- UBS downgraded Bed Bath & Beyond to sell from neutral.
- Raymond James downgraded Bed Bath & Beyond to market perform from strong buy.
- Jefferies raised its price target on Etsy to $245 from $205.
- Loop upgraded Dollar General to buy from hold.
- Atlantic Equities upgraded Bank of America to overweight from neutral.
- Raymond James initiated Electronic Arts and Activision Blizzard as outperform.
- Cowen upgraded Under Armour to outperform from market perform.
- RBC downgraded Blackberry to underperform from sector perform.
- Goldman Sachs upgraded DraftKings to buy from neutral.
Here are the biggest calls on Wall Street on Tuesday: UBS downgraded Bed Bath & Beyond to sell from neutral UBS downgraded the retail chain store after the recent run-up in shares due to short selling and said it urged clients to take profits. "The recent move has tilted the risk-reward to the downside. The shares will eventually face stiff resistance from a turnaround that probably won't deliver linear progress. The challenges at BBBY are deep & will take time to fix. We believe the typical BBBY customer visits less than 5x per year. Thus, the retailer doesn't have the frequency to showcase changes it might make. Plus, it runs the risk that other retailers continue to siphon off these visits." Raymond James downgraded Bed Bath & Beyond to market perform from strong buy Raymond James downgraded the retail chain and said the stock's valuation was now "stretched" as investors continue to short the stock. "We are downgrading BBBY to a Market Perform rating from a Strong Buy rating, as BBBY is now trading above our prior target, and we can not justify moving our target higher to maintain our Strong Buy rating. To be clear, our change in opinion is not a reflection on Bed Bath & Beyond's turnaround potential. ... .That said, BBBY's recent performance over the past few weeks stretches its valuation and creates a far more balanced risk/reward set up over the next few months, in our view." Jefferies raised its price target on Etsy to $245 from $205 Jefferies raised its price target on the stock to a Street high and said the the e-commerce website has a "long runway" to keep adding customers. "Our deep dive into ETSY 's gross merchandise sales drivers confirms growth that continues to outpace broader e-commerce. We see gross merchandise sales per buyer becoming an increasingly important contributor, as a current 75% discount to EBAY gradually narrows. We also believe just 8% household penetration across ETSY's international geographies indicates there is a long runway to add buyers." Loop upgraded Dollar General to buy from hold Loop upgraded the discount chain store and said it sees "improved" financial performance among other things. "We are upgrading Dollar General to a Buy from a Hold rating while raising our price target to $260 from $220, implying 26% upside from current levels. We believe Dollar General has several strategic initiatives that will drive improved financial performance in F2021 and beyond, including DG Fresh, the non-consumable initiative ("NCI"), and expanding the rollout of produce and self-checkout." Atlantic Equities upgraded Bank of America to overweight from neutral Atlantic Equities upgraded the banking giant after its strong earnings report and said it had "substantial operating leverage" in 2022. "As we move through 2H21, capital returns will accelerate, providing an additional boost to EPS growth. We have increased our price target on BAC to $40 and upgrade to an Overweight recommendation. ... .Combined with exposure to the anticipated recovery in consumer lending in 2H21, support from rising noninterest income and strong cost control, we forecast substantial operating leverage for BAC in 2022." Raymond James initiated Electronic Arts and Activision Blizzard as outperform Raymond James initiated the video game company and said they would benefit from the accelerated "time share and distribution" caused by the coronavirus. "We are initiating coverage of the Interactive Entertainment sector and three companies: Activision Blizzard , Electronic Arts , and Take-Two Interactive Software. The interactive entertainment sector is a dynamic and evolving space, with ongoing structural shifts in entertainment time share and distribution accelerated by the COVID-19 pandemic." Cowen upgraded Under Armour to outperform from market perform Cowen said in its downgrade of Under Armour that consensus estimates were "too conservative." "Our recent checks suggest improved wholesale sell through at key U.S. wholesale Sporting Goods partners with lean inventory levels. We view implied Q4:20E guidance on revenue and EPS as conservative. We anticipate a recovery in brand momentum that is above consensus estimates into FY22." RBC downgraded Blackberry to underperform from sector perform RBC downgraded the software company after the recent run-up in shares due to short selling. "We are downgrading shares of BlackBerry from Sector Perform to Underperform. Our downgrade reflects: 1) the rally in BlackBerry's shares pushes valuation to multi-year highs and above peers; 2) the fundamental outlook for BlackBerry's UEM/Cylance businesses has not materially changed; and 3) the probability of an unannounced IP licensing gain appears low." Goldman Sachs upgraded DraftKings to buy from neutral Goldman upgraded the fantasy sports and betting operator and said the company was in a "leading" position as states legalize gambling. "We upgrade DKNG based on their sustained market leading position in key states, ability to participate in the economics of single operator states, and presence of national contracts which will allow them to achieve scale sooner than the broader peer group."
Josh Silverman, CEO of Etsy.
Adam Jeffery | CNBC
Here are the biggest calls on Wall Street on Tuesday: