Tuesday’s stocks to watch on Wall Street

Here are the biggest calls on Wall Street on Tuesday: HSBC upgrades Citi to buy from hold and downgrades Morgan Stanley to hold from buy HSBC sees more stock buybacks in Citi’s future. The bank also downgraded Morgan Stanley due to a “softening” outlook for wealth management. ” Citigroup is our preferred choice among banks. … .We have cut our earnings estimates notably for Morgan Stanley in recent months even as the share price has risen, leading to a material increase in the PE despite a softening outlook for wealth management (a higher multiple business) revenue.” Morgan Stanley upgrades CrowdStrike to overweight from equal weight Morgan Stanley said the cyber company is “firing on all cylinders.” “We see an improving demand outlook for CRWD as accelerating cyberattacks, multiple new products and GenAI tailwinds drive estimates upside.” Morgan Stanley downgrades CyberArk to equal weight from overweight Morgan Stanley sees a tougher setup for the identity and access management company. “We think the company has improved its position with a higher mix of recurring SaaS revenue in recent years. However, nearer term, we think the setup is more difficult and outperformance in CYBR shares is unlikely…” Goldman Sachs upgrades Interactive Brokers to buy from neutral Goldman said in its upgrade of the financial services company that Federal Reserve interest rate cuts are already priced in and the stock’s at “an attractive entry point.” “IBKR has underperformed rate sensitive peers by 11-27pp since 6 months before the first Fed Funds rate cut, as the market overextrapolates IBKR’s rate sensitivity.” BMO initiates Amazon as outperform BMO says the dominant e-commerce platform is well positioned for AI. ” Amazon is also positioned to benefit from artificial intelligence / machine learning given its investments in Trainium and Inferentia chips as well as the middle layer of the stack in Bedrock and CodeWhisperer.” Citi downgrades Netflix to neutral from buy Citi says Street expectations are too high for Netflix. “We are downgrading Netflix from Buy to Neutral. Across 2024 and 2025, the Street has lofty expectations for Netflix.” Deutsche Bank upgrades JPMorgan to buy from hold and downgrades Wells Fargo to hold from buy Deutsche said in its upgrade of JPMorgan that the stock is relatively inexpensive. The firm also downgraded Wells, saying it’s concerned about a weak net interest income guide. “And while we wouldn’t argue JPM shares are cheap, they also aren’t expensive at 11.5x our 2024e or just a slight premium to the broader group multiple of 11.0x. … . WFC was the second best performing stock in our coverage in 2023 (behind JPM), rising 19% vs. a 5% drop in the BKX.” JMP initiates Caesars at market outperform JMP says it likes Caesars’ interactive business. “We initiate coverage of Caesars Entertainment, the U.S. leader in brick-and-mortar casinos and a burgeoning interactive business, with a Market Outperform rating and $65 price target based on 8.5x our 2025E EBITDA and 11.0x our 2023E-2025E FCF/per share.” Jefferies upgrades Allstate to buy from hold Jefferies says the insurer is due for a re-rating of its P/E multiple. “Upgrading ALL Shares to Buy from Hold (PT $180, from $130 previously, 24% upside).” Jefferies upgrades KeyCorp and Regions to buy from hold Jefferies said in its upgrade of Key that it sees an attractive risk/reward. The investment bank also upgraded Regions and said “capital is in a relatively strong position.” “Upgrading KEY and RF to Buy from Hold. … .Regions Financial (RF) – Upgrade to Buy; High ROTCE Not Appreciated in P/E Multiple, PT $22.” Oppenheimer names Nvidia a top pick Oppenheimer says the leading maker of AI computer chips is a “top AI play.” “NVDA , leveraging a dominant hardware/software installed base, remains the top AI play.” Jefferies upgrades Northern Trust to buy from hold Jefferies sees an improved revenue outlook for the trust bank. ” NTRS – Upgrade to Buy from Hold; Better Revenue Outlook Meshes with Change in Cost Messaging.” Redburn Atlantic Equities upgrades Exxon to buy from hold Redburn said Exxon offers a “compelling growth story.” “We upgrade ExxonMobil from Neutral to Buy, with the shares trading in line with the sector on organic FCF despite having the most compelling growth story.” Morgan Stanley downgrades PayPal to equal weight from overweight Morgan Stanley says the payments company isn’t moving fast enough on its strategic initiatives. “We think PayPal is moving too slowly on key strategic initiatives such as improving Branded Checkout, and believe acceleration is difficult given the range of relationship interests PayPal manages.” Morgan Stanley upgrades Tenable Holdings to overweight from equal weight Morgan Stanley said the cyber company is a…