Analysts downgrade some key stocks, including Disney and Peloton, as the rebound may have gone too far

Key Points
  • BMO downgraded Peloton to underperform from market perform.
  • Citi downgraded Boeing to neutral from buy.
  • JPMorgan upgraded DuPont to overweight from equal weight.
  • UBS downgraded Disney to neutral from buy.
  • Wells Fargo downgraded Gilead to equal weight from overweight.
  • Credit Suisse downgraded Disney to neutral from outperform.
  • RBC upgraded AbbVie to outperform from sector perform.
  • BMO upgraded Under Armour to market perform from underperform.
  • Argus upgraded Citi to buy from hold.
  • Stephens downgraded Redfin to equal weight from overweight.
  • Oppenheimer initiated MSG Entertainment as outperform.
Peloton machine
Source: Peloton

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Wall Street analysts downgraded a bunch of stocks on Monday as the market rebound came into question. Calls of the day include Disney, Peloton, Boeing, Gilead and more.

Here are the biggest calls on Wall Street on Monday:

BMO downgraded Peloton to 'underperform' from 'market perform'

BMO said in its downgrade of Peloton that it was cautious on the shares due customer churn, among other issues.

"For what it's worth, by our math, PTON's ~$10B EV is essentially pricing in 3-7mm members will be willing and able to pay for its product, well above 2Q's ~712,000. Further, we remain concerned PTON's lower-priced Digital offering is essentially "too good" vs. its more-expensive-for-the-same-content Connected Fitness subscription. And although we continue to recommend the PTON product/experience, given these lofty revenue expectations on thus far negative EBIT, we are cautious on the shares. We are maintaining our $26 target price, but note that until a path to profitability is proven, it is not hard to argue for further downside.

UBS downgraded Disney to' neutral' from 'buy'

UBS downgraded the stock on concerns about the long-term effect of the closures of the company's theme parks.

"We are downgrading shares of The Walt Disney Company to Neutral and lowering the price target to $114 given the COVID-19 outbreak and subsequent weakness in the economy. While the Media/Studio businesses will see declines, Parks are the largest source of earnings revisions. ... Park re-opening now Jan 1 base case; profitability likely impaired until vaccine. We believe Parks' profitability will be impaired for a longer period of time given the lingering effects of the outbreak and now assume an opening date of Jan 1 as our base case. That said, the economic recession plus the need for social distancing, new health precautions, the lack of travel and crowd aversion are likely to make this business less profitable until there is a widely available vaccine."

Read more about this call here.