- HSBC upgraded Chevron to buy from hold.
- Morgan Stanley upgraded Intel to overweight from equal weight.
- KeyBanc initiated Caesars as overweight.
- JPMorgan downgraded Urban Outfitters to neutral from overweight.
- RBC upgraded Chipotle to outperform from sector perform.
- Oppenheimer upgraded Shopify to outperform from perform.
- Susquehanna downgraded Delta to neutral from positive.
- Truist raised its price target on Penn to $120 from $85.
- Loop downgraded Penn to sell from hold.
- Telsey downgraded Nordstrom to market perform from outperform.
- JPMorgan downgraded DuPont to neutral from overweight.
- Citi raised its price target on Disney to $205 from $175.
- Bank of America raised its price target on Alphabet to $2,150 from $2,000.
- Argus upgraded General Motors to buy from hold.
- Barclays downgraded Hewlett-Packard to underweight from equal weight.
Here are the biggest calls on Wall Street on Thursday: HSBC upgraded Chevron to buy from hold HSBC said in its upgrade of the oil and gas company that it was in a "stronger" financial position than many peers. "We've been surprised by the relative weakness of Chevron' s shares recently, with the shares underperforming the peer group by 11% in the past two months. We can see reasons for them to have underperformed earlier in 2020 - Chevron is one of the most oil price-levered of the IOCs, a factor reflected in cash flows which deteriorated more than most in 2020." Morgan Stanley upgraded Intel to overweight from equal weight Morgan Stanley upgraded the stock after the company announced a new CEO on Wednesday. Intel was also received upgrades on Thursday from BMO, Cowen, Needham and Atlantic Equities. "At a time when cloud franchises are trading to premium multiples, INTC' s has compressed as market share will most likely decline in '21-'22. CEO transition should give clarity to manufacturing decisions and the pipeline, though that will take time to play out; risk reward is more positive." KeyBanc initiated Caesars as overweight KeyBanc initiated the gaming sector and said Caesars had the most "upside potential" in the group. "The legalization/proliferation of sports betting and online gaming are the industry's most significant growth opportunities in decades, and this enthusiasm has created a circular reference of bullish sentiment and ever-increasing TAM estimates, approaching highs of $50B for the combined online sports betting/iGaming market." JPMorgan downgraded Urban Outfitters to neutral from overweight JPMorgan downgraded the lifestyle retail company after it missed holiday sales expectation. " URBN reported -8.4% Holiday (Nov/Dec) net sales, missing our below Consensus -1.2% estimate and the Street estimates at -1.2%. ... .We also note President & CEO of the Urban Outfitters brand, Trish Donnelly, will be leaving to pursue another opportunity." RBC upgraded Chipotle to outperform from sector perform RBC upgraded the Mexican chain restaurant and said it still sees more upside in the stock for 2021. "Although shares appreciated significantly in 2020, we see further upside from improving new restaurant returns, supporting accelerating CMG unit development against a backdrop of broader restaurant industry supply contraction in 2021." Oppenheimer upgraded Shopify to outperform from perform Oppenheimer said in its upgrade of the stock it was a "category leader" and "disruptor." "While the stock has been a big winner since its IPO in 2015, we believe there is still upside from here as the shift to digital Commerce is accelerating and has been catalyzed by the COVID-19 pandemic, and we believe that Shopify is a Digital Commerce category leader, disruptor, and share gainer for the long-term." Susquehanna downgraded Delta to neutral from positive Susquehanna downgraded Delta mainly on valuation and said it saw a "better risk-reward" in some of the other airline stocks. "That said, with the stock up ~30% since 11/6 (the Friday before the wave of vaccine announcements) and exposure to int'l and business traffic (we estimate > 45% of revenue), we see better risk-reward in shares of LCCs LUV and ALK." Truist raised its price target on Penn to $120 from $85 Truist raised its price target on the stock to a Street high and said shares were expensive but that the firm still sees more upside and was bullish on the opportunity. " PENN shares are not cheap, but we continue to see momentum around the Barstool (both for sports betting and the growing value of its media brand)." Loop downgraded Penn to sell from hold Loop downgraded the gaming company operator and said the stock's outperformance was "unwarranted." "The stock has meaningfully outperformed over the past year (up ~300% vs. +16% for the S & P 500 Index), which we attribute to investors' 'hope' that PENN can successfully capitalize on the growing online gaming opportunity in the U.S." Telsey downgraded Nordstrom to market perform from outperform Telsey downgraded the stock mainly on valuation. "After the market close last night, JWN reported its 2020 sales results for the holiday period. Sales declined 22% over the nine weeks ending January 2 compared to the prior year period, in line with management's expectation for a decrease in the low-20% range and the consensus estimate for a 21.2% decline for the fourth quarter as a whole." JPMorgan downgraded DuPont to neutral from overweight JPMorgan downgraded the stock mainly on valuation. "Higher level, we have an unwritten rule that if a stock goes up 100% within a year, we seriously consider a downgrade, and while we have admittedly been early to take money off the table before, with the prevailing backdrop we are moving DD from OW to Neutral and removing it from the focus list." Citi raised its price target on Disney to $205 from $175 Citi said it preferred Disney over Netflix as it thinks Netflix may have some "hiccups" like price hikes in the months ahead. "First, as a late entrant, we think Disney has a quicker and easier path to sub growth over the next three years. Second, we suspect Netflix may have some hiccups over the next few quarters as price hikes potentially dampen quarterly net adds, tactically disappointing the Street. Disney, on the other hand, is apt to keep prices relatively stable." Bank of America raised its price target on Alphabet to $2,150 from $2,000 Bank of America raised its price target on Alpahbet and said search ads was recovering "faster than expected." "Given recent eCommerce strength, and ongoing digital business model shift by traditionally Offline businesses, we believe that search advertising could be recovering faster than expected in Street estimates. For 2021 we estimate $181.9bn in revenue (20% search growth vs 5% in 2019), above street at $179.5bn." Argus upgraded General Motors to buy from hold Argus said in its upgrade of the stock that it was bullish on the company's electric vehicle opportunity. " GM continues to diversify its business as it expands into electric and autonomous vehicles. It also benefits from high margins in North America, solid cash flow, and a strong balance sheet. We believe that investors have undervalued the company's strength in traditional internal combustion vehicles, as well as its Chinese JV, Ultium battery, and financial services businesses." Barclays downgraded Hewlett-Packard to underweight from equal weight Barclays downgraded the company due to "secular headwinds" in the PC and printing businesses. "We are downgrading HPQ to Underweight from Equal Weight. Though the stock and fundamentals have benefitted from WFH dynamics, we see secular headwinds in both the PC and Printing businesses from 2021 onward."
A customer wearing a protective mask enters a Chipotle Mexican Grill Inc. restaurant in San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Here are the biggest calls on Wall Street on Thursday: