Here are Wednesday's biggest analyst calls of the day: SmileDirectClub, Nike, Domino's & more

Key Points
  • HSBC downgraded Nike to hold from buy.
  • Argus upgraded Domino's Pizza to buy from hold.
  • SunTrust downgraded D.R. Horton, PulteGroup, & KB Home to hold from buy.
  • Baird named Capital One as a fresh pick.
  • Jefferies downgraded SmileDirectClub to hold from buy.
Workers install a Nike logo lamp outside the Wukesong Arena in Beijing, August 28, 2019.
Tingshu Wang | Reuters

Here are the biggest calls on Wall Street on Wednesday:

HSBC downgraded Nike to 'hold' from 'buy'

HSBC downgraded the stock on concerns about the coronavirus and lack of margin growth.

"However, in light of Nike's recent press release concerning the impact of the coronavirus and the fact that despite this short-term slowdown (Greater China was c25% of brand NIKE EBIT before eliminations last year) and the recent USD strength, we are surprised that shares are only trading 2% below their all-time highs. The group will publish Q3 results ended February in late March, and we doubt this will be supportive."

Argus upgraded Domino's Pizza to 'buy' from 'hold'

Argus upgraded the pizza restaurant chain and said it liked the company's strong store level cash flows.

"We expect the addition of 250 U.S. stores and 856 international locations in 2019 to benefit revenue over the next 12 months. In addition, we expect DPZ to broaden its technological lead over competitors. We also like the company's stable comps and strong store level cash flows, which are much higher than those of other franchisees. We think Domino's Pizza can continue to grow and gain market share in a fragmented market (i.e., mom and pop pizzerias) more rapidly than its current valuation suggests. Our long-term rating also remains BUY."

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