(This story is for CNBC PRO subscribers only.)
Wall Street analysts upgraded a bunch of stocks on Thursday as markets looked to finish off a big week of gains. Thursday's calls of the day include Starbucks, Big Lots, Raytheon and more.
Here are the biggest calls on Wall Street on Thursday:
Citi resumed Starbucks as buy and said it is optimistic that the company can return to growth next year.
"There is no question that COVID-19 has meaningfully pressured SBUX's business on a global basis in recent months. While the company has not updated its guidance to reflect the pandemic, our best estimate at this time is to forecast a 5% drop in FY20 revenues (year-end September) and a ~19% drop in FY20 EPS. However, we are optimistic that SBUX will return to growth next year, as we forecast 16% revenue growth and 32% EPS growth in FY21. With this note, we are assuming coverage of Starbucks with a Buy rating and an $82 target price.
JPMorgan upgraded the discount retailer on a valuation and on the easing of liquidity concerns.
"With shares off 45% YTD (relative to SPX -15%) trading at 1.1x our FY21 EBITDA (or cheapest in coverage universe), liquidity concerns quelled post transaction with debt-free balance sheet and cash on hand at ~68% of today's market-cap (coverage high), and near-term relative coverage beneficiary of $290B government stimulus - we upgrade BIG to Neutral raising our price target to $21 based on 2.0x our FY21 EBITDA or a 150bps haircut to our "Distressed Retail" valuation bucket."