- Wells Fargo downgraded Lululemon to equal weight from overweight.
- Cowen initiated Slack as outperform.
- Deutsche Bank reinstated LabCorp and Quest Diagnostics as buy.
- Wells Fargo raised its price target on Goldman Sachs to $230 from $198.
- JPMorgan named Sirius XM a top pick.
- Deutsche Bank raised its price target on PayPal to $183 from $147.
- Wells Fargo raised its price target on Microsoft to $250 from $205.
- Odeon Capital upgraded Citi to buy from hold
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Here are the biggest calls on Wall Street on Tuesday:
Wells Fargo raised its price target on the stock and said it thinks the company's market cap can top $2 trillion in the next few years as the coronavirus pandemic accelerates a move to the cloud.
"We believe the COVID-19 pandemic has created a Zeitgeist moment for the cloud as a whole— changing CIOs' cloud strategies forever (i.e., a 'no-cloud' strategy has officially become a 'no-go')—from which we expect Microsoft Azure to disproportionately benefit as the 'enterprise cloud.' Our thesis on Azure remains that Microsoft is narrowing the dollar revenue gap to #1 Amazon Web Services (AWS) and widening the gap to #3 Google Cloud."
Read more about this call here.
Cowen said in its initiation of the business online messaging company that the coronavirus and work from home environment are a "major catalyst to accelerate adoption."
"We are modeling 26% billings growth, above consensus at 22%, but we see significant upside potential to our forecasts. Our checks suggest WORK has seen a material uplift in new customer generation & expansion activity, and against a conservative guide, we think a more robust beat & raise will buck recent trends and demonstrate acceleration in market adoption and help drive a re-rate in the stock."