Monday’s Biggest Analyst Calls: Apple, Amazon, Meta, Utz, Roku, Walgreens, Spotify & More

Here are the top analyst recommendations on Wall Street for Monday:

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TD Cowen Initiates Coverage on Spotify with a "Market Perform" Rating:TD Cowen has initiated coverage on Spotify with a "Market Perform" rating. They believe the current valuation already incorporates an optimistic financial trajectory. While they expect continued revenue growth and improved margins for Spotify, they consider the valuation to already reflect these positive expectations.

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Bernstein Upgrades Spirit AeroSystems to "Outperform" from "Market Perform":Bernstein has upgraded Spirit AeroSystems to "Outperform" from "Market Perform." They are optimistic about the company's turnaround potential, especially with the appointment of Pat Shanahan as interim CEO. They anticipate an operational plan under Shanahan's leadership to reshape Spirit's performance.

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Evercore ISI Adds a Tactical "Outperform" on Roku:Evercore ISI has added a tactical "Outperform" rating on Roku. This is a short- to medium-term (up to 6 months) trading call. They see an attractive entry point for the stock at $60 per share, considering the broader market conditions.

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Citi Adds a Negative Catalyst Watch on Okta:Citi has added a negative catalyst watch on Okta. They express concerns about the recent security incident at Okta and its potential impact on the company's pipeline and business development activities, given the negative headlines.

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Citi Downgrades Diamondback Energy to "Neutral" from "Buy":Citi has downgraded Diamondback Energy from "Buy" to "Neutral." The downgrade is primarily driven by valuation considerations. They note that while the market previously appeared conservative in its stance, the current valuation suggests greater comfort with inventory levels, removing a positive catalyst.

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HSBC Initiates Marriott with a "Buy" Rating:HSBC has initiated Marriott with a "Buy" rating. They consider Marriott the world's largest lodging company, well-positioned for growth due to its unrivaled scale and a best-in-class brand portfolio.

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Bank of America Downgrades Alcoa to "Neutral" from "Buy":Bank of America has downgraded Alcoa from "Buy" to "Neutral." They believe the company's turnaround is taking longer than expected. While they are bullish on aluminum for 2024, they express caution in the short term due to Alcoa's transition and cost reductions.

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Evercore ISI Upgrades Edison to "Outperform" from "Market Perform":Evercore ISI has upgraded Edison to "Outperform" from "Market Perform." They prefer Edison in the utilities sector, as the company has avoided major catastrophes in its footprint. Investors seek predictability in earnings, cash flow, and dividend growth, which Edison offers.

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Piper Sandler Downgrades Salesforce to "Neutral" from "Overweight":Piper Sandler has downgraded Salesforce from "Overweight" to "Neutral." They cite increasing execution and M&A risks, uncertainty regarding AI monetization, and the stock's substantial rise of 54% year-to-date as reasons for the downgrade.

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Wells Fargo Downgrades Regions Financial to "Equal Weight" from "Overweight":Wells Fargo has downgraded Regions Financial to "Equal Weight" from "Overweight." They anticipate that the rate headwinds affecting Regions Financial will persist longer than previously expected. The bank's recent performance, guidance, and deposit beta are among the factors influencing the downgrade.

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Stifel Upgrades Pinterest to "Buy" from "Hold":Stifel has upgraded Pinterest to a "Buy" rating and set a new price target of $32. They believe there is room for growth in the stock, with more positive checks and potential for expansion beyond the domestic market.

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William Blair Initiates Coverage on Celsius Holdings with an "Outperform" Rating:William Blair has initiated coverage on Celsius Holdings with an "Outperform" rating. They see the beverage company as having high-growth potential, thanks to its on-trend and differentiated brand in a large addressable market.

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UBS Upgrades Waste Management and Republic Services to "Buy" from "Neutral":UBS has upgraded Waste Management and Republic Services from "Neutral" to "Buy." They view municipal solid waste stocks as defensive options during market turbulence and economic uncertainty driven by interest rate changes.

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Bank of America Reiterates Amazon as "Buy":Bank of America has reiterated its "Buy" rating on Amazon. They believe there is room for multiple expansion, with Amazon's valuation considered attractive at 12x EV/FWD EBITDA. The historical range and median suggest potential for expansion.

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Evercore ISI Reiterates Meta as "Outperform":Evercore ISI has reiterated Meta as an "Outperform." They find the Street's Q3 revenue and operating income estimates reasonable, with the possibility of modest upside.

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JPMorgan Upgrades Walgreens to "Overweight" from "Neutral":JPMorgan has upgraded Walgreens to "Overweight." They view this as the start of a new era for Walgreens as Tim Wentworth assumes the CEO role. They also provide a detailed analysis of the components of the company's FY24 guidance.

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MoffettNathanson Initiates Coverage on Instacart as "Neutral":MoffettNathanson has initiated coverage on Instacart with a "Neutral" rating. They identify several headwinds in the grocery market, which they consider challenging. These headwinds include market share, consumer engagement, advertising growth, and insider share unlocking.

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Stephens Upgrades Utz to "Overweight" from "Equal Weight:Stephens has upgraded Utz from "Equal Weight" to "Overweight." They believe the recent pullback in shares presents an attractive entry point for investors.

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Morgan Stanley Reiterates Apple as "Overweight":Morgan Stanley has reconfirmed its "Overweight" rating on Apple. They note robust lead times for the iPhone 15 Pro Max and continue to be positive on the stock.

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