Here are Wednesday's biggest analyst calls of the day: Bed Bath & Beyond, GameStop, Wendy's & more

Published Wed, Jan 27 20218:31 AM EST

Key Points

Bank of America raised its price target on GameStop to $10 from $1.60.
Bernstein reinstated Visa, Master, Square and PayPal as outperform.
Baird downgraded Bed Bath & Beyond to neutral from outperform.
JPMorgan upgraded 3M to overweight from neutral.
KeyBanc downgraded Visa and Mastercard to sector weight from overweight.
Citi upgraded Dick's and Kohl's to buy from neutral.
Citi downgraded Ulta, Under Armour, and Five Below to neutral from buy.
Deutsche Bank upgraded Wendy's to buy from hold.
Wedbush downgraded Bed Bath & Beyond to neutral from outperform.
Bernstein initiated DraftKings as outperform.

Here are the biggest calls on Wall Street on Wednesday: Bank of America raised its price target on GameStop to $10 from $1.60 Bank of America raised its price target on the video game as its short interest rally continues. The firm added it remained skeptical on the company's turnaround. "While it is difficult to know how much very high short interest and retail ownership could continue to put upward pressure on shares, we think fundamentals will again factor into valuation and note that at current price of $148 and GME 's average five year EV of 3.7x it implies EBITDA of $2.6bn vs. $(65)mn in '20." Bernstein reinstated Visa, Master, Square and PayPal as outperform Bernstein reinstated coverage of several payment company stocks and said the sector was at an "inflection point." "Long-term, our highest conviction picks are SQ & PYPL . SQ is one of those rare stocks which is a Covid-19 winner, stimulus beneficiary and a recovery play. ... .PYPL is an under-monetized asset. ... .We have a slight preference for MA over V given MA's focus on casting a much wider net for future growth opportunities." Baird downgraded Bed Bath & Beyond to neutral from outperform Baird downgraded the retail store after the short interest rally and said shares have come too far too fast. "We are downgrading BBBY to Neutral from Outperform (and removing our positive 'Fresh Pick' designation) following the stock's robust YTD performance. While our bullish view of CEO Mark Tritton's transformation strategy remains unchanged, non-fundamental market dynamics are controlling the tape, and the significant EBITDA recovery opportunity we envision for the company is becoming increasingly appreciated by the stock." JPMorgan upgraded 3M to overweight from neutral JPMorgan said in its upgrade of 3M that it finally saw earnings as "sustainable" and that the stock was "cheap." "We think the guidance on sales growth is reasonable, and assuming the restructuring dynamics through FY22, which should be more clean with potential for inflection, we think consensus is doable, on which the stock is cheap." KeyBanc downgraded Visa and Mastercard to sector weight from overweight KeyBanc downgraded the two payment company's and said it saw "reduced visibility" but liked the stocks long term. "We adjust estimates and price targets/fair values across the group and lower our ratings on V and MA from Overweight to Sector Weight on prospects of sustained x-border travel headwinds and the associated reduced visibility trading at relatively full multiples; however, we retain our favorable LT bias on the secular opportunity for digital payments, management execution, and competitive moat." Citi upgraded Dick's and Kohl's to buy from neutral Citi said in its upgrade of Dick's and Kohl's that both stocks are "long-term retail winners" on a bumpy "road to recovery." "Our view is to own both stocks leveraged to a recovery, but also names that are long-term retail winners that may provide some defensive protection as we hit bumps on the road to recovery. We are upgrading KSS to Buy (fits w/the former group) and DKS to Buy (fits w/the latter group)." Citi downgraded Ulta, Under Armour, and Five Below to neutral from buy Citi downgraded several retail names and said it sees a more "balanced" risk/reward. "Most retail names have had strong moves over the past 9 months as investors took on more risk (and assigned lower discount rates across retail) to play a recovery against a macro backdrop of low interest rates, high savings and likelihood of add'l fiscal stimulus. ... .We are downgrading BURL, FIVE , UAA and ULTA from Buy to Neutral to reflect a more balanced risk/reward." Deutsche Bank upgraded Wendy's to buy from hold Deutsche upgraded the fast food chain and said it sees an "attractive" entry point "Ahead of earnings next month, we've taken a 'refreshed look' at WEN and believe that current levels provide a decent entry point for investors, and as such, we are upgrading shares to Buy. Our updated price target of $25 implies ~19% upside from current levels, which we view as relatively attractive at this time, particularly as the upside cases have continued to compress for many of the more 'levered to recovery' names in our coverage universe." Wedbush downgraded Bed Bath & Beyond to neutral from outperform Wedbush downgraded the retail chain store after several days of short interest in the stock and said the move higher was "unsustainable." "Following an extraordinary two days of trading for BBBY, with a peak trading price of $46.95 +55% from its Friday close on Monday, January 25, and a closing price of $36.87 on Tuesday, January 26, +22% since Friday, we are removing BBBY from Wedbush's Best Idea List and downgrading our rating from OUTPERFORM to NEUTRAL. We continue to see high potential for BBBY's transformation, but believe the stock is ahead of itself and the sharp move higher is unsustainable." Bernstein initiated DraftKings as outperform Bernstein initiated the fantasy sports contest and betting operator "We forecast market size for US sports betting to be $15bn in 2025E and $30bn in 2030E at maturity. ... . DKNG , a pure-play market-leading US sports betting operator and a clear investment in the US sports betting growth story."

The logo of a Wendy's restaurant is seen in Plano, Texas, on July 2, 2020.

Dan Tian | Xinhua via Getty Images

Here are the biggest calls on Wall Street on Wednesday: