Here are the biggest analyst calls of the day: Virgin Galactic, DuPont, AMD, Nintendo & more

Published Thu, Nov 21 20198:41 AM ESTUpdated Thu, Nov 21 201910:34 AM EST

Key Points

Credit Suisse initiated Virgin Galactic as outperform.
Deutsche Bank added a catalyst call buy idea on DuPont.
Loop Capital downgraded RH to hold from buy.
Goldman Sachs added Lowe's to the conviction buy list
UBS downgraded KLA to sell from buy.
Northland Capital Markets downgraded Advanced Micro Devices to market perform from outperform.
Morgan Stanley downgraded Nintendo to equal weight from overweight.
SunTrust downgraded Carnival to hold from buy.

Here are the biggest calls on Wall Street on Thursday: Credit Suisse initiated Virgin Galactic as 'outperform' Credit Suisse initiated coverage of the space flight company and said it had an "attractive" business model. "Our bullish view reflects the near-term monopoly SPCE offers in an industry (commercial space tourism) where public investment opportunities are scarce. We view this as a classic tech-driven high demand, low supply story with high barriers to entry." Read more about this call here . Deutsche Bank added a 'catalyst call buy' idea on DuPont Deutsche Bank put a catalyst call buy idea on DuPont in advance of the release of the movie, "Dark Waters," which is about an attorney's battle against the chemical giant for releasing a potentially toxic chemical. The firm says the movie may add clarity and remove an "overhang" from the stock. "We believe the release of the movie "Dark Waters" on Friday will remove an over-hang on DuPont shares as i) there will be no more unknowns about what the movie says / claims, ii) DuPont will be able to point out factual errors and misrepresentation in the movie, iii) any potential negative share price reaction to the movie will likely be fully reflected by early next week and iv) investors will be able to focus, once again, on the fact that legacy DuPont's PFOA liability is with Chemours following the separation of Chemours from DuPont in 2015." Loop Capital downgraded RH to 'hold' from 'buy' Loop Capital downgraded RH mainly on valuation. "We are downgrading RH to a Hold from a Buy rating while maintaining our $190 price target. Our downgrade is based on RH's valuation, as opposed to a more bearish view of the company's fundamentals. RH remains one of the most compelling small cap fundamental growth stories in the specialty hardlines retailing sector in our opinion. That said, with the stock trading at 14.8x our F2020 diluted EPS estimate, we believe upside potential and downside risk are fairly balanced at current levels." Goldman Sachs added Lowe's to the 'conviction buy' list Goldman said it sees the company's risk/reward as "compelling" "It's still early days in this transformation (new CEO started in July '18) – but LOW' s stock price/valuation hasn't outpaced its progress (in our view). Home improvement/housing appears to be on solid footing (lower rates should help provide further support) and with LOW trading at ~17.5x our 2020 EPS estimate (still in-line with its 2-year avg. NTM multiple), we think risk/reward is compelling." UBS downgraded KLA Corporation to 'sell' from 'buy' UBS said it double downgraded the capital equipment company due to what it sees as a risk to estimates moving through the first half of 2020. " KLAC has been among the top 5 semis stocks over the past 6mos, outperforming the S & P semis industry group by ~45%. Against this backdrop, we downgrade from Buy to Sell and our target goes to $140 ( > 20% downside); SPE stocks have always followed quarterly revenue and even though KLAC is now more diversified, its core semis exposure remains foundry/logic which we see as un-sustainable in the near-term driving some risk to estimates moving through C1H:20." Northland Capital Markets downgraded Advanced Micro Devices to 'market perform' from 'outperform' Northland said in its downgrade of the stock that it expects 2020 to be a "peak growth year" for the multinational semiconductor company. "We believe that AMD shares are ahead of fundamentals. While shares are likely to melt up between now and the end of the year, we would not be chasing them. We also expect profit taking in the new year. In terms of fundamentals as AMD market share increases incremental share gains get much more difficult due to INTC incumbency. We expect CY20 to be a peak growth year for AMD." Morgan Stanley downgraded Nintendo to 'equal weight' from 'overweight' Morgan Stanley downgraded the company and said it expects the Switch video game console growth to "stall." "We go EW on Nintendo despite expecting its IP to draw more attention in the longer run, as we expect Switch generation growth to stall in F3/21 based on the SW pipeline. We stay EW on Sony but favor it over Nintendo for high I & SS growth momentum in F3/20 3Q-F3/21." SunTrust downgraded Carnival to 'hold' from 'buy' SunTrust downgraded the cruise line due to what it sees as "softness" in recent data and a lack of near term catalysts. "We have kept our buy rating this year as the stock is cheap by historical standards and have kept our fingers crossed for several months that each upcoming data intelligence would begin to indicate positive improvements for CCL. Unfortunately with this last data intelligence again implying softness for CCL and lack of NT catalysts, we are downgrading the stock to Hold from Buy and lowering our price target to $47 from $58, driven by a cut on our 2020 target P/E multiple to 11x from 13x."

Sir Richard Branson poses outside the New York Stock Exchange (NYSE) ahead of Virgin Galactic (SPCE) trading in New York, U.S., October 28, 2019.

Brendan McDermid | Reuters

Here are the biggest calls on Wall Street on Thursday:

Credit Suisse initiated Virgin Galactic as 'outperform'

Credit Suisse initiated coverage of the space flight company and said it had an "attractive" business model.

"Our bullish view reflects the near-term monopoly SPCE offers in an industry (commercial space tourism) where public investment opportunities are scarce. We view this as a classic tech-driven high demand, low supply story with high barriers to entry."

Deutsche Bank added a 'catalyst call buy' idea on DuPont

Deutsche Bank put a catalyst call buy idea on DuPont in advance of the release of the movie, "Dark Waters," which is about an attorney's battle against the chemical giant for releasing a potentially toxic chemical. The firm says the movie may add clarity and remove an "overhang" from the stock.

"We believe the release of the movie "Dark Waters" on Friday will remove an over-hang on DuPont shares as i) there will be no more unknowns about what the movie says / claims, ii) DuPont will be able to point out factual errors and misrepresentation in the movie, iii) any potential negative share price reaction to the movie will likely be fully reflected by early next week and iv) investors will be able to focus, once again, on the fact that legacy DuPont's PFOA liability is with Chemours following the separation of Chemours from DuPont in 2015."