Here are Wednesday's biggest analyst calls of the day: Apple, Zoom, Royal Caribbean & more

Published Wed, Jun 3 20208:40 AM EDT

Key Points

RBC upgraded Zoom to outperform from sector perform.
Jefferies upgraded Mattel to buy from hold.
Morgan Stanley raised its price target on Apple to $340 from $326.
Piper Sandler upgraded Kontoor Brands to overweight from neutral.
Cowen initiated Deckers as outperform.
Morgan Stanley downgraded Norwegian to underweight from equal weight and reinstated Carnival and Royal Caribbean as underweight.
Leerink upgraded Gilead to outperform from market perform.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Wednesday: RBC upgraded Zoom to outperform from sector perform RBC upgraded Zoom after the teleconferencing company's blowout first-quarter earnings report and said it still sees more upside in the stock. "In short, we believe the answer is yes, there is still money to be made in the stock. While implied guidance for 2H implies flat sequential revenue growth, we believe management assumptions are significantly more conservative than usual, incorporating an expectation for monthly paid customer churn (which was 50% of bookings this quarter) to at least double to 8% monthly (96% annualized). If those conservative assumptions simply return to historical levels, we see the potential for meaningful upside." Jefferies upgraded Mattel to buy from hold Jefferies said in its upgrade of the toy maker that it sees an opportunity for the stock to "outperform" in the second half. "Following a conversation with mgmt, channel checks and our analysis of web traffic and tend data, we have greater confidence in 2H stability and see an oppty for MAT outperform modeled EBITDA in 2020. While we don't think the company will achieve its original $575-$600M 2020 EBITDA target, we do think it's possible MAT will beat current consensus at $466M. We believe that the June Q is likely to mark a low, while sales growth and cost savings could surprise to the upside. " Morgan Stanley raised its price target on Apple to $340 from $326 Morgan Stanley raised its price target on Apple and said it sees continued app store growth and acceleration. "Over the last 4 months the COVID-19 related shelter-in-place/quarantine measures have been a tailwind to the app economy, as consumers have been forced to spend more time than usual inside their home, driving an acceleration in App Store download and net revenue growth. Last month, we predicted that April would mark the peak in App Store growth as countries began easing lockdown restrictions, allowing consumers to resume activities outside of the home." Piper Sandler upgraded Kontoor Brands to overweight from neutral Piper upgraded the lifestyle apparel retailer and said it believed shares were attractively valued. "While we expect the next four quarters/beyond to prove challenging for most wholesale-oriented brands, we believe KTB has two unique advantages: 1) ~70% of the company's NA distribution remained open during the depths of lockdowns--several of these accounts including WMT, TGT & AMZN have seen notable acceleration in apparel following mid-April; and 2) KTB has been fairly proactive in working with online pureplays (the channel grew ~50% globally in Q1)." Cowen initiated Deckers as outperform Cowen said in its initiation of the shoe company that it has the potential for $1 billion in shareholder cash returns and well recognized brands like Ugg and Hoka. "Initiating coverage on DECK with Outperform based on the durability/authenticity of the UGG brand, growth in HOKA and a financial model that can maintain top sector returns on capital. Our price target of $220 is 20x our above-consensus FY22E EPS. Street appears conservative as it relates to HOKA growth and overall margin recovery. We see potential for$1B in shareholder cash returns." Morgan Stanley downgraded Norwegian to underweight from equal weight and reinstated Carnival and Royal Caribbean as underweight Morgan Stanley reinstated coverage of the cruise companies and said the recovery could take longer than investors and operators expect. "The cruise stocks have doubled from their lows, reflecting the companies' decisive liquidity action, news flow improving as travel opens up, and some positive indications on rebooking rates. However, we think the recovery could take longer than expected by the operators and by investors, both on operations resuming and then revenue yields recovering, and we think that leverage is unsustainably high, so risks still appear weighted to the downside. We see 20-40% downside to our new price targets, and reinstate ratings on CCL and RCL at Underweight, and downgrade NCLH to Underweight." Leerink upgraded Gilead to outperform from market perform Leerink upgraded the biopharmaceutical company and said it sees "upside optionality" in the Gilead's expanding pipeline and sales of its antiviral coronavirus treatment remdesivir. "The primary driver of our upgrade is the inclusion of remdesivir sales which we forecast reaching an annual revenue peak of $7.7bn in 2022E. While we are initially forecasting sales of < $1bn for the Arcus products, we believe this deal finally provides Gilead critical mass in oncology with a diverse and synergistic pipeline, and boosts our confidence for investing in the stock long term. While there is enormous uncertainty about the real revenue (and profit) potential of remdesivir, there is considerable other upside optionality for successful development of the company's expanded pipeline."

Tim Cook, chief executive officer of Apple, speaks at the 2019 Dreamforce conference in San Francisco on November 19, 2019.

David Paul Morris | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Wednesday:

RBC upgraded Zoom to outperform from sector perform

RBC upgraded Zoom after the teleconferencing company's blowout first-quarter earnings report and said it still sees more upside in the stock.

"In short, we believe the answer is yes, there is still money to be made in the stock. While implied guidance for 2H implies flat sequential revenue growth, we believe management assumptions are significantly more conservative than usual, incorporating an expectation for monthly paid customer churn (which was 50% of bookings this quarter) to at least double to 8% monthly (96% annualized). If those conservative assumptions simply return to historical levels, we see the potential for meaningful upside."

Jefferies upgraded Mattel to buy from hold

Jefferies said in its upgrade of the toy maker that it sees an opportunity for the stock to "outperform" in the second half.

"Following a conversation with mgmt, channel checks and our analysis of web traffic and tend data, we have greater confidence in 2H stability and see an oppty for MAT outperform modeled EBITDA in 2020. While we don't think the company will achieve its original $575-$600M 2020 EBITDA target, we do think it's possible MAT will beat current consensus at $466M. We believe that the June Q is likely to mark a low, while sales growth and cost savings could surprise to the upside. "