Here are the biggest analyst calls of the day: Amazon, Square, Lowe's & more

Published Tue, Oct 15 20198:18 AM EDTUpdated Tue, Oct 15 20198:18 AM EDT

Key Points

Goldman Sachs is lowering its price target on Amazon to $2350 from $2400.
UBS is initiating Square as buy.
Piper Jaffray is upgrading Lowe's to overweight from neutral.
KeyBanc is upgrading Bed Bath & Beyond to overweight from sector weight.
Baird is initiating Stitch Fix as outperform.
Bank of America is raising its price target on Nvidia to $250 from $225

Here are the biggest calls on Wall Street on Tuesday: Goldman Sachs lowered its price target on Amazon to $2350 from $2400 Goldman lowered its price target on Amazon but said it sees "upside" to consensus revenue expectations in "Q3 and beyond." "We expect Amazon to report Q3 results above consensus expectations after the close on 24-Oct. Amid record retail store closures, investments in faster delivery, Amazon Web Services infrastructure and service expansion, and recovering momentum in the advertising business point to the potential for further growth acceleration and upside to consensus revenue expectations in Q3 and beyond." UBS initiated Square as 'buy' UBS said in its initiation that Square would benefit from "reaccelerating" revenue growth. "Our investment thesis is that Square will benefit from reaccelerating revenue growth and margin expansion in 2021 and after, following a period of likely elevated investments in both of its seller and consumer ecosystems into next year. Similarly, we expect this reacceleration in revenue growth and margin to re-expand the shares' valuation multiples to levels closer to the mid- to low end of historical ranges from the current level, which is ~2 standard deviations below the post-IPO mean." Piper Jaffray upgraded Lowe's to 'overweight' from 'neutral' Piper said in its upgrade that it expected improvement in fundamentals for Lowe's even as Street expectations were modest. "Based on extensive industry analysis, we believe the Housing/Home Remodel backdrop will strengthen into 1H 2020. On a company-specific level, we see a path for accelerating comp growth and gross margin upside in 2020 -- leading to EPS growth of 20%. .. .All in, risk/reward appears quite favorable, as we see > 40% upside / ~10% downside in shares over the next 12 months." KeyBanc upgraded Bed Bath & Beyond to 'overweight' from 'sector weight' KeyBanc said in its upgrade that it expected improvements in merchandising and operations under a new CEO. "We are positive on new CEO Mark Tritton, named last week, and look for numerous improvements in merchandising and operations to unfold through 2020. Following a difficult 1H, our data suggests 2H trends are improving, which could further de-risk the outlook for BBBY . Valuation remains inexpensive, suggesting 46% upside to our $18 price target without fundamentals needing to show material improvement in the short term." Baird initiated Stitch Fix as 'outperform' Baird said that the online personalized styling service company offers customers a "highly differentiated" shopping experience. " Stitch Fix offers consumers a highly differentiated shopping experience (personalized style recommendations at scale), capable of capturing increased share of a highly fragmented apparel & accessories market. Customer retention, higher acquisition costs, and an intensifying competitive backdrop are key risk factors; however, with a huge addressable market and momentum behind revenue/customer initiatives the future looks bright. With shares down > 30% from June highs and near the low end of their historical trading range, we see attractive risk/reward." Bank of America raised its price target on Nvidia to $250 from $225 Bank of America said that Nvidia is in "prime" position to "leverage" various parts of the company's portfolio. " NVDA' s data center growth is on the cusp of benefitting from the next-big AI landmark – the ability to accurately listen, understand, speak and contextualize human speech, referred to as natural language processing/conversational AI. NLP apps vary from healthcare to financial services chatbots to retail, with underlying compute requirements 100x that of today's dominant image/video classifier AI machines. We see NVDA as in prime position to leverage its portfolio of hardware, software and developer ecosystem."

Founder, Chairman, CEO and President of Amazon Jeff Bezos gives a thumbs up as he speaks during an event about Blue Origin's space exploration plans in Washington, U.S., May 9, 2019.

Clodagh Kilcoyne | Reuters

Here are the biggest calls on Wall Street on Tuesday:

More In Pro News and Analysis

These are D.A. Davidson's favorite stocks for the fourth quarter

Pia Singh2 hours ago