Here are Friday's biggest analyst calls of the day: Uber, Constellation Brands, Square & more

Published Fri, May 8 20209:10 AM EDTUpdated Fri, May 8 20209:34 AM EDT

Key Points

DA Davidson upgraded Uber to buy from neutral.
MKM downgraded Constellation Brands to sell from buy.
Guggenheim downgraded Square to neutral from buy.
Wells Fargo downgraded Murphy Oil to equal weight from overweight.
Jefferies downgraded Nintendo to hold from buy.
Macquarie downgraded Hyatt Hotels to neutral from outperform.
Susquehanna downgraded Marathon Oil to neutral from positive.

(This story is for CNBC PRO subscribers only.) While Here are the biggest calls on Wall Street on Friday: DA Davidson upgraded Uber to 'buy' from 'neutral' DA Davidson upgraded the stock after the company's earnings report a nd said it sees the company is well-positioned to emerge from the coronavirus crisis. "We upgrade shares of UBER from Neutral to BUY, and raise our PT from $23.50 to $39. UBER posted a generally inline 1Q, and, although COVID-19 will pressure core Ridesharing over the next several quarters, we believe UBER is well-positioned to leverage its multi-product platform (Rides, Eats, and increasingly Grocery) to emerge post-pandemic in a significantly stronger competitive position. UBER is also getting leaner, with recent cost actions/ market exits set to reduce annualized fixed costs by $1B and help ensure adj. EBITDA profits are delayed only slightly (to early 2021 in our view) despite COVID." MKM downgraded Constellation Brands to 'sell' from 'buy' MKM double downgraded the stock as the firm said the company is seeing productivity and availability issues with certain products from Mexico. "We estimate it takes 40 days to brew/ship many of Constellation's beers, so current out-of-stock issues can't improve until 40 days after STZ increases brewing capacity (best case: May 18th increased production begins resolving out-of-stock issue by June 27th). Additionally, there is a very real risk that production won't increase on May 18th (as most expect): 1) Mexico already pushed the date once. 2) Yesterday, President AMLO said business can resume in municipalities with no COVID-19 cases. STZ's state has 534 and municipality has > 22 cases. 3) A promised list (04/16/20) of municipalities that can re-open has not been provided." Guggenheim downgraded Square to 'neutral' from 'buy' Guggenheim downgraded the mobile payment company mainly on valuation. "Cash App continued to surge in 1Q, and is driving positive sentiment with regards to SQ . However, given the challenging operating environment we see ahead for U.S. small business (particularly for brick-and-mortar restaurants and retailers, which are important for Seller's gross payment value and revenue generation), we're downgrading SQ to Neutral from Buy and removing our PT. We see balanced risk/reward as we're now below the Street for revenue and EPS in '21E on concerns about Seller's growth; shares are now trading above our prior $65 PT following yesterday's post-1Q earnings surge." Wells Fargo downgraded Murphy Oil to 'equal weight' from 'overweight' Wells downgraded the hydrocarbon exploration company mainly on valuation. "We are downgrading MUR to Equal Weight from Overweight, but maintaining our $10 price target, which is based off a discount of our estimated net asset value. With MUR's share price slightly above our $10 price target, we believe the substantial under valuation that existed in March 2020 has largely disappeared and see the stock as more fairly valued. Jefferies downgraded Nintendo to 'hold' from 'buy' Jefferies said in its downgrade of the stock that it wanted to see other products from the company besides it's popular Switch gaming system. "We are not bearish on Switch prospects, but on Nintendo' s unwillingness to monetize intellectual property outside of its own-hardware. While we downgrade, we are not bearish on prospects for Switch, provided Nintendo continues to launch 1 player games as it has done since launch of Switch and also as it has communicated. We believe Switch profits can rise, not withstanding company's guidance for FY3/21e for c. 15% YoY OP decline. Macquarie downgraded Hyatt Hotels to 'neutral' from 'outperform' Macquarie downgraded the hotel operator and said the coronavirus pandemic is causing disruption across the company's various businesses. " Hyatt' s high-end exposure (70% Luxury/Upper upscale), Wellness initiatives (Miraval/Exhale) and Managed exposure were positives, in our view, over the last few years and will be for the long-term. However, given the massive change in the demand curve following the COVID-19 pandemic, we expect for Hyatt financials (~40% convention business, 45%-owned EBITDA) to disproportionately be impacted compared to lodging peers. In addition, while reduced, corporate spending (SG & A and Capex) will remain significantly elevated as a % of revenues, reducing overall FCF." Susquehanna downgraded Marathon Oil to 'neutral' from 'positive' Susquehanna downgraded the petroleum and natural gas exploration company and said it sees a "less favorable" risk/reward. "We are downgrading Marathon to Neutral as we see better opportunities elsewhere within our coverage. Our price target is unchanged at $5. Although MRO reported solid 1Q results, FY outlook was slightly weaker than expected. We are lowering FY 2020/2021 oil volumes by 2%/4% with capex assumptions remaining unchanged. Overall, MRO's capital efficiency should stay healthy during the downcycle, but we don't see as strong of a combination of free cash flow/growth/balance sheet strength that we prefer at current commodity prices."

Constellation Brands product line.

Adam Jeffery | CNBC

(This story is for CNBC PRO subscribers only.) While

Here are the biggest calls on Wall Street on Friday:

DA Davidson upgraded Uber to 'buy' from 'neutral'

DA Davidson upgraded the stock after the company's earnings report and said it sees the company is well-positioned to emerge from the coronavirus crisis.

"We upgrade shares of UBER from Neutral to BUY, and raise our PT from $23.50 to $39. UBER posted a generally inline 1Q, and, although COVID-19 will pressure core Ridesharing over the next several quarters, we believe UBER is well-positioned to leverage its multi-product platform (Rides, Eats, and increasingly Grocery) to emerge post-pandemic in a significantly stronger competitive position. UBER is also getting leaner, with recent cost actions/ market exits set to reduce annualized fixed costs by $1B and help ensure adj. EBITDA profits are delayed only slightly (to early 2021 in our view) despite COVID."

MKM downgraded Constellation Brands to 'sell' from 'buy'

MKM double downgraded the stock as the firm said the company is seeing productivity and availability issues with certain products from Mexico.

"We estimate it takes 40 days to brew/ship many of Constellation's beers, so current out-of-stock issues can't improve until 40 days after STZ increases brewing capacity (best case: May 18th increased production begins resolving out-of-stock issue by June 27th). Additionally, there is a very real risk that production won't increase on May 18th (as most expect): 1) Mexico already pushed the date once. 2) Yesterday, President AMLO said business can resume in municipalities with no COVID-19 cases. STZ's state has 534 and municipality has >22 cases. 3) A promised list (04/16/20) of municipalities that can re-open has not been provided."