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Tesla, Apple, Hershey & more

Elton Musk, Chief Executive Officer of Tesla Inc., arrives at the Federal Supreme Court in New York on Thursday, April 4, 2019.

Natan Dvir | Bloomberg | Getty Images

Here are the biggest Wall Street calls on Thursday:

Goldman Sachs lowered its price target for Tesla from $ 200 to $ 158.

Goldman claimed to see less likelihood of reaching Tesla upside volume scenarios.

"While TSLA stocks have been under pressure this year, they are currently recovering from short-term deliveries, although we believe the second quarter 1

9 should be in order – and the company is likely to be close to the FactSet Consensus – we believe that the second half of 19 (and beyond, volume estimates appear to be high, considering that there are fewer levers to fuel demand (ie, the company has brought out cheaper variants of the Model 3, a leasing option has been introduced and right-hander orders have begun) coupled with a lack of direct momentum to open new demand bags (other than the introduction of incentives or more attractive funding rates) and a further reduction of the US tax credit for TSLA vehicles from July 1 – We believe that 2Q19 was a better environment for demand and thus supplies but at a level that is probably not sustainable. We believe that this is the biggest question that investors have to ask at this point – what is the sustained demand for Model S, Model X and Model 3 – and how does this change with the introduction of Model Y production?

Read More information on this call can be found here.

Deutsche Bank has launched Apple as "Hold."

Deutsche Bank has started holding primarily on "macro and economic issues "and possible tariffs.

" Our neutral view is based on 4 main points: 1) We fear a lull for the iPhone in 2019, ahead of 5G iPhones in 2020; 2) Other hardware continues to evolve (Watch / AirPods), but this is a slow and steady variation. 3) Services could provide partial compensation and 2-3 growth points, but business is increasingly facing a highly dynamic law; 4) AAPL's balance sheet offers some positive options, but these are largely included in estimates. If we reconcile the valuation of AAPL with the fundamental levers of the company for further earnings per share, we see overall a balanced reward profile in terms of risk. We expect services to grow at a moderate to high rate of teenage growth over the next few years, which could provide some relief.

Deutsche Bank Initiates Dell as "Buy"

Deutsche Bank said the likely slowdown in IT infrastructure growth was already reflected in the share price, after the stock had recently fallen 25 percent. [19659013] "Our bullish thesis is based on 4 main points: 1) Road estimates could prove conservative over the next 2-3 years as a 15-20% discount on Dell's implied EPS target seems too high. 2) Increasing investor concerns about slowing IT infrastructure spending is compounded by Dell's high level of debt. Although we assess this risk, we believe Dell can consistently relieve its balance sheet through a wide range of cash generation measures and potentially benefit from refinancing opportunities due to the possibility of lower interest rates. 3) We are confident that Dell will achieve its 12% operating margin target due to improved memory and VMware mix. 4) We believe the recent decline in Dell's share price and the resulting valuation offer adverse protection.

DA Davidson Initiates Hostess Brands as "Buy"

DA Davidson said the company's "most recent" headwind is mostly in the mirror.

"We conduct a coverage of Hostess Brands with a buy rating and target price of 16 USD. We believe that the recent headwinds (change of leadership, dilutive mergers and acquisitions, mix pressure and reduced support for mass-channel advertising) are now largely behind the company, raising expectations (guidelines and consensus) over the next two years.

Piper Jaffray downgraded Hershey from "neutral" to "underweight"

Piper said the chocolate maker is experiencing stable growth, but is trading at a historically high premium over its competitors.

Hershey has a US-centered Portfolio with generally stable revenue and earnings growth, but the valuation now appears to be out of sync with consensus expectations, with a historically high premium compared to US consumers, although consensus EPS growth expectations are closer to those of competitors Remarkably, HSY shares trade at a premium of 70% over K shares, although Hershey's consensus on the EPS growth outlook is in line with Kelloggs, and we also perform a reverse DCF analysis showing that 3% implicit market expectations for Hershey's revenue growth, more than double the 1.3% Consensus revenue growth expectations for 2020-21. We maintain our earnings per share for 2019E / 20E of $ 5.70 / $ 6.00 and increase our target to $ 125 (based on a 21-fold increase in earnings per share for 2020E of $ 6.00), however, to see better market sentiment for defensive stocks lower our rating to UW. "

Wolfe Research initiated Netflix as" Outperform "

Wolfe initiated a report on the stock, saying it had a" bullish view of the Disney versus Netflix debate. "

" We initiate NFLX with an outperform and 442 USD PT. Our positive thesis has to do with: 1) the unprecedented global scale of NFLX; and 2) our more optimistic assessment of the DIS vs. NFLX debate (we remind you that we are positive about DIS and Disney +). "

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