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A rough earnings season continues as Wall Street analysts downgraded a bunch of stocks on Tuesday. They include Johnson & Johnson, Roku, Square, Ferrari, and more.
Here are the biggest calls on Wall Street on Tuesday:
Morgan Stanley said in its upgrade of the lab company that it sees more upside in the stock due to the coronavirus.
"DGX positioned to meaningfully benefit as market shifts to phase II of COVID-19 testing. While shares have outperformed since earnings, we see more room for upside. Our updated 2021 estimates are 12% above consensus. Raising price target to $139 and rating to OW."
UBS said in its downgrade of the stock that it sees a more balanced risk/reward.
"JNJ has outperformed the SPX by 17% YTD and now largely discounts a scenario where 2021 and beyond returns to a normalized pre-COVID environment. We see risks to this view, particularly within the Medical Device and Pharma segments. Our new Revenue and EBIT estimates for 2021 and 2022 are 11% and 10% below our prior estimates and are now 2%+ below consensus. We acknowledge JNJ is considered a defensive stock (2.6% dividend, strong balance sheet), but we see a balanced risk/reward here."