- Bank of America upgraded JPMorgan to buy from neutral.
- JPMorgan downgraded Coca-Cola to neutral from overweight.
- BTIG initiated Teladoc as buy.
- Stephens downgraded Domino's Pizza to equal weight from overweight.
- Wedbush added Williams-Sonoma to the best ideas list.
- Citi opened a negative catalyst watch on Twitter.
- Jefferies upgraded Wells Fargo and JPMorgan to buy from hold.
- Citi opened a positive catalyst watch on Nvidia.
- Cowen upgraded Foot Locker to outperform from market perform.
- Barclays downgraded Kroger, Albertson's and Big Lots to underweight from equal weight.
- RBC upgraded Tesla to sector perform from underperform.
- Susquehanna downgraded SolarEdge to neutral from positive.
- Bank of America downgraded 3M to neutral from buy.
- Evercore ISI resumed Charter as outperform.
- Wolfe downgraded FedEx to peer perform from outperform.
- Piper Sandler named Broadcom a top pick in 2021.
- Oppenheimer upgraded McDonald's to outperform from perform.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Thursday: Bank of America upgraded JPMorgan to buy from neutral Bank of America said in its upgrade of the stock that it was one of the best positioned banks. "We anticipate the pushback on upgrading JPM when the multiple is at 2.1x TBV, higher than both the big bank and broker average. But, we believe JPM is uniquely better-positioned to benefit from these themes vs. big banks we cover: a stimulus-aided comeback of the US consumer, the potential return of travel and restaurant spend, and the steepening of the curve." JPMorgan downgraded Coca-Cola to neutral from overweight JPMorgan lowered its rating on the stock over concerns about the company's tax-related disputes. "We are downgrading Coca-Cola to Neutral from Overweight due to the increased risk that KO loses its current tax dispute with the IRS (although we still think KO has a strong case)." BTIG initiated Teladoc as buy BTIG initiated the online telehealth company and said it sees more growth over the long term. "While some investors may be worried that an increase in in-person provider visits may cause a decline in the 'tele-health surge' related to the pandemic, our view is that TDOC 's volumes will continue to grow steadily, even post-COVID." Stephens downgraded Domino's Pizza to equal weight from overweight Stephens downgraded the pizza chain company and said it was concerned about Domino's "average unit volume" estimates being "unachievable" as consumers return to indoor dining in late 2021. "Conversely, we are downgrading the 2020 darling, DPZ, from OW to EW with an observation that 2021 AUV estimates may be unachievable." Wedbush added Williams-Sonoma to the best ideas list Wedbush added the stock to its best ideas list on the heels of the company's surging e-commerce sales. " WSM' s business has changed dramatically in the past 10 months since the coronavirus pandemic began. Sales have surged through its E-commerce segment to more than 2/3 of total sales as Retail segment sales declined, while margins have jumped to new highs." Citi opened a negative catalyst watch on Twitter Citi opened a negative catalyst watch on Twitter and said it was concerned about "weakness" in the company's next earnings report. "We expect a bumpy ride, with potential weakness after 4Q20 results and potential strength ahead of (and perhaps after) the Analyst Day. ... .We are opening a negative Catalyst Watch ahead of 4Q20 earnings, as 3P data indicates downside risk to 4Q20 Street monetizable daily active users." Jefferies upgraded Wells Fargo and JPMorgan to buy from hold Jefferies upgraded Wells Fargo and JPMorgan and said the two banking giants were "attractive." "Even after the 'blue wave' rip, we believe banks' relative PEs remain attractive and a case for absolute P/E expansion exists. EPS ests are rising mostly on a 'less bad' credit outlook. Rev. growth remains a pain point but higher long rates and an eventual turn in loan growth could join strong deposit growth, better cost control and a restart of buybacks as positives." Citi opened a positive catalyst watch on Nvidia Citi opened a positive catalyst watch on the company ahead of Nvidia's presentation at the Consumer Electronics show next week and said it sees upside. "We add NVDA to Citi's Catalyst Watch list and expect the stock to outperform out of Consumer Electronics Show next week following recent underperformance. We expect hyperscale-led data center demand recovery in 1H21 and sustained PC gaming demand despite tight supply to drive upside to near-term Street estimates." Cowen upgraded Foot Locker to outperform from market perform Cowen upgraded the athletic footwear company and said Foot Locker had "durability" and "dividend growth." "Our survey work indicates that Foot Locker is the destination of choice for sneakers in the U.S. across demographics particularly in the key millennial cohort, where Foot Locker dominates all other concepts." Barclays downgraded Kroger, Albertson's and Big Lots to underweight from equal weight Barclays downgraded several retail and food company stocks and said they fall into the "slippery" category with tough 2021 comps among other things. "Downgrading KR , ACI , UNFI and SPTN to Underweight as we believe these Food retailers/distributors belong in the 'Slippery' camp, will face challenges in FY21 due to tough compares and will have to invest meaningfully in price while having little flexibility on opex as comps slow; downgrading BIG to Underweight as we believe BIG also belongs in the 'Slippery' camp, with its core customer potentially facing tax headwinds in 1H21, resulting in meaningfully negative comps and material deleverage that more than offsets any upside from fiscal stimulus." RBC upgraded Tesla to sector perform from underperform RBC said in its upgrade of Tesla that the firm got the call wrong on the stock and that it felt more confident about the company's "valuation and positioning." "We took a fresh look at the growth opportunity, what we got wrong about TSLA 's positioning and the valuation and conclude that the stock price itself is likely to be somewhat self-fulfilling to TSLA's growth and strategy." Susquehanna downgraded SolarEdge to neutral from positive Susquehanna downgraded SolarEdge mainly on valuation. "Although we think the outlook for the solar sector remains robust, most of the external catalysts for the sector are being priced in or have already come to fruition, in our view. In the US, the recent two year extension of investment tax credits for solar likely stimulates demand over the next few years." Bank of America downgraded 3M to neutral from buy Bank of America downgraded the multinational conglomerate and said it was concerned about the litigation over PFAS. PFAS, or per-and poly-fluoroalkyl substances, are a group of synthetic chemicals that have been used in the United States since 1940. "We are downgrading 3M to Underperform on growing PFAS-related risks as a result of the Democrats taking control of the US Senate. We believe Democratic control of the relevant Senate Committee and the EPA will accelerate legislation and regulation around PFAS contamination." Evercore ISI resumed Charter as outperform Evercore resumed coverage of the cable company and said it was a "levered equity growth story." " Charter 's strong competitive position in broadband, status as a pure play cable operator, and a shareholder-friendly capital structure and return profile combine to make an attractive investment case. Charter's levered equity growth story remains very much intact." Wolfe downgraded FedEx to peer perform from outperform Wolfe downgraded the shipping giant and said it was "cautious" on the stock and preferred UPS. "In the near term, we relatively prefer UPS over FDX with more near-term earnings upside in 4Q and 1Q, likely positive sentiment ahead of UPS's Analyst Day, and a little less exposure to record airfreight rates and volumes out of Asia." Piper Sandler named Broadcom a top pick in 2021 Piper named the semicondictor compamy a top pick and said the stock remains "cheap." "Overall, we believe the stock remains cheap relative to other players in the space, while offering much better financial metrics. As such, Broadcom is our top large cap pick for 2021. We reiterate our Overweight rating and are raising our price target to $500 from $440." Oppenheimer upgraded McDonald's to outperform from perform Oppenheimer upgraded McDonald's and said the stock was "underappreciated." " We believe: 1) the dominant US business enters 2021 armed with upgraded sales strategies to drive outperformance; 2) the potential for an offensive recovery in the hard-hit Int'l business is under-appreciated."
JPMorgan Chase CEO Jamie Dimon speaks at the North America's Building Trades Unions (NABTU) 2019 legislative conference in Washington, April 9, 2019.
Jeenah Moon | Reuters
(This story is for CNBC PRO subscribers only.)
Here are the biggest calls on Wall Street on Thursday: