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Global Equities

Oppenheimer upgraded Morgan Stanley

Oppenheimer upgraded Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM) to Overweight. New price targets on MS and JPM are $111.00 per share.

“Given the large pullback in the stocks and modestly higher estimates, the average bank relative P/E multiple is now down to 52%. The declines in JPM, MS, and SIVB now leave them all with ~30%+ upside potential in our valuation model,” Oppenheimer said in a client note.

Analysts believes investors are “underestimating the qualitative difference in how credit risk is taken and managed today versus prior to the Great Financial Crisis.”. As far as earnings are concerned, yielded no surprises.

“Core preprovision earnings (PPE) for our composite of $35.8B were exactly in line with expectations, and NCOs of $3.1B bettered our $3.7B estimate. Thus, there were gives and takes (trading stronger, mortgage and investment banking weaker), but on balance, results tracked closely to expectations. Forward guidance, however, improved, mainly on rate movements,” analysts added. 


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Raymond James upgrades AMD

Advanced Micro Devices (NASDAQ:AMD) shares rose in premarket trading on Monday after investment firm Raymond James upgraded the semiconductor maker, citing several reasons, including an attractive valuation.

Raymnd James analysts  upgraded the stock to strong buy from outperform but kept the $160 price target unchanged, noting that AMD is exposed to several secular growth areas, has a more "muted" cyclical exposure than other semiconductor stocks and has an attractive valuation.

"We have strong confidence regarding AMD’s position and share gains in the datacenter market," analysts wrote in a note to clients, adding that the technology gap between AMD and Intel (NASDAQ:INTC) is likely to widen when AMD releases its Genoa line of chips in the fourth-quarter. It's likely that AMD maintains an advantange "at least through 2024," analysts stated, with customers realizing that Intel's (INTC) roadmap has "more risk" due to its "challenging process roadmap" and capacity constraints causing customers to commit to AMD now.

Concerning AMD's (AMD) exposure to PCs, market is likely to become a "sustained duopoly over time," assuming Intel (INTC) executes flawlessly. Nonetheless, there is some consumer weakness going on in the space, which may be impacting shares.

AMD's (AMD) acquisition of Xilinx may also be a concern for investors, given Caso's worries over it growing revenue 35% year-over-year.

"But we do expect XLNX to be mildly accretive, and we note that just 1% of client share gain would offset a 5% decline in the overall market, demonstrating that share is a much more important lever for AMD than market growth," Raymond James added. 


Trade accordingly with your risk



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