Here are Monday's biggest analyst calls of the day: Starbucks, Amazon, Roku, Moderna & more

Published Mon, Jul 20 20208:40 AM EDT

Key Points

Jefferies raised its price target on Amazon to a Street high of $3,800.
JPMorgan downgraded Moderna to neutral from overweight.
Credit Suisse raised its price target on Facebook to $305 from $258.
Goldman Sachs raised its price target on Amazon to $3,800 from $3,000.
Credit Suisse upgraded Gilead to neutral from underperform.
Wells Fargo initiated Starbucks as overweight.
Credit Suisse raised its price target on Alphabet to $1,850 from $1,600.
Loop Capital downgraded Urban Outfitters to sell from hold.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Jefferies raised its price target on Amazon to a Street high of $3,800 from $3,100 Jefferies raised its price target on Amazon and tied a Street high with Goldman Sachs and said the coronavirus has positioned the company for "strong sales growth" going forward. "The stock is up ~30% since reporting earnings last quarter as the company is collectively viewed as a key beneficiary of shelter-in-place and work from home. At the same time, traditional brick and mortar retailers are up significantly less, as vastly improved e-commerce offerings are being offset by near-term headwinds from people avoiding physical stores. For AMZN , easy comparisons in Q2 for the retail business and tailwinds from the pandemic position the company for strong sales growth." JPMorgan downgraded Moderna to neutral from overweight JPMorgan downgraded the biotech company mainly on valuation and said it remains bullish on the company's long-term outlook. "We are downgrading shares of MRNA to Neutral from OW on valuation following the run in shares that are now up 385% YTD vs. the Nasdaq Biotech Index +19.5%; over the last 12 months, MRNA is up 572%. This performance is of course being driven by the equally impressive and rapid development of a potential vaccine for COVID-19. To be clear, this is not a call on any sort of diminished expectations around the company or mRNA-1273; we remain bullish on Moderna's long-term outlook, disruptive platform (in the vaccine space and otherwise), and chances of being one of the first companies to bring a COVID-19 vaccine to market." Credit Suisse raised its price target on Facebook to $305 from $258 Credit Suisse raised its price target on the stock to a Street high and said it saw "long-term monetization potential" from some of the company's other products like Messenger and WhatsApp. "We maintain our Outperform rating on the following: potential for better than-expected ad revenue growth on product innovation ( Facebook Shops, Search in Marketplaces, etc.), Street models are too conservative and underestimate the long-term monetization potential of other billion-user properties like Messenger and WhatsApp, optionality for faster FCF growth on greater efficiency on content screening/security costs." Goldman Sachs raised its price target on Amazon to $3,800 from $3,000 Goldman Sachs raised its price target and tied a Street high with Jefferies on Amazon based on the continuing strength of e-commerce during the coronavirus. "We update our estimates primarily to reﬂect accelerating ecommerce growth in NA, while also updating for changes in FX and Amazon 's $10bn debt raise. With data from Mastercard pointing to 93% y/y ecommerce growth broadly in May and weekly data showing that consumer spend on Amazon speciﬁcally has been above +60% y/y since the end of April, we increase our NA revenue estimate to +48% y/y for Q2 with continued beneﬁts into Q3 and acknowledge even with these revisions our estimates may prove too low." Read more about this call here. Credit Suisse upgraded Gilead to neutral from underperform Credit Suisse upgraded the biopharmaceutical company and said it is now starting to see "commercial opportunity" for the company's coronavirus drug, remdesivir. "Ahead of 2Q earnings we are upgrading GILD to Neutral (from Underperform) and increasing our TP to $75 (from $64), as we are layering in the remdesivir commercial opportunity following clarity on pricing/ access. We still think there are other issues that need to be resolved (building out the later-stage pipeline), but remdesivir revenues can address some of the near-term P & L growth issues we previously noted." Wells Fargo initiated Starbucks as overweight Wells Fargo initiated the stock as overweight and said the company was "uniquely positioned" to capitalize on the changing consumer behaviors in light of the coronavirus pandemic. "We believe investors currently underappreciate the pliability of SBUX 's business model and sustainability of long-term sales drivers in the presence of temporary disruptions of the business related to COVID-19. Against seismic short-term (and potentially much longer term) changes in consumer behavior, SBUX's suite of digital data gathering, one-to-one marketing, and innovation capabilities, as well as a flexible asset base uniquely position the company to address and capitalize on new consumer behaviors." Credit Suisse raised its price target on Alphabet to $1,850 from $1,600 Credit Suisse raised its price target on GOOGL to a Street high and said it sees a "less-sharp" recovery path for ad revenue in the second half this year. "That said the likely exit velocity coming out of 2Q20 and a turn for the worse in US COVID- 19 cases do prompt us to assume a less-sharp recovery path for ad revenue for 2H20. We maintain our Outperform rating based on the following: 1) ongoing monetization improvements in Search advertising through product/AI driven updates, 2) greater-thanexpected revenue contribution from non-Search businesses (YouTube, Cloud, and Play), 3) optionality and shareholder value creation from new monetization initiatives such as Maps, Discover, as well as the eventual commercialization of Other Bets (Waymo, life sciences)." MoffettNathanson initiated Roku as neutral MoffettNathanson said in its initiation of the streaming service that the stock was fairly priced at these "higher levels." "Investors own ROKU as a proxy for all things streaming. The stock has meaningfully outperformed since reaching its March low as well as its more recent run-up since the end of June led by the shift in viewing behavior towards OTT without live sports and rising costs of the pay TV bundle. While we see value in Roku as a gatekeeper, with even perhaps M & A as a possibility down the road if other companies are not able to successfully launch competitive services, we believe the stock is fairly priced at these higher levels balancing additional company risks." Loop Capital downgraded Urban Outfitters to sell from hold Loop downgraded the lifestyle retailer and said it was concerned that traffic and demand "remains light" as stores re-open. "We're lowering our F2Q EPS estimate slightly from ($1.23) to ($1.28). Our F2021 EPS estimate is cut from ($3.10) to ($3.15), $1.99 below consensus. Though stores are open, we believe traffic and demand remains light. We are modeling for current year gross margin at 16% compared to consensus of 23%. We recommend that investors sell shares of URBN with the stock trading at 12x EV/EBITDA based on our F2022 (mostly calendar 2021) estimate."

Consumers wait in line at a Starbucks location as they return to retail shopping at the Arrowhead Towne Center on June 20, 2020 in Glendale, Arizona.

Christian Petersen | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Monday:

Jefferies raised its price target on Amazon to a Street high of $3,800 from $3,100

Jefferies raised its price target on Amazon and tied a Street high with Goldman Sachs and said the coronavirus has positioned the company for "strong sales growth" going forward.

"The stock is up ~30% since reporting earnings last quarter as the company is collectively viewed as a key beneficiary of shelter-in-place and work from home. At the same time, traditional brick and mortar retailers are up significantly less, as vastly improved e-commerce offerings are being offset by near-term headwinds from people avoiding physical stores. For AMZN, easy comparisons in Q2 for the retail business and tailwinds from the pandemic position the company for strong sales growth."

JPMorgan downgraded Moderna to neutral from overweight

JPMorgan downgraded the biotech company mainly on valuation and said it remains bullish on the company's long-term outlook.

"We are downgrading shares of MRNA to Neutral from OW on valuation following the run in shares that are now up 385% YTD vs. the Nasdaq Biotech Index +19.5%; over the last 12 months, MRNA is up 572%. This performance is of course being driven by the equally impressive and rapid development of a potential vaccine for COVID-19. To be clear, this is not a call on any sort of diminished expectations around the company or mRNA-1273; we remain bullish on Moderna's long-term outlook, disruptive platform (in the vaccine space and otherwise), and chances of being one of the first companies to bring a COVID-19 vaccine to market."