Here are the biggest analyst calls of the day: Uber, SmileDirectClub, Netflix & more

Published Mon, Oct 7 20199:04 AM EDTUpdated Mon, Oct 7 20199:11 AM EDT

Key Points

J.P. Morgan is initiating SmileDirectClub as buy.
Citi is upgrading Uber to buy from neutral.
Evercore ISI is lowering its price target on Netflix to $300 from $380.
Cowen is downgrading Wendy's to market perform from outperform.
Nomura Instinet raising its price target on Apple to $205 from $185.
Evercore ISI is raising its price target on Nvidia to $255 from $185.
Stephens is downgrading Ingersoll-Rand to equal weight from overweight.
Wedbush is adding Columbia Sportswear to the best idea list.
Buckingham is upgrading JetBlue to buy from neutral.

Here are the biggest calls on Wall Street on Monday: J.P. Morgan initiated SmileDirectClub as 'buy' J.P. Morgan said in its initiation of the teledentistry company that it solves many of the "issues" in the orthodontics market that have not been addressed in "decades." "The company sets itself apart from both traditional orthodontics players and direct-to-consumer competitors with (1) the convenience and ease of access it provides over the traditional orthodontics business model; (2) affordable product offerings; (3) a seamless in-house financing option; and (4) complete vertical integration, which drives a best-in-class patient experience. .. .At current valuation levels, which we view as irrational, we would be buyers of SDC here." Citi upgraded Uber to 'buy' from 'neutral' Citi said in its upgrade note that the company's third quarter results should "refocus" the story Rides fundamentals. " Uber shares have been impacted by a number of overhangs from AB5 to the IPO lock-up. Though these overhangs will likely persist, we believe Q3 results provide a window to refocus the story on Rides fundamentals, particularly now that high-level AB5-risk scenarios/timelines appear better understood." Read more about this call here . Evercore ISI lowered its price target on Netflix to $300 from $380 Evercore lowered its target price on the stock and said that with shares down almost 30%, sentiment had turned "negative." "Sentiment has clearly turned incrementally negative over the last three months, with NFLX shares down nearly 30% from levels immediately preceding the company's 2Q earnings report in July. With net subscriber additions potentially peaking this year, and ahead of a number of new Internet TV service launches from well-capitalized competitors over the coming months, questions about the company's business model now abound." Cowen downgraded Wendy's to 'market perform' from 'outperform' Cowen downgraded the stock on concerns about Wendy 's plans for a nationwide breakfast menu launch in 2020. "Wendy's decision to chase a habitual, entrenched daypart does not create a long-term competitive advantage. We therefore find it more challenging to look through what is likely to be a multiyear FCF headwind from advertising subsidies necessary to break through the noise. Using Taco Bell's 2014 breakfast launch as an analog, we infer $250M of cumulative breakfast ad spend over the next 2 years." Nomura Instinet raised its price target on Apple to $205 from $185 Nomura raised its price target on Apple due to "solid" iPhone demand. "Solid demand for the iPhone 11 mitigates risk of a F1Q pothole. Investor focus may now shift to the 2020 iPhone 12 5G refresh. We raise our low-end estimates and lift our target price to $205." Evercore ISI raised its price target on Nvidia to $255 from $185 Evercore said it was becoming more bullish on Nvidia's gaming business. "After a year of extreme volatility in NVDA 's gaming business, we think investors have understandably taken a cautious view on the future growth of NVDA's Gaming business. And with ongoing macro concerns, tariffs driving uncertainty on consumer demand (especially in China), prior crypto exposure and lack of clarity to normalized Gaming demand, we believe investors have placed NVDA Gaming in the "low-growth" category." Stephens downgraded Ingersoll-Rand to 'equal weight' from 'overweight' Stephens downgraded the diversified industrial manufacturing on a more balanced risk/reward. "We modestly trim our numbers on IR for '19 to $6.35 from $6.40 and '20 to $6.80 from $6.95 after an admittedly strong 2Q and constructive outlook for 2H19. We see incremental concern for growth and sustainability of the HVAC cycle, as well as a more balanced risk/ reward for shares given strong outperformance over the past few years, and a more expensive valuation." Wedbush added Columbia Sportswear to the 'best ideas list' Wedbush said added the company to its best ideas list and said the company had "upside" into fiscal year 2020. "We are adding COLM to the Best Ideas List. COLM for some time has exceeded expectations while consistently raising its outlook. The combo of relevant product (PFG, Outdry, and SH/FT at Columbia, SOREL share gains, and Mountain Hardwear's return to growth), strategic marketing, DTC initiatives, and international growth should sustain upside for 2H and into FY20." Buckingham upgraded JetBlue to 'buy' from 'neutral' Buckingham raised its rating on the airline on and said it saw "greater-than-expected" capital returns among other things. "What's changed: Valuation; improved IT sophistication to drive better revenue; and greater-than-expected capital returns. At this point, competitive capacity looks manageable and following the repurchase of $1.1B of stock, JBLU announced an additional $800M about 1/3 of which we now factor into our 2020 EPS."

Uber Technologies CEO Dara Khosrowshahi outside the New York Stock Exchange ahead of the company's IPO, May 10, 2019.

Here are the biggest calls on Wall Street on Monday: