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Wall Street analysts upgraded a bunch of stocks on Wednesday as earnings season continues. Wednesday's calls of the day include Snap, Johnson & Johnson, Netflix and more.
Here are the biggest calls on Wall Street on Wednesday:
Wells said the streaming giant had outstanding execution after the company reported record subscriber additions in its earnings report on Tuesday after the bell.
"Q1 net adds surged to ~16mm vs buyside expectations for 10-11mm. Q2's outlook for 7.5mm notes variability due to coronavirus confinement, and we'd guess management is erring on the conservative side. Guidance implies H1 net adds of 23mm vs ~28mm for all of 2019. Management notes that some of this could be simply pull-forward from the longer organic profile. Regardless, it demonstrates the unique value of Netflix in these even more unique times. As long as hand sanitizer is sold out, NFLX should outperform, and execution is outstanding. Upgrade to Equal Weight from Underweight."
Read more here.
Bank of America downgraded Tesla mainly on valuation.
"While we were initially ahead of the Street, it appears consensus has recently become more realistic. As the macro backdrop has deteriorated so rapidly/ severely with the COVID-19 pandemic, quarantines and business shutdowns implemented, along with what we expect to be a tepid U-shaped recovery as economies are reopened, we are once again cutting our global volume forecasts, and lowering estimates/POs across our coverage to reflect lower volumes, as well as revolver draws and capital raises by companies. Nevertheless, we continue to believe that stocks are more than pricing in an earnings implosion in 2020E, but will start to price in recovery in 2021-22E, as companies prove themselves and survive the downturn/trough."
Read more about this call here.