- Stifel initiated Roblox as buy.
- Guggenheim downgraded Ulta to neutral from buy.
- Citi downgraded Altria to neutral from buy.
- Morgan Stanley downgraded Avis Budget to equal weight from overweight.
- BTIG upgraded Starbucks to buy from neutral.
- Evercore ISI raised its price target on Apple to $175 from $163.
- Citi raised its price target on Twitter to $80 from $55.
- Wolfe initiated Lennar, KB Home, and D.R Horton as outperform.
- MKM downgraded Darden to neutral from buy.
- Goldman Sachs raised its price target on United Airlines to $74 from $54.
- JPMorgan raised its price target on Royal Caribbean to $110 from $100.
Here are the biggest calls on Wall Street on Tuesday: Stifel initiated Roblox as buy Stifel initiated the online gaming platform with a buy rating and said the company's business model was "unlike any we've encountered." "At its core, Roblox is an online platform that enables social 'experiences' in 3D digital worlds that are user-generated. The model is unlike any we've encountered, but combines aspects of certain businesses such as 1) a gaming platform that features the toolsets to build content; 2) social media since the experiences on the Roblox Platform are highly social and 3) entertainment as usergenerated content including gaming is a critical component." Guggenheim downgraded Ulta to neutral from buy Guggenheim downgraded the stock after its mixed earnings report last week and said it sees "rising digital pressure" among other things. "We are downgrading ULTA to NEUTRAL as we await further clarity around the company's long-term secular growth outlook—note, management announced it will be hosting a Fall 2021 Analyst Day." Citi downgraded Altria to neutral from buy Citi downgraded the tobacco company after it issued a report saying that smoking levels were declining and could be gone all together by the year 2050. " Altria comes out worst from our report because 82% of its economic exposure is to U.S. cigarettes, and if long-term trends continue, this category may have disappeared within 30 years. High school students and young adults have increasing turned away from smoking, which implies the true outcome may be worse." Morgan Stanley downgraded Avis Budget to equal weight from overweight Morgan Stanley downgraded the rental car company and said the "recovery is priced in." "Following the strong performance of CAR alongside the increases in Consensus earnings estimates in outer years, we believe that the market has now priced in a meaningful part of the earnings recovery ahead. We remain bullish on the path forward but move to EW on a balanced risk-reward." BTIG upgraded Starbucks to buy from neutral BTIG said in its upgrade of the coffee chain that it sees the new stimulus leading to major upward earnings revisions. "We are upgrading Starbucks shares to Buy from Neutral as we believe the faster-than-anticipated pace of restaurant reopening, coupled with massive federal stimulus, should lead to upward earnings revisions. In the near-term, we expect 2QF21 EPS to top consensus expectations as the company laps the initial impact from the pandemic in China (February) and U.S. (March) and we view guidance as overly conservative." Evercore ISI raised its price target on Apple to $175 from $163 Evercore raised its price target on the stock and said it remains "attractively positioned." "We think AAPL remains positioned to sustain mid-single digit sales and mid-teens total return over the next several years with less volatility & more consistency. Over time, we expect AAPL's valuation to reach levels comparable to consumer staple assets vs. tech/hardware peers. Citi raised its price target on Twitter to $80 from $55 Citi raised its price target on the stock and reiterated its neutral rating but said the company continues to make smart investments to bolster topline growth. " Twitter is making prudent investments – in staffing, in technology and via acquisitions - to accelerate its topline growth. While these investments will likely dampen near-term profits, we think they are smart investments. We are raising our 2022 revenue and EBITDA estimates and introducing 2023 forecasts." Wolfe initiated Lennar, KB Home, and D.R Horton as outperform Wolfe initiated the homebuilding sector including stocks like Lennar , KB Home , and D.R. Horton and said it sees "robust demand" over the next several quarters. "We are initiating coverage of 11 Homebuilders and 1 Land Developer with a Market Overweight rating based on a constructive multi-year industry outlook, and robust demand expectations the next couple quarters." MKM downgraded Darden to neutral from buy MKM downgraded the restaurant holding company and owner of brands like Olive Garden and said it sees a more balanced risk/reward. "We are raising our fair value estimate to $160 from $125, based on the strength of the model and potential for a full fundamental recovery, but view the shares' current reward against what we believe to be some modest execution risk (in meeting those expectations across the marketplace), which causes us to take a pause from recommending DRI' s shares." Goldman Sachs raised its price target on United Airlines to $74 from $54 Goldman raised its price target on the stock to a Street high and said the airline company was one of the "most attractive" options to get exposure to the economic recovery. "As we exit 2021 and enter 2022, we expect international and corporate demand to begin to recover as well, and view UAL shares as the most attractive option to gain exposure to the recovery in those end markets given its relatively larger discount to historical valuation vs. its network carrier peers; there is 31% upside to our 12-month $74 PT." JPMorgan raised its price target on Royal Caribbean to $110 from $100 JPMorgan raised its price target on the cruise company and said it sees upside in stocks like Royal Caribbean driven by "pent-up demand" and the economy reopening. "We are gaining conviction that the most likely direction for ticket pricing is higher from here, driven by pent-up demand against curtailed and phased-in capacity, limited occupancy later in 2021 and into early 2022, extraordinarily long booking windows today, and a further recovery in booking volumes likely to happen once the CDC moves and brands restart marketing efforts."
Store opening at an ULTA Beauty store in Philidelphia
Gilbert Carrasquillo | Getty Images
Here are the biggest calls on Wall Street on Tuesday: