Here are the biggest analyst calls of the day: Chipotle, Disney, Square & more

Published Tue, Nov 26 20198:16 AM EST

Key Points

Cowen upgraded Chipotle to outperform from market perform.
Consumer Edge initiated Disney as overweight.
Baird upgraded Deckers to outperform from neutral.
BMO downgraded Molson Coors to market perform from outperform.
Macquarie initiated Square as outperform.

Here are the biggest calls on Wall Street on Tuesday: Cowen upgraded Chipotle to 'outperform' from 'market perform' Cowen named Chipotle as a top pick for 2020 and said it was bullish on the company's digital sales growth. "We see upside to comps and EPS from digital sales growth, increasing consumer demand for food transparency, and a growing ad budget and loyalty program. Further, we argue the new Chipotlane drive-thru format permissions the brand to grow faster in 2021 and beyond, and provides greater certainty to double the store count to 5,000 ultimate U.S. locations, if not more." Read more about this call here . Consumer Edge initiated Disney as 'overweight' Consumer Edge said in its initiation of Disney that the company has "unique" competitive advantages across a large variety of brands and content. "We believe DIS is now clearly under-earning with big strategic shifts ongoing. We see early signs of traction & the flywheel is working. .. .DIS has unique competitive advantages around brands & content that drive franchise-level unit economics across a wide variety of products and forms of monetization. We also see unique advantages around distribution given the importance of sports rights in the current pay TV bundle, a more portal-oriented approach to ESPN and sports distribution (see the mobile app), and given their strategic positioning with Hulu's MVPD offering." Baird upgraded Deckers to 'outperform' from 'neutral' Baird said it was "warming" up to the footwear designer and distributor and said the company was seeing a return to revenue growth. "We have been warming to DECK based on sustainable enhancements to the brand positioning which have supported a return to mid-single-digit+ revenue growth and significant operating margin expansion. While sentiment on the stock is fairly positive, current valuation does not appear to be giving full credit for DECK's runway ahead both for UGG/HOKA." BMO downgraded Molson Coors to 'market perform' from 'outperform' BMO said in its downgrade that the beverage maker had sales growth that was "structurally compromised." " TAP 's persistently low valuation and high FCF yield has failed to entice investors as its structurally compromised top line has been "too high a hurdle," even for deep-value investors. Ironically, management's revitalization plan to lift sales growth forced us to "tap out." Though "well meaning," a) it doesn't go far enough to structurally lift the top-line outlook; b) may delay/preclude tough, albeit potentially shareholder-friendly strategic actions." Macquarie initiated Square as 'outperform' Macquarie said in its initiation that it sees "sizeable upside" and "increasing" mind share of the company's Cash App mobile payment service. "Upcoming marketing boost & Cash App momentum can drive 5-7% potential upside to 2020 guide. Cash App likely seeing its mind share rise across key Venmo geographies should further boost its growth potential. Despite a meaningful increase to marketing spend in 2020, SQ 's margin targets remain conservative."

Bob Iger, CEO, The Walt Disney Company

Scott Mlyn | CNBC

Here are the biggest calls on Wall Street on Tuesday:

Cowen upgraded Chipotle to 'outperform' from 'market perform'

Cowen named Chipotle as a top pick for 2020 and said it was bullish on the company's digital sales growth.

"We see upside to comps and EPS from digital sales growth, increasing consumer demand for food transparency, and a growing ad budget and loyalty program. Further, we argue the new Chipotlane drive-thru format permissions the brand to grow faster in 2021 and beyond, and provides greater certainty to double the store count to 5,000 ultimate U.S. locations, if not more."

Consumer Edge initiated Disney as 'overweight'

Consumer Edge said in its initiation of Disney that the company has "unique" competitive advantages across a large variety of brands and content.

"We believe DIS is now clearly under-earning with big strategic shifts ongoing. We see early signs of traction & the flywheel is working. .. .DIS has unique competitive advantages around brands & content that drive franchise-level unit economics across a wide variety of products and forms of monetization. We also see unique advantages around distribution given the importance of sports rights in the current pay TV bundle, a more portal-oriented approach to ESPN and sports distribution (see the mobile app), and given their strategic positioning with Hulu's MVPD offering."