Here are Tuesday's biggest analyst calls of the day: Uber, Beyond Meat, Slack, Foot Locker & more

Published Tue, Jan 28 20207:26 AM EST

Key Points

Wells Fargo initiated Slack as overweight.
JPMorgan downgraded Beyond Meat to neutral from overweight.
Baird upgraded Wells Fargo to neutral from underperform.
Telsey downgraded Foot Locker to market perform from outperform.
Evercore ISI upgraded PulteGroup to outperform from in line.
Deutsche Bank added a catalyst call buy idea on Charles Schwab.
UBS initiated Uber as buy.

Here are the biggest calls on Wall Street on Tuesday: Wells Fargo initiated Slack as 'overweight' Wells Fargo said in its initiation of the instant messaging platform company that shares were at a favorable entry point for investors. " WORK shares have fallen flat post the company's direct listing and are now down -47% from prior highs vs. the NASDAQ, up 16%. We think bearish sentiment around competition with Microsoft Teams and billings trajectory is now overdone and that even with tough comps ahead, the current setup is favorably skewed, given what we view as reasonable expectations, short interest > 20% of current float, and shares now trading at, with Slack still growing revenue > 60% YTD." JPMorgan downgraded Beyond Meat to 'neutral' from 'overweight' JPMorgan downgraded the alternative meat company and said it no longer sees a "compelling" valuation. "We are downgrading the BYND shares to Neutral from Overweight to reflect the more balanced risk/reward outlook in the stock. When the stock was < $75/share just three weeks ago we felt confident in upside potential. But now, with a variety of optimistic news stories baked in and the stock outperforming the SPX by 65% this month, we think it is prudent to head for the sideline once again. We continue to believe Street estimates for 2020-21 are too conservative, but with only 7% upside to our Dec-2020 price target, we no longer see a compelling valuation argument." Read more about this call here . Baird upgraded Wells Fargo to 'neutral' from 'underperform' Baird said in its upgrade of the stock that investors expectations of the stock are "appropriately" resetting and that the turnaround of the company will "take time". "Turnarounds take time, expectations resetting appropriately lower. Since we downgraded WFC to start the year, WFC has declined ~12.5%. Visibility on remediating regulatory issues (12 public enforcement actions outstanding), efficiency improvement, and infrastructure investments remains lower as new leadership completes its strategic/financial review, but investor expectations are appropriately resetting. It is premature to call for an inflection in earnings though as 2020 NII seems biased towards the weaker end of the down low-to-mid singledigit Y/Y guidance given the challenging interest rate backdrop and sluggish industry loan growth." Telsey downgraded Foot Locker to 'market perform' from 'outperform' Telsey said in its downgrade of the company that it lacked a "near-term catalyst" to drive shares higher. " Foot Locker should continue to benefit from Nike's pipeline of product innovation, exclusive collaborations, and the rollout of power stores. The company also has a good balance sheet with $122MM in debt in 3Q19, $744MM in cash, and a net debt to EBITDAR ratio of 1.7x. However, these positives are offset by softness in apparel (~20% of sales)—which will take time to work through—increased competition from Dick's Sporting Goods in premium footwear, and brands' market share gains via new stores, membership programs, and superior digital experiences." Evercore ISI upgraded PulteGroup to 'outperform' from 'in line' Evercore upgraded Pulte Group and said it believed the home builder was well positioned over the next few quarters as home prices appreciate. "Housing demand is already surging amidst a strong economy and low interest rates. Global macro pressures (exacerbated by the coronavirus) position the builders well relative to other industrials. Multiples are historically high, but are likely to move even higher as increased upside to homebuilder average selling prices (ASPs) and margins are priced in." Deutsche Bank added a 'catalyst call buy' on Charles Schwab Deutsche kept its hold rating on the stock but added a catalyst call buy idea and said it thinks shares should "outperform" following the company's business update on February 4. "We are initiating a Buy Catalyst Call on Charles Schwab , hedged against E*Trade (ETFC-Hold), as we think the stock should outperform following SCHW's Winter Business Update on February 4 th . We expect mgmt. to portray an incrementally optimistic outlook on the proposed TD Ameritrade acquisition and a relatively benign (in line with consensus) stand-alone outlook for 2020." UBS initiated Uber as 'buy' UBS said in its initiation of Uber that it sees "multiple roads" to unlock the company's value. "As we enter 2020, we have identified key themes & investing opportunities in our sector (scale, secular growth tailwinds, underlying asset value, mgmt team focused on positive capital allocation & rising margin profile) – UBER has exposure to each of these themes. Across its portfolio of businesses and assets, we see opportunities for market repair, long-tailed TAMs & paths to unlock asset value.

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company's initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019.

Michael Nagle | Bloomberg | Getty Images

Here are the biggest calls on Wall Street on Tuesday:

Wells Fargo initiated Slack as 'overweight'

Wells Fargo said in its initiation of the instant messaging platform company that shares were at a favorable entry point for investors.

"WORK shares have fallen flat post the company's direct listing and are now down -47% from prior highs vs. the NASDAQ, up 16%. We think bearish sentiment around competition with Microsoft Teams and billings trajectory is now overdone and that even with tough comps ahead, the current setup is favorably skewed, given what we view as reasonable expectations, short interest >20% of current float, and shares now trading at, with Slack still growing revenue >60% YTD."

JPMorgan downgraded Beyond Meat to 'neutral' from 'overweight'

JPMorgan downgraded the alternative meat company and said it no longer sees a "compelling" valuation.

"We are downgrading the BYND shares to Neutral from Overweight to reflect the more balanced risk/reward outlook in the stock. When the stock was <$75/share just three weeks ago we felt confident in upside potential. But now, with a variety of optimistic news stories baked in and the stock outperforming the SPX by 65% this month, we think it is prudent to head for the sideline once again. We continue to believe Street estimates for 2020-21 are too conservative, but with only 7% upside to our Dec-2020 price target, we no longer see a compelling valuation argument."