(This is CNBC Pro’s live coverage of Monday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Home improvement stocks were in focus Monday, and not in a positive way. Oppenheimer downgraded Home Depot and Lowe’s to perform from outperform, cutting its price targets on both names. On a more upbeat note, Goldman Sachs upgraded Brazilian payments stock StoneCo, calling for more gains ahead after a strong 2023. Check out the latest calls and chatter below. All times ET. 8:03 a.m.: William Blair steps to the sidelines on Vita Coco Coconut water company Vita Coco could see some bottom-line headwinds this year, says William Blair. The firm thinks Vita Coco’s “branded measured-channel consumption growth” could moderate due to more challenging comparisons, as well as slightly weaker additions from commercial initiatives. Problems with ocean freights and rates, notably the conflicts in the Red Sea and the Suez Canal, also could lead to headwinds to Vita Coco’s bottom line, William Blair said. Analyst Jon Andersen reduced his rate to market perform from outperform. “To be fair, over the past six months Vita Coco’s branded measured-channel consumption growth (in dollar terms) has been strong— averaging 18% year-over-year and 26% on a two-year stacked basis—and importantly largely volume driven,” Andersen wrote in a Monday note. However, the environment has become more challenging starting this month, he added. “Absent a meaningful acceleration in consumption growth on a two- year stacked basis, headline year-over-year consumption (dollars and volume) is likely to moderate,” the analyst continued. — Hakyung Kim 7:57 a.m.: Morgan Stanley names Western Digital top pick Morgan Stanley said Western Digital is poised take advantage of a “valuation disparity” compared to peers. The firm listed the data storage stock as a top pick and raised its price target to $73 per share from $52. Morgan Stanley’s forecast implies more than 33% upside from Friday’s $54.77 close. Western Digital stock has climbed 5% from the start of the year. “We see the valuation disparity between WDC and peers as extremely compelling, particularly in light of the 2h separation of the memory business that should unlock sum of the parts values,” analyst Joseph Moore said. — Brian Evans 7:56 a.m.: Northland downgrades AMD on concerns of valuation, ‘double ordering’ The excitement around artificial intelligence may be getting out of hand for one chipmaker, according to Northland Capital Markets. Analyst Gus Richard downgraded Advanced Micro Devices to market perform from buy, saying the stock’s valuation has gotten too high. Shares of AMD are already up 18% in January after a big rally in 2023. “AMD’s shares are $6 above our PT rolled out on 1/3/24 and significantly above our upgrade from 7/5/23 before NVDA’s blowout quarter. We downgrade on valuation to ‘a heck if we know’ rating or [market perform],” the note said. Northland does not have a current price target on the stock. Richard said in the note that the short-term demand for chips powerful enough for AI may not be indicative of the long-term market. “We would expect as supply increases and more viable alternatives become available, pricing will moderate, slowing overall revenue growth. While chip prices are cyclically driven by supply and demand, they are flat over the long term. We also believe that AI demand in CY23 was overstated due to double ordering,” the note said. So-called “double ordering” could be caused by companies who want to stockpile chips now to avoid the potential of not having them in the future when overall demand for AI will potentially be higher. — Jesse Pound 7:40 a.m.: Raymond James downgrades Comerica on a difficult earnings outlook Comerica could be faced with a difficult near-term outlook, according to Raymond James. The financial services firm downgraded shares of the regional bank to a market perform rating from outperform, with analyst Michael Rose citing a “more challenged earnings outlook” as the reason for the change. “Our less sanguine view reflects nearer-term earnings challenges that push its ability to generate positive operating leverage into 2025 and where its interest rate positioning is a formidable challenge to return to NIM [net interest margin]/NII [net interest income] levels achieved in 2022/2023,” he wrote. In the same note, Rose removed his $62 price target for the stock. Meanwhile, Comerica’s mounting expense mean that its stock price now appears to be trading at fair value, Rose added. On the other hand, the analyst underscored the company’s share repurchase program as a positive. “Additionally, we see its attractive footprint and highly-commercial business model/ mix as attractive attributes in the coming M & A cycle which in our view should help to support relative valuation even if it decides to remain independent,” he wrote. Shares of Comerica are down nearly 6% on the year. CMA YTD mountain CMA this year — Lisa Kailai Han 7:28 a.m.: UBS initiates Enovis with buy rating Medical technology company Enovis has “significant upside potential,” according to UBS. Analyst Danielle Antalffy initiated coverage with a buy rating on shares. Her price target of $75 suggests shares could rally 25.3% from Friday’s close. According to Antalffy, Enovis could lead the orthopedics market, its specialty area, with around 8% organic sales compound annual growth rate through 2027. Enovis also has a “significant margin expansion opportunity potentially underappreciated,” said the analyst. Further upside drivers include Enovis’ acquisition of LimaCorporate, international cross-selling opportunities and improved execution on new product launches, the analyst added. “We see upside to both UBS/Street estimates both through the ongoing portfolio transformation and further OpEx leverage through accelerated sales growth, acquisition synergies, and disciplined price/cost management,” Antalffy said. — Hakyung Kim 7:21 a.m.: Morgan Stanley’s Adam Jonas cuts Tesla price target Morgan Stanley head of global auto research Adam Jonas expects Tesla’s fourth-quarter results on Wednesday to be hurt by overall slower electric vehicle momentum. Jonas reiterated an overweight rating on the EV stock but lowered his price target to $345 per share from $380. Jonas’ forecast implies nearly 63% upside from Friday’s $212.19 close. Tesla stock has slipped about 15% from the start of 2024. “Global EV momentum is stalling,” Jonas said. “The market is over-supplied vs. demand. We anticipate Tesla’s 2024 outlook to be cautious on volume and profitability.” — Brian Evans 7:18 a.m.: Bernstein upgrades ASML Holding ahead of quarterly results Bernstein thinks ASML Holding is trading at an attractive entry point for investors. The firm upgraded the semiconductor stock to outperform from market perform on Monday, and increased its target price to $869 from $664. Bernstein’s forecast implies nearly 15% upside from Friday’s close. ASML is flat for 2024 thus far. The stock is also trading at a forward price-to-earnings ratio of 36.06. “[W]e believe that at this point the transition year for 2024 is well-understood by investors, and now looks mostly de-risked for ASML,” Analyst Sara Russo said. “We believe that the expected upcycle for WFE in 2025 (and beyond) combined with ASML’s performance as the lowest share price increase over the last twelve months vs. semicap peers make this a good entry point, hence our upgrade to outperform.” The company will report fourth-quarter results on Wednesday. — Brian Evans 6:56 a.m.: UBS upgrades J.B. Hunt, forecasts margin expansion moving forward UBS said shares of J.B. Hunt can find meaningful growth thanks to internal margins bottoming in the fourth-quarter of 2023 and a strengthening freight cycle. The firm upgraded the transport stock to buy from neutral and increases its price target to $234 per share from $205. UBS’ forecast implies nearly 18% upside from Friday’s close. J.B. Hunt stock has ticked down roughly 1% in 2024. “We believe that JBHT’s intermodal margin performance is likely at a bottom with potential for a modest move up in 2024 and a larger step up in 2025 supported by stronger contract pricing gains (we model 5%),” analyst Thomas Wadewitz said. “We expect JBHT to show strong participation in an improving freight cycle through its intermodal business and also through its cyclical truckload and brokerage businesses.” — Brian Evans 6:26 a.m.: Morgan Stanley upgrades International Flavors & Fragrances, notes attractive valuation Morgan Stanley thinks an end to International Flavors & Fragrances downgrade cycle as well as a bottoming of the consumer cycle presents a “compelling opportunity ahead” for the stock. The bank upgraded the stock to overweight from equal weight and increased its price target to $90 per share from $81. Morgan Stanley’s forecast implies more than 13% upside from Friday’s close. International Flavors & Fragrances has slipped roughly 2% so far in 2024. Shares are coming off a rough year, losing more than 22% in 2023. “Arguably, 2024 could still be partially a year of transition, yet we think investors will look through this with the shares looking compelling,” analyst Lisa De Neve said. She added that her forecast for adjusted earnings per share is about 12% above consensus estimates for 2024 driven by a forecast 14.8% EBITDA growth this year. — Brian Evans 6:05 a.m.: HSBC downgrades Lululemon as growth slows, peers close the gap Lululemon will have trouble replicating its exceptional 2023 performance into the new year, according to HSBC. The firm downgraded shares of the athleisure company to hold from buy in its 2024 global sporting goods outlook, and left its $500 per share price target unchanged. HSBC’s forecast implies more than 3% upside from Friday’s $484.02 close. Lululemon has slipped more than 5% this year. Shares also climbed more than 50% in 2023. LULU 1Y mountain LULU in past year “The near-term growth outlook for the overall sector is challenging, and we believe it is time to be slightly more selective while picking stocks,” HSBC analyst Anne-Laure Bismuth said. “While lululemon’s fundamentals are undoubtedly best-in-class, we do not see the valuation as compelling enough for us to recommend investors buy at current share price levels.” — Brian Evans 5:45 a.m.: Oppenheimer downgrades Home Depot, Lowe’s over forecast ‘unfavorable’ 2024 guidance Oppenheimer thinks the short-term picture for shares of Lowe’s and Home Depot will be complicated by “complacent” market positioning which will pressure both stocks. The firm downgraded both stocks to market perform from outperform in a Monday note and lowered its price target to $345 for Home Depot and $230 for Lowe’s. Oppenheimer’s forecast implies roughly 5% downside moving forward for Home Depot stock and 5% upside for Lowe’s. Shares of Home Depot have added 5% so far this year while Lowe’s stock has slipped more than 1%. “[W]e are fretting that shorter-term market positioning towards HD and LOW is turning too complacent and that shares might not discount adequately for potential persistent fundamental weakness at the chains, in earlier FY24 (Jan. 2025),” analyst Brian Nagel said. “Upcoming initial 2024 guidance from HD, LOW could prove unfavorable catalysts for shares. Investors looking to play prospects for strengthening trends in the sector, and at HD and LOW, beginning later in 2024, are likely to be presented better entry points, in coming weeks and months,” he added. Both companies are slated to report earnings next month. — Brian Evans 5:45 a.m.: Goldman Sachs upgrades StoneCo Goldman Sachs thinks Brazilian payments stock StoneCo can keep going higher even after a monster performance in 2023. The bank raised its rating on the company to buy from neutral and increased its price target to $21 from $12. The new forecast calls for 23.3% upside. “Stone is our preferred name within Brazil payments, given its superior revenue and earnings growth outlook,” analyst Tito Labarta wrote. “While we expect [total payment volume] to track the industry in 2023 (11% yoy), Stone’s positioning in the MSMB segment could warrant stronger growth in 2024 (15% vs. industry at 10%), leading to a 60bps market share gain.” StoneCo shares soared 91% in 2023. The stock also popped 4.6% in the premarket. STNE 1D mountain STNE pops To be sure, Labarta said the company could be under pressure due to increased competition. — Fred Imbert