Here are Friday's biggest analyst calls of the day: DraftKings, Penn National, Gap, Kellogg & more

Published Fri, Aug 28 20208:01 AM EDTUpdated Fri, Aug 28 20209:34 AM EDT

Key Points

RBC upgraded Dell Technologies to outperform from sector perform.
Bank of America upgraded Gap to neutral from underperform.
Citi initiated Kellogg as buy.
Morgan Stanley downgraded Penn National Gaming and DraftKings to equal weight from overweight.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Friday: RBC upgraded Dell Technologies to outperform from sector perform RBC upgraded the stock after the multinational computer company beat second-quarter estimates and said it sees an "improving balance sheet" in the coronavirus era among other things. "With a VMW spin on the table, we see a clear path by which Dell can unlock the value of its stake in VMW. In addition, we believe Dell 's steadily improving balance sheet is positioned to withstand additional COVID-19 (or other) macro shocks, and we have increased confidence in Dell's ability to deliver on its longer-term objectives, including achieving investment grade ratings." Bank of America upgraded Gap to neutral from underperform Bank of America upgraded the clothing and accessories retailer after the company reported a second-quarter loss and said it sees stronger growth for Gap's Old Navy brand and believes it's a "positive" that management is increasing store closures. "Old Navy's quicker progress towards sales growth gives us more confidence that it can emerge from the pandemic closer to 2019 levels than we previously thought. Though we don't yet know the cash cost, we view increased store closures at the struggling Gap and Banana Republic brands as positive. Our upgrade is based on higher F2021 estimates to reflect stronger Old Navy growth, and a higher multiple." Citi initiated Kellogg as buy Citi said in its initiation of the food manufacturer that it sees a compelling valuation and a "well-developed" emerging market business. "To the extent K 's market share performance improves in coming quarters as reinvestment initiatives have impact, we think K has room to make up for some of the weakness in its share price YTD. Longer-term, we think that K has room to close some of the gap that exists today in its operating margin (which is ~300 bps below that of GIS) as K's emerging market business becomes more well-developed and more profitable." Morgan Stanley downgraded Penn National Gaming and DraftKings to equal weight from overweight Morgan Stanley said in its downgrade of the gaming companies that it believes investor expectations are "too high" and that it sees several possible downside catalysts emerging through the end of the year including a reversal of stay-at-home tailwinds among other things. " DKNG and PENN have both more than doubled since the start of the year. While we think a lot of the increased value is valid, we are concerned investors' expectations are too high and see 6 potential negative catalysts through year end. As a result, we downgrade both to EW. ... .While we have seen very strong iGaming revenue and record betting volumes post sports returning, we aren't sure if one should underwrite these levels given stay-at-home tailwinds and pent-up demand from lack of sports in late March-early May." Read more about this call here .

An American flag flies near signage displayed on top of the Kellogg plant in Memphis, Tennessee.

Luke Sharrett | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Friday: