Here are Thursday's biggest analyst calls of the day: Apple, Starbucks, Uber & more

Published Thu, Jun 11 20208:34 AM EDTUpdated Thu, Jun 11 20209:09 AM EDT

Key Points

Bank of America raised its price target on Apple to $390 from $340.
HSBC upgraded Apple to hold from reduce.
KeyBanc downgraded Starbucks to sector weight from overweight.
Bernstein downgraded Campbell Soup, General Mills, and J.M. Smucker to underperform from market perform.
Jefferies upgraded Keurig Dr Pepper to buy from hold and added Procter & Gamble to the franchise list.
BTIG initiated Uber and Lyft as buy.
Wells Fargo raised its price target on Apple to $385 from $315.
Oppenheimer initiated DraftKings as outperform.
JPMorgan upgraded PulteGroup to overweight from neutral and downgraded DR Horton to neutral from overweight.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Thursday: Bank of America raised its price target on Apple to $390 from $340 Bank of America raised its price target on Apple to a Street high after the stock hit an all-time high on Wednesday and said the shares deserve a higher multiple due to the stability of the company's cash flow. "We see several drivers that explain this move (1) Heading into a product cycle (5G iPhones) the multiple typically expands, (2) Product (Hardware) revenues largely thought to be ex-growth will grow 20% next year from iPhone and wearables, (3) Other large cap tech companies carry more risks of regulation or compares get tougher in some instances vs. easy companies for AAPL next year, (4) Stability of cash flows demands a higher multiple." Read more about this call here . KeyBanc downgraded Starbucks to sector weight from overweight KeyBanc said in its downgrade of the coffee company that it expects sales trends to be remain challenged. "We believe Starbucks scale, best-in-class digital platform, innovation competencies, and forward-thinking business mentality should position the Company well over the LT. However, current sales trends remain challenged, and we believe NT upside is limited due to its elevated valuation and the prospect of a more gradual SSS/EPS recovery than previously expected and relative to peers. We see FV near $82 (4% upside), based on 32x our lowered FY21 EPS estimate of $2.59." HSBC upgraded Apple to hold from reduce HSBC said in its upgrade of the stock that it sees the company's services revenues continuing to move higher. "We expect Apple will launch 4 iPhone models in 2H20 with an early 3Q20 ramp expected for its two higher end iPhone models followed by the remaining two models in late 3Q20. We expect a first commercial launch in September. In the meantime, the combination of the Apple SE and the record selling iPhone 11 (at least before the COVID-19 crisis) should support sales despite shops only reopening gradually." Bernstein downgraded Campbell Soup, General Mills and J.M. Smucker to underperform from market perform Bernstein said the food companies may see sales growth slowing as the coronavirus pandemic passes and the economy reopens. "We tactically upgraded CPB , GIS , K , and SJM from Underperform to Market-Perform in March, partly because we had seen a major flight to safety as the stock market plummeted, and partly because the surge in retail demand could create a meaningful fundamental benefit. Since then the market has recovered meaningfully, while these stocks, as consumer staples, did not participate in the risk-on rally, and as such have relatively underperformed. However, we believe the best of the positive fundamental news is over at this point, with sales growth slowing and companies unlikely to benefit from meaningfully elevated volumes once the economy reopens." Jefferies upgraded Keurig Dr Pepper to buy from hold and added Procter & Gamble to the franchise list Jefferies upgraded Keurig Dr Pepper on valuation among other things and added Procter & Gamble to its franchise picks list. "We analyzed long term consumer behavior shifts from Covid-19 and resulting lasting 'mega-trends' in home and personal care & Bevs. Core home and personal care companies, as well as KDP in bevs, are key beneficiaries from 'mega-trends,' while Bev Cos. w/high on-premise exposure face structural headwinds (timing/extent of channel recovery). We upgrade KDP to Buy (WFH benefits, B/S optionality, valuation) and add PG to Franchise Picks List to better align positioning w/our outlook." BTIG initiated Uber and Lyft as buy BTIG said in its initiation of the ride-sharing companies that the coronavirus crisis has accelerated the "rationalization" of ride sharing and delivery. "We are initiating coverage of what we deem Digital Services spanning 14 companies across eTravel, ridesharing and delivery to eRealty and dating. Buy-rated stocks: UBER , LYFT , ANGI, IAC, RDFN & ZG. Neutral-rated stocks: BKNG, EXPE, TCOM, TRIP, TRVG, GRUB, YELP & MTCH. At a high level, we see the pandemic accelerating rationalization in rideshare and delivery, and spurring adoption in eRealty. On the other hand, we see a slow road to recovery in eTravel." Wells Fargo raised its price target on Apple to $385 from $315 Wells Fargo raised its price target on Apple and said it sees a positive 5G cycle materializing. "Despite the strong YTD outperformance we have seen in shares of Apple , we continue to believe investors will view this as a favored high-quality large cap name given continued evidence of a post-COVID recovery in smartphone demand, coupled with an expectation of a positive 5G cycle materializing into late-2020 / 2021 (albeit delayed by 1-2 months; benefiting current compressed refresh rates), our estimates of continued solid double-digit services growth, and Apple's ongoing strong capital return story, we're adjusting our price target on Apple to $385 from $315." Oppenheimer initiated DraftKings as outperform Oppenheimer said in its initiation of DraftKings that it sees an $18 billion dollar opportunity as more states legalize sports betting. "As more states legalize sports gambling, we believe competencies in product development and customer acquisition that DKNG utilized to become the daily fantasy sports market leader (over 60% share) will allow the company to be a critical player in accelerating the shift in US sports betting from ~$150B wagered illegally/ offshore to licensed domestic operators. Legalized sports betting and iGaming markets are in their very early stages of growth, and we see an $18B revenue opportunity at scale, that also benefits from a sophisticated in-game wagering market." JPMorgan upgraded PulteGroup to overweight from neutral and downgraded DR Horton to neutral from overweight JPMorgan changed its ratings on several homebuilders mainly on valuation. "We view valuation as reasonable on a P/E basis, which we now use as the primary metric for the group, as well as on a P/B basis, while for our Dec. 2020 price targets, we now apply, on average, builders' current P/E multiples against our 2021E EPS, which results in 10% average upside potential for our universe (5% for our larger-cap names). Finally, among the larger-cap builders, we upgrade PHM to Overweight and downgrade DHI to Neutral, while among the smaller-cap names, upgrade MTH, TMHC and GRBK to Overweight, raise LGIH to Neutral and downgrade KBH to Underweight."

Tim Cook, CEO of Apple, attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 10, 2019.

Brendan McDermid | REUTERS

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Thursday:

Bank of America raised its price target on Apple to $390 from $340

Bank of America raised its price target on Apple to a Street high after the stock hit an all-time high on Wednesday and said the shares deserve a higher multiple due to the stability of the company's cash flow.

"We see several drivers that explain this move (1) Heading into a product cycle (5G iPhones) the multiple typically expands, (2) Product (Hardware) revenues largely thought to be ex-growth will grow 20% next year from iPhone and wearables, (3) Other large cap tech companies carry more risks of regulation or compares get tougher in some instances vs. easy companies for AAPL next year, (4) Stability of cash flows demands a higher multiple."

KeyBanc downgraded Starbucks to sector weight from overweight

KeyBanc said in its downgrade of the coffee company that it expects sales trends to be remain challenged.

"We believe Starbucks scale, best-in-class digital platform, innovation competencies, and forward-thinking business mentality should position the Company well over the LT. However, current sales trends remain challenged, and we believe NT upside is limited due to its elevated valuation and the prospect of a more gradual SSS/EPS recovery than previously expected and relative to peers. We see FV near $82 (4% upside), based on 32x our lowered FY21 EPS estimate of $2.59."