Here are the biggest calls on Wall Street Wednesday: BMO downgrades Microsoft to market outperform BMO downgraded the stock after Microsoft’s earnings report, citing concerns about Azure’s growth. “We are downgrading MSFT to Market Perform based on continued uncertainty in Azure. We previously placed Microsoft on negative watchlist in our 2023 forecast note published in December 2022, mainly based on concerns over Azure’s growth included.” Read more about this call. Oppenheimer downgrades Block Oppenheimer said “volumes could swing wilder on the downside” for the company formerly known as Square. “Our outperform rating was based on SQ being able to maintain adjusted EBITDA. We’ve learned that investors really don’t focus on adjusted EBITDA and gross profit given the high growth multiple.” Wells Fargo launched Diamondback Energy because the overweight Wells said it sees “attractive cash return targets” for the hydrocarbon exploration company. “We start FANG at OW / $181 PT. Core Permian, solid execution and leading FCF payout support positive outlook.” Barclays downgrades Sunrun to equal weight from overweight Barclays said it was concerned about slowing residential demand for solar energy. “As US solar demand is expected to decline in 2023, we are adjusting our ratings for SPWR and RUN to reflect our expectations and how they will fare in a changing environment.” Read more about this call. Bank of America to buy Papa John’s Bank of America says the pizza chain’s stock is attractive and is seeing a return to growth. “PZZA’s relative valuation of 1.4x is below the 5-year and 10-year averages of 1.5 times, reflecting concerns about the secular outlook for the pizza category.” Bank of America downgrades Booking Holdings from buy to neutral Bank of America said it sees “less upside” for the online travel booking company. “Peer comps are tightening in 2Q and we are downgrading from Buy to Neutral as we see less valuation on our 2024 dates above our current Street.” Gordon Haskett downgrades Airbnb Gordon Haskett downgrades Airbnb due to “overly aggressive High Street estimates.” “Downgrade; Expect Overly Optimistic Downward Revision with Consensus Estimates.” Morgan Stanley Names Tesla New Top Pick Morgan Stanley named Tesla New Top Pick, saying it is interested in its “yield, FCF generation.” [and] strong balance sheet.” ” Tesla’s recent price cuts are the latest sign that the EV market may be entering a ‘fluke’ phase. In addition to making Tesla our Top Pick, we are de-risking the EV portfolio.” Read more about the call here. Bank of America Downgrades Union Pacific from Buy to Neutral Bank of America says it is concerned about “service and cost pressures” for Union Pacific “We move to neutral given continued pressure on costs, negative mix pressures, inflationary effects (targeting 4%) and lower fuel/accessory revenues offset by improved service levels, lower fuel costs and a target of higher share gains from economic activity.” BMO Downgrades Bloomin’ Brands BMO has downgraded the owner of brands such as Outback Steakhouse, saying it sees a more “balanced” risk/reward. “We are taking advantage of recent strength in BLMN stock coinciding with BLMN/industry acceleration. traffic data as an opportunity to move outside as risk/reward is more balanced.” Goldman Sachs upgrades Philip Morris to buy from neutral Goldman said it sees a “compelling” risk/reward for the share. es of the tobacco giant. “We see increasing growth algo and attractive risk/reward as PM enters the important US market.” Bank of America reiterates Amazon Bank of America said it maintained a buy rating on Amazon’s earnings, but was concerned about Amazon Web Services after Microsoft’s disappointing quarterly results. “While the Azure FYQ2 beat gives us a bit more confidence in AWS in Q4Q (and we think 22% growth is possible for 4Q), we expect the Street to be more cautious in Q1Q following Azure guidance.” UBS downgrades Cheesecake Factory from buy to neutral UBS has downgraded the stock due to concerns over a challenging 2023 macro outlook. “We downgrade CAKE to Sell from Neutral due to: i) the stock’s ~16% rise YTD ii) our expectations for a tougher macro this year that could impact results and earnings visibility; and iii) our view that risk exists. 23 margin guidance.” Mizuho echoes Robinhood as Mizuho calls 2023 a “transformational year” for Robinhood. “After 4Q, we continue to view 2023 as a transformational year for HOOD as it should benefit from new products such as the new IRA offering.” DA Davidson said shares of the next-generation restaurant platform company are attractive. “The product is so attractive that Toast has already reached 11% of the market share with no signs of slowing down. While the macro is a concern, we note that Toast has already proven its strength in tough times.” Loop is launching Mobileye, as buy Loop says the autonomous driving technology company is “best of breed.” “Autonomous is now real… and it keeps getting ‘Realer.’ We like to invest best in strong, structural long-term social trends, and Mukhtar and MBLY are like that. Loop upgrades to buy before Fox waits Loop upgraded the media company after the Murdoch family said it was withdrawing efforts to merge News Corp. . and Fox. “Fox, even at our low estimates, is a low-end media company that trades at 4X EBITDA and is strategically well-positioned with a focus on news and sports and is not involved in the high-cost streaming business.” Wedbush downgrades DR. Horton cut Wedbush to neutral from an outperformance, downgrading the homebuilder on “low volume expectations.” The price cuts needed to maintain sales volume for F2Q23 and potentially F3Q23 may be steeper than we previously anticipated.”