Here’s Friday’s biggest call on Wall Street: JPMorgan downgrades UPS to neutral from overweight JPMorgan said UPS shares could be held without a key catalyst to boost growth. “Pressure continues to build on US consumers and e-comm growth is slowing. … UPS is operating very well in a dynamic environment but we expect further upgrades to be gradual and don’t see much positives from the 2022 guidance already being pulled forward.” Read more about this call here. Morgan Stanley upgrades Ford to equal weight from underweight After a significant drop in Ford Motor’s share price this year, Morgan Stanley is looking back at auto stocks. “We believe the ‘run-off’ value of Ford’s authentic/emotional ICE (internal combustion engine) vehicles and the fleet-oriented commercial market may be underestimated by the market.” Read more about this call here. HSBC upgrades Krispy Kreme to buy from hold HSBC upgraded its rating on Krispy Kreme after the stock hit an all-time low this week. “We expect more pricing and higher scale resulting from aggressive access point expansion will keep revenue expectations on track.” Jefferies downgraded Carvana to hold back from buying Jefferies said concerns about liquidity will drive Carvana’s stock performance in the next 12 months. period of higher-than-expected cash burn.” Bank of America upgraded Republic Services to buy from neutral Bank of America upgraded Republic Services, saying it believes a long-term transformation is underway at the garbage collection company. “RSG struck the right balance of volume, rising prices, building solid waste density through acquisitions and boosting operating leverage after years of letting go of poor contracts. While we still maintain mixed views on RSG’s strategy for hazardous waste (‘one-stop shop in environmental services), the company is grilling on a conservative view and most business (85%-90%) is still tied to solid waste.” Bank of America improve Waste Management to neutral from poor performance The company stepped up Waste Management after a better-than-expected first quarter. “We see a positive outlook for WM given the price hikes to 2023 (and rising CPI), moderate costs and a resilient business model in the face of rising macro uncertainty.” Bank of America cut Tesla’s price target to $925 from $1,300 Bank of America revised its price goal across its car range. Tesla’s new price goal implies a 27% increase from Thursday’s closing price. “After this quarter, we raised our forecasts going forward. , but kept our $1,300 PO. However, we are now lowering our price objective from $1,000 to $925 assuming a lower multiple with the market sell-off, particularly now based on ~13x EV/Sales and ~55x EV/EBITDA (previously 18x, 78x) in our 2023 forecast.” Wolfe Research downgrades KB Home to underperform from peer-performing Wolfe Research downgrades its outlook in the housing sector to market weight and downgrades KB Home “Potential medium-term headwinds are numerous, especially as the Fed looks set to contain tough inflation through continued rate hikes.” and demoralizing and future balance sheet reductions.” Barclays upgrades Endeavor Group Holdings to overweight of the same weight Barclays calls holding companies for talent and media agencies a “defensive growth media game.” “EDR is on the supply side of manufacturing content, sporting events and sports betting: FCF conversion business with growth highs, high margins, and highs must withstand recession.” Goldman Sachs downgraded Fluence Energy to neutral from buy. Goldman cut its rating on energy storage name Fluence Energy following mixed quarterly reports. “The near-to-medium-term path for stocks still faces a number of headwinds that we believe require a more balanced view at this time.” —Michael Bloom of CNBC contributed to reporting.
United Parcel Service Inc. logo. (UPS) displayed on a parked truck in New York.
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Here are Friday’s biggest calls on Wall Street: