(That is CNBC Professional’s dwell protection of Wednesday’s analyst calls and Wall Road chatter. Please refresh each 20-Half-hour to view the newest posts.) Early analyst calls on Wednesday included a downgrade to a legacy automaker and a rerating for a crypto mining inventory that received large final 12 months. UBS lowered its score on Ford Motor, calling for slender good points forward. BTIG, in the meantime, upgraded Marathon Digital, with the agency estimating main good points forward. Take a look at the newest calls and chatter beneath. All occasions ET. 8:38 a.m.: Netflix is the ‘king in streaming,’ Financial institution of America says It is time to acknowledge that Netflix has “received” the streaming wars forward of its newest earnings outcomes, in response to Financial institution of America Securities. Analyst Jessica Reif Ehrlich raised her worth goal on the inventory, and reiterated a purchase score, saying the streamer has outpaced the competitors amid a more durable setting for media corporations. “It’s turning into more and more clear that Netflix has received the ‘streaming wars,'” analyst Jessica Reif Ehrlich wrote in a Wednesday word titled “Crowning the king in streaming.” “Over the past 18 months, altering market dynamics, investor concentrate on profitability, and the varied expertise strikes have led a number of media corporations to re-evaluate their streaming aspirations.” “These modifications (e.g., lowering content material spend/output, rising third-party licensing) have been a tacit acknowledgement that not all media corporations will be capable to obtain Netflix’s world attain and scale in streaming,” Ehrlich wrote. “Total, we consider that this can be a win-win for the trade and Netflix.” The analyst raised her worth goal to $585 from $525 beforehand, implying greater than 20% upside from Tuesday’s closing worth. Netflix shares are down 1% this 12 months. Financial institution of America Securities was not the one agency bullish on Netflix. Wells Fargo, which has an obese score on the inventory, raised its web provides estimate to 10.4 million from 9.5 million for the fourth quarter. KeyBanc Capital Markets additionally has an obese score on Netflix, and raised its worth goal to $545 from $525 per share. Netflix experiences fourth-quarter earnings subsequent week, on Jan. 23. — Sarah Min 8:35 a.m.: UBS stands by promote score on Caterpillar as a result of ‘overly optimistic’ analyst expectations Caterpillar is due for some near-term ache, in response to UBS. The financial institution reiterated its promote score on the tools producer, concurrently lowering its worth goal to $209 from $210 on the again of decrease earnings and an unchanged a number of. This new worth estimate implies a greater than 27% lower from the inventory’s Tuesday closing worth of $287.23. UBS analyst Steven Fisher believes that Wall Road analyst estimates for oil and fuel corporations are “overly optimistic.” Whereas future development and margin growth have been seemingly priced into Caterpillar’s present valuation, Fisher believes that margins will truly contract as analyst expectations are lastly tempered. “Whereas consensus expects CAT’s Oil & Gasoline income to develop 9% in 2024, we anticipate a 5% decline,” he wrote. “As CAT trades on momentum, we anticipate the steps again for gross sales and margins in 2024 to depress investor enthusiasm and result in a number of contraction, and see ~40% potential draw back ought to this performs out.” Shares of Caterpillar have slid 2.9% this 12 months. — Lisa Kailai Han 8:16 a.m.: Wolfe Analysis upgrades Instacart on potential Uber merger A possible merger with Uber could lead on beaten-down Instacart shares to outperform, in response to Wolfe Analysis. Analyst Deepak Mathivanan upgraded shares to outperform from peer carry out and assigned a $35 worth goal, which suggests shares may acquire 46.6% since Tuesday’s shut. “We expect the danger/reward is engaging at present ranges and see a number of paths for shares to Outperform, together with a possible merger with UBER – which is the crux of this report,” Mathivan wrote in a Tuesday word. “We consider CART has many levers to enhance monetization … moreover, we predict CART’s present asset worth is simply too low-cost.” The analyst believes that Instacart can enhance its effectivity on logistics and promoting to achieve “wholesome income development,” main margins to enhance over the subsequent a number of years. The potential merger with Uber, he added, may speed up efforts in a $1 trillion grocery house and assist Uber maintain long-term development provided that grocery is a key class for the corporate. “Monetary synergies” on revenues and prices are important whereas regulatory dangers look minimal, provided that Uber has lower than 1% of present market share whereas Instacart has 18%, Mathivan added. — Pia Singh 8:07 a.m.: TD Cowen downgrades Fisker, says its rising pains proceed to develop TD Cowen downgraded electrical car participant Fisker to market carry out from outperform, saying its rising pains proceed to develop. “A shift in distribution technique, continued supply points, missed timelines and an general softening within the general EV market have taken the luster off of this as soon as shiny new car producer, in our view,” the Wall Road agency mentioned. The auto inventory is down practically 4% in premarket buying and selling Wednesday. The inventory has shed 44% in January alone, following a 76% loss in 2023. TD Cowen famous that the newest ache level for Fisker has been the information of a potential regulatory probe stemming from complaints related to the Ocean’s braking system. — Yun Li 8:05 a.m.: Financial institution of America says Dutch Bros. can leap greater than 70% Espresso chain Dutch Bros. might be poised for a makeover underneath its new CEO that makes traders large winners, in response to Financial institution of America. Analyst Sara Senatore mentioned in a word to purchasers that the corporate is a key thought for 2024 within the restaurant sector, partially due to a current CEO change. “We consider that arrival of latest administration at corporations with robust – however arguably undermanaged — manufacturers can create important worth. We anticipate the advertising, actual property and operational methods dropped at bear by CEO Christine Barone and her new crew (CMO, COO, CFO) will function catalysts for accelerating similar retailer gross sales.” Barone joined Dutch Bros. in 2023, and beforehand labored at True Meals Kitchen and Starbucks. Financial institution of America has a worth goal of $48 per share for Dutch Bros., which is greater than 70% above the place the inventory closed on Tuesday. — Jesse Pound 7:50 a.m.: Morgan Stanley receives KBW downgrade KBW thinks Morgan Stanley’s wealth administration phase will take time to meaningfully add to the inventory’s development and can stay a drag within the near-term. The agency downgraded the funding financial institution to market carry out from outperform and lowered its goal worth from $91 per share from $102. KBW’s forecast implies about 6% upside transferring ahead from Tuesday’s $85.97 shut. Whereas analyst David Konrad famous Morgan Stanley notched a “stable quarter” from Tuesday’s outcomes, the agency’s wealth administration enterprise will “probably take time to translate into potential development in equities AUM.” “Though we consider finally this liquidity will transfer into equities and drive improved margins and development, it’s anticipated to take time and administration expects mid-20% WM pretax margins close to time period,” the analyst added. “In consequence, the inventory has fewer catalysts close to time period till there’s a agency line of sight to 30% margins and a 20% ROTCE [return on tangible common equity].” — Brian Evans 7:44 a.m.: Deutsche Financial institution downgrades Rivian over danger to 2024 expectations Rivian nonetheless has extra questions than solutions in 2024, in response to Deutsche Financial institution. The agency downgraded the electrical car maker to carry from purchase in a Wednesday word, and lowered its worth goal to $19 per share from $20. Deutsche’s forecast implies roughly 7% upside from Tuesday’s $17.82 shut. “We expect there might be draw back danger to 2024 expectations round Rivian’s quantity and gross margin, and whereas the deliberate R2 unveil may assist sentiment, there stays many different questions submit the announcement together with timing of capital wants, manufacturing ramp, and profitability,” analyst Emmanuel Rosner mentioned. “We anticipate 2024 quantity steerage of simply 65k models, amid extended manufacturing facility shutdowns and sluggish ramp up,” the analyst added. Rivian inventory has pulled again greater than 24% this 12 months. — Brian Evans 7:14 a.m.: D.A. Davidson downgrades Teladoc Well being over development issues D.A. Davidson mentioned “stalls in development” in Teladoc Well being’s important enterprise segments are pushing the agency to the sidelines on the inventory. Davidson downgraded the digital well being care inventory to impartial from purchase and lowered its worth goal to $22 per share from $33. Davidson’s forecast implies practically 9% upside from Tuesday’s $20.19 shut. Teladoc’s two largest core companies are comprised of Well being Built-in Care and BetterHelp. “The corporate is the definitive chief in facilitating a various group of digital well being companies, with the size to supply them on a world stage,” analyst Gil Luria mentioned. “We’re given pause, for now, by stalls in development amongst the 2 core enterprise drivers as Teladoc manages the platform constructed from massive acquisitions.” “We’re, nonetheless, impressed with the [free cash flow] accretion and see upside to shares ought to it sustainably develop,” the analyst added. “All thought of, we just like the market and the category-leader items of the thesis, however are balanced in direction of development and execution for now.” Teladoc has slipped greater than 6% this 12 months. Shares have fallen for 3 years in a row. TDOC 5Y mountain TDOC 5-year chart — Brian Evans 6:48 a.m.: UBS upgrades Visteon as near-term headwinds are priced in UBS thinks Wall Road’s issues surrounding a slower electrical car penetration are overdone for Visteon . The agency upgraded automotive digital tools provider inventory to purchase from impartial on Monday, and elevated its worth goal to $145 per share from $143. UBS’ forecast implies practically 26% upside from Tuesday’s $115.46 shut. “We perceive investor issues over VC’s 2026 $5.5bn gross sales goal amid a slowdown in BEV penetration. Whereas we do not consider that concentrate on is achievable, we predict expectations have gotten too bearish,” analyst Joseph Spak mentioned. “We consider the market is pricing in 2026 gross sales nearer to $4.3bn.” “Resetting 2026 may take away an overhang and permit the market to concentrate on a nonetheless engaging development story,” Spak added. Visteon inventory has slipped roughly 8% in 2024. — Brian Evans 6:14 a.m.: Barclays downgrades SolarEdge, says consensus estimates want reassessment Barclays is transferring to the sidelines on SolarEdge regardless of shares buying and selling at a premium to look Enphase Vitality. The agency downgraded the photo voltaic inventory to underweight from equal weight on Tuesday, and lowered its worth goal to $50 per share from $74. Barclays’ forecast implies greater than 31% draw back from Tuesday’s $72.83 shut. “As we’ve got parsed by way of our numbers, we predict the street to restoration will probably be more durable for SEDG from the views of prime line, gross margins, and market share,” analyst Christine Cho mentioned. “Decrease demand and regulatory modifications have led to elevated ranges of channel inventories, which we consider will proceed to sluggish development and in addition contribute to decrease gross margins at SEDG relative to friends,” Cho added. SolarEdge has slumped greater than 22% in 2024. — Brian Evans 6:01 a.m.: JPMorgan downgrades Morgan Stanley after the agency warns of ‘main draw back dangers’ in quarterly outcomes Morgan Stanley is probably going pretty valued with restricted upside transferring ahead, in response to JPMorgan. The agency downgraded shares of the funding financial institution to impartial from obese in a Wednesday word. JPMorgan additionally lowered its worth goal on Morgan Stanley to $87 per share from $94. That forecast implies upside of simply 1.2%. The transfer comes after Morgan Stanley CEO Ted Choose warned final week {that a} potential weakening of the U.S. economic system coupled with geopolitical dangers served as “main draw back dangers” transferring ahead. The financial institution additionally posted combined quarterly outcomes. “Whereas MS provides important gearing to enchancment in capital markets exercise, we replicate this in our estimates with IBD revenues +47% YoY in our 2024E forecasts and we might search any additional upside to this publicity by way of GS (OW) which is our most well-liked identify in US IBs whereas we favor UBS’ world publicity for WM gearing,” analyst Kian Abouhossein mentioned. Morgan Stanley inventory has slipped practically 8% this 12 months. — Brian Evans 5:42 a.m.: UBS downgrades Ford, says inventory has restricted upside transferring ahead UBS thinks shares of legacy automaker Ford are pretty valued and that the corporate can have a harder street forward in comparison with friends. The agency downgraded Ford to impartial from purchase in a Tuesday word and reiterated a $12 per share worth goal. UBS’ forecast implies about 5% upside from Tuesday’s $11.46 shut. “Whereas Ford is topic to the identical trade headwinds as different automakers (pricing, affordability, labor, funding) and is attempting to extend their capital effectivity, we consider F might have extra to reverse vs friends contemplating execution and high quality challenges,” analyst Joseph Spak mentioned. Spak added that whereas he forecasts extra potential for earnings development on Ford in comparison with peer U.S. automaker Basic Motors, he cautioned that chief government Jim Farley’s firm blueprint “may take a lot of years for the advantages of these plans to be realized.” Ford shares have struggled this 12 months, shedding 6%. The inventory additionally lagged in 2023, rising simply 4.8%, whereas the S & P 500 jumped greater than 20%. — Brian Evans 5:42 a.m.: BTIG upgrades Marathon Digital Crypto mining firm Marathon Digital is coming off a banner 12 months, and BTIG thinks there are extra good points forward. Analyst Gregory Lewis raised his score on Marathon Digital to purchase from impartial with a worth goal of $27 per share. That forecast implies upside of practically 52% from Tuesday’s shut. He cited the current approval of a bitcoin ETF as a optimistic catalyst for the corporate. “The approval comes ~10 years after the primary spot ETF was proposed and is one other step in BTC’s maturation and may pave the best way for extra institutional capital into the ecosystem,” Lewis wrote. “Since launching, these ETFs (preliminary charges of 0% for the primary 6 months to ~1.5%) maintain ~$2B in BTC and look to have pushed some fund flows away from miners with miners down 20%-30% versus BTC which is down ~5%.” “On the again of the weak spot within the miners and Marathon’s determination to pivot into infrastructure late final 12 months, we improve to Purchase from Impartial,” he added. Marathon rallied greater than 586% in 2023 as bitcoin costs recovered. Shares have struggled in early 2024, nonetheless, shedding 24%. MARA 1Y mountain MARA in previous 12 months — Fred Imbert