Pro Analysis and Pro Uncut

Here are the biggest analyst calls of the day: Netflix, JP Morgan, McDonald's & more

Key Points
  • Needham downgraded Netflix to underperform from hold.
  • KBW downgraded J.P. Morgan to market perform from outperform.
  • RBC initiated McDonald's as outperform.
  • RBC initiated Starbucks as outperform.
  • RBC initiated Domino's Pizza as outperform.
  • Piper Jaffray initiated VMware as overweight.
  • DA Davidson upgraded Redfin to buy from neutral.
  • Bank of America added Baker Hughes to the U.S. 1 list.
  • J.P. Morgan downgraded Church & Dwight to underweight from neutral.
Reed Hastings attends the Netflix & Mediaset Partnership Announcement, Rome, 8th October 2019.
Ernesto S. Ruscio | Getty Images

Here are the biggest calls on Wall Street on Tuesday:

Needham downgraded Netflix to 'underperform' from 'hold'

Needham downgraded Netflix and said it anticipated subscriber losses amid increasing competition in the streaming market.

"We project NFLX will lose 4mm US subs in 2020 at its premium priced tier of $9-$16/ month. We believe NFLX must add a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock, each of which have $5-$7/month choices. Since NFLX's balance sheet cannot withstand lower revenue (our view), we recommend a 6-8 minute/hour ad load to supplement a $5-$7/month consumer fee."

Read more about this call here.

KBW downgraded J.P. Morgan to 'market perform' from 'outperform'

KBW downgraded J.P. Morgan mainly on valuation.

"Shares of JPMorgan have been a strong performer in 2019 and we still view JPM as best in class in terms of quality, but we believe that investors should own stocks where consensus earnings estimates have the potential to rise—as the main driver of share price appreciation in 2020—and we are in line with consensus for our estimate forecast so we view the upside in shares of JPM as limited and a Market Perform rating is warranted."

Read more about this call here.