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Here are the biggest calls on Wall Street on Thursday:
Morgan Stanley said in its upgrade of the stock that its earnings flexibility is discounted in the company's valuation.
"CSCO's multiple discount to the S&P is at 10 year highs, despite durable earnings growth. We are mindful of secular headwinds and broad macro exposure, but think growing networking / security needs, cash flow flexibility and opex discipline provide tailwinds, helping multiple gap close over next twelve months.Earnings flexibility discounted in valuation today. We are cognizant that Cisco's top line is challenged in the near to medium term from macro headwinds, but diversification, opex discipline and cash flow flexibility afford it the ability to show greater resilience on the earnings line, something discounted in the multiple today."
Read more about this call here.
Credit Suisse initiated the restaurant hospitality company and said it was "best-in-class" and well-positioned to benefit from industry contraction.
"We view DRI as a best-in-class operator in casual dining, with a heightened focus on employees leading to industry-leading retention, well-capitalized balance sheet positioning it to invest for future market share gains, and effective leveraging of its scale to generate efficiencies supporting above-average margin performance. Nearterm, we expect the pace of sales recovery will be the most meaningful catalyst, though improvements in the variable cost profile across the portfolio should allow DRI to return to prior margin levels ahead of a full sales recovery."