Here are Tuesday's biggest analyst calls of the day: Apple, Facebook, Chipotle, Starbucks & more

Published Tue, Aug 25 20208:27 AM EDT

Key Points

B Riley FBR upgraded Crocs to buy from neutral.
Deutsche Bank initiated Jack in the Box as buy.
Stifel upgraded Starbucks to buy from hold.
Citi upgraded Gap to buy from neutral.
Bernstein raised its price target on Chipotle to $1,600 from $1,300.
MKM upgraded L Brands to buy from neutral.
Cowen reinstated Smith & Wesson as outperform.
Cowen raised its price target on Apple to $530 from $470.
UBS raised its price target on Facebook to $330 from $242.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Tuesday: B. Riley FBR upgraded Crocs to buy from neutral B. Riley FBR said in its upgrade of the clog shoe manufacturer that it thinks consumers will keep looking toward "value-oriented" footwear like Crocs as the coronavirus continues. "Our store checks indicate expanded shelf space at retail, higher Y/Y search interest, and an increase on crocs.com web traffic. Our price target represents 20x our FY21 EPS estimate, which is still below the 5-year average of 24x which we believe is justified given the improving sales trends back to pre-COVID levels as we expect consumers continuing to prefer comfortable and value-oriented footwear for at-home learning and work. Deutsche Bank initiated Jack in the Box as buy Deutsche said in its initiation of the fast food chain that it sees more upside in the stock and that Jack in the Box has the right management team and is a beneficiary of the coronavirus crisis. "Led by a new CEO, and potentially aided by COVID-related industry opportunities, the resumption of consistent domestic net unit growth represents a potential bull case scenario, but we don't think investors need to underwrite this at this time to participate in upside between now and when investors might have more clarity on the development front." Stifel upgraded Starbucks to buy from hold Stifel said in its upgrade of Starbucks that the stock's valuation was "reasonable" and that the company's strategic initiatives will lead to a more "robust" performance as mobility improves. "We are more constructive toward shares for a few reasons: 1) near-term, we believe same restaurant sales are recovering at least in line with Street estimates, which should be viewed favorably as investors have been focusing on the chain's well-documented headwinds; 2) sales trends should benefit in FY21 from aggressive steps the company is taking to improve convenience, such as curbside pickup and drive-thru handhelds; and 3) we argue the company's decision to pull forward several strategic initiatives could lead to more robust performance as consumer mobility increases." Citi upgraded Gap to buy from neutral Citi said in its upgrade of the stock that even though the company failed to spin off its Old Navy brand, the firm still sees upside in the company's Athleta brand which the market may not be recognizing. "The plan to spin off Old Navy was ditched, but the plan could imply that the Board is willing to take on corporate actions to unlock shareholder value. And with the favorable positioning of athletic/casual retailers in a post-Covid world, GPS ' Athleta brand stands out as having value that may not be getting recognized by the market (as many others in their space have rerated higher). At the midpoint of our valuation ests, we estimate Athleta is worth ~$3.6BN on a standalone basis or in a sale." Bernstein raised its price target on Chipotle to $1,600 from $1,300 Bernstein raised its price target on the restaurant chain to a Street high and said the company's topline recovery was "incontrivertible." " CMG appears to have taken the first small steps toward the margin part of the recovery path with delivery fees; we expect modest pricing could also play a role as could a slacker labor market. Even relatively modest fees ($1-$2) support margins. Mobile order ahead has also tripled; reduced delivery support will likely translate into ordering channel shift, not lost traffic." MKM upgraded L Brands to buy from neutral MKM said in its upgrade of L Brands that it was bullish on the company's Bath & Body Works brand to outperform during the rest of the coronavirus pandemic and beyond. "While we had appreciated the strength of Bath & Body Works' fundamentals well prior to today, we stayed on the sidelines based on the overhang of a clean Victoria's Secret separation in a tough retail landscape. Our upgrade is based on: 1. Greater confidence in a VS transaction in light of better 2Q performance, cost-cutting initiatives, and our view of upside to 2H earnings and liquidity, thus driving a more favorable valuation; 2. We view BBW as among the least volatile, higher-growth concepts in the sector, and as a core holding." Cowen reinstated Smith & Wesson as outperform Cowen called the gun maker a firearms "pure play" and said gun sales could surge if former Vice President Biden wins the election. "If Biden wins, the presidential election surge could continue the April end of SWBI 's fiscal year as it did following Obama's victories in both 2008 and 2012. Our FY21 EPS range is $1.70-2.05 to encompass the possible extremes of Biden or Trump wins with Senate control. We also are assuming stronger pricing resulting from the surge in demand in contrast to the promotion activity in FY20." Cowen raised its price target on Apple to $530 from $470 Cowen raised its price target on the stock to a Street high and said the company's valuation is reasonable compared to peers and said it sees increase iPhone builds for the September quarter. "iPhone builds for the Sep Q increased to 43M units from the prior month's 40M view on higher iPhone 11 and SE2 units. This is modestly above our 40M sell-in forecast (positive sentiment for AAPL shares). C2H builds for the upcoming iPhone product cycle remain unchanged." UBS raised its price target on Facebook to $330 from $242 UBS raised its price target on shares of the stock to a Street high and said it sees upside in the company's e-commerce initiatives. "As a result of product & platform innovation, we see FB as a beneficiary of key secular industry themes: a) rising & sustained eComm shopping penetration levels vs. pre-COVID; b) the rise of social commerce & push recommendation shopping ad units & c) FB's aggregated audience size & engagement levels coupled with its ability to utilize 1P user data to craft personalized and highly effective ad/eComm outcomes."

Men wearing face masks walk past a Gap store at a shopping area, as the country is hit by an outbreak of the new coronavirus, in Beijing, China February 7, 2020.

Jason Lee | Reuters

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Tuesday:

B. Riley FBR upgraded Crocs to buy from neutral

B. Riley FBR said in its upgrade of the clog shoe manufacturer that it thinks consumers will keep looking toward "value-oriented" footwear like Crocs as the coronavirus continues.

"Our store checks indicate expanded shelf space at retail, higher Y/Y search interest, and an increase on crocs.com web traffic. Our price target represents 20x our FY21 EPS estimate, which is still below the 5-year average of 24x which we believe is justified given the improving sales trends back to pre-COVID levels as we expect consumers continuing to prefer comfortable and value-oriented footwear for at-home learning and work.

Deutsche Bank initiated Jack in the Box as buy

Deutsche said in its initiation of the fast food chain that it sees more upside in the stock and that Jack in the Box has the right management team and is a beneficiary of the coronavirus crisis.

"Led by a new CEO, and potentially aided by COVID-related industry opportunities, the resumption of consistent domestic net unit growth represents a potential bull case scenario, but we don't think investors need to underwrite this at this time to participate in upside between now and when investors might have more clarity on the development front."