- 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. "