(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest post.) The consumer was in focus on Tuesday’s early batch of analyst calls. Evercore ISI initiated a slew of retail names, including Nike, with outperform ratings. The firm noted these stocks can do well despite a challenging macro outlook. Meanwhile, RBC Capital Markets sees headwinds ahead for Home Depot and Lowe’s. The firm started coverage of both home improvement companies with sector perform ratings and price targets that imply little-to-no upside going forward. Check out the latest calls and chatter below. 5:46 a.m. ET: RBC Capital Markets initiates Home Depot and Lowe’s, but doesn’t see much upside for either RBC Capital Markets initiated a couple of home improvement names but thinks neither stock can run too far as the trajectory of home prices could further depress consumer spending in the sector. Analyst Steven Shemesh initiated coverage of Home Depot and Lowe’s with a sector perform rating and price targets of $303 and $194, respectively. Those numbers indicate just 2.9% potential upside for Home Depot and 0.1% decrease for Lowe’s from their closing prices on Monday. Home Depot: Although the analyst likes Home Depot for the long term, he maintained a conservative outlook on the stock underpinned by two of RBC’s expectations: That the widening spread between home prices and home sales will create uncertainty in the market, which could lower home improvement spending. (Year-to-date home prices are roughly flat, while home sales are trending down by about 21%, which Shemesh said is the widest spread since 2007.) That Home Depot’s share of total PCE to revert towards pre-pandemic levels as consumer spending shifts back towards services “The LT structural tailwinds for the home improvement industry are clear. There’s a chronic undersupply of homes, the housing stock is rapidly aging, and the average size of homes is on the rise,” Shemesh said. “In addition to these industry tailwinds, HD’s recent supply chain investments and structurally advantaged real estate position it well to gain share over time.” Lowe’s: Shemesh said that while Lowe’s is currently trading at an attractive valuation, it is likely to underperform its peers in the near-term as consumers pull back on spending, assuming that higher-for-longer rates persist. The company has meaningful share gain and margin opportunity over the long term, he said. “We recognize that LOW sales have historically correlated to home prices (which are being buoyed by low inventory) more closely than home sales, but it’s highly unusual to see such a wide disparity between home prices and sales trends,” the analyst wrote. — Pia Singh 5:46 a.m. ET: Evercore ISI initiates Nike, TJX and Ralph Lauren as outperform Evercore ISI highlighted several retailers that can do well going forward despite a tough macro backdrop. “Given our cautious near-term stance, we prioritize stocks with strong defensive characteristics, a clear track record of execution outperformance, structural/scale advantages and visible sources of self-help to drive P & L upside until the macro path is clearer,” wrote analyst Michael Binetti. Binetti initiated Nike , TJX and Ralph Lauren — among others — with outperform ratings. Take a look where the analyst sees each of these names going from here: Nike (price target: $124, implying upside of 16%): “Stocks with high exposure to megatrends like Athletic and Healthy Lifestyle should see more upside and less downside in a volatile macro,” the analyst said. He also noted that recent comments from the apparel giant “suggest the fall period has been better than expected.” TJX (price target: $105, implying a gain of 15%): Binetti said TJX has the best “offprice execution, multiple paths to share gains (trade down, industry consolidation, price increases), under-earning segments (HomeGoods, Internat’l), store remodeling tailwinds and SG & A pressure easing.” Ralph Lauren (price target: $130, pointing to 13% upside): The analyst noted Ralph Lauren’s “consistent execution” should allow the stock to hold its premium valuation relative to peers. He also said the company’s “customer evolution and best-in-class balance sheet should let it invest through sector weakness.” — Fred Imbert
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