CNBC Pro

Analysts downgrade several stocks, including Amazon and Caterpillar, as Wall Street's dismal earnings season continues

Key Points
  • Morgan Stanley downgraded Caterpillar to underweight from equal weight.
  • R5 Capital downgraded Amazon to sell from buy.
  • Mizuho upgraded Twitter to neutral from underperform.
  • UBS downgraded Gilead to neutral from buy.
  • MKM downgraded Papa John's to neutral from buy.
  • UBS downgraded Beyond Meat to sell from neutral.
  • Citi upgraded LabCorp and Quest Diagnostics to buy from neutral.
Construction machinery of the US producer Caterpillar can be seen at the BLG Logistics Group Car Terminal, ready for shipping in Bremerhaven, Germany, 12 June 2017. Photo: Ingo Wagner/dpa (Photo by Ingo Wagner/picture alliance via Getty Images)
Ingo Wagner | picture alliance | Getty Images

 (This story is for CNBC PRO subscribers only.) 

Wall Street analysts lowered their ratings on a bunch of stocks on Monday as earnings season continues through the coronavirus pandemic. Calls of the day include downgrades of key stocks like Caterpillar, Amazon, Beyond Meat, and more.

Here are the biggest calls on Wall Street on Monday:

Morgan Stanley downgraded Caterpillar to 'underweight' from 'equal weight'

Morgan Stanley downgraded the heavy equipment maker and said it sees a possible multi-year downturn in non-residential construction among other things.

"We are downgrading CAT to UW and URI to EW as we see growing headwinds from a multi-year downturn in Non-Resi Construction, combined with historically weak oil prices and declining mining commodity prices. As highlighted in our revised US Non-Resi outlook, we are gaining conviction in a more protracted US Non-Resi downcycle driven by declines in Commercial, Office, Amusement/Recreation and Lodging construction, as well as state and local budgets cuts."

R5 Capital downgraded Amazon to 'sell' from 'buy'

R5 said the company was well-positioned to "gain share" but downgraded the stock due to "rising future uncertainty."

"It is important to note that our forecast still calls for growth, but not at the heady levels prior to COVID-19 and the resulting economic slowdown. It is also important to note that we still view Amazon as well positioned to gain share over time. With the stock, however, having appreciated meaningfully and reaching our $2,408 price target in the face of dramatically worsening current economic conditions and rising future uncertainty, we believe prudence dictates reducing exposure to the equity. Indeed, if we had a concern regarding our outlook it would be that we are still being overly optimistic.

Read more about this call here.

More In Pro News and Analysis

CNBC ProBest trades on CNBC Monday: Cramer's pet supply stock pick, BofA's big Rivian upgrade, and tech plays during low rates
CNBC ProSell-off in risky tech stocks feels a lot like the 2000 bubble and may not be over yet
CNBC ProBank of America's technical analyst says the charts point to a rocky year in 2022