Here are Monday's biggest analyst calls of the day: Apple, Palantir, Winnebago, Lululemon & more

Published Mon, Oct 26 20208:14 AM EDT

Key Points

Evercore ISI added Apple to the tactical outperform list.
JPMorgan initiated Zscaler as overweight.
Bank of America upgraded Kontoor Brands to buy from neutral.
Raymond James upgraded D.R. Horton, and Toll Brothers to outperform from market perform.
Atlantic Equities reinstated Apple as overweight.
JPMorgan added Lululemon to the focus list.
Morgan Stanley initiated Palantir as overweight.
Citi upgraded Winnebago to buy from neutral.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Evercore ISI added Apple to the tactical outperform list Evercore ISI added Apple to its tactical outperform list ahead of the company's earnings report later this week and said it sees "upside" to estimates due to Macs and iPads "staying stronger" and on the strength of the iPhone. "We see sizable upside to FY21 estimates driven by, a) higher average selling price's we see higher phone usage and carrier subsides driving consumer shift higher, b) services acceleration persists driven by ARPU and new offerings, c) Other hardware – we see Macs & iPads staying stronger on a multi quarter basis." JPMorgan initiated Zscaler as overweight JPMorgan initiated the cloud-based information security company and said Zscaler is "leading the way" in the shift to cloud security. "We see the potential for ZS to take significant share in what is a $20B+ market. ZS offers leading technology and is backed by a highly effective management team. We believe that combination will lead to further share out performance." Bank of America upgraded Kontoor Brands to buy from neutral Bank of America upgraded the clothing company and owner of Lee and Wrangler brands and said the company had a healthy distribution footprint which includes Walmart, Target, and Amazon. "We think consensus is underestimating KTB 's sales trajectory, which should benefit from new distribution starting in 2H20 another likely round of US stimulus supporting its lower income consumer and a healthier distribution footprint vs. peers; Walmart, Target and Amazon are among its top four partners. We also think there is a strong possibility KTB reinstates its dividend in the near-term." Raymond James upgraded D.R. Horton and Toll Brothers to outperform from market perform Raymond James said in upgrade of the homebuilder stocks that it had a saw the likelihood of a new "durable" housing cycle. "With our confidence growing in the continuing strength and sustainability of new home demand amid the pandemic recovery, we are using the sector's recent pullback to better align our homebuilding ratings with our overall bullishness on U.S. single family housing and the likelihood of a durable new housing cycle. . Further, we are also upgrading D.R. Horton and Toll Brothers to Outperform from Market Perform, bringing constructive ratings to the totality of our research coverage with direct exposure to the 2020 single-family housing boom." Atlantic Equities reinstated Apple as overweight Atlantic Equities reinstated coverage of the tech giant and said it believed the company had a "number of levels" to grow revenue well in to the future. "Having created an enduring premium consumer electronics brand, we believe that Apple's product business should be valued in line with other premium and luxury consumer stocks, rather than traditional computer peers.Furthermore, we believe that Apple has a number of levers that will enable it to grow product revenues." JPMorgan added Lululemon to the focus list JPMorgan added the athletic apparel retailer to its focus list and said its checks show upside potential for Lululemon . "Importantly, our recent fieldwork points to potential upside to our +6-7% above-Street embedded 3Q comp estimate based on mid-September top-line acceleration (w/ momentum sustained in October) and incremental bottom-line flow-through opportunity." Morgan Stanley initiated Palantir as overweight Morgan Stanley initiated coverage of the data analytics software company and said it sees an "attractive" risk/reward. "Unlocking the value within disparate data sets opens up a large and inflecting market opportunity, while rapid margin improvements highlight the shift towards software platforms and away from consulting engagements, creating an attractive risk/reward at PLTR' s discounted valuation." Citi upgraded Winnebago to buy from neutral Citi upgraded the manufacturers of motorhomes and said with other forms of travel still several years away it believes Winnebago will continue to benefit. "The RV stocks were off 50-60% on the year in March as the Pandemic took hold, but rallied back to positive territory as it became evident that RVs were (particularly) well-suited for vacationing during a Pandemic. Some investors are concerned that the RV-craze may be fading. We believe that a return to extensive travel (planes, cruise, hotels) is several years away, while we believe that the attractiveness of the RV lifestyle is here to stay."

The logo of Apple company is seen outside an Apple store in Bordeaux, France, March 22, 2019.

Regis Duvignau | Reuters

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Monday: