Here are Monday's biggest analyst calls of the day: Tesla, Nvidia, Microsoft & more

Published Mon, Jan 13 20209:49 AM EST

Key Points

Deutsche Bank named General Electric as a catalyst call short-term buy idea.
Evercore ISI downgraded IBM to in line from outperform.
Evercore ISI downgraded Spotify to underperform from in line.
Oppenheimer raised its price target on Tesla to $612 from $385.
JMP downgraded Morgan Stanley to market perform from outperform.
JMP upgraded Goldman Sachs to outperform from market perform.
Morgan Stanley upgraded Occidental Petroleum to overweight from equal weight.
Needham upgraded Nvidia to hold from underperform.
Credit Suisse raised its price target on Microsoft to $180 from $155.
Evercore ISI raised its price target on Facebook to $280 from $235.
Argus raised its price target on Nvidia to $300 from $240.
DA Davidson raised its price target on Apple to $375 from $300.

Here are the biggest calls on Wall Street on Monday: Deutsche Bank named General Electric as a 'catalyst call' short-term buy idea Deutsche Bank kept its hold rating on the stock and named the company as a catalyst call buy idea for the short-term. It also said it thinks GE could post a better-than-expected fourth quarter in its next earnings report on January 29. "However, we see the potential for GE to deliver a beat in 4Q19 and 2020e guidance that suggests upside to current consensus at the midpoint of the range. Despite GE's recent share price outperformance, we see the potential for a result consistent with our expectation to drive continued upward momentum in the stock price." Evercore ISI downgraded IBM to 'in line' from 'outperform' Evercore said in its downgrade of the stock that it sees a difficult first half of 2020 due to macro headwinds among other things. "We are adjusting our rating on IBM to In Line from Outperform as we see macro headwinds combined with a difficult H1:20 setup that warrants incremental caution especially given the current net leverage. Though positively, we see IBM+ Red Hat being well positioned to enable the shift to Hybrid era for large enterprises." Evercore ISI downgraded Spotify to 'underperform' from 'in line' Evercore downgraded the stock and said the risk/reward has "tilted back" in favor of "rewarding shorts." "Similar to other SMID names, we see SPOT primarily as a tool for tactical trading. We've consistently been of the view that SPOT is a pure play on a loss leader category, and with the stock back now near $160, our view is the risk/reward has tilted back in favor of rewarding shorts." Oppenheimer raised its price target on Tesla to $612 from $385 Oppenheimer raised its price target on the stock to a Street high and said it saw the company reaching a scale sufficient to support positive free cash flow. While TSLA has stumbled through growing pains, we believe the company has reached critical scale sufficient to support sustainable positive free cash flow. At the same time, we believe the company's risk tolerance, ability to implement learnings from past errors, and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace. Read more about this call here . JMP downgraded Morgan Stanley to 'market perform' from 'outperform' JMP downgraded the stock and said the company's "self-help" story was largely behind it. "That being said, given that Morgan Stanley already has a relatively mature platform and is growing from a large base we expect incremental growth will be respectable (mid-single digits organically), but it is also difficult to substantially move the needle. Furthermore, with much of the "self-help" story behind the company, in our view, which we think is ultimately positive, we believe Morgan Stanley's results are more tied to the market backdrop than they have been." JMP upgraded Goldman Sachs to 'outperform' from 'market perform' JMP said the investment bank was in the early stages of one of the "most meaningful transformations" in the financial services industry. "We believe Goldman Sachs is in the early stages of one of the most meaningful transformations within financial services, and we are bullish on its ability to execute from here. It has been our view that even though sentiment has been turning more positive, and the stock performance has been improving with shares up 38% in 2019 and already 5% thus far in 2020 vs. 29% and 1% for the S & P 500, respectively – so, we've missed a bit of the move – we still believe the market is underappreciating, or even dismissing, the evolution and growth shift occurring at the firm." Morgan Stanley upgraded Occidental Petroleum to 'overweight' from 'equal weight' Morgan Stanley called the hydrocarbon and petrochemical manufacturing company a top pick for 2020 and said it sees a "clear" path for the stock to "re-rate higher." "After underperforming peers (32)% since the APC deal in '19, OXY now offers a peer-leading 7% dividend yield well covered by growing free cash flow. We see a clear path for the stock to re-rate higher through debt reduction, synergy realization & operational improvements." Needham upgraded Nvidia to 'hold from 'underperform' Needham upgraded the stock and said the company's gaming business is showing signs of positive momentum "When we downgraded the shares to an Underperform in Jan. '19, we were anticipating a significant global marco slowdown impeding purchases of consumer graphics cards and hyperscaler spending. Last year, we saw an aggressive channel refill instead. Heading into C1H20, NVIDIA is facing easy Y/Y compares, specifically in graphics and data center. Gaming is showing signs of positive momentum as attach rates for ray tracing games have accelerated." Credit Suisse raised its price target on Microsoft to $180 from $155 Credit Suisse raised its price target on the stock and said it sees a $100 billion opportunity in the company's Commercial Cloud business in 5 years. We remain constructive on the long term opportunity for Microsoft, supported by our CIO survey that suggests share gains in the cloud as well as our bottom-up analysis indicating Commercial Cloud revenues could exceed $100bn in 5 years. We raise our TP to $180, with a blue-sky valuation scenario of $200." Read more about this call here . Evercore ISI raised its price target on Facebook to $280 from $235 Evercore raised its price target and said it believed reduced regulatory scrutiny was a positive for the stock. "Core to our bullish FB view is that current models under appreciate the revenue and narrative benefits associated with the blurring lines between advertising and e-commerce on Instagram. While regulatory risk won't be eliminated, we expect scenarios that reduce uncertainty to be viewed as a positive." Argus raised its price target on Nvidia to $300 from $240 Argus raised its price target on the stock and said it was bullish on the company's upcoming pipeline of tech products. "BUY-rated Nvidia Corp.displayed the breadth of its technological capabilities at CES, the consumer electronics show held early in January in Las Vegas. The company's technology was visible in both stand-alone products and in applications powering OEM products and systems. CES 2020 provided NVidia an opportunity to highlight rapid adoption of its ray tracing technology, which renders more realistic light and shadows in gaming applications." DA Davidson raised its price target on Apple to $375 from $300 DA Davidson raised its price target on the stock to a Street high and said it sees further "upside" in Apple shares. "We are reiterating our BUY rating for AAPL , while increasing our price target to $375 from $300. Our new price target is based on our updated discounted cash model including our long-term adj. EBITDA margin forecast of 35.0% (up from 33.5%) versus 27.1% in FY19. Attending the 2020 International CES increased our conviction in further upside for AAPL's shares."

Tesla Inc CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020.

Aly Song | Reuters

Here are the biggest calls on Wall Street on Monday:

Deutsche Bank named General Electric as a 'catalyst call' short-term buy idea

Deutsche Bank kept its hold rating on the stock and named the company as a catalyst call buy idea for the short-term. It also said it thinks GE could post a better-than-expected fourth quarter in its next earnings report on January 29.

"However, we see the potential for GE to deliver a beat in 4Q19 and 2020e guidance that suggests upside to current consensus at the midpoint of the range. Despite GE's recent share price outperformance, we see the potential for a result consistent with our expectation to drive continued upward momentum in the stock price."

Evercore ISI downgraded IBM to 'in line' from 'outperform'

Evercore said in its downgrade of the stock that it sees a difficult first half of 2020 due to macro headwinds among other things.

"We are adjusting our rating on IBM to In Line from Outperform as we see macro headwinds combined with a difficult H1:20 setup that warrants incremental caution especially given the current net leverage. Though positively, we see IBM+ Red Hat being well positioned to enable the shift to Hybrid era for large enterprises."