Here are Tuesday's biggest analyst calls of the day: GE, Microsoft, Ulta, Target & more

Published Tue, Nov 24 20208:09 AM EST

Key Points

KeyBanc initiated Microsoft as overweight.
Jefferies downgraded Ulta to hold from buy.
KeyBanc initiated Salesforce as overweight.
Oppenheimer upgraded General Electric to outperform from perform.
Raymond James upgraded Wells Fargo to outperform from underperform.
Deutsche Bank downgraded ViacomCBS to hold from buy.
Opppenheimer upgraded O’Reilly Automotive to outperform from perform.
Argus upgraded Target to buy from hold.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Tuesday: Oppenheimer upgraded General Electric to outperform from perform Oppenheimer said in its upgrade of the multinational conglomerate that it finally sees a turnaround "gaining traction" under CEO Larry Culp. "Operationally, GE has clearly set a positive direction with broadening momentum, on diligent and better-focused restructuring and cultural decentralization/accountability taking hold. ... .GE continues to emphasize a long game of inches, but we also believe the pace of manifest improvements picking up, as lean becomes culturally reinforcing and Culp's turnaround gaining traction." KeyBanc initiated Microsoft as overweight KeyBanc initiated the multinational technology company and said it was bullish on the company's strong leadership and dominance in cloud computing among other things. "Under CEO Satya Nadella, Microsoft has leapt from dominance of PC era operating systems and productivity tools, to leadership among a handful of vendors across hyperscale cloud computing and SaaS. We expect that leadership to drive 11% revenue CAGR FY20-FY23E and modest margin expansion, given: 1) high barriers to entry in hyperscale cloud; 2) plethora of application upsell." Jefferies downgraded Ulta to hold from buy Jefferies downgraded the beauty retailer and it sees a "softer and more elongated" holiday season for Ulta. "We are moving to a Hold, based on competing forces in our thesis and limited upside to our fair value assessment. We expect a softer & more elongated holiday and higher penetration of lower-margin e-com. We are optimistic that by 2H21, mass inoculation for COVID will usher in a new normalcy." KeyBanc initiated Salesforce as overweight KeyBanc said in its initiation of the company that it views Salesforce as a "core growth-software" holding. "Salesforce was the pioneer of Service as a Software customer relationship management (CRM), and of SaaS as a whole. We view CRM as a core growth-software holding, with a dominant 20% share in CRM "front office" applications—the largest software applications category—well ahead of #2 SAP at 6%." Raymond James upgraded Wells Fargo to outperform from underperform Raymond James double upgraded the banking giant and said it finally sees "positive" catalysts on the horizon. "We are upgrading shares of Wells Fargo to Outperform from Underperform, as headwinds stemming from the account opening scandal that broke more than four years ago begin to rescind. With the worst likely in the past, we now believe that its pretax pre-provision income has troughed, revenue is nearing a bottom, a multi-year expense rationalization initiative can finally be taken on, and repurchase activity can return in the near future." Deutsche Bank downgraded ViacomCBS to hold from buy Deutsche Bank downgraded the media company and said it sees a ''decline" in the "traditional" network business "While we believe that streaming will continue to be a source of growth within VIAC, we don't know enough at this time to conclude that it will be more than a hedge against the decline in the traditional networks business from a long term EBITDA and FCF perspective." Oppenheimer upgraded O'Reilly Automotive to outperform from perform Oppenheimer upgraded the auto parts retailer and said the company's valuation is "compelling." "We are lifting our rating on O'Reilly Auto to Outperform and establish a 12-18 month price target for shares of $555, suggesting upside of 25% from current levels. ... .While not necessarily 'cheap', the valuation of ORLY remains compelling and affords investors a high quality opportunity to play a strengthening sector backdrop." Argus upgraded Target to buy from hold Argus upgraded the big box retailer and said it sees"market share gains" as the company continues to gain "relevance" with shoppers. " Target 's shoppers are not just shopping more, they are making purchases from a wider range of categories. We believe that winning business at a time when technology and shopping behavior are changing rapidly and a big swath of the retail market is struggling could be a good indicator of future customer loyalty and market share gains."

Larry Culp, CEO, General Electric

Scott Mlyn | CNBC

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Tuesday: