Here are Thursday's biggest analyst calls of the day: Tesla, Zoom, Peloton, Lemonade, Roku & more

Published Thu, Oct 15 20208:02 AM EDT

Key Points

KeyBanc downgraded Roku to sector weight from overweight.
BMO upgraded Brinker to outperform from market perform.
Canaccord raised its price target on Netflix to $620 from $550.
Credit Suisse initiated Lemonade as underweight.
Baird raised its price target on Tesla to $450 from $360.
Morgan Stanley downgraded Progressive to equal weight from overweight.
Bank of America raised its price target on Peloton to $150 from $116.
Guggenheim downgraded Mondelez to neutral from buy.
Bernstein raised its price target on Zoom to $611 from $228.
Barclays upgraded ViacomCBS to overweight from equal weight.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Thursday: KeyBanc downgraded Roku to sector weight from overweight KeyBanc said in its downgrade of the media streaming company that "positive fundamentals" were already priced in. "Ahead of 3Q20 earnings, we are downgrading ROKU from Overweight to Sector Weight. Tenets of our thesis on ecosystem importance and monetization are playing out, with shares increasing ~40% in one month. International is the next leg of the story, and we believe success takes time. ... .Positive fundamentals appear reflected in share price." BMO upgraded Brinker to outperform from market perform BMO raised its price target on the restaurant hospitality company and owner of Chili's and said it thinks the stock still has "more room to run." "Our upgrade reflects our view that EAT 's post-pandemic EPS could reach $5+ based on a channel-level analysis across the business. The timing is somewhat dependent on the shape of the pandemic from here, but $5+ EPS implies meaningful upside to consensus beyond FY21 as it would be Street-high for F2022 and well-ahead for F2023." KeyBanc raised its price target on Netflix to $634 from $590 KeyBanc raised its price target on the stock ahead of the company's earnings report next week and said the media "landscape" favors the streaming giant as "content and distribution" matter. "We feel more confident in Overweight-rated NFLX as 1) the pricing cadence is back to normal; 2) favorable competitive positioning; and 3) content catalysts. ... .Media landscape favors Netflix. Disney's recent re-organization speaks to the challenges media companies face in the current landscape, and that Netflix's combination of content and distribution matters." Credit Suisse initiated Lemonade as underweight Credit Suisse initiated the renters, homeowners, and pet health insurance company and said the stock's valuation was too rich and that it was waiting for a better entry point. "We believe LMND will need to significantly improve its retention and in turn its customer acquisition expense ratio efficiency to support current stock price levels. Moreover, growth and improvement in many of management's key metrics will depend on LMND's ability to increase the premiums it generates from each customer by converting renters into homeowners and increasing overall product and coverage levels." Baird raised its price target on Tesla to $450 from $360 Baird raised its price target on the stock and said it sees "strong" volumes when the company reports earnings next week and the potential for "higher-than-expected" credit revenue tailwinds. "Our Q3 estimates are slightly below the Street. Gross margin is the largest variable, with potential upside from strong volumes and credit revenue and potential risks from ongoing production ramps. Notably, we think recent share appreciation may incentivize increased investment in growth, rather than the focus on cost controls which have characterized TSLA 's past several quarters." Morgan Stanley downgraded Progressive to equal weight from overweight Morgan Stanley downgraded the insurer and said industry competition "limits upside." "We expect more intense industry price competition to offset any further gains from ongoing low driving activity. With limited EPS growth potential and the stock trading at a peak multiple, we downgrade PGR to EW. Our $102 PT (up from $98) implies just 2% upside. We see a more challenging personal auto pricing environment." Bank of America raised its price target on Peloton to $150 from $116 Bank of America raised its price target on the stock to a Street high and said it was bullish on Peloton's upcoming line of products and strength in a post coronavirus world among other things. "With rising COVID cases worldwide, we think elevated health concerns and new product launches could drive strong holiday demand & continued upside to Street estimates. We reiterate Buy and raise our PO to $150 based on our DCF model which assumes 25mn L.T. subscribers vs 20mn previously. Biggest risk is gym re-openings and tougher comps in C2Q next year that could slow growth and increase churn, impacting sentiment." Guggenheim downgraded Mondelez to neutral from buy Guggenheim downgraded the stock mainly on valuation but called it a "best-in-class" food company. "We are downgrading Mondelez to NEUTRAL given our view that the current valuation reflects the expected future top-line growth potential and represents a fair discount to higher-growth food & beverage peers. We continue to think Mondelez is a best-in-class US food company and, while it isn't benefiting as much as peers during the pandemic due to the nature of its categories, we expect it to continue capturing global snack market share in the years ahead." Bernstein raised its price target on Zoom to $611 from $228 Bernstein raised its price target on the stock to a Street high after Zoom's analyst day and said it thought there was still a "huge runway" for increasing penetration and revenue for the online teleconferencing company. " Zoom hosted its annual Analyst Day on October 14th, in tandem with their annual user conference, Zoomtopia. Zoom still has a huge runway for increasing penetration and revenue within the Global 2000 companies given only 12% are paying more than $100k in revenue. We estimate that Zoom phone has only reached approximately 1% penetration of the potential user base, and thus presents revenue upside of several billion dollars over the next few years." Barclays upgraded ViacomCBS to overweight from equal weight Barclays said in its upgrade of the media compan that it sees a more "stable earnings and cash flow environment." "While VIAC and its component pieces prior to the merger have traded cheap for a while, lack of operation and strategic visibility made it difficult to make a valuation argument to own the stock.The COVID backdrop made this situation worse and VIAC may have traded cheaper than the value of its non-revenue generating assets.While operational and structural issues remain significant concerns, recent trends point to a potentially more stable earnings and cash flow environment."

John Foley, CEO of Peloton.

Adam Jeffery | CNBC

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Thursday:

KeyBanc downgraded Roku to sector weight from overweight

KeyBanc said in its downgrade of the media streaming company that "positive fundamentals" were already priced in.

"Ahead of 3Q20 earnings, we are downgrading ROKU from Overweight to Sector Weight. Tenets of our thesis on ecosystem importance and monetization are playing out, with shares increasing ~40% in one month. International is the next leg of the story, and we believe success takes time. ... .Positive fundamentals appear reflected in share price."

BMO upgraded Brinker to outperform from market perform

BMO raised its price target on the restaurant hospitality company and owner of Chili's and said it thinks the stock still has "more room to run."

"Our upgrade reflects our view that EAT's post-pandemic EPS could reach $5+ based on a channel-level analysis across the business. The timing is somewhat dependent on the shape of the pandemic from here, but $5+ EPS implies meaningful upside to consensus beyond FY21 as it would be Street-high for F2022 and well-ahead for F2023."