- Citi initiated McDonald's as neutral.
- Pivotal upgraded Under Armour to buy from hold.
- Bank of America upgraded Expedia to buy from neutral.
- RBC downgraded Coca-Cola to sector perform from outperform.
- RBC downgraded Pepsi to sector perform from outperform.
- RBC upgraded Reynolds to outperform from sector perform.
- RBC downgraded Colgate to sector perform from outperform.
- Bernstein downgraded Boeing to underperform from market perform.
- Baird added Boeing to the fresh pick list.
- Barclays upgraded Goldman Sachs and Morgan Stanley to overweight from equal weight.
- RBC upgraded Humana to outperform from sector perform.
- Deutsche Bank initiated DoorDash as buy.
- Jefferies initiated Airbnb as buy.
- Jefferies upgraded Molson Coors to buy from hold.
- Raymond James upgraded AT&T to outperform from market perform.
- Raymond James downgraded Estee Lauder to market perform from outperform.
- Deutsche Bank named Uber a top pick.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Citi initiated McDonald's as neutral Citi initiated the fast food chain with a neutral rating and said it was concerned about a "slower recovery" in international markets. "We also initiate coverage on MCD with a Neutral rating and TP $230/sh for 10% total upside reflecting guest count growth initiative already reflected in the stock price, and our concerns for potentially slower recovery in its international markets." Pivotal upgraded Under Armour to buy from hold Pivotal said in its upgrade of the stock that the company is "better off" than it was before the coronavirus. "First, COVID has elevated athletic demand, which is a rising tide for UAA . Second, COVID has accelerated ecommerce adoption, which favors apparel/footwear vendors in general. Third, we believe the competitive landscape is less ominous today than before COVID." Bank of America upgraded Expedia to buy from neutral Bank of America upgraded the online travel website and said Expedia was "the most levered play on travel recovery." "Long-term the eCommerce sector has a better growth outlook due to lower penetration, but entering 2021, we prefer Online travel to eCommerce as we expect a 2H rebound in travel bookings, while eCommerce will face deceleration in 2021." RBC downgraded Coca-Cola to sector perform from outperform RBC said in its downgrade of the stock that it sees the company's valuation as "full." "Over the past few years, KO has emerged as a leader across the CPG space. While we feel management continues to make the right long-term decisions, the near-term appears out of their control. Our downgrade rationale is simple - we feel valuation is near-full and believe upwards EPS revisions are unlikely over the next few quarters as the negative implications of COVID last longer than consensus assumes." RBC downgraded Pepsi to sector perform from outperform RBC downgraded Pepsi mainly on valuation. "We believe the company will be able to maintain topline momentum via improving consumer insights and stepped up reinvestment. At 24x CY'21E EPS - a half turn away from its 5-yr peak - we are hard pressed to see material share price upside in the absence of material EPS upside." RBC upgraded Reynolds to outperform from sector perform RBC said in its upgrade of the stock that it believes the company will continue to be a beneficiary of home food consumption as the coronavirus passes. "While we recognize upcoming tough compares, we continue to believe COVID-19 has created long-lasting consumer behavior that should benefit at home food consumption. We believe REYN offers a more attractive way to play at home food for longer, trading at a 10% discount to packaged food." RBC downgraded Colgate to sector perform from outperform RBC said in its downgrade of the stock that it sees a more "balanced" risk/reward. "While there are still some issues to address, we expect improved execution and stepped up investment levels will leave CL in a better position on top-line than they were pre-pandemic. That said, with valuation at a premium to both the stock's historical average and large cap CPG peers, material upward earnings revisions will likely be necessary to drive share upside - which we are less optimistic on given our expectation for increased competitive intensity, particularly in oral care." Bernstein downgraded Boeing to underperform from market perform Bernstein said in its downgrade of the stock that it sees "cash pressure" for Boeing among other things. "The 737MAX is also now in service and deliveries have restarted (no surprise, but slightly behind our forecast). Even with that, the 5-year delivery and free cash flow outlook was only about half of our 2018 outlook. But, recently, the 787 has come under more pressure, which we do not believe the market fully appreciates." Baird added Boeing to the fresh pick list Baird added the stock to its bullish fresh pick list and said it sees "positive momentum." "Based on our proprietary checks, BA recorded its highest monthly aircraft delivery total for 2020 during December despite no 787 deliveries. BA had a surge in activity over the holidays with our checks indicating 35 aircraft being delivered during December." Barclays upgraded Goldman Sachs and Morgan Stanley to overweight from equal weight Barclays said in its upgrade of the banking giants that it sees "positive" earnings "surprises." "In our Money Center universe, we are raising our ratings on both GS and MS from Equal Weight to Overweight as we expect both companies to continue to benefit from positive earnings surprises, relatively more aggressive capital returns and business mix transitions (GS organic, MS inorganic) improving revenue durability." RBC upgraded Humana to outperform from sector perform RBC upgraded the insurance company and said it was "well positioned" for "strong growth." "Rating raised to Outperform on best visibility and best growth. Our view: We are raising our rating on HUM shares to Outperform and increasing our price target to $479 from $429. ... .Well positioned for strong growth in FY21 and beyond." Deutsche Bank initiated DoorDash as buy Deutsche said in its initiation of the delivery food company that it thinks investors are understimating the "core profitability" of food delivery services. "We launch coverage of DoorDash with a Buy rating and a 12-month price target of $185. We see a prospective path for shares to eventually compound to over $300 in a bull case, as the company continues to grow its core food delivery business and drive efficiency gains while also scaling its last-mile delivery Drive business." Jefferies initiated Airbnb as buy Jefferies said in its initiation of the online travel website that it was "best-in-class." "We view it as a key reopening play in travel and a core investment in growth tech portfolios. We believe ABNB will continue to take market share and return to profitability by '22. At 16x '22 net revenue, we think it is justified ABNB trades at a premium to innovative market leaders given margin potential and best fundamentals in travel." Jefferies upgraded Molson Coors to buy from hold Jefferies said in its upgrade of Molson that the "recovery" was not "adequately reflected" in the stock. "More ways to win in '21 than any time in recent years (on-premise, strategic alliances, etc.); b) Street '22 EPS ests. set low bar at -7% below pre-pandemic levels vs. +10-30% for our coverage. Our FY21-22 EPS ests. are +4%/+11% ahead of Street; c) Reinstitution of divi likely in 1H21 (+ signal for portfolio)." Raymond James upgraded AT & T to outperform from market perform Raymond James upgraded the media and telecommunications company and said it sees a "solid total return story." "While 4Q is likely to be an unimpressive quarter, between a whopper of a C-Band bill and pressures from the iPhone launch and marketing, we believe the situation improves for AT & T over the next 12 months, offering a solid total return story." Raymond James downgraded Estee Lauder to market perform from outperform Raymond James downgraded the stock mainly on valuation. "The shares performed extremely well in 2020, particularly considering the near-term headwinds presented by COVID-19, with investors looking past these obstacles and instead focusing on EL' s very attractive long-term secular growth opportunities, as well as its potential to emerge from the pandemic in a stronger competitive position." Deutsche Bank named Uber a top pick Deutsche Bank named Uber a top pick for 2021 and raised its price target on the stock to a Street high of $80 from $54. The firm cited "rideshare recovery" as vaccinations continue among other things. "We see meaningful upside potential to Uber shares in 2021 driven by our optimism around a strong 2H rideshare recovery as vaccinations spread, improving profitability at the Delivery segment and more broadly, as well as a better sense for long-term margins in food delivery as evidenced by DoorDash unit economics. We decrease near-term estimates on the COVID-19 case spikes but increase our 2H estimates for rideshare given high vaccine efficacy levels."
The NASDAQ market site displays an AirBnb sign on their billboard on the day of their IPO in Times Square in the Manhattan borough of New York City, New York, U.S., December 10, 2020.
Carlo Allegri | Reuters
(This story is for CNBC PRO subscribers only.)
Here are the biggest calls on Wall Street on Monday: