Here are the biggest calls for Wednesday on Wall Street: Barclays downgraded Cisco to equivalent from overweight and upgraded Arista to overweight from parity Barclays said when downgrading Cisco that it received see macro risk. The company also upgraded Arista and said the computer networking company has “flexible cloud needs.” “We are upgrading ANET to OW from EW and downgrading CSCO to EW from OW. For ANET, we are moving in a more constructive direction with flexible cloud needs and campus facilitation with expand TAM. For CSCO, we’re less bullish on cloud and software, see macro risk and market share.” Click here to read more about these calls. Morgan Stanley Reiterates Microsoft Is Overweight Morgan Stanley said it sees an attractive risk/reward for Microsoft stock after the company raised its quarterly dividend on Tuesday. “Pre-market, Microsoft increased its quarterly dividend by 6 cents or 10% to $0.68 per share. The $2.72 annual dividend yielded 1.1%, up from 1.0% before.” Deutsche Bank reiterated Nike when it bought Deutsche said it was on the edge of Nike’s earnings next week. “While there are certainly global macro headwinds and questions surrounding China’s recovery, we believe that NKE will continue to show strength in the area of 1) digital ( across all regions); 2) DTC North America.” William Blair continues RH is better William Blair continues the furniture company’s coverage and says it sees long-term opportunity despite some short-term difficulties. “While RH has benefited from broader consumer trends over the previous two years, we believe the company is still well-positioned for long-term revenue growth and margin expansion, despite a short-term difficulties.” Morgan Stanley named the FREYR Battery a top pick Morgan Stanley named the battery company a top pick and said it was the primary beneficiary of the Inflation Reduction Act. “Following the milestones (binding contract agreements, equipment orders, determining funding) and the passage of IRAs, we updated our FREY model and increased our PT. $26 and Bull Case to $60, making FREY our Top Pick.” Canaccord downgrades Stitch Fix to neutral from purchase Canaccord downgraded its online personal styling service following the company’s disappointing earnings report. “Stitch Fix reported mild 4Q22 results, with active customers, revenue and adjusted EBITDA both below consensus as demand was impacted by the challenging macroeconomic environment and retail spending. oddly lower.” Goldman Sachs Upgrades Estee Lauder To Buy From Neutral Goldman said in its stock upgrade that investors should buy weakness. “We upgrade shares of EL to Buy, from Neutral, following the recent stock drop. Uncertainty over the duration of China’s zero-Covid policy and related impact on business activity EL’s business remains high, but this is now fully visible in the stock following its rating drop.” Read more about the call here. Jefferies initiated Trupanion when it acquired Jefferies said the pet insurance company is well positioned to achieve more profits going forward. “We expect insurance to play an important role in a stronger and more humanized pet health industry and believe TRUP is well positioned for the pet health topic for many years to come.” Mizuho downgrades Micron and Western Digital to neutral with acquisition Mizuho said in downgrading Micron and Western Digital that it noticed “a dizzying drop in price”. “We are downgrading MU and WDC, as our recent tests show a dizzying price decline in Q12 and 1H23. Additionally, the main server/data center markets are catching on. The top shows weakness, with demand in China/Europe falling and CPU/GPU drop rates slowing.” Read more about this call here. Deutsche Bank reiterated Costco’s purchase of Deutsche said it saw potential for earnings growth on Thursday. “COST is one of the most consistent operators on our team, and steady traffic growth and high membership renewal rates serve as key differentiating factors in an increasingly volatile landscape.” We see upside potential for Q4 results above consensus; we’re raising our forecast Q4 EPS to $4.20 from $4.15 and compared to Street $4, 14. ” Piper Sandler reiterates Beyond Meat for being underweight. Piper said it sees too much uncertainty at Beyond Meat and is abandoning the nationwide launch at McDonald’s. “Increasing uncertainty at BYND could lead to a CEO change, which will likely lift the stock, although we still expect further near-term declines and many fundamental challenges remain unresolved. quick fix.” Citi Opens 30-Day Positive Catalyst Watch for Jabil Citi says the technology manufacturing solutions company’s stock is “attractive value.” “We are opening a 30-day positive catalyst watch for Jabil (JBL) as we view the upcoming airshow as a positive for investors to return to the company. company after a long period of COVID without face-to-face meetings, and we believe the company has a strong direction for the upcoming first quarter of 2023 and also for the whole of 2023.” Bank of America added PayPal to US1 list. Bank of America added the payments company to its list of top ideas. “We are adding PayPal Holdings Inc. (PYPL) to and removing Visa Inc. (V) from US listings 1. V still has a Buy rating.” JPMorgan reiterates Nvidia is overweight JPMorgan said Nvidia is “well-positioned to continue to benefit from major world trends in AI, high-performance computing, gaming and autonomous vehicles.” “Bottom line: NVIDIA continues to stay 1-2 steps ahead of the competition from silicon/system adoption, software, and ecosystem. We reiterate our OW rating on NVDA.” Bank of America echoes Apple in its acquisition. “Recalling Product Cycle Buy, long-term growth in Services, attractive ecosystem, opportunity to further monetize installed base and high return on capital.” SMBC Nikko downgrades Block to neutral from buying The company said in downgrading the company formerly known as Square that it noticed “too much cross current”. “While we continue to believe that SQ is one of the highest quality long-term names in our coverage, we are downgrading the stock to Neutral due to (1) difficulty in quantification. , but significant crypto exposure, (2) lack of medium-term visibility.” Cowen reiterated Chipotle on doing better. Cowen raised the stock price target to $1,950 per share from $1,850. and said they are increasingly trusting the stock. “We emphasize increasing perceived value in proprietary survey data that supports CMG’s enhanced pricing in 2H22 and future pricing strength. Over the long term, we’ve boosted confidence.” on a 27% target restaurant profit margin at the $3 million sales we modeled in 2024 versus 26.0% for Metrix consensus.”