- Needham initiated Chewy as buy.
- Wells Fargo resumed coverage of T-Mobile as overweight.
- Wells Fargo resumed coverage of AT&T as underweight.
- Evercore ISI initiated Take-Two and Activision Blizzard as outperform.
- Jefferies downgraded Tilray to underperform from hold.
- Morgan Stanley initiated McAfee as overweight.
- Morgan Stanley lowered its price target on Norwegian to $11 from $12.
- Piper Sandler raised its price target on Chipotle to $1,745 from $1,514.
- JPMorgan upgraded Tapestry to overweight from neutral.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Needham initiated Chewy as buy Needham initiated the online pet food website and said its well positioned to keep gaining customers. "In our view, CHWY is strongly positioned to gain new customers, drive retention through subscription, and capture wallet share as newer cohorts mature and spend more. The result is a growing base of customers who drive compounding growth. " Wells Fargo resumed coverage of T-Mobile as overweight Wells Fargo resumed coverage of the cellular company and said it expects T-Mobile to be an "industry sharetaker." "In the relatively mature and saturated wireless market, TMUS remains the only true growth story, and we expect them to be an industry sharetaker and grow service revenues, cash EBITDA and FCF significantly faster than peers." Wells Fargo resumed coverage of AT & T as underweight Wells Fargo resumed coverage of the wireless and media company said it thinks the coronavirus will continue to be a headwind going into 2021. "In our view, T is in a difficult position as it struggles to balance investing in its core business segments (wireless, fiber-to-the-home) while deleveraging and paying a sizable dividend.This balancing act is made more difficult by continued declines in legacy business segments and the COVID-19 impact on its WarnerMedia business, which will continue to be a headwind into 2021." Evercore ISI initiated Take-Two and Activision Blizzard as outperform Evercore ISI initiated Take-Two and Activision Blizzard and said it was bullish on the video game industry driven by "longer-term margin tailwinds" and the rush to digital. "We initiate coverage with a favorable view of the video game industry: both in medium-term growth prospects and longer-term margin tailwinds driven by digital penetration and in-game sales. By monetizing engagement (not just game sales) industry revenues have become more predictable and less hit driven." Jefferies downgraded Tilray to underperform from hold Jefferies downgraded the cannabis company mainly on valuation. "At the same time, not reflecting fundamentals, the share price has run up on retail US market FOMO around the US election. With question marks on international, the valuation unfairly inflated, and CEO share sales of $20mn on election run up, we d/g to underperform. ....We've always argued the Tilray thesis is largely tied to the international outlook where Tilray is seemingly set up to do very well when international markets accelerate." Morgan Stanley initiated McAfee as overweight Morgan Stanley initiated the global computer security software and said it sees "durable" recurring revenue. " McAfee has been a cybersecurity pioneer and leader, protecting > 600M consumer devices and many of the largest global enterprises. ... .While dragged down by slow revenue decline in the enterprise biz, we see potential for value accretion as mgmt restructuring initiatives drive sustained EBITDA growth. Morgan Stanley lowered its price target on Norwegian to $11 from $12 Morgan Stanley lowered its price target on the cruise line and said it doesn't see sailings fully resuming till March 1. "We update our model for 3Q results and mgmt commentary that show the path fwd is slower than expected. ... .Following commentary around trial sailings, we now model NCLH to begin cash sailings again on 3/1/21 vs. prior 1/1/21 and reflect an 8 month ramp-up vs. a prior 6 month ramp-up at capped occupancies." Piper Sandler raised its price target on Chipotle to $1,745 from $1,514 Piper raised its price target on Chipotle to a Street high and said it had "high conviction" in the stock after a meeting with company management. "We believe the company's infrastructure is well-positioned to scale in 2020 and beyond while also positioning the company to effectively utilize the increasing amount of transaction data it is collecting. While any one of these initiatives (in isolation) may not move the needle, we are certain that in combination they very much reinforce Chipotle 's brand equity and long-term potential." JPMorgan upgraded Tapestry to overweight from neutral JPMorgan upgraded the luxury fashion company and owner of Kate Spade and Coach and said it had "clear confidence in multi-year bottom-line acceleration" after meeting with Tapestry management. "We hosted CEO Joanne Crevoiserat, Interim CFO Andrea Resnick, and VP/IR Christina Colone at our Global Consumer, Retail/Luxury Conference. The tone from the top was clear confidence in multi-year bottom-line acceleration with opportunity across top-line, gross margin, SG & A, and capital allocation driving a return to double digit compounding total shareholder return by our model." Correction: Morgan Stanley lowered its price target on Norwegian to $11 from $12. An earlier version misstated the figures.
Pedestrians walk by a T-Mobile store in New York.
Scott Mlyn | CNBC
(This story is for CNBC PRO subscribers only.)
Here are the biggest calls on Wall Street on Monday: