Here is the biggest call on Wall Street: Bank of America reiterates Meta as a purchase Bank of America says “the year of efficiency” for Meta has just begun. “We see Meta as a more defensive stock in the sector this year with the potential for cost rationalization to provide lower EPS support in a recessionary scenario than industry peers.” Evercore ISI upgraded Zillow to outperform from the line Evercore said he likes the company’s business model. “And given ZG’s relatively robust business model, positive top-line inflection should quickly translate into bottom-line inflection.” Read more about this phone here. Credit Suisse upgraded AllianceBernstein to outperform from neutral Credit Suisse said the shares of the investment management company are too attractive to ignore. “We raised our investment rating on AllianceBernstein shares to Outperform (from Neutral), raising our 2023-24 adjusted EPU estimate to better than expected 4Q22/headline cost guidance for 2023.” Baird downgrades Caterpillar to neutral from outperform Baird downgrades the stock to its valuation. “We believe CAT stock is nearing a cyclical pivot point after strong recent outperformance; history shows that CAT’s relative stock performance is driven by four fundamental factors: the impact of dealer stock on sales growth, backlog progress, price/cost spreads, and dealer retail sales. ” Morgan Stanley reiterates Microsoft as an objection Morgan Stanley said the shares of Microsoft are compelling at the current level. “The near-term cyclical impact makes it an attractive entry point into one of the best secular growth stories in tech.” Wells Fargo reiterates Home Depot and Lowe’s objection Wells said it stands by the shares of Home Depot and Lowe’s heading into earnings later this month, but added that it sees “difficult” setup. “Calling the Q4 Home Improvement setup ‘difficult’ is an understatement. FY23 ests very high, bearish sentiment; but Shares are off ’22 lows & rates add support. JPMorgan resumes Disney as overweight JPM resumes Disney coverage and says it will return to CEO Bob Iger. “We are encouraged by newly appointed CEO Bob Iger’s transformation program, announcing a $5.5b cost-cutting program, and focusing on DTC (direct-to-consumer) profitability (via subs), and look for signs of increased DTC profitability in year as a guide for stocks.” Read more about this call here. Barclays reiterates Apple as an equal weight Barclays said it remains cautious on Apple shares. “Weak sales data from China (better in early January, due to supply normalization) also confirms a cautious bias in the near term.” Bank of America upgrades Ralph Lauren to buy from neutral Bank of America said Shares of Ralph Lauren by du outperform in this environment. “We are upgrading Ralph Lauren (RL) to Buy to reflect our confidence in continued revenue trends due to the brand’s global diversification and management’s ability to pull cost levers in this volatile environment.” Read more about this phone here. Bank of America upgrades Fast to buy from underperform Bank of America says the cloud computing company is “on the road to recovery.” “Short-term results may still fluctuate, but we are focused on potential value creation in the medium term, and believe Fastly has a strong foundation, which the new management team is aiming for, coupled with a greater focus on security and edge cloud solutions.” Bank of America reiterates Roblox as a buy Bank of America says it is bullish heading into Roblox earnings on Friday. “We expect EBITDA margins to exceed the 10% threshold mgmt indicated in November as Q4 orders, driven by December’s outperformance, may exceed mgmt’s expectations.” Bank of America started Okta as an underperform Bank of America said it sees limited upside for identity access management companies. “We started coverage of Okta, with an Underperform rating. We see a high risk of slow growth and limited margins due to strong competition with Microsoft, price erosion, channel conflicts and other structural challenges.” Roth MKM raised the Five Below to buy from the hold Roth MKM said it sees attractive growth for the stock. “We have long been attracted to the growth aspects of the LIMA platform and building reputation among core consumers.” Morgan Stanley downgrades XPO to an equal weight of overweight Morgan Stanley said the logistics company in the “penalty box.” “We also downgrade XPO from OW to EW. Print 4Q was harder than expected and we believe that the stock may be in the “penalty box” for a while, as the market seeks more evidence in the execution and attraction to the LT target. Read more about this call here. Bank of America reiterates Starbucks as a buy Bank of America says it sees margin recovery for Starbucks shares. “Over the past three years, we estimate Starbucks N. Margins operated by American companies have been compressed to ~ 170 bps and are now 338 bps below average long term. Given our view that store-level EBITDA margins as high as 20% are sustainable for industry leaders, we expect a full recovery.”