in the Bed Bath & Beyond downgrade that profit expectations need to be “dovish”. “We expect Q2 22 earnings in our exceptional retail coverage to be in line with the Street after most Street estimates have fallen as we head into earnings season and we expect expect management teams to start lowering guidance and earnings expectations in six months.” Read more about this call here. Citi Opens a Negative Catalyst Clock on Snowflake Citi retains a buy rating on Snowflake stock but opens a negative catalytic clock, noting that “reverse use [are] continue building. “” That said, we are becoming tactically cautious and opening Catalyst Watch negative, after the recent ~30% period, as we see usage trends continue to build, with the number of consensuses is too high (Q3 and FY24). “Bernstein reiterates Amazon outperforms Bernstein says the e-commerce giant’s stock is ‘relatively mocked’.” While investors have previously focused on Amazon’s profit margin expansion story, core growth took the lead in Q2. AWS, Amazon’s main growth engine, performed well, right now. even in an environment where tech companies pull back on spending and continue to see a secular long road, as evidenced by the impressively growing backlog. “Citi downgraded Zoom to sell from hub Citi says Zoom has been too challenging post-pandemic. “Zoom’s post-COVID growth trajectory has always been more challenging, due to upward momentum, but we see hurdles New barriers to growth include increased competition (MSFT/Group), macro-related weakness affecting SMBs, and less severe portfolio spending and margin risks. “Read more about the call here. BMO reiterates McDonald’s outpacing BMO has raised its share price target of McDonald’s to $300 per share from $285 and says it will see growth.” We believe that MCD is in the early days of realizing rapid growth and profit sharing in Europe as the pandemic has prompted improvements in MCD’s competitive positioning in IOM (internationally operated) markets. economic) this important. ” endorsing Elanco to be overweight neutrality JPMorgan said in downgrading pet health company biopharma that it sees too many macro difficulties. “Ultimately, we are downgrading ELAN to N from OW . The company is seeing more impact than others from a difficult macroeconomic environment and less impediment to new product lines in the short term (compared to ZTS) or pricing power to offset challenges. and we see this trend continuing through 2023.” Bank of America reiterated its purchase of Apple. “Maintain Buy in upcoming product cycles, long-term growth in Services, systems. attractive ecology, further opportunities to monetize the installed base, and high capital returns.” Morgan Stanley recalls Salesforce as overweight Morgan Stanley said ahead of Salesforce’s earnings report next week that the stock The stock has “the most attractive risk/reward in software.” “Fits with broader group, tests more mixed in Q2. However, we see low levels of investor growth expectations. and less appreciative of the story of improving margins. At ~0.6x EV/FCF/growth, a hefty discount to peers, we consider CRM the most attractive risk/reward in software. Deutsche Bank reiterates Wells Fargo as a top pick. WFC has good leverage to drive US loan growth and is among the most leveraged to rising interest rates. “Bank of America reiterated Snap when it bought Bank of America saying that revenue risk is already priced into the stock. Snap’s case is “growth to accelerate” “Although, we were surprised by the magnitude of the reduction. revenue in Snap’s Q2 results and outlook, we are optimistic that Snap has guided Q3 near a period of maximum uncertainty for the US online advertising market. We see a case for Snap’s growth to accelerate again if consumer eCommerce spending stabilizes on much easier features and monetization on new platforms (Spotlight, Maps) increased. “