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Urban Outfitters could see big gains from here as an "inflection point" draws near, according to Morgan Stanley. Analyst Alex Straton upgraded the retailer to overweight from equal weight, saying that its low valuation relative to peers creates an attractive risk-reward balance to the upside. Given this setup, Straton lifted her price target to $41 from $27 a share, implying 27% upside from Monday's close. But key to this potential re-rating is a cooperative inflection at its Anthropologie brand. On the valuation front, Straton noted that shares look cheap relative to peers at 11 times forward price-to-earnings and a 20% discount to historical averages.
Persons: Morgan Stanley, Alex Straton, oppty, Straton, CNBC's Michael Bloom Locations: Capri
If there's one takeaway from Nvidia 's developer conference, it's the computing firm's dominant leadership in artificial intelligence, according to Wall Street analysts. Investors piled into Nvidia shares this year as they sought ways to play the growing AI trend. NVDA 1Y mountain Nvidia shares 1-year The event only added to their confidence in the stock. to a multi $Tn+ IT/Infrastructure as a service industry TAM from narrower chip-only industry opportunity," Arya wrote to clients on Tuesday. JPMorgan's Harlan Sur reiterated an overweight rating, saying Nvidia's "dominant AI leadership" is clear following the event.
Wall Street analysts unveiled a slew of must-own stocks this week even as bank and macroeconomic worries permeate the market. While some investors might be distracted by the ongoing financial turmoil, analysts say there are plenty of quality buying opportunities. They include: TrueCar, Apple, Progressive, Academy Sports and Prosperity Bancshares. Apple Morgan Stanley is doubling down on Apple shares. Apple shares are up almost 20% since the start of the year.
It's time to buy Exelixis shares ahead of readouts on the biotech firm's cancer treatment, according to Wells Fargo. Analyst Derek Archila initiated coverage of Exelixis with an overweight rating, saying the biotech company's consistent revenue growth and upcoming clarity around the firm's cancer product called cabozantinib will drive upside. "We like cabo's near-term growth prospects and believe upcoming clarity on its [loss of exclusivity] will serve as a catalyst for shares. Exelixis shares are 2% higher this year, after falling 12% in 2022. EXEL 1D mountain Exelixis shares 1-day —CNBC's Michael Bloom contributed to this report.
Bank of America downgrades Constellation Energy to neutral from buy Bank of America downgraded the energy company mainly on valuation. " Raymond James reiterates Carvana as market perform Raymond James said it's cautious heading into Carvana earnings later this week. Bank of America reiterates Meta as buy Bank of America said it's bullish on the company's recently announced Meta Verified subscription service. " Bank of America reiterates Alphabet as buy Bank of America said it's standing by its buy rating despite the ChatGPT thread to Alphabet. Barclays reiterates Zoom as equal weight Barclays said expectations are low heading into Zoom earnings later this month.
Here are Wednesday's biggest calls on Wall Street: Citi reiterates Apple as buy Citi said it sees several reasons that Apple stock is likely trade higher. Jefferies names McDonald's a top 2023 pick Jefferies said the fast food giant is a top defensive idea for 2023. Jefferies downgrades Starbucks to hold from buy Jefferies said it sees a more "balanced" risk/reward outlook for the stock. Evercore ISI reiterates Alphabet as outperform Evercore lowered its estimates on the stock but said it's still "highly attractive" for long-term investors. UBS reiterates Nike as buy UBS said Nike's earnings growth potential is "underestimated" after the company's earnings report on Tuesday.
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