Here are Tuesday's biggest analyst calls of the day: Dick's, Deere, Wells Fargo, Exxon & more

Published Tue, Dec 15 20208:25 AM ESTUpdated Tue, Dec 15 20208:48 AM EST

Key Points

Wells Fargo upgraded Exxon to overweight from equal weight and downgraded Chevron to equal weight from overweight.
Wells Fargo upgraded Zynga to overweight from equal weight.
Truist initiated Carvana as buy.
Goldman Sachs added Bristol Myers to the conviction buy list.
Stephens initiated Dick's as underweight.
Oppenheimer initiated Deere as outperform.
Piper Sandler initiated The RealReal as overweight.
Citi upgraded Marriott to buy from neutral.
KBW upgraded Wells Fargo to outperform from market perform.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Tuesday: Wells Fargo upgraded Exxon to overweight from equal weight and downgraded Chevron to equal weight from overweight Wells Fargo upgraded Exxon and said it sees activist involvment, reduction of expenses, and cash flow for the dividend in 2021. The firm also downgraded Chevron and said it sees limited upside mainly based on valuation. "In 2021, we expect more supportive macro tailwinds, but realize significant challenges exist and maintain an average Brent price below $50. In what might be perceived as controversial, we raise XOM to Overweight and reduce CVX to Equal Weight." Wells Fargo upgraded Zynga to overweight from equal weight Wells Fargo upgraded the social game developer and said it sees a "favorable" risk/reward. "Upgrading to Overweight from Equal Weight, post Q3 results stock reaction appears overdone; stock looks inexpensive relative to growth. We think shares of ZNGA present a favorable risk/reward in light of a new, more detailed strategic vision of organic growth, which CEO Gibeau recently articulated. Truist initiated Carvana as buy Truist initiated the online auto company and said it was at the forefront of digital disruption. "As a leading ecommerce platform for buying and selling used cars, Carvana is at forefront of the digital disruption in this ~$840B category. We expect expanding vehicle selection, increasing coverage, faster delivery and rising brand awareness to drive a robust 32% revenue CAGR and ~9% market share over the next 10 yrs." Goldman Sachs added Bristol Myers to the conviction buy list Goldman added the pharmaceutical giant to its conviction buy list and said it sees the company's pipeline data driving "upward estimate revisions and multiple expansion." "On our estimates, BMY trades at the widest valuation discount in our sector (2021 P/E of ~8x vs. group average of ~13x), which in our view is tied to the magnitude of the company's loss of exclusivity cliff in the second half of the decade and debates about future revenue contribution from recently launched products and pipeline assets." Stephens initiated Dick's as underweight Stephens initiated the sporting goods store and said that consensus was too optimistic for Dick 's gross margin outlook. "We do believe that the sporting goods industry remains on solid footing, and some of the consumer shifts during COVID-19 likely sustain into 2021. However, we believe consensus is too optimistic on the gross margin outlook for 2021, as an inflationary freight backdrop, normalizing occupancy costs, and normalizing promotional cadence should pressure margins." Oppenheimer initiated Deere as outperform Oppenheimer initiated the agricultural and machinery construction equipment company and said it sees ag fundamentals improving. "As the leading agriculture equipment OEM, DE has a scale advantage in defining the agricultural technology landscape, we believe. Its recent corporate reorganization focusing on production systems enables it to become more customer-centric, while freeing up capital to invest in value-creating technologies." Piper Sandler initiated The RealReal as overweight Piper initiated the online luxury store and said it sees a compelling entry point "We are optimistic that closet clean outs should rebound post vaccine which should support supply & in turn meet demand and see gross margin value accelerating starting in 2Q21. While REAL appears to still be a few years from profitability, it has adopted new levers during COVID including virtual appointments and smaller-format stores which could stem losses. Longer-term, we favor the exposure to luxury markets, the resale market & a solid ESG angle." Citi upgraded Marriott to buy from neutral Citi upgraded the hotel chain and said it was on the cusp of a "multi-year" recovery. "We upgrade MAR to Buy with an overweight position in our model portfolio and a $150 price target, or 21.0x 2022E EBITDA. We believe the industry is on the cusp of a multiyear recovery; MAR can likely return to prior peak earnings sooner relative to owners given not only improving revenue trends but also continued 3-4% annual net unit growth." KBW upgraded Wells Fargo to outperform from market perform KBW upgraded the banking giant and said it sees an attractive entry point. "We are upgrading shares of Wells Fargo to Outperform as we believe that the longer-term prospects for the company are still substantial, and we find the current valuation an attractive entry point. Overall, we see the rewards outweighing the risks in our outlook and the company's ongoing transformation should be both positive for returns and share price longer term.

A pedestrian wearing a protective mask walks past a Wells Fargo & Co. bank branch in New York, U.S., on Thursday, July 9, 2020.

Peter Foley | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Tuesday: