Here are Tuesday's biggest analyst calls of the day: Disney, Delta, Nio, Roku, Boeing & more

Published Tue, Sep 8 20208:33 AM EDT

Key Points

Deutsche Bank upgraded Dave and Buster's to buy from hold.
Goldman Sachs downgraded Wynn to neutral from buy.
Wells Fargo initiated Roku as overweight.
MKM upgraded Occidental Petroleum to buy from neutral.
Deutsche Bank initiated Nio as buy.
Deutsche Bank upgraded Disney to buy from hold.
Morgan Stanley initiated JetBlue, Delta, Southwest as overweight.
Leerink downgraded Moderna to underperform from market perform.
Goldman Sachs initiated Foot Locker as buy.
Morgan Stanley initiated Boeing as underweight.
Argus upgraded Verizon to buy from hold.
UBS initiated Virgin Galactic as buy.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Tuesday: Deutsche Bank upgraded Dave and Buster's to buy from hold Deutsche upgraded the family sports-bar and arcade mainly on valuation. "We are upgrading shares of PLAY to Buy, as we believe that there is still ~50% upside over the next 12 to 18 months in a relatively conservative base case, and potentially more than that in a bull case which isn't hard to imagine, but which admittedly offers little in the way of visibility in regards to timing." Goldman Sachs downgraded Wynn to neutral from buy Goldman said in its downgrade of Wynn that the company had too much exposure to its casinos and hotels in Macau and that it saw "limited upside." " Wynn (parent company) holds outsized exposure to Wynn Macau and after revising our forecasts to embed softer VIP in 2021, we ﬁnd limited upside, given the stock's recent run (+21% in August vs. S & P 500 +6%). As such, we downgrade WYNN to Neutral from Buy and remove it from our Conviction List, with a 12-month target price of $95 (vs $96 prior)." Wells Fargo initiated Roku as overweight Wells Fargo initiated the digital streaming media company and said it believes it is a "future advertising heavyweight." "We think ROKU 's stock fortunes come down to how well it can monetize users. The migration to connected TV (CTV) is not in debate, but the ecosystem is pitting CTV operating systems against content apps. We believe ROKU's scale and ad tech will drive above-expectation advertising ARPU growth, creating a future heavyweight. Channel checks and comparative analysis lead us to this conclusion, and our aboveconsensus ad ARPU is the differentiated aspect of this initiation." MKM upgraded Occidental Petroleum to buy from neutral MKM upgraded the hydrocarbon exploration company and said it saw an "improvement" in capitalization liquidity. "We are upgrading OXY from Neutral to Buy though lowering our price target $1 to $17 per share largely due to the higher interest burden associated with refinancing ~$4.1 billion of near-term debt to improve the company's financial liquidity. Since June, OXY has depreciated ~40% (vs. XOP -~20%) and reflects almost 40% upside, meriting an upgrade to Buy." Deutsche Bank initiated Nio as buy Deutsche Bank initiated the China automobile company as buy and said Nio was a disruptor and that there was plenty of room for the company to "co-exist" with Tesla. "In our view, there is an emerging class of Chinese automakers backed by large well capitalized tech titans and ambitious local governments looking to disrupt the auto industry: NIO, Xpeng, Li Auto, and WM Motor. We refer to them as the 'Fab Four' and see NIO as the leader of the pack given its stronger brand perception, higher sales volume, focus on the premium SUV segment, and battle-tested operational track record, but broadly think all four can co-exist with Tesla as there is still plenty of runway to capture market share away from traditional ICE automakers." Deutsche Bank upgraded Disney to buy from hold Deutsche Bank said in its upgrade of Disney that entertainment giant is on its way to becoming the "streaming entertainment leader." "In short, Disney is succeeding in the land grab phase of Direct-To-Consumer (DTC) and we believe has the most clear path to successfully transitioning its general entertainment programming and content production businesses into a globally scaled, vertically integrated streaming entertainment leader." Morgan Stanley initiated JetBlue, Delta, and Southwest as overweight Morgan Stanley initiated the airline sector and said it thinks it will have a "relatively quick rebound" in air traffic. "We are initiating coverage of US Airlines with an Attractive industry view. Our coverage includes (in order of preference) Overweight-rated Southwest Airlines ( LUV ), JetBlue Airways ( JBLU ), Delta Airlines ( DAL ) and Allegiant Travel (ALGT); Equal-weight-rated Alaska Air Group (ALK); followed by Underweight-rated United Airlines (UAL). We recognize that demand recovery is the key debate in a post-COVID world and we expect a relatively quick rebound in traffic – we see air travel demand (Revenue Passenger Miles – RPMs) returning to pre-COVID levels on a run-rate basis by late 2021/early 2022." Leerink downgraded Moderna to underperform from market perform Leerink downgraded the biotech company and said it saw competitive pressures for the coronavirus vaccine market. "Based on a capacity buildout equivalent to a global Manhattan Project for vaccines and clarity on competitive pressure in the SARS-CoV-2 vaccine market, we are downgrading MRNA to Underperform from Market Perform and lowering our PT to $41. Recent developments - loss of mRNA-1273's lead in clinical development, extension of multiple large volume COVID-19 vaccine contracts to competitors risk of reduced end-user demand due to increased skepticism for vaccines rushed to market under emergency use authorization – make a durable market with oligopoly pricing unlikely." Goldman Sachs initiated Foot Locker as buy Goldman initiated the shoe retailer and said it had a "solid" balance sheet among other things. "We see FL as a competitively positioned retailer with several enduring tailwinds given its strategic importance to key vendors, strong category dynamics and product cycles, market share consolidation opportunities, and a step-up in digital connectivity. While we recognize potential for near-term volatility given an uncertain consumer recovery path associated with COVID-19, we believe FL's solid balance sheet, net cash position, and national footprint positions the shares for outperformance." Morgan Stanley initiated Boeing as underweight Morgan Stanley said in its initiation of Boeing that it thinks the company still has too many Max 737 issues and that it sees a "better opportunity" aftermarket. "As we highlight in our Boeing initiation, there is an underappreciated risk that Boeing is particularly vulnerable to cancellations as the 737 MAX grounding (March 2019) opened up cancellation rights (without penalty) for aircraft deliveries that were delayed a year. Our Underweight is on a relative basis as we see better opportunity in the aftermarket. Due to the downside risks to new aircraft production, we have a Cautious industry view on Aerospace." Argus upgraded Verizon to buy from hold Argus upgraded the wireless and telecommunications company and said it thinks consumer behavior will be defensive and that consumers will stay with their existing cellular carriers. "We think Verizon made a strategically critical move in winning the recently completed FCC spectrum auction 105 with $1.89 billion in winning bids. We think that consumer behavior is likely to remain highly defensive and that most consumers are likely to stay with their existing carriers in the near term. This could be a positive for Verizon as the wireless industry's leading incumbent." UBS initiated Virgin Galactic as buy UBS initiated the spaceflight company and said it sees space tourism as a $38 billion a year industry by 2030. "We see Virgin Galactic as the only way for consumers to gain entry into the ~560 member astronaut club in the next 5 years. There will be competitors, but the curation of the VG product from marketing to life-long brand connection, in addition to an operating model supporting a uniquely high flight-rate, separates the VG experience from the others."

Ed Bastian, CEO, Delta Airlines

Anjali Sundaram | CNBC

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Tuesday:

Deutsche Bank upgraded Dave and Buster's to buy from hold

Deutsche upgraded the family sports-bar and arcade mainly on valuation.

"We are upgrading shares of PLAY to Buy, as we believe that there is still ~50% upside over the next 12 to 18 months in a relatively conservative base case, and potentially more than that in a bull case which isn't hard to imagine, but which admittedly offers little in the way of visibility in regards to timing."

Goldman Sachs downgraded Wynn to neutral from buy

Goldman said in its downgrade of Wynn that the company had too much exposure to its casinos and hotels in Macau and that it saw "limited upside."

"Wynn (parent company) holds outsized exposure to Wynn Macau and after revising our forecasts to embed softer VIP in 2021, we ﬁnd limited upside, given the stock's recent run (+21% in August vs. S&P 500 +6%). As such, we downgrade WYNN to Neutral from Buy and remove it from our Conviction List, with a 12-month target price of $95 (vs $96 prior)."