- Barclays named TJX Companies a top pick in 2021.
- Credit Suisse upgraded Tapestry to overweight from neutral.
- Loop upgraded Airbnb to buy from hold.
- Deutsche Bank upgraded United, Delta, Southwest, JetBlue and American to buy from hold.
- Evercore ISI upgraded Marriott to outperform from in line.
- Morgan Stanley upgraded Snap to overweight from equal weight.
- Bank of America raised its price target on Target to $260 from $225.
- Evercore ISI upgraded Foot Locker to outperform from in line.
- Mizuho raised its price target on Square to $380 from $300.
- Goldman Sachs raised its price target on General Electric to $15 from $14.
Here are the biggest calls on Wall Street on Monday: Barclays named TJX Companies a top pick in 2021 Barclays named the discount retail chain as a top pick for 2021 and called it the "dominant global player." "While we believe investors can win with any of the three Off Price retailers, BURL, ROST, TJX, we highlight the dominant global player, TJX. TJX's pre-pandemic sales in 2019 were $42bn versus ROST's $16bn and BURL's $7bn 2019. TJX also targets a higher household income over $75,000, whereas ROST and BURL's core target market income is in the $60,000 range." Credit Suisse upgraded Tapestry to overweight from neutral Credit Suisse upgraded the retail fashion company and owner of brands like Kate Spade and Coach and said the stock was underappreciated and that its digital investments should begin to pay off. "Our meetings with TPR last week increased our conviction that—in addition to our bullish handbags category outlook as lockdowns diminish—TPR's investments over the past year in important future growth channels/geos are working better than we appreciated and set TPR up for EPS above current Consensus FY22 & FY23 estimates, in our view." Loop upgraded Airbnb to buy from hold Loop upgraded the stock ahead of its first earnings report and said it expects the company to "exceed consensus by a significant margin." " ABNB will report its first quarter as a public company this Thursday, Feb. 25 after the market close. We think the company will exceed consensus by a significant margin. Bookings growth for other providers of alternative accommodations (Vrbo) improved sequentially in 4Q, a trend that continues into 1Q." Deutsche Bank upgraded United, Delta, Southwest, JetBlue and American to buy from hold Deutsche Bank upgraded several airline stocks and said the sector was "back on track" to seeing a meaningful recovery. "Airlines that failed to participate meaningfully in past recoveries were typically "broken" business models, had insufficient liquidity, and/or unable to service their financial obligations. We are of the opinion that none of the publicly-traded airlines in our coverage universe fall into those categories. As such, we are upgrading the ratings on ALK, AAL , DAL, HA, UAL , JBLU, LUV, SAVE, and SKYW from Hold to Buy." Evercore ISI upgraded Marriott to outperform from in line Evercore upgraded the hotel chain and called it the "best" value play in its coverage. "In conjunction with estimate changes in both directions, but also PT increases across all three, we are upgrading MAR to Outperform, from In-Line. While it is true that hotel stocks in general have benefited significantly from the "re-opening trade" over the past 90+ days, MAR itself has to varying degrees lagged its direct peers over the past 30 / 90 / 365 days, and currently represents the best 'value play' within our lodging sector coverage." Morgan Stanley upgraded Snap to overweight from equal weight Morgan Stanley upgraded the social media company and said it saw a "long" runway ahead and "higher" earnings power. "Upgrade SNAP to OW with $80 PT as new bottom-up US model (core Snap, Discover, Spotlight, Maps) speaks to a longer engagement/monetization runway. Higher US earnings power drives our base case, but global monetization of these products lead to $105 bull case (~60% upside), showing long runway ahead." Bank of America raised its price target on Target to $260 from $225 Bank of America raised its price target on Target to a Street high ahead of the company's earnings report and said it sees "stimulus and e-commerce momentum." "We are raising our F4Q EPS to $2.50 following strong Holiday results with comps up 17.2% in Nov. & Dec. 2020 (driven by digital growth of +102% incl. Same-day services up +193%) and we expect stimulus and e-commerce momentum to support January comps." Evercore ISI upgraded Foot Locker to outperform from in line Evercore said in its upgrade of the athletic footwear retailer that it saw "robust" e-commerce momentum among other things. "Fears that Foot Locker will ultimately be disintermediated by Nike and other brands' own digital DTC channels have kept many market participants - including ourselves - on the sidelines the last few years. But our view has evolved as the company has been making the necessary course corrections and strategic investments to secure its long-term position within the broader sneaker ecosystem, particularly on the digital front." Mizuho raised its price target on Square to $380 from $300 Mizuho raised its price target on the payment company to a Street high and said the stock was too cheap and that it saw a "favorable" risk/reward. " SQ is simply undervalued, in our view. Our terminal value analysis shows SQ shares could be worth $380, as Cash App and Seller gross profit could exceed $30bn and $6bn, respectively, by 2031." Goldman Sachs raised its price target on General Electric to $15 from $14 Goldman Sachs raised its price target on the stock to a Street high after a recent investor meeting and said it came away "encouraged" that the company was on the right track for free cash flow momentum among other things. "On February 19th, we hosted a virtual investor meeting with GE 's Investor Relations team. Overall, we came away encouraged by the FCF momentum/Power trajectory and the meeting reinforced our view that many of the tail risks (e.g., Long-term Care, Pension, Balance Sheet, etc.) that have plagued GE's stock in the past are ring-fenced in the medium-term."
Metin Aktas | Anadolu Agency | Getty Images
Here are the biggest calls on Wall Street on Monday: