Here are the biggest analyst calls of the day: Roku, Square, CrowdStrike & more

Published Fri, Oct 11 20198:10 AM EDT

Key Points

RBC upgraded Roku to outperform from sector perform
Stifel is upgrading Deckers to buy from hold.
Nomura Instinet initiated Square as reduce.
Bernstein is upgrading Johnson & Johnson to outperform from market perform.
Citi is upgrading Boston Beer to buy from neutral.
Susquehanna is upgrading Square to positive from neutral.
Goldman Sachs is downgrading CrowdStrike to sell from neutral.
Argus is downgrading Delta Airlines to hold from buy.

Here are the biggest calls on Wall Street on Friday: RBC upgraded Roku to 'outperform' from 'sector perform' RBC said the company's valuation was "compelling" following a 31 percent decline in the streaming video device maker's stock. "We upgrade Roku to Outperform from Sector Perform and raise our price target to $155 from $107 based on three key factors: i) a more compelling valuation post a 31% recent decline; ii) strong Crucial Combo Fundamentals; and iii) very favorable positioning as one of the best plays on ad-supported OTT." Read more about this call here . Stifel upgraded Deckers to 'buy' from 'hold' Stifel said that Decker 's product mix gives the company protection from weather-related volatility. "With channel inventories tight entering the key selling season and growing contribution from secondary brands, we expect a strong F2Q. Weather remains a variable for FY20, but we continue to expect upside for FY20 that builds a strong foundation for earnings growth in FY21." Nomura Instinet initiated Square as 'reduce' Nomura called shares "overvalued" in its initiation of the stock. "We love the innovation that SQ has brought to the payments space, but we believe shares are overvalued. While some investors view SQ as a software play, we highlight several catalysts that could bring its valuation more in line with payments industry peers. SQ's valuation discounts significant unrealized margin expansion, which we don't view as justified. We initiate coverage with a Reduce rating and a $49 target price." Bernstein upgraded Johnson & Johnson to 'outperform' from 'market perform' Bernstein said in its upgrade of the stock that it was "historically cheap." "Our forecasts are roughly in-line with consensus in 2019E. By 2021E, we are 2.5% ahead on Pharma revenue, in-line/behind on Med Device/Consumer, and 1% ahead on net income. We forecast 160bps of operating margin improvement between 2018 and 21E as restructuring programs bear fruit. And we expect JNJ to use its strong balance sheet and healthy FCF to continue to grow with M & A." Read more about this call here . Citi upgraded Boston Beer to 'buy' from 'neutral' Citi said in its upgrade that Boston Beer 's hard seltzer category continues to grow. "The hard seltzer category continues to grow at a rapid clip, and while we expect there could be some slowdown in this pace as we enter the cooler months, we believe that overall, the hard seltzer category will continue to grow at a double-digit rate for as far as we can see." Susquehanna upgrading Square to 'positive' from 'neutral' Susquehanna said that while shares are down 37% from their highs, the firm sees margin reinvestment "on the horizon." " SQ shares have declined ~20% LTM, and are down 37% from their highs. The underperformance has likely been due to a variety of factors including valuation, decelerating margin expansion, and decelerating gross payment volume growth. But we think the increased reinvestment that has muted the margin cadence may generate future gross payment volume improvement and if so, we would expect the stock to follow. We see returns on this margin (re)investment on the horizon and are increasing gross payment value and revenue above consensus." Goldman Sachs downgraded CrowdStrike to 'sell' from 'neutral' Goldman said it saw "upside" to estimates but that this was already priced in for the cybersecurity technology company. "We downgrade CrowdStrike from Neutral to Sell and lower our price target to $66 from $83. While we see the CrowdStrike as very well positioned in the market for endpoint security, and expect continued upside to estimates, our blue sky analysis suggests this is likely priced in at current levels." Argus downgraded Delta Airlines to 'hold' from 'buy' Argus downgraded the airlines on "higher" costs and "slower" growth. "With consistently profitable operations, strong financials, rising dividends and ongoing share buybacks, Delta is among the best managed airlines. However, facing prospects for rising costs (particularly healthcare and wages) and slowing revenue growth, we think better returns are available elsewhere."

Jim Koch, co-founder and chairman of the Boston Beer Company

Source: The Boston Beer Company

Here are the biggest calls on Wall Street on Friday: