Here are Friday's biggest analyst calls of the day: Lyft, Chipotle, BJ's & more

Key Points
  • Needham initiated Lyft as buy.
  • Citi initiated Expedia, Trivago, and Booking Holdings as buy.
  • William Blair upgraded Chipotle to outperform from market perform.
  • Credit Suisse downgraded Kroger to neutral from outperform.
  • Bernstein upgraded Dish to market perform from underperform.
  • JPMorgan upgraded BJ's to overweight from neutral and added to the focus list.
  • Atlantic Equities upgraded Advanced Micro Devices to overweight from neutral.
A chicken burrito, guacamole, bag of tortilla chips, and a drink at a Chipotle Mexican Grill Inc. restaurant in El Segundo, California.
Patrick T. Fallon | Bloomberg | Getty Images

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Here are the biggest calls on Wall Street on Friday:

Needham initiated Lyft as 'buy'

Needham initiated Lyft and said it sees a "favorable" risk/reward opportunity.

"We think LYFT's (the #2 player in the North American shared-mobility market) 30% decline since reporting 4Q19 results (we attribute ~70% of the drop to Q4 results/guidance and 30% to coronavirus) has created an unreasonably wide valuation discount to competitor UBER. We think the company can show upside vs. consensus in spite of coronavirus as the quality of its financials is set to improve. We suspect that investors' reluctance to price in a faster timeline to profitability has created a favorable risk/reward opportunity. Initiate at Buy with a $48 PT based on 2x EV/'21 revs."

Citi initiated Expedia and Booking Holdings as 'buy'

Citi initiated the online travel websites and said it sees a compelling opportunity.

"Second, OTAs capture a far larger share of the hotel market relative to any other vertical. We see three reasons for this: 1) OTA software adds more value for hotels versus airlines, rental cars, or experiences, 2) the hotel market is more fragmented allowing OTAs to capture a larger portion of the gross booking value and 3) with a large portion of standalone hotel purchases, it's easier for consumers to use an OTA. Third, using EV-EBITDA multiples for the travel segment can be challenging given divergent capital intensities, wide variances in EBITDA margins and differing leverage. As such, we prefer to value Booking, Expedia and TripAdvisor based on multiples of Adjusted EPS."

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