Here are Monday's biggest analyst calls of the day: Amazon, Ulta, Hostess, Gap & more

Published Mon, Jun 1 20208:57 AM EDTUpdated Mon, Jun 1 20209:28 AM EDT

Key Points

Morgan Stanley raised its price target on Amazon to $2,800 from $2,600.
Piper Sandler upgraded Ulta to overweight from neutral.
Goldman Sachs downgraded Abbott Labs to sell from neutral.
Evercore ISI upgraded Keurig Dr Pepper to outperform from in line.
SunTrust upgraded Teva to buy from hold.
SunTrust upgraded Hostess Brands to buy from hold.
JPMorgan upgraded Gap to neutral from underweight.
Deutsche Bank downgraded Vail Resorts to hold from buy.
Bank of America reinstated MetLife and Travelers as buy.
Wedbush raised its price target on Chipotle to $1,200 from $870.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Morgan Stanley raised its price target on Amazon to $2,800 from $2,600 Morgan Stanley raised its price target on Amazon as online behavior increases and dollars shift to online. "2020 is setting up to be an e-commerce inflection year as the combination of shelter-in place, lower spend on experiences (dining out, bars, travel, etc) and gov't stimulus have driven dollars online. Trends have accelerated monthly as shoppers have moved from stocking up (March), to buying more essentials and home items (March/April), to broad based larger, more frequent buying (April to now) as our bottom-up e-commerce model leads us to estimated 58% Y/Y e-commerce growth in April." Piper Sandler upgraded Ulta to overweight from neutral Piper upgraded the salon and beauty company and said it's a primary beneficiary as department stores and other channels cede market share. "We are upgrading shares of ULTA from Neutral to OW following their Q1. While the results were worse vs. lowered expectations (particularly on the gross margin line), we see green shoots for the industry (skincare, haircare) on the other side of CV-19 and see ULTA's digital ecosystem as fueling higher average spend per customer. With dept. stores (and other channels) ceding share, we see ULTA as a primary beneficiary." Goldman Sachs downgraded Abbott Labs to sell from neutral Goldman said in its downgrade of the multinational medical devices and health care company that it is skeptical that the demand for coronavirus antibody testing will reach a material level for Abbott's revenues. "We now expect ABT to garner a share of COVID testing much closer to its typical market share of molecular /polymerase chain reaction testing on the viral side, while we remain skeptical that the demand for antibody testing will reach a material level for ABT revenues given the much lower price point for those tests. And so in summary, we are less constructive on ABT's Diagnostic division than Street, falling roughly -5% below in both 2020 and 2021. This lower Diagnostic division outlook drives our top line below Street by approximately -1.5% in 2020 and results in EPS that's approximately -4% below Street, and we remain below Street in 2021 as well." Evercore ISI upgraded Keurig Dr Pepper to outperform from in line Evercore said in its upgrade of Keurig Dr Pepper that it thinks the company can meet or exceed estimates for 2020 and 2021. " KDP 's operating results have been strong during the COVID crisis, driven by balanced category and channel exposure, and strong execution led by a top-flight hands-on management team. We expect continued top and bottom line momentum into 2H20 and 2021 driven by: (1) Continued discipline in CSD pricing, (2) Commodity tailwinds, particularly in Packaged Beverages, (3) Many other cost levers, enabled by $600 million merger synergies, and (4) Deleveraging from ~4.2x to ~3x by year-end 2021." SunTrust upgraded Teva to buy from hold SunTrust said in its upgrade of the pharmaceutical company that it saw growing evidence that margin and leverage targets may be achievable. "For some time we have observed a disconnect between TEVA's trading value and fundamental value (based on DCF). Despite this we have remained on the sidelines with a Hold rating based on the view that investors would remain skeptical about TEVA 's 1) long-term targets and 2) ability to manage its opioid and collusion liabilities. With growing evidence that margin and leverage targets may be achievable, and the potential for clarification in the coming months on the size/timing of liabilities, we believe the stage is set for a closing of the gap between trading price and fundamental value." SunTrust upgraded Hostess Brands to buy from hold Suntrust upgraded Hostess and called the maker of Twinkie's a unique reopening play. "In our opinion, the shares are a unique way to play both the reopening of America and the "Summer Road Trip 2020" trend over the next few months. Longer term, we believe the company's streamlining efforts over the past year and recent acquisition will enable it to post consistent organic growth over the next few years. As these near and long term factors play out, we expect the stock's multiple to move higher and closer to its packaged food peers.' JPMorgan upgraded Gap to neutral from underweight JPMorgan upgraded the stock on valuation among other things. "Top-line weakness at core Gap and Banana Republic continue to put pressure on the profit and loss statement, but we believe Old Navy is benefiting larger picture from the disproportionate growth of 'value retail' (i.e. similar to off-price) and has seen market share gains across numerous categories (denim, dresses, active, kids/baby) w/ incremental market share $'s up for grabs due to JCP's recent bankruptcy and eventual door closures ($11b in total sales volume)." Deutsche Bank downgraded Vail Resorts to hold from buy Deutsche said in its downgrade of the stock that it sees a balanced risk/reward. "We are not unveiling a new bear case or even arguing that valuation is excessive. Shares have moved to within 1% of our $201 price target and we aren't willing to raise our forecasts or our target multiples, so the rating is what had to give. We believe the "recovery trade" in cyclicals such as MTN may be close to a pause. We retain our longer term positive view of the company's "moat" that we have described in the past, in terms of favorable customer segmentation, asset quality, business model/pricing power, and historically prudent capital allocation." Bank of America reinstated MetLife and Travelers as buy Bank of America reinstated coverage of MetLife and Travelers and said the companies offer some compelling investment opportunities. "The market sell-off triggered by the COVID19 pandemic has caused a reordering of the relative valuations of the various subsectors within the insurance space, offering some compelling investment opportunities, but also discounting a number of stocks due to an increased level of uncertainty. Broadly speaking, we believe, despite recent outperformance, the personal lines stocks nonetheless have the best long-term return profile." Wedbush raised its price target on Chipotle to $1,200 from $870 Wedbush raised its price target on the stock to a Street high and said it expects the fast casual Mexican chain to gain market share in a post-coronavirus environment. "We expect increasing cash-on-cash returns, driven by a higher mix of Chipotlane units (5-10% higher opening volumes, 30% higher sales across portfolio, higher digital orders, higher margins), and higher sales and margins across in-line units, to result in accelerating unit growth relative to our conservative expectations. We also believe Chipotle 's ultimate domestic opportunity could expand above management's stated pre-COVID target of 2x as the opportunities to gain market share in a post-COVID environment increase."

Billie Her, a warehouse associate, wraps plastic around a pallet of boxes at Amazon's Fulfillment Center in Thornton, Colorado.

Helen H. Richardson| The Denver Post | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Monday:

Morgan Stanley raised its price target on Amazon to $2,800 from $2,600

Morgan Stanley raised its price target on Amazon as online behavior increases and dollars shift to online.

"2020 is setting up to be an e-commerce inflection year as the combination of shelter-in place, lower spend on experiences (dining out, bars, travel, etc) and gov't stimulus have driven dollars online. Trends have accelerated monthly as shoppers have moved from stocking up (March), to buying more essentials and home items (March/April), to broad based larger, more frequent buying (April to now) as our bottom-up e-commerce model leads us to estimated 58% Y/Y e-commerce growth in April."

Piper Sandler upgraded Ulta to overweight from neutral

Piper upgraded the salon and beauty company and said it's a primary beneficiary as department stores and other channels cede market share.

"We are upgrading shares of ULTA from Neutral to OW following their Q1. While the results were worse vs. lowered expectations (particularly on the gross margin line), we see green shoots for the industry (skincare, haircare) on the other side of CV-19 and see ULTA's digital ecosystem as fueling higher average spend per customer. With dept. stores (and other channels) ceding share, we see ULTA as a primary beneficiary."