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Wall Street raises expectations for Netflix ahead of earnings in Friday's analyst calls

Key Points
  • Goldman Sachs downgraded Apple to sell from neutral.
  • BMO raised its price target on Netflix to $500 from $450.
  • Barclays downgraded FedEx to equal weight from overweight and UPS to underweight from equal weight.
  • KeyBanc downgraded Cisco to sector weight from overweight.
  • Benchmark upgraded World Wrestling to buy from hold.
  • Jefferies upgraded TJX Companies to buy from hold.
  • Morgan Stanley downgraded Chewy to equal weight from overweight.
  • Oppenheimer downgraded Comcast to perform from outperform.
  • Goldman Sachs downgraded Qualcomm to sell from neutral.
People wearing face masks walk past an Apple store in Beijing on March 17, 2020 in Beijing, China.
Fred Lee | Getty Images

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Netflix analysts continue to believe in the stock ahead of the company's earnings report on April 30. Friday's calls of the day also include Apple, FedEx and more.

Here are the biggest calls on Wall Street on Friday:

Goldman Sachs downgraded Apple to 'sell' from 'neutral'

Goldman said in its downgrade of Apple that it sees slowing iPhone demand along with a possible delay in the launch of a 5G iPhone.

"After two further GDP growth cuts from the GS Economics team and with much of the world in lockdown we are downgrading our rating to Sell and reducing our Apple forecasts for a third time since February 17. We are now modeling a deeper reduction in unit demand through mid 2020 and then a shallower recovery into early 2021. We also assume some lingering average selling price weakness as consumers look to economize similar to what we have seen in prior downturns. In addition to this we believe that Services growth slows substantially in 2021 and that Services as a percentage of revenue actually stagnates in that year."

Read more about this call here.

BMO raised its price target on Netflix to $500 from $450

BMO raised its price target to a Street high $500 and said the accelerated shift towards streaming would help "rationalize content spending sooner."

"We believe the company has both plenty of liquidity in the short-term, but also the benefit of rising revenue and falling cash costs as live production remains at a standstill. Netflix has minor debt obligations due in the next few years and a 2020 base case leverage ratio of 2.1x leaves room for additional capacity if necessary. The nearest term maturities are $500mm in notes due 2021 and $700mm due 2022. It has access to a $750mm revolver maturing 2024. Interest coverage is workable and the absence of a dividend obligation eases Netflix's financial burden.'

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