Here are Wednesday's biggest analyst calls of the day: Tesla, Alphabet, Chevron, airlines & more

Published Wed, Jun 10 20208:25 AM EDTUpdated Wed, Jun 10 20209:11 AM EDT

Key Points

JPMorgan downgraded JetBlue to underweight from neutral and United Airlines to neutral from overweight.
Jefferies upgraded Etsy to buy from hold.
Baird downgraded Cisco to neutral from outperform.
RBC downgraded Chevron to underperform from sector perform.
Wedbush downgraded Micron to neutral from outperform.
Wedbush raised its price target on Tesla to $1000 from $800.
Bank of America raised its price target on Alphabet to $1,610 from $1,420.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Wednesday: JPMorgan downgraded JetBlue to underweight from neutral and United Airlines to neutral from overweight JPMorgan said in its downgrade of JetBlue and United that it didn't think the pace of the current rally in airline stocks could last much longer. "First, TSA recovery rates are likely to moderate this fall as corporate demand inadequately backfills pent-up summer leisure travel. Second, valuations beginning to stretch for some. Third, Treasury loan decisions are believed to be imminent, and may prove the last easily identifiable near-term catalyst, potentially followed by dilutive equity raises. Lastly, to the extent that bolstered summer schedules helped stoke the recent rally, we worry as to the market's reaction should airlines begin trimming autumnal schedules once they become responsible for labor costs and furlough activity crescendoes." Read more about this call here . Jefferies upgraded Etsy to buy from hold Jefferies upgraded the e-commerce website as more consumers flock to online shopping and "nesting" at home. "We see home nesting dynamics and repeat purchases from face mask sales driving higher long-term gross merchandise sales growth. This additional demand boosts ETSY 's importance to sellers and enhances its ability to pursue another fee increase, a tailwind we now incorporate into our Base Case valuation framework. We also believe the benefits of Offsite Ads are not adequately captured by consensus estimates." Baird downgraded Cisco to neutral from outperform Baird said in its downgrade of the stock that it sees a more balanced risk/reward. "We believe the current environment could lead to a deemphasis on the corporate network, which we expect would be a headwind to Cisco . We believe the shift to WFH highlights the benefits of shifting away from the corporate network, and recent signs of success from cloud infrastructure services companies validate the opportunity. Overall, we continue to appreciate Cisco's broad portfolio, market leadership, strong channel presence, and financial model but believe risk-reward is more balanced here given secular and macro concerns." RBC downgraded Chevron to underperform from sector perform RBC downgraded the company mainly on valuation. " Chevron has firmly positioned itself as the 'safe haven' in the sector, with a flexible capex profile coupled with a robust balance sheet standing out versus many peers. We think the current premium valuation, which is at multi-year highs, leaves limited room for further outperformance, and we downgrade to Underperform." Wedbush downgraded Micron to neutral from outperform Wedbush downgraded the stock mainly on valuation. "We are downgrading MU to NEUTRAL as we believe: 1) the stock is fully valued, and 2) our industry checks suggest that forward demand/ pricing conditions in the memory market are now more likely to deteriorate. Micron recently provided a positive update to guidance. We view MU's revised outlook as a good result, and are even more enthusiastic about MU's now proven ability to deliver positive earnings even through an industry trough." Wedbush raised its price target on Tesla to $1000 from $800 Wedbush raised its price target on the stock due to strong demand for Tesla' s Model 3 and the easing of coronavirus lockdown restrictions among other things. "We believe with demand for Model 3's ramping stronger than expectations in China heading into summer timeframe, the lockdown easing in the US/Europe, and some potentially "game changing" battery developments on the horizon (Battery Day likely in late June) that Tesla's stock likely has room to run further. While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year." Bank of America raised its price target on Alphabet to $1,610 from $1,420 Bank of America raised its price target on Alphabet and said it sees upside to the company's Google Cloud Platform. "We see Google search revenue as highly correlated with overall GDP growth and will likely be aided as economies begin to reopen and travel spending returns. We are encouraged with recent YouTube engagement / monetization trends and continue to see an opportunity for Google Cloud Platform to grow its share among big-3 providers. We are raising our PO to $1,610 from $1,420 based on 25x (from 22x) 2021 core Google GAAP EPS estimate plus cash given sector multiple expansion."

JetBlue planes at a gate at John F. Kennedy International Airport in New York.

Mark Kauzlarich | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Wednesday:

JPMorgan downgraded JetBlue to underweight from neutral and United Airlines to neutral from overweight

JPMorgan said in its downgrade of JetBlue and United that it didn't think the pace of the current rally in airline stocks could last much longer.

"First, TSA recovery rates are likely to moderate this fall as corporate demand inadequately backfills pent-up summer leisure travel. Second, valuations beginning to stretch for some. Third, Treasury loan decisions are believed to be imminent, and may prove the last easily identifiable near-term catalyst, potentially followed by dilutive equity raises. Lastly, to the extent that bolstered summer schedules helped stoke the recent rally, we worry as to the market's reaction should airlines begin trimming autumnal schedules once they become responsible for labor costs and furlough activity crescendoes."

Jefferies upgraded Etsy to buy from hold

Jefferies upgraded the e-commerce website as more consumers flock to online shopping and "nesting" at home.

"We see home nesting dynamics and repeat purchases from face mask sales driving higher long-term gross merchandise sales growth. This additional demand boosts ETSY's importance to sellers and enhances its ability to pursue another fee increase, a tailwind we now incorporate into our Base Case valuation framework. We also believe the benefits of Offsite Ads are not adequately captured by consensus estimates."