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Here are the biggest calls on Wall Street on Wednesday:
Credit Suisse raised its price target on Boeing to $367 from $321
Credit Suisse raised its price target on the stock and said it felt the company was finally entering a "positive news period."
"There was a fair amount of discussion regarding BA's longer-term FCF potential, and how that differs vs. what the Street was modeling prior to the second crash. Clearly, the key changes here are the MAX interruption and 787 rate reductions. Mgmt. sees the former as largely recoverable, acknowledging that the latter is a headwind vs prior expectations. As far as the MAX is concerned, BA sees similar longer-term unit cash profitability compared to prior, while BA is also trying to front-end as much of the cash impact as possible. Consensus in the room, though not necessarily endorsed by Boeing, was that 2023 could be a near-normal cash year, where production/deliveries would normalize while concessions would become largely immaterial."
Jefferies raised its price target on Nvidia to $315 from $255
Jefferies raised its price target on the computer graphics maker and said it sees "positive trends" continuing in the company's Data Center business
"NVDA has outperformed the SOX by 800 bps since our 7-Jan mtg at CES, but we think the outperformance is justified and expect NVDA to report positive trends in Datacenter (DC). We observe: 1) positive CapEx commentary from hyperscalers, 2) robust 4Q server demand at INTC and AMD, 3) DC capacity absorption by DC REITS. We believe NVDA's acceleration solutions will continue to take share in the DC, and view it as a core '4th Tectonic Shift in Computing' play."
UBS upgraded Micron to 'buy' from 'neutral'
UBS upgraded the producer of computer memory and computer data storage and said it thinks the company is in a strong position to "outperform" over a "sustained" period of time.
"As cyclical concerns evaporate, structural dynamics should carry the day.On the back of higher estimates and improving industry dynamics – especially in DRAM – we raise our PT to $75 and upgrade our rating to Buy. After only modestly outperforming the S&P500 over the past 2yrs, we believe the time has finally come when MU can materially outperform over a sustained period of time. We consider both the cyclical and structural aspects to both MU and the memory industry as a whole and conclude that MU is in a much stronger position in a structurally better industry on the cusp of a cyclical upswing that, for DRAM, should last deep into C2021."
Bank of America upgraded Wynn and Las Vegas Sands to 'buy' from 'neutral'
Bank of America said in its upgrade of the casino company's that investor and stock reaction has been "muted" since the coronavirus crisis began and the threat may be "passing."
"Lack of valuation support and very positive investor positioning were two reasons we stepped back on WYNN during the outbreak's early stages. Macau stocks did not reach the lows we had anticipated with LVS/WYNN trading at 13.6x/11.9x vs. 14x/14x on average. However, the glass can also be half full: China's economy may be one of the largest opportunities for cyclical improvement as we move through 2020, and green shoots were very clear in our December Macau Macro Activity Tracker. Rising short-term liquidity could also provide a boost, esp. if Beijing loosens up on monetary policy or loans. WYNN and LVS now screen as two of the best risk-rewards across our coverage on a midcycle and risk-adjusted basis."
Read more about this call here.
Piper Sandler downgraded Under Armour to 'neutral' from 'overweight'
Piper downgraded the stock after the company's disappointing earnings report.
"We are downgrading UAA shares, moving to Neutral from OW following Q4's report. While we were expecting a lower-than-expected NA guide in particular, we did not expect the magnitude of the earnings cut. We are positive on the changes UAA is making to clarify its focus as a premium, performance brand, its leadership team & its product innovation."
Piper Sandler initiated Beyond Meat as 'neutral'
Piper initiated the alternative meat company and said its distribution deal with McDonald's could be a "catalyst" but that it's already priced in to the stock.
"We initiate coverage of Beyond Meat with a Neutral rating and a $115 target. Beyond is an early leader in plant-based meat, which we believe could be a $6-8B market by 2025. Upside from US distribution at McDonald's could be a potential catalyst, but our analysis suggests valuation may already reflect this. US operators we surveyed have more interest in a new chicken sandwich (60%) and are skeptical on meatless burgers (45%). In our proprietary survey, five times as many consumers preferred another brand over Beyond."
