Here are the most significant stock recommendations from Wall Street this Tuesday: Barclays maintains its equal weight rating on Apple, emphasizing that the company’s self-published apps may be significantly undervalued in the market. “We believe that AAPL’s strategy of selling its own apps is not getting the recognition it deserves. A substantial portion of advertisement revenue is generated directly through the App Store, with additional contributions coming from News and Stocks,” they stated. Canaccord initiates a buy rating on Ulta, highlighting the beauty retailer’s potential for growth. “With Ulta currently trading at approximately 19 times FY2 PE, compared to its historical average of 21 times over the past five years and 24 times over the last decade, we believe there is considerable upside potential from its present valuation, particularly as management implements their long-term growth strategies and margin enhancement plans, which are expected to drive free cash flow (FCF), earnings per share (EPS) growth, and improved store productivity,” they added. Bank of America has upgraded Paramount from neutral to buy, citing the company’s impressive portfolio of assets. “We are raising our rating on PARA to Buy from Neutral and increasing our price objective to $32 from $24. We believe that PARA possesses a unique collection of assets that could attract significant buyer interest if ever put on the market, whether individually or as a whole.” To explore further insights on this recommendation, click here. Conversely, Bank of America has downgraded Fox from buy to neutral, noting a lack of immediate catalysts for the company’s stock. “While we do not anticipate any significant deterioration in fundamentals—whether it be in advertising or affiliate revenue—we also find it challenging to identify near-term catalysts that could drive the stock higher from its current levels.” Wells Fargo has upgraded Carnival from underweight to equal weight, indicating a more favorable risk/reward profile for the cruise operator. “We believe the risk/reward scenario appears balanced at this juncture—CCL has minimal near-term refinancing needs, the European market is performing well, and the FY23 EBITDA guidance looks reasonable,” they stated. Stifel initiates coverage on Bowlero with a buy rating, describing the bowling company as an exciting growth prospect. “In our view, there is no better way to characterize Bowlero’s long-term growth potential than by stating how we perceive it—truly compelling,” they emphasized. Raymond James has upgraded Ciena from outperform to strong buy, noting the firm’s expanding total addressable market. “The opportunity to displace Huawei represents a significant long-term advantage for Ciena and its Western counterparts,” they mentioned. For further information on this upgrade, click here. Morgan Stanley has named Emerson Electric as a top pick, recognizing the electrical manufacturing company as a strong performer with several positive catalysts ahead. “EMR stands out as one of the few distinguishable narratives within the multi-industry sector, and it has become our new Prime Pick,” they reported. To learn more about this selection, click here. Cowen upgrades Occidental Petroleum from market perform to outperform, highlighting the stock’s attractive free cash yield and superior risk/reward profile. “We are upgrading Occidental Petroleum to outperform from market perform due to its favorable risk-reward balance, which includes strong exposure to crude pricing, adjustments in capital structure, supportive buying activity from Berkshire Hathaway, an appealing free cash yield, and a solid productivity profile, along with a rich array of catalysts in a relatively homogeneous environment among Exploration & Production companies,” they stated. Oppenheimer initiates a rating of outperform for Carrier, suggesting a bright future for the ventilation and security systems firm. “Despite CARR’s strong performance since its 2020 spin-off, we see further opportunities for value creation through multiple avenues under the company’s leadership, including growth in aftermarket and digital solutions as well as productivity gains,” they noted. Citi upgrades both PagSeguro and StoneCo to buy from neutral, citing attractive valuations for these Brazilian payment companies. “However, we maintain our preference in the Brazilian acquirers sector for CIEL, given its stronger short-term earnings momentum, followed by STNE, which shows potential for restructuring and improving sentiment following a management change, with PAGS being appealing but facing short-term challenges,” they elaborated. For more details on this analysis, click here. Deutsche Bank has reiterated its buy rating on Tesla, expressing confidence in the automaker’s upcoming delivery report due this weekend. “Tesla is expected to announce its first-quarter 2023 delivery and production figures this weekend. We have slightly adjusted our first-quarter delivery estimate down to 416,000 units, reflecting ongoing uncertainties in the macroeconomic environment following recent price cuts and competitive pricing strategies in China,” they explained. Morgan Stanley has reiterated its overweight rating on Dick’s Sporting Goods, indicating that the stock appears undervalued. “Both DKS and ASO have experienced a notable re-rating of their multiples in recent months,” they noted. Truist has upgraded Array Technologies from hold to buy, expressing optimism about the solar technology company’s future. “While the first quarter may present seasonal weaknesses, we believe ARRY is well-positioned to achieve significant growth and free cash flow for FY23, benefitting from both domestic and international tailwinds in the utility-scale solar sector.”
