Here are Tuesday's biggest analyst calls of the day: Spotify, Starbucks, MGM, Kroger & more

Published Tue, Feb 23 20218:10 AM EST

Key Points

Bank of America downgraded Kroger to underperform from neutral.
BMO upgraded Palo Alto Networks to outperform from market perform.
Deutsche Bank initiated Okta as buy.
Pivotal downgraded Dish to hold from buy.
Raymond James downgraded Real Real to market perform from outperform.
BMO upgraded Starbucks to outperform from market perform.
Evercore ISI upgraded Intuit to outperform from in line.
Raymond James upgraded Texas Instruments to outperform from market perform.
Atlantic Equities downgraded Spotify to neutral from overweight.
Argus upgraded MGM to buy from hold.

Here are the biggest calls on Wall Street on Tuesday: Bank of America downgraded Kroger to underperform from neutral Bank of America downgraded the grocery store company and said it sees "profit headwinds" among other things. "We think KR 's current 12x P/E leaves room for downside & the outperformance of supermarkets over all outlets thru COVID: 1) could revert back upon return to normal; & 2) reflects greater pass thru of inflation by supermarkets." BMO upgraded Palo Alto Networks to outperform from market perform BMO said in its upgrade of the stock that it sees "upside potential" for the cybersecurity company. "We believe that PANW is well positioned with its security portfolio, and customer requirements continue to evolve and become more complicated, providing PANW with share gain opportunities." Deutsche Bank initiated Okta as buy Deutsche initiated the identity and access management company and said Okta was a "leader" in the identity management industry and competition was overblown. "Our proprietary checks suggest Okta is the category leader in both the cloud-based workforce and customer identity management use cases. In our view, fears of competitive risks from Microsoft Azure AD are overstated (with the market big enough to sustain multiple leaders)." Pivotal downgraded Dish to hold from buy Pivotal downgraded the satellite television company after its mixed earnings report on Monday and said "patience" was required as investors wait for more information on the company's wireless efforts. " DISH shares, unsurprisingly in our view, traded off materially during (and after) the noon call yesterday which was to be blunt, a reflection of the disappointing performance from Ergen as it relates to shedding more color/getting investors excited about DISH's wireless efforts and seemingly shooting down the idea of outside investors in the wireless venture until after DISH proves out their wireless effort." Raymond James downgraded The Real Real to market perform from outperform Raymond James downgraded the online and brick-and-mortar luxury consignment company after its earnings report and said the "recovery is priced in." " The RealReal reported mixed 4Q results with in line gross merchandise value though lower than expected revenues and gross profits. GMV trends remain positive with accelerating trends in December and into 1Q with 1Q GMV guidance of 17-20% y/y." BMO upgraded Starbucks to outperform from market perform BMO upgraded the coffee giant and said as the econonmy reopens that shares are "increasingly" attractive. "We view SBUX as a reopening beneficiary with meaningful potential upside to FY21/FY22 consensus, partly driven by comp contributions from sales transfer due to the US asset base transformation, accelerating digital momentum, easing competitive dynamics in China, and steeper margin recovery.' Evercore ISI upgraded Intuit to outperform from in line Evercore ISI upgraded the financial software company and said the risk/reward looks "attractive." "We are upgrading Intuit to Overweight and taking our Price Target to $500 as we believe that the risk/reward looks attractive when taking a 6-12 month view due to a combination of: a reacceleration in QBO growth this spring/summer as the small midsized businesses market rebounds and Intuit benefits from easier comps and a much broader product suite." Raymond James upgraded Texas Instruments to outperform from market perform Raymond James upgraded the semiconductor technology company and it sees "strong" business conditions percolating over the next several quarters. " TI had not been among our buy-rated analog semis during the last cycle, since we preferred those that participated in industry consolidation, which TI did not. ... .Looking forward, analog industry consolidation is now near an end, which means there's no longer a reason to prefer others over TI, and we're confident in strong business conditions over the next several quarters as customer inventory remains at historic lows and supply remains tight." Atlantic Equities downgraded Spotify to neutral from overweight Atlantic Equities downgraded the stock mainly on valuation. " Spotify has enjoyed a spectacular run, with the shares more than doubling over the past 12 months as the stock has moved from 2x forward revenues to more than 5x. ... .However, we will see no evidence this is working this year with gross margins set to be down, and we also see fewer catalysts as the company's focus shifts away from M & A to production." Argus upgraded MGM to buy from hold Argus upgraded the casino company and said it was a reopening beneficiary. "In Las Vegas, we expect MGM to benefit from a recent decision by the governor to allow casinos in Nevada to operate at 50% capacity. We expect demand among leisure travelers to recover this summer and look for a rebound in the company's convention business later in the year. "

A Dish Network field service specialist installs a satellite television system at a residence in Denver.

Matthew Staver | Bloomberg | Getty Images

Here are the biggest calls on Wall Street on Tuesday: