Here are Monday's biggest analyst calls of the day: FedEx, Virgin Galactic, UPS, Snap & more

Published Mon, Sep 28 20207:50 AM EDT

Key Points

Citi opening a negative catalyst watch on Micron.
KeyBanc upgraded UPS to overweight from sector weight.
Deutsche Bank upgraded FedEx to buy from hold.
RBC downgraded Expedia to sector perform from outperform.
Guggenheim initiated Pinterest as buy.
Bank of America initiated Virgin Galactic as buy.
Guggenheim upgraded Snap to buy from neutral.
Susquehanna initiated Virgin Galactic as positive.
Bank of America upgraded Chevron to buy from neutral.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Citi opening a negative catalyst watch on Micron Citi reiterated its sell rating on the stock ahead of the company's earnings report on Tuesday and said it expects lowered guidance. " Micron will release F4Q20 results September 29 after market close. We expect the company to report results below guidance of $6.0 billion but in line with our $5.50 billion estimate due to the double dip in DRAM we have written about. As a result, we expect the stock to trade lower and we maintain our Sell rating." KeyBanc upgraded UPS to overweight from sector weight KeyBanc upgraded the shipping company and said it's "uniquely positioned" under its new CEO. "We upgrade UPS to OW as our preferred way to have parcel/ e-commerce exposure, with a $190 price target. We expect a steady cadence of favorable commentary around yield, efficiency, and capital deployment initiatives from new CEO Carol Tomé, which, combined with secular trends supporting domestic package growth, should aid margins and returns." Deutsche Bank upgraded FedEx to buy from hold Deutsche said in its upgrade of FedEx that it thinks the company has the potential"to exhibit "very strong pricing power." "Indeed, some of FDX 's recent outperformance vs. UPS reflects a bounce from a much lower trough, with FDX shares down -45% this year peak-totrough vs. -26% for UPS. That notwithstanding, we see upcoming results for both companies as having potential to exhibit very strong pricing power, the benefits of which are likely still being underappreciated. We think FedEx's fiscal 2Q results (ending Nov. '20) could be a significant positive catalyst for the shares." RBC downgraded Expedia to sector perform from outperform RBC said in its downgrade of the stock that competition is increasing and it sees a less attractive risk/reward. "We recently conducted our 6 th Annual U.S. & 4 th Annual UK Online Travel Surveys. From a high level, survey results suggest a very slow recovery in Online Travel: 49% of U.S. and 55% of UK respondents expect to return to pre-COVID leisure travel frequency in 2021 with another ~33% saying 2022 or later. These results don't suggest any upside to our current EXPE estimates that call for Gross Bookings to return to 2019 levels beyond 2022." Guggenheim initiated Pinterest as buy Guggenheim initiated the social media and image sharing service and said it sees "outsized" growth prospects. "The company is refining its recommendations and expanding content verticals, which we believe will increase the service's utility and drive higher frequency. We anticipate investor caution that marketers will allocate higher proportions of ad budgets to more established, direct response channels. However, we see outsized growth prospects for PINS within the global digital ad market as the platform expands its user base, content genres, and use cases." Bank of America initiated Virgin Galactic as buy Bank of America said in its initiation of the space flight company that its growth potential was "unparalleled." "Unlike airlines or even commercial aircraft original equipment manufacturers, Virgin Galactic plans to operate commercially and has nearly full vertical integration capabilities in structures, assembly, propulsion, and avionics. ... .We believe SPCE's growth potential is unparalleled vs. our coverage and the current nascent stages of the company provide investors with a unique entry point into the stock." Guggenheim upgraded Snap to buy from neutral Guggenheim upgraded Snap mainly on valuation. "We are revising our valuation framework for our digital media coverage universe to better reflect comparability with peer companies in the software industry. We believe that there are greater core similarities between internet and software companies than implied in current valuations and expect investors will continue to evolve their view to reflect this, driving incremental appreciation for internet shares." Susquehanna initiated Virgin Galactic as positive Susquehanna initiated the space travel company and said it was an "innovator" with a "unique" offering. "We are initiating coverage of Virgin Galactic with a Positive rating and $20 price target. We see SPCE as an innovator of space technology with a truly unique offering that will allow civilians and professionals alike to access space for entertainment and research purposes." Bank of America upgraded Chevron to buy from neutral Bank of America said in its upgrade of the oil company that it sees an "attractive" risk/reward. "However with greater clarity on planned spending and the impact on production, alongside what we view as an attractively valued acquisition of Noble Energy that has modest upside to our price offering, when concluded, we believe CVX has moved back to levels where the risk / reward is attractive."

The United Parcel Service Inc. (UPS) logo is displayed on a truck parked in New York.

Michael Nagle | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Monday:

Citi opening a negative catalyst watch on Micron

Citi reiterated its sell rating on the stock ahead of the company's earnings report on Tuesday and said it expects lowered guidance.

"Micron will release F4Q20 results September 29 after market close. We expect the company to report results below guidance of $6.0 billion but in line with our $5.50 billion estimate due to the double dip in DRAM we have written about. As a result, we expect the stock to trade lower and we maintain our Sell rating."

KeyBanc upgraded UPS to overweight from sector weight

KeyBanc upgraded the shipping company and said it's "uniquely positioned" under its new CEO.

"We upgrade UPS to OW as our preferred way to have parcel/ e-commerce exposure, with a $190 price target. We expect a steady cadence of favorable commentary around yield, efficiency, and capital deployment initiatives from new CEO Carol Tomé, which, combined with secular trends supporting domestic package growth, should aid margins and returns."