- RBC downgraded Lennar to sector perform from outperform.
- Baird downgraded Quest to neutral from outperform.
- Deutsche Bank initiated MSCI as buy.
- Jefferies initiated Nordstrom as buy.
- Stephens upgraded Denny's to overweight from equal weight.
- Citi reiterated T-Mobile as a top pick.
- Evercore ISI named Marvell a top pick.
- JPMorgan named Chevron and Exxon as top picks.
- Morgan Stanley reiterated its overweight rating on Apple.
- Goldman Sachs upgraded Barclays to buy from neutral.
- Bank of America reiterated GameStop as underperform.
Here are the biggest calls on Wall Street on Friday: RBC downgraded Lennar to sector perform from outperform RBC downgraded the home builder ahead of its earnings report and said it sees a more "balanced" risk/reward. "We are downgrading LEN to SP from OP as we see a balanced risk/reward following its strong YTD performance and with expectations elevated ahead of 1Q results." Baird downgraded Quest to neutral from outperform Baird downgraded the lab and testing company mainly on valuation. "Not a negative reaction to Investor Day – we've been contemplating for a while. IR day affirmed our belief that COVID, in the long term, will prove net neutral-to-positive for labs financially and strategically. DGX sees a long-term growth outlook that is slightly improved vs. a few years ago. However, we don't think its enough to warrant a significantly different valuation lens." Deutsche Bank initiated MSCI as buy Deutsche initiated the global finance and index company and said it saw "meaningful" upside potential. "While the market volatility could impact Indexing revenue in the near term, we believe the core business trends remain sound, and new opportunities should drive more revenue growth and margin expansion in the long run, making MSCI an attractive value proposition with meaningful upside potential." Bank of America reiterated GameStop as underperform Bank of America reiterated its underperform rating on the stock and said shares remain "very detached from fundaments." " GME shares took another big leg up this week (closed at $260 on 3/11 vs. $138 on 3/5) which we attribute to news that GME has appointed board member and 13% shareholder Ryan Cohen (and Chewy co-founder) to lead a team focused on GME's technology and e-commerce transition." Jefferies initiated Nordstrom as buy Jefferies initiated the retail department store company and said it sees Nordstrom as a leader in digital with "multiple expansion" possibilities. "We are initiating at Buy, attracted to digitization & related 5x expansion of choice counts via direct merch upgrades & cap lite partnerships. Execution is a risk, esp for a brand synonymous with curation. Strategies to localize, hyper personalize & lev. loyalty data are key. Recovery estimates look achievable; beatable if new strategies uptake more quickly." Morgan Stanley reiterated its overweight rating on Apple Morgan Stanley reiterated its overweight rating and $164 per share price target on the tech giant and said it sees recent stock weakness as a "buying opportunity." "We agree with reports of iPhone 12 mini weakness, but see Apple 's recent pullback as a buying opportunity, as 1) MS iPhone builds show upward (not downward) bias, 2) Apple's Taiwanese suppliers are posting accelerating Y/Y growth, 3) iPhone shipments in China remain strong." Stephens upgraded Denny's to overweight from equal weight Stephens upgraded the restaurant chain and said it sees more upside and that it's "time to get off the sidelines." "We have been on the sidelines on DENN throughout most of the pandemic due to the 25% exposure to California, the relatively smaller off-premise business vs. peers, and the exposure to the heavily impacted morning and late-night dayparts. Now that we are nearing the end of the deepest pandemic impacts, it is time to get off the sidelines." Citi reiterated T-Mobile as a top pick Citi reiterate the wireless company as a top pick after its analyst day and said it sees a 'well-defined bull case." "We believe T-Mobile delivered a satisfying financial outlook with capital returns to shareholders via buybacks that can begin as soon as 2023. We remain a Buyer of TMUS shares as our top-ranked pick within the category." Evercore ISI named Marvell a top pick Evercore named the semiconductor company a top pick and said the "selloff offers a clear buying opportunity." "With MRVL one of the worst performing Semiconductor stocks YTD, a clear vision to estimates re-accelerating higher into 2HCY21, current relative valuation, a return of enterprise networking spending and an intact long-term growth story, we are ADDING MRVL back to our TOP PICKS list." JPMorgan named Chevron and Exxon as top picks JPMorgan named the two oil and gas companies as top picks and said they have "balance sheet leverage." "Assuming FCF generation and leverage profiles hold however, buybacks are on-track to restart, with total return of capital yields approaching 8% over time and leverage getting back to 1x or less (all at $60/bbl Brent). ... .Our majors top picks are OW-rated: CVX / XOM in the US, CNQ in Canada and Shell/BP/Equinor in Europe." Goldman Sachs upgraded Barclays to buy from neutral Goldman upgraded the banking giant and said Barclays was a "key beneficiary of a snap-back in consumer activity." "Better prospects for US cards and payments, given prospects for a strong rebound in economic and travel activity, which should beneﬁt revenue progression for both US cards and payments-related revenues, in our view."
A pedestrian and cyclist wear facemasks outside a branch of department store chain Nordstrom in Santa Monica, California on May 11, 2020.
Frederic J. Brown | AFP | Getty Images
Here are the biggest calls on Wall Street on Friday: