Here are Tuesday's biggest analyst calls of the day: Netflix, Southwest, Citi, Sunrun & more

Published Tue, Mar 23 20218:07 AM EDT

Key Points

UBS initiated Snowflake as buy.
Goldman Sachs upgraded Sunrun to buy from neutral.
Citi upgraded Apollo Global to buy from neutral and opened a 30 day positive catalyst watch.
Argus upgraded Netflix to buy from hold.
Longbow upgraded Texas Instruments to buy from hold.
Berenberg downgraded Burlington to hold from buy.
Bank of America reiterated Citi as a top pick.
Argus upgraded Southwest to buy from hold.
UBS downgraded Discovery to sell from neutral.

Here are the biggest calls on Wall Street on Tuesday: UBS initiated Snowflake as buy UBS initiated the cloud computing data warehouse company and said it saw "huge" growth prospects. "We initiate coverage of Snowflake shares with a Buy rating and a price target of $275 and to further expand our coverage of modern data management software, we are simultaneously launching coverage of MongoDB shares. ... .While Snowflake's current CY22/FY23 revenue multiple of 42x is by far the highest in the software sector, so is the extraordinary 100%+ growth rate." Goldman Sachs upgraded Sunrun to buy from neutral Goldman said in its upgrade of Sunrun that it was "positive" on solar equities and liked the "potential" for policy catalysts among other things. "Additionally, we upgrade RUN to Buy from Neutral and see concerns around interest rate risk as being overstated with the stock down roughly 40% from January peaks given the company's growth is accelerating, while absolute yields remain quite low especially when considering the company's potential to refi old debt." Citi upgraded Apollo Global to buy from neutral and opened a 30 day positive catalyst watch Citi upgraded the alternative investment firm after the company's chairman and CEO left the firm on Monday earlier than planned. "We upgrade APO to Buy from Neutral, reduce our risk rating from High, and lift our 12-month SOTP price target $3 to $56. Our actions follow the favorable pre-3/22 market open corporate governance moves, which we believe should reduce headline and flow risk, before considering the positive 1Q update." Argus upgraded Netflix to buy from hold Argus said in its upgrade of the streaming giant that it believes the company has "sustainable structural competitive advantages." " Netflix continues to produce popular original content, while also expanding globally, adding new subscribers, and strengthening its industry position. We believe that it has sustainable structural competitive advantages in the streaming video space." Longbow upgraded Texas Instruments to buy from hold Longbow said in its upgrade of the stock that it sees "share gains opportunity" and margin upside. "As semi outlooks and bookings have continued to strengthen in our checks, forward-looking inventory across the supply chain looks extremely lean and we see no destocking risk on the horizon as lead times continue to stretch. We are raising estimates broadly and upgrading TXN and MCHP to BUY as we see additional catalysts for earnings upside." Berenberg downgraded Burlington to hold from buy Berenberg downgraded the off-price department store retailer and said no longer views the company's risk/reward as favorable. "While we continue to have a favorable view on management and BURL' s prospects, we believe the market now values future growth opportunities appropriately. With a more balanced risk/reward profile, we downgrade to Hold as we see better value elsewhere in our coverage. Bank of America reiterated Citi as a top pick Bank of America reiterated Citi as a top pick and said it would continue to "pound the table" for the stock. "In the early 2000s recovery, 'low quality' banks – defined as the lowest quartile on P/TBV among the top 25 banks – outperformed 'high quality' banks coming out of the recession. Unsurprisingly, the opposite was true out of the GFC, but given strong balance sheets, we expect low multiple stocks to break out." Argus upgraded Southwest to buy from hold Argus said in its upgrade of the airline that was "best positioned" to emerge from the pandemic. "We view Southwest as one of the best low-cost carriers, with a record of stable earnings prior to the pandemic and a strong management team. We also believe that LUV, with more than $14 billion in liquidity and an emphasis on leisure travelers, is the airline best positioned to emerge strongly from the coronavirus crisis." UBS downgraded Discovery to sell from neutral UBS said in its downgrade of the media company that it sees an "unfavorable" risk/reward. "We are downgrading DISCA to Sell from Neutral as the risk-reward has become more challenging at current levels. Shares have significantly outperformed over the last 12 months (~+300%) given expectations for direct to consumer combined with the re-opening and value rotation dynamics."

Travelers wearing protective masks cross a street outside a Southwest Airlines Co. check-in area at Oakland International Airport in Oakland, California, U.S., on Monday, Oct. 19, 2020.

David Paul Morris | Bloomberg | Getty Images

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Here are Tuesday's biggest analyst calls of the day: Netflix, Southwest, Citi, Sunrun & more

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