- Credit Suisse downgraded Kellogg to neutral from outperform.
- Piper Sandler downgraded Foot Locker to underweight from neutral.
- UBS downgraded Philip Morris to neutral from buy.
- JPMorgan upgraded Gap to overweight from neutral.
- Wells Fargo initiated Moderna as equal weight.
- Needham raised its price target on Roku to $315 from $255.
- Janney downgraded Vail to neutral from buy.
- Wedbush raised its price target on Tesla to $560 from $500.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Credit Suisse downgraded Kellogg to neutral from outperform Credit Suisse downgraded the cereal and snacks company over concerns about slowing growth in 2021. "We are downgrading Kellogg to Neutral and lowering our 2021 EPS estimate to $3.95 (from $4.10), bringing us slightly below 2021 consensus of $4.00 because we expect management to guide a year of elevated investment in 2021 without promising elevated sales growth." Piper Sandler downgraded Foot Locker to underweight from neutral Piper downgraded the footwear company on concerns about rising competition among other things. "We are downgrading shares of FL from Neutral to Underweight as we see muted near-term visibility as COVID cases accelerate into year-end around the globe. ... .Longer-term, we see FL being pressured by NKE going DTC and worry that the ongoing shift to digital will pressure FL's ability to recover to pre-COVID operating margins." UBS downgraded Philip Morris to neutral from buy UBS downgraded Philip Morris and said it sees several headwinds including slowing growth for the company's alternative tobacco heating system among other things. "We now see a re-rating as less likely on a 12 month view due to combination of: 1) emerging negative excise tax headlines, 2) Google Trend data suggesting slowing IQOS growth and 3) the year to date sustained acceleration of ESG flows in the US. As a result we downgrade to Neutral." JPMorgan upgraded Gap to overweight from neutral JPMorgan upgraded the clothing and accessories reatiler and said it's seeing "market share gains" and growth in the company's Old Navy and Athleta brands. "We upgrade GPS to Overweight. We believe Old Navy is benefitting larger picture from the disproportionate growth of 'value retail' and has seen market share gains across numerous categories (denim, dresses, active, kids/baby) w/ incremental market share $'s up for grabs due to JCP's recent bankruptcy and eventual door closures." Wells Fargo initiated Moderna as equal weight Wells Fargo initiated the biotech company with an equal weight rating and said questions such as competitive pressures and durability over Moderna' s vaccine still remain. "While initial results suggesting ~95% reduction in infection risk are compelling and should support a strong public health benefit, we believe that important questions remain regarding product potency and durability of protection over time and see risk from potential supply chain, distribution, and competitive pressures. Needham raised its price target on Roku to $315 from $255 Needham raised its price target on Roku to a Street high and analyst Laura Martin said she sees "long-term upside" for the streaming digital media company. "We believe COVID-19 dramatically reallocated consumer spending during 2020 so the best question for 2021 is which economic shifts are durable and persistent? We argue that ROKU benefits from long-term upside connected TV (ie, digital video ads shown on a TV screen) trends such as: a) political ad spending upside; b) accelerated cord-cutting and 43mm streaming-only US homes; c) more streaming devices per home." Janney downgraded Vail to neutral from buy Janney downgraded the ski resort company and said it thinks Vail 's ski season will be skewed more towards local vistors due to the coronavirus. "We think investors are overlooking several risks including the financial impact of capacity restrictions and the potential for local jurisdictions to impose more stringent limits on operations. We think demand this season will skew more towards local visitors, which are less profitable than destination skiers." Wedbush raised its price target on Tesla to $560 from $500 Wedbush raised its price target on the stock and said it sees a "steeper" electric vehicle adoption curve in the next 18 to 24 months. The firm also raised its bull case target to $1,000 from $800. "While Model 3's remain the core driver, going forward new designs around Cybertruck and Model Y will further aid growth globally and thus enable to Tesla to achieve its million delivery units likely by 2023 in our opinion. As such, we are raising our price target from $500 to $560 and new Bull Case target from $800 to $1,000 to reflect this steeper demand EV adoption curve over the next 18 to 24 months for Tesla with China and Europe the linchpins of growth."
Pedestrians pass in front of a GAP 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: