Here are Monday's biggest analyst calls of the day: Netflix, Winnebago, Biogen & more

Published Mon, Jan 27 20207:25 AM EST

Key Points

Canaccord upgraded Biogen to buy from hold.
JPMorgan initiated Mattel as overweight.
KeyBanc initiated Winnebago as overweight.
Citi raised its price target on Netflix to $350 from $325.
Oppenheimer downgraded Estee Lauder to perform from outperform.
Cowen initiated Live Nation as outperform.
Bank of America downgraded Wynn to neutral from buy.
UBS upgraded Chipotle to neutral from sell.
Stephens downgraded American Express to equal weight from overweight.

Here are the biggest calls on Wall Street on Monday Canaccord upgraded Biogen to 'buy' from 'hold' Cowen upgraded the biotech company and said it liked the "opportunity" surrounding the company's Alzheimer's drug, aducanumab. With this in mind, we like the opportunity BIIB presents as we head into the regulatory saga on aducanumab, and are upgrading BIIB to BUY. We acknowledge there are other risks along the way, and this stock call is based less on an opinion around the merits (or lack thereof) of the science/data and/ or the longer-term implications of the eventual regulatory outcome on adu. We cannot, however, underestimate investors' fear of missing out on the potential to get ahead of what might be an approval for the first ever disease-altering therapy for Alzheimer's, which simultaneously presents high unmet need and a large addressable market. JPMorgan initiated Mattel as 'overweight' JPMorgan said in its initiation of the toymaker that it had increasing confidence in management's execution of the company's initiatives. "We rate MAT OW as a long-term value play on a turnaround story for three reasons: (1) Realigned management. We believe key leadership changes under CEO Ynon Kreiz set the foundation for improving execution. (2) Topline turning. We expect MAT to grow sales LSD% in 2020 after consecutive declines from 2014 to 2018 supported by momentum in Barbie and Hot Wheels, while Fisher-Price stabilizes. We expect growth to accelerate beyond 2020 with eight movies and two Netflix shows utilizing MAT IP in the pipeline. (3) Visible margin drivers. With ~$900MM of run-rate savings by 2021 from its cost programs, results are supported by visible margin enhancements." KeyBanc initiated Winnebago as 'overweight' KeyBanc initiated the recreational vehicle maker as overweight and said it saw increasing benefits from Winnebago's 2016 acquisition of towable vehicle maker Grand Design. "We view WGO as well positioned for earnings upside amid what is an increasingly favorable industry backdrop entering the FY20 season. We expect sustainable outperformance from WGO's towables segment via Grand Design, and believe WGO's upside potential in motorized remains underappreciated considering Newmar's growth profile and the ongoing legacy portfolio turnaround." Citi raised its price target on Netflix to $350 from $325 Citi raised its price target on the streaming giant but said the company faced "challenges" due to increased spending on content. "While the firm has made significant progress in reshaping the video ecosystem and garnering a substantial subscriber base, we believe that Netflix faces challenges in generating material operating leverage with its cash content spending. Additionally, sell-side estimates appear elevated relative to what historical patterns would suggest about the firm's subscriber growth prospects." Oppenheimer downgraded Estee Lauder to 'perform' from 'outperform' Oppenheimer downgraded the stock on valuation and on concerns about the coronavirus in China. "Following recent developments in China with the coronavirus coupled with the premium valuation at which shares trade, we no longer view the risk/reward as attractive from current levels. Although difficult to measure the precise impact and the length at which the coronavirus-related challenges could persist within the Chinese economy, we now expect EL's higher margin travel-retail segment to be adversely impacted at least in Q3 (Mar.) and potentially longer." Cowen initiated Live Nation as 'outperform' Cowen initiated the events promoter and venue operator and said it sees "favorable" supply and demand tailwinds in all phases of the company due to a strong economy. "We think the market is underappreciating that Live Nation is often the buyer of choice for independent promoters looking to sell. ... We expect favorable supply and demand tailwinds in the live concerts industry to continue and help support growth during all phases of the economic cycle. ... We think the market is underappreciating Live Nation 's major advantage in making bolt-on acquisitions in that they are often the buyer of choice for the seller." Bank of America downgraded Wynn to 'neutral' from 'buy' Bank of America downgraded the developer and operator of casinos and hotels on fears about the coronavirus in China. "We lower our rating on WYNN to Neutral from Buy and our PO to $150, in-line with our midcycle multiple. ... Concerns have grown over the past week as fears and headlines regarding the Wuhan Coronavirus have spread. Understandably, the Macau focused gaming names have traded off more than the broader market as they are 1) highly exposed to domestic Chinese travel, 2) the timing is concurrent with Chinese New Year. Comparisons to the SARS epidemic are imperfect but the scope is increasingly similar as cases are now > 2,500 (vs. a SARS total ~8,100) with significantly increasing quarantines and travel restrictions." UBS upgraded Chipotle to 'neutral' from 'sell' UBS said in its upgrade of the stock that it had "greater confidence" in the company's ability to see "strong" sales in the coming years. "We're upgrading CMG to Neutral given greater confidence in sustainability of strong sales and EPS over the next couple of yrs. We're increasing our PT to $900 from $690, reflecting higher estimates & multiple expansion from better visibility into growth drivers. ... Improved & best-in-class comps in recent quarters reflect execution against impactful strategic plans & initiatives, w/ runway ahead." Stephens downgraded American Express to 'equal weight' from 'overweight' Stephens downgraded the stock mainly on valuation. "We downgrade AXP to Equal-Weight/Vol. following strong 4Q19 earnings. We commend American Express for achieving a stellar level of value creation and for AXP shares reaching its all-time high at $135. We increase our target from $136 to $144. Our downgrade is purely valuation-based, and we think investors who continue to hold AXP shares will enjoy consistent, 12%-15% y/y returns paralleling EPS growth in that range."

CEO Of Netflix, Reed Hastings, attends the red carpet during the Netflix presentation party at the Invernadero del Palacio de Cristal de la Arganzuela on April 4, 2019 in Madrid, Spain.

Juan Naharro Gimenez | Getty Images

Here are the biggest calls on Wall Street on Monday

Canaccord upgraded Biogen to 'buy' from 'hold'

Cowen upgraded the biotech company and said it liked the "opportunity" surrounding the company's Alzheimer's drug, aducanumab.

With this in mind, we like the opportunity BIIB presents as we head into the regulatory saga on aducanumab, and are upgrading BIIB to BUY. We acknowledge there are other risks along the way, and this stock call is based less on an opinion around the merits (or lack thereof) of the science/data and/ or the longer-term implications of the eventual regulatory outcome on adu. We cannot, however, underestimate investors' fear of missing out on the potential to get ahead of what might be an approval for the first ever disease-altering therapy for Alzheimer's, which simultaneously presents high unmet need and a large addressable market.

JPMorgan initiated Mattel as 'overweight'

JPMorgan said in its initiation of the toymaker that it had increasing confidence in management's execution of the company's initiatives.

"We rate MAT OW as a long-term value play on a turnaround story for three reasons: (1) Realigned management. We believe key leadership changes under CEO Ynon Kreiz set the foundation for improving execution. (2) Topline turning. We expect MAT to grow sales LSD% in 2020 after consecutive declines from 2014 to 2018 supported by momentum in Barbie and Hot Wheels, while Fisher-Price stabilizes. We expect growth to accelerate beyond 2020 with eight movies and two Netflix shows utilizing MAT IP in the pipeline. (3) Visible margin drivers. With ~$900MM of run-rate savings by 2021 from its cost programs, results are supported by visible margin enhancements."