- Telsey upgraded Cracker Barrel to outperform from market perform.
- Goldman Sachs initiated Aflac as sell.
- Jefferies initiated Carvana as buy.
- Wolfe downgraded Boeing to underperform from peer perform.
- Guggenheim downgraded Dish to neutral from buy.
- Bank of America raised its price target on General Electric to $13 from $11.
- Goldman Sachs initiated Prudential as buy.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Friday: Telsey upgraded Cracker Barrel to outperform from market perform Telsey upgraded the restaurant chain company and said it sees trends "improving." "We are upgrading CBRL to OP from MP based on our estimate for Cracker Barrel to report steadily improving trends through this year and into next, management's adroit stewardship in managing its brand through both good times and tough times, and despite the risk of sustained volatility due to the pandemic." Goldman Sachs initiated Aflac as sell Goldman Sachs initiated the insurance company as sell and said it sees "execution risk" for Aflac . "Our Sell rating is largely driven by our expectation that sales and net premiums earned will remain under pressure and that upfront costs associated with platform investments to build sales momentum will not only create near-to-mid-term margin pressure, but also have execution risk, particularly in the US." Jefferies initiated Carvana as buy Jefferies initiated the online used car marketplace and said it was a "rare secular" beneficiary of the coronavirus on an "impressive" trajectory. "We believe the $550B market for used vehicles is ripe for disruption, and view CVNA' s scalable model and ability to reduce purchase friction as helping drive share gains. CVNA is also a rare secular beneficiary of COVID with easy comps, putting it on an impressive trajectory next year. In addition, we believe the stock could double if CVNA continues expanding market share at the historical pace." Wolfe downgraded Boeing to underperform from peer perform Wolfe downgraded the stock mainly on valuation. "We are relatively upbeat on the 737 MAX's long term prospects relative to other aircraft programs. And, as we just said, we expect airline capex will remain fairly elevated. But SPR is at our target price of$39 and BA is well above our fair value. Upside beyond this point requires contributions from more than just the MAX, which we struggle to see." Guggenheim downgraded Dish to neutral from buy Guggenheim said in its downgrade of the stock that it was struggling to see upside as the company enters a competitive wireless industry. "We are downgrading DISH to Neutral from Buy and removing it from our Best Ideas list. While we had hoped asset value would have been realized through either a sale of spectrum, or a partnership with a deep-pocketed tech firm, those scenarios are seemingly becoming much less likely. In our view, attacking a wireless industry with deeply entrenched competitors with a starting point of less than 10mn prepaid subscribers and a lengthy and costly build ahead isn't a strategy we can endorse." Bank of America raised its price target on General Electric to $13 from $11 Bank of America raised its price target on the stock tying a Street high and said it sees the coronavirus contributing to a growth in revenue in 2021. "On 12/3, GE posted an update from Kieran Murphy, CEO of GE Healthcare. With COVID- 19 cases rising globally, management still thinks low- to mid-single digit revenue growth is reasonable for 2021. Hospitals have added resiliency around COVID case loads. ... .Our target multiple is a discount to the 14x peer average on 2021 estimates, reflecting GE's lower margins and higher leverage." Goldman Sachs initiated Prudential as buy Goldman Sachs initiated the insurance, investment management, and financial services company and said Prudential had an "undervalued" insurance operation. "Our Buy recommendation comes despite what we believe is elevated credit risk relative to peers, as we believe that this is offset not only by a strong track record of credit management but also by an undervalued US insurance operation that trades at roughly 20% of liquidation value despite strong and protected cash ﬂows from its annuities book and a leading Retirement franchise that stands to beneﬁt from the SECURE Act."
Source: Cracker Barrel
(This story is for CNBC PRO subscribers only.)
Here are the biggest calls on Wall Street on Friday: