Here are Tuesday's biggest analyst calls of the day: Facebook, Tesla, DraftKings, Peloton & more

Published Tue, Jan 19 20218:25 AM EST

Key Points

JPMorgan initiated Roku as outperform.
Deutsche Bank added a catalyst call buy on DuPont.
Susquehanna downgraded Virgin Galactic to neutral from positive.
Citi added a positive catalyst watch on Harley-Davidson.
Evercore ISI upgraded World Wrestling to outperfom from in line.
Morgan Stanley upgraded Darden to overweight from equal weight.
Goldman initiated McDonald's and Starbucks as buy.
Berenberg initiated DraftKings as sell.
UBS downgraded Peloton to sell from neutral.
Morgan Stanley upgraded Gilead to overweight from equal weight.
JPMorgan upgraded American Express to overweight from underweight.
Guggenheim named RH a best idea.
Mizuho upgraded Eli Lilly to buy from neutral.
BMO upgraded Facebook to outperform from market perform.
Jefferies raised its price target on Tesla to $775 from $650.

Here are the biggest calls on Wall Street on Tuesday: JPMorgan initiated Roku as outperform JPMorgan initiated the media streaming platform company and said it was 'well-positioned" in a future streaming world. "Our bull thesis is largely driven by what we believe to be Roku 's significant advertising opportunity, with only an estimated ~8-9% of TV ad budgets currently allocated to streaming, which significantly lags the shift in eyeballs." Deutsche Bank added a catalyst call buy on DuPont Deutsche added a catalyst call buy idea on the stock and said it was bullish on shares ahead of the company's early February earnings report. "We note that 5 downgrades of DuPont last week all highlighted a similar theme of a cyclical recovery largely priced into the shares following recent strong outperformance. However, what these downgrades are missing, in the our view, is the competitive advantage provided by DuPont's broad and deep technology base and strong research and development capabilities." Susquehanna downgraded Virgin Galactic to neutral from positive Susquehanna downgraded the space company mainly on valuation. "Space has piqued investor interest as SPCE nears commercial space flight, while the defense companies see space as among their highest-growth segments. We are downgrading SPCE to Neutral from Positive on valuation after its recent sharp move higher." Evercore ISI upgraded WWE to outperform from in line Evercore IS upgraded the media entertainment company and said it was a solid coronavirus recovery name. "Upgrading WWE to OP from IL: on the flipside, WWE looks like a COVID recovery idea which hasn't been fully priced in yet, and while 2021 is likely to remain challenged we see meaningful upside to consensus 2022 earnings expectations. Citi added a positive catalyst watch Harley-Davidson Citi added a positive catalyst watch on the motorcycle company and said it was expecting "greater clarity" when the company reports earnings in early February. "We are putting Harley on Citi's 30-day Catalyst watch-list. Harley Management will reveal its 2021-2025 strategic plan, along with its 4Q 2020 results, on Tuesday, February 2, via webcast. We expect investors will receive greater clarity on priority markets that Harley plans to focus on, overall strategic direction, and most importantly financial goals." Morgan Stanley upgraded Darden to overweight from equal weight Morgan Stanley upgraded the restaurant hospitality company and owner of brands like Olive Garden and said it sees an upcoming surge in dining out post coronavirus. "We upgrade DRI to OW as our preferred play on a potentially stronger-than-expected surge in demand for dining out post- Covid, margin visibility, and falling unit supply." Goldman initiated McDonald's and Starbucks as buy and added Chipotle to the conviction buy list Goldman initiated several restaurant franchise company's and said they were well positioned to "capitalize" in a digital world. "We are Buy-rated on CMG, DPZ, DRI, EAT, JACK, MCD, SBUX, WING and see 13% avg upside to current share prices. We expect large chains to capitalize on the digital transformation to drive top-line growth, more efﬁcient 1x1 marketing, and strategy decisions. Strong and improving unit-level economics and share opportunities from independent restaurant closures in 2020 support unit development." Berenberg initiated DraftKings as sell Berenberg initiated the gambling and fantasy sports company and said shares were "fairly valued." "So far DraftKings has performed well in the US; however, we think future market share expectations are overoptimistic. We also think the shares are priced for perfection. Even assuming DraftKings achieves a market-leading position in sports-betting and iGaming, we would see the shares as fairly valued." UBS downgraded Peloton to sell from neutral UBS downgraded the exercise equipment company and said investors now need to be "wary" of businesses that have been coronavirus beneficiaries. "We downgrade CHWY, FVRR & PTON from Neutral to Sell – we collectively see all three as emblematic of a market that values growth over any semblance of valuation that can be justified on a multiple yr view based on our fundamental analysis. Given recent market activity, we think investors need to be wary of the rising trend of bull market optimism in a handful of businesses that have been either COVID-19 'beneficiaries' and/or have come to the public markets in the last 6-18 mos." Morgan Stanley upgraded Gilead to overweight from equal weight Morgan Stanley upgraded Gilead and said it sees more "positive results" on some of the company's products like its HIV treatment. "We believe the years of reinvestment and business transformation could yield positive results in 2021 driven by clarity on extending the HIV franchise into 2040 and a new growth opportunity from Trodelvy in HR+ breast cancer. Upgrade to OW and raise our PT to $83." JPMorgan upgraded American Express to overweight from underweight JPMorgan double upgraded the payment and credit card company and said it expects "pent up demand" for leisure travel in late 2021. " AXP : will lap severe spending decline in March/April 2021. This positions AXP to rebound from being a top-line laggard to top-line leader in 2H21. Consistent with great financial crisis, high-end spend is likely to rebound sharply (and early) as economy recovers. Pent up demand for leisure travel has potential to be unprecedented catalyst in 2H21. Earnings growth, earnings upside, potential for reserve releases and buy-backs screen among best in our coverage. Guggenheim named RH a best idea Guggenheim named the stock as a best idea and said it thinks investors now have a better appreciation for the company's luxury brand. "When combined with the upcoming opening of RH England (slated for Spring 2022), we believe RH is positioned for a significant valuation reset as investors gain a greater appreciation for the 'reach' of RH's luxury brand platform. In turn, we are raising our price target to$650 from $525 (Exhibit 1) and officially labeling RH as our 2021 Best Idea." Mizuho upgraded Eli Lilly to buy from neutral Mizuho upgraded the pharmaceutical company and said it was bullish on the latest data on the company's Alzheimer's antibody drug. "We have debated upgrading LLY shares for some time through a catalyst-heavy period for the company, as well as macro uncertainties mainly related to the US election. The company effectively navigated that period and then surprised us to the upside last week with positive Phase 2 data from their Alzheimer's antibody donanemab." BMO upgraded Facebook to outperform from market perform BMO said in its upgrade of the social media company that antitrust risks are "baked in" after the recent pullback in shares. "We believe the events at the U.S. Capitol reinforced our concerns about open social media systems, and along with prior issues like misinformation, hate speech and advertiser boycotts, there continues to be a risk to margins from more 'safety and security' spending. While antitrust proceedings against FB are now formal, we think the risk of material action in the next 12 months is relatively low." Jefferies raised its price target on Tesla to $775 from $650 Jefferies raised its price target on the stock and said Tesla continues to be an industry leader in technology. The firm reiterated its hold rating on the stock. "We raise Tesla earnings forecast and price target ahead of Q4 results. Tesla continues, in our view, to lead industry change in terms of technology and business model. However, improved access to capital may turn Chinese NEV OEMs into more significant challengers than traditional legacy OEMs."

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Here are the biggest calls on Wall Street on Tuesday: