Here are Friday’s biggest calls on Wall Street: JPMorgan reiterates FedEx as overweight JPMorgan says it’s siding with FedEx shares but notes caution on heading into earnings later this month . “Stocks have underperformed the S&P 500 and XLI indexes since investment date, which lacks insight into the extent to which the profit improvement target is tied to cost reductions under FedEx control. .” Wells Fargo Calls Zscaler a Top Pick Wells named the cloud security company a top pick after Thursday’s strong earnings report. “Zscaler reported particularly strong F4Q (July) results, beating the high end of revenue guidance of 3.9%. Billings was also very strong, growing 57% year-over-year, which is where it is up compared to Q3 (+ 54%).” Morgan Stanley Upgrades Regeneron to heavier than equivalent weight “Overall, we now see REGN as the preferred large-cap growth name supported by a range of long-term revenue-generating products and a growing cancer treatment system with great potential.” diversify the base business.” Read more about this call here. Bank of America echoed Starbucks when it acquired Bank of America said its optimism about the new CEO of Starbucks. “We believe the recently announced appointment of Laxman Narasimhan as the upcoming Chief Executive Officer starting in April will go a long way towards raising the overhang due to inheritance concerns raised by senior executives.” highly appreciated by investors.” Bank of America recalled Citi when it bought Bank of America saying it sees a number of “idiosyncratic catalysts” in the coming months for Citi. “We also believe the stock will become easier to own when the noise associated with exiting the business is in the background and investors can more clearly track progress toward their management goals.” set forth in the March investment day.” Guggenheim downgraded Enphase Energy to neutral from the acquisition of Guggenheim downgraded the energy company primarily due to valuation. “We are downgrading ENPH from Buy to Neutral based on our belief that the stock is currently priced relatively and that is unlikely given our estimates.” Citi reiterated Albemarle’s purchase of Citi saying its long-term thesis remains intact for the lithium company’s shares following a meeting with Albemarle management. The company raised its price target to $345 per share from $294 and said it was a top pick. “ALB has aggressively restructured contracts under a more variable valuation and is better positioned to benefit from higher prices than in the previous cycle (2015-2018). ALB benefits from both high lithium prices and larger volumes from its global footprint in Chile, Australia and China.” Loop initiating Sports Academy as buy Loop said when it first opened its sporting goods store that it had a model. attractive business. “We believe Academy’s unique business model, which encompasses a wide range of products, is focused on value, and localized commerce drives industry-leading financial metrics. We believe Academy’s recent new store reopening could result in up to $2 billion in increased annual sales.” Daiwa upgraded Coinbase to buy from better performance Daiwa upgraded Coinbase after the so-called “recent stock price retracement”. “Reconfirming our Positive rating on this sector; upgrading Coinbase to Buy (1) following recent stock price retracement.” Barclays downgrades Navient to balance against overweight Barclays said it sees a “material risk” to earnings from the student loan forgiveness plan. “As more details become available, it becomes clear that FFELP loans are included in the Government’s write-off plan. We believe that a substantial part of NAVI’s portfolio (60-80%) could be is below the earnings cap and estimates ~20-28 % down from our 2023 EPS estimate.” Read more about the call here. Morgan Stanley named Biomarin Pharmaceutical as an idea to promote the catalyst Morgan Stanley said it hopes the FDA will approve the company’s application for the hemophilia drug. “Management plans to resubmit the Roctavian BLA for Hemophilia A in the US in September with the FDA’s decision on acceptance in October. We expect the FDA to accept the filing, which may be possible. boost BMRN by 5-10%+.” Bank of America recalled Rivian when it bought Bank of America noting that the electric vehicle company remains a “competitive threat to incumbent automakers.” “We maintain a Buy rating on RIVN, which is based on our view that the company is one of the most viable among start-up EV automakers, and also a strong point of contact.” threatens relative competition for incumbent automakers.” Bernstein downgrades Virgin Galactic due to underperformance relative to the market Bernstein downgraded the stock due to repeated flight delays. “We downgraded Virgin Galactic to Underperforming, with a $4 price target. Q2 results follow a pattern over the past two years that means future flight operations are delayed, design. elements of the platform and the need to raise more cash.” Read more about this call here. Morgan Stanley calls Amazon its top advertising choice Morgan Stanley says the e-commerce giant is their favorite choice in advertising. “Our Internet Top Pick overall (and Top Pick in Ads) is AMZN ($175 PT with ~35% increase) due to improving retail margins. AMZN also has ~38 billion dollars annually, the performance-based ad business is expected to grow at ~22% ’22-24 rate with CTV and video call option.” Morgan Stanley reiterated Disney’s excess Morgan Stanley says Disney stock is undervalued. “We remain OW DIS because we see the Parks segment with many parks driving the majority of EBITDA and FCF over time, while Disney content is low-income and undervalued.” Bank of America that founded Omnicell when it bought Bank of America said in founding the drug management solutions company that Omnicell is well-positioned to “take advantage of future automation trends.” “This valuation is a slight deviation from the healthcare IT and Health IT group average of ~16-17x due to favorable competitive positioning and increased EBITDA margins relative to other companies. same sector.” Read more about this call here. Barclays reiterates Peloton for being overweight Barclays says Peloton’s meltdown in August was “attractive and low-key.” “Based on Barclays credit card data, implied churn rate is tracking at around ~1% vs. our estimate of 1.2%, indicating a slight increase over PTON’s guidance on 2.97 million Connected Subscriptions for F1Q23.” Bank of America downgraded Sonic Automotive to bad buy and CarMax underperformed neutral. “Due to our downgraded estimates and as we rebalance the cluster’s required ratings, we are downgrading several stocks including: American Axle (AXL) from Buy to Neutral, Sonic Automotive (SAH) from Buy to Underperforming and CarMax (KMX) from Neutral to Underperforming.”