Morgan, Deutsche, Baird Eye Tech & Steel, Citi Wary on Peloton

Key Takeaway

Morgan Stanley is bullish on EHang Holdings with an overweight rating, while Deutsche Bank raises Disney's price target ahead of earnings.
Baird upgrades Micron to outperform, and U.S. Steel gets over 30% upside potential from Morgan Stanley's positive outlook.
UBS downgrades Johnson Controls due to operational challenges; Citi cites concerns for Peloton and Comerica, highlighting sector-specific trends.

Analyst Perspectives on Diverse Sectors

Monday's Wall Street activity was marked by a series of analyst calls that spanned various industries, from technology to banking, highlighting shifts in market sentiment and potential investment opportunities. Morgan Stanley expressed optimism about EHang Holdings, initiating coverage with an overweight rating due to its growth potential and government support. Meanwhile, Deutsche Bank maintained a bullish stance on Disney ahead of its earnings, raising its price target based on higher estimates. Baird shifted its view on Micron to outperform, citing significant future opportunities, and Loop Capital Markets adjusted its price target for Amazon, reinforcing its position as a top pick among mega-cap stocks.

Upgrades and Downgrades Impacting Market Movements

Significant upgrades included Morgan Stanley's positive shift on U.S. Steel, attributing over 30% upside potential to the company's transformational investments. Similarly, Baird recognized Micron Technology as a top semiconductor pick, foreseeing substantial gains. On the downside, UBS downgraded Johnson Controls due to operational challenges and skepticism about meeting future guidance, reflecting a cautious outlook on the HVAC sector. Other notable downgrades were Peloton and Comerica by Citi, citing limited visibility and expected constraints on loan growth, respectively.

Strategic Shifts and Industry Trends

The analyst calls underscored broader industry trends and strategic shifts within companies. U.S. Steel's ongoing transformation highlights a move towards more flexible steelmaking operations, reflecting broader industry innovation. Micron Technology's focus on DRAM and memory technology points to the semiconductor industry's critical role in supporting evolving tech trends. Conversely, Johnson Controls faces operational challenges that underscore the importance of efficiency and adaptability in the HVAC sector. These shifts indicate a dynamic market landscape where strategic transformations are crucial for growth and competitiveness.

Street Views

Morgan Stanley (Bullish on EHang Holdings):

"Initiate at OW: Mass delivery – the next check point: We are OW on EH on the back of its rapid growth potential, with a solid order pipeline and strong endorsement from local governments."
Deutsche Bank (Bullish on Disney):

"We are reiterating our Buy on Disney and raising our PT to $130, up from $125, driven by our higher estimates."
Baird (Bullish on Micron):

"Upgrading to Outperform, Adding to Our List of Top Semi Ideas."
Loop (Bullish on Amazon):

"We are raising our PT to $225... Amazon remains our favorite of the mega-cap stocks in our coverage universe."
Morgan Stanley (Bearish on Victoria’s Secret):

"We downgrade VSCO to Underweight with a $15 price target (lowered from $19) – potential negative EPS revisions ahead, & screen under-appreciated."
Citi (Neutral on Peloton):

"Following Peloton’s management changes and new $200M restructuring plan, we are downgrading shares of Peloton to Neutral/HR from Buy/HR [high risk]."
Citi (Neutral on Comerica):

"Turning to CMA... 2024 loan growth is likely to be limited – ultimately pushing us to the sidelines for the time being."
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