- Jefferies upgraded Zillow to buy from hold.
- Piper Sandler downgraded Salesforce to neutral from overweight.
- Baird named Boeing a top pick in 2021.
- Morgan Stanley named Uber a top pick in 2021.
- Jefferies upgraded CrowdStrike to buy from hold.
- Bank of America raised its price target on Tesla to $900 from $500.
- Citi raised its price target on Roku to $460 from $375.
- Morgan Stanley upgraded Exxon Mobil to overweight from equal weight.
- Guggenheim upgraded Walgreens to buy from neutral.
- Citi upgraded Bank of America to buy from neutral.
- Cowen upgraded JetBlue and United Airlines to outperform from market perform.
- Goldman Sachs named Verizon a top pick in 2021.
- UBS upgraded Ralph Lauren to buy from neutral.
- JPMorgan raised its price target on Disney to $210 from $175.
(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Monday: Jefferies upgraded Zillow to buy from hold Jefferies upgraded the online home search company and said it sees an "attractive" risk/reward. "Late to the open house but coming ready to bid: Z outperforms as strong housing demand drives revenue growth/margins higher at the legacy IMT business, while Zillow Offers creates an attractive risk-reward by allowing Z to tap into $2T in residential housing transactions." Piper Sandler downgraded Salesforce to neutral from overweight Piper said in its downgrade of the stock that it sees an "overhang" after the company's recent acquisitions. "The $43B+ invested in two M & A transactions in less than two years has contributed to a fully diluted share count that is poised to increase 24% or approximately 194M additional shares from July 2019. This overhang creates a more challenging set-up for CRM during 2021, in our view." Baird named Boeing a top pick in 2021 Baird named Boeing a top pick and said it was a "top cyclical play on recovery." "The 737-MAX was cleared for return to service in November, over 20 months after the plane was grounded. This alleviates one of the two major overhangs on the stock in the near term and shifts focus onto the pace of the greater air travel recovery which sentiment continues to improve on following promising vaccine data, and we expect this trend to continue through the balance of 202." Morgan Stanley named Uber a top pick in 2021 Morgan Stanley named the ride sharing company as a top pick and said it was bullish on Uber Eats among other things. "In our view, UBER is more similar than the market is appreciating given growth rates are similar, Uber Eats is set to become profitable in '21and is already profitable in 10+ countries outside of the US (~55% of Uber Eats is outside of the US)." Goldman Sachs named Verizon a top pick in 2021 Goldman named Verizon a top pick and said it was a "beneficiary" of an improving economy. "The most attractive balance or total return and risk. VZ is well positioned to accelerate wireless service revenue growth in 2021 driven by greater uptake of higher priced unlimited data packages. We also expect VZ will be a beneficiary of an improving economy which should help support Enterprise and small mid sized business spending." Jefferies upgraded CrowdStrike to buy from hold Jefferies upgraded the cyber security company and said it was a "category winner" that would continue to see "hyper growth for years." "We believe CRWD 's dream of defining a new category - The Security Cloud - is coming closer to fruition. We view CRWD as a great company and a category winner that is addressing a huge and ever expanding total addressable market which should sustain hyper growth for years." Bank of America raised its price target on Tesla to $900 from $500 Bank of America reiterated its neutral rating on the company but raised its price target on the stock to a Street high and said it sees an "upward stock spiral." "Raising PO to $900 following stock run & 4Q:20 deliveries Last weekend, TSLA announced 4Q:20 deliveries of 180,750 units, bringing total 2020 deliveries to 499,550 units, just shy of the company's 500k target, although ahead of somewhat more conservative Street estimates." Citi raised its price target on Roku to $460 from $375 Citi raised its price target on the stock to a Street high after the streaming company announced it was acquiring short-form streaming platform, Quibi. "Friday morning, Roku announced it acquired Quibi Holdings, which holds all of Quibi's global content distribution rights. The deal includes more than 75 completed programs and 200 hours of programming. The content rights are in perpetuity and will be exclusively shown on Roku's AVOD service "The Roku Channel.'" Morgan Stanley upgraded Exxon Mobil to overweight from equal weight Morgan Stanley said in its upgrade of the oil and gas company that it sees "better days ahead" and 30% return potential. " XOM has underperformed CVX by ~50% over the past 5 years. Now, spending reductions and a recovery in margins underpin above consensus FCF, boosting dividend cover. We expect the ~8% yield to compress as concerns about a cut abate, supporting > 30% total return." Guggenheim upgraded Walgreens to buy from neutral Guggenheim upgraded the pharmacy retail store and said the company is "finally positioned" for an "upward earnings revision cycle." "While WBA continues to battle ongoing structural pressures in the retail pharmacy industry, we believe the company is finally positioned for a potential upward earnings revision cycle (relative to consensus estimates), coupled with significant capital deployment optionality after the Alliance Healthcare divestiture." Citi upgraded Bank of America to buy from neutral Citi upgraded the banking giant and said Bank of America was one of the "largest beneficiaries of capital return." "we think what might come as a surprise is a larger rebound in 2021 off 3Q levels helped by lower premium amortization and potential deployment of excess liquidity into securities next year. We believe they are also one of the largest beneficiaries of capital return, which should resume next quarter." Cowen upgraded JetBlue and United Airlines to outperform from market perform Cowen upgraded the two airlines stocks and said the firm preferred airlines with exposure to "domestic leisure." "With pain expected in 1H21 and uncertainty about corporate / international travel, we continue to prefer leisure domestic focused airlines near term but admit some investors will be looking at 2H21 for "reopening" ideas. Our preference is Southwest, Spirit and Alaska; however, our preference for investors looking for a 'reopening' play is United, Air Canada and JetBlue ." UBS upgraded Ralph Lauren to buy from neutral UBS upgraded Ralph Lauren and said it sees the retail fashion company with a long lasting "upward" earnings per share revision cycle. "We think stocks with these 3 criteria will shine this year: 1) will benefit from transformational changes which have been overlooked by the market due to its focus on the pandemic; 2) sell-side consensus 2021/2022 estimates are too low; and 3) underperformed in 2020. We believe these stocks will have upward EPS revision cycles lasting longer than expected which drive P/E expansion." JPMorgan raised its price target on Disney to $210 from $175 JPMorgan raised its price target on the stock tying a Street high and said the entertainment giant was a "clear winner" in the streaming wars. "We believe Disney is almost certain to be a clear winner in streaming along with Netflix, and is so far the most notable legacy media company to successfully transition to a significant DTC model."
A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
(This story is for CNBC PRO subscribers only.)
Here are the biggest calls on Wall Street on Monday: