- Truist upgraded Zscaler to buy from hold
- Barclays named FedEx a top pick.
- Raymond James reiterated strong buy on Dave & Buster's.
- Wells Fargo upgraded Estee Lauder to overweight from equal weight.
- Bank of America upgraded CME to buy from neutral.
- Baird named Intel as a fresh pick.
- Wedbush downgraded GameStop to underperform from neutral.
- Wedbush added Wendy's to the best ideas list.
- Bank of America upgraded Bank of New York Mellon to buy from neutral.
Here are the biggest calls on Wall Street on Wednesday: Truist upgraded Zscaler to buy from hold Truist upgraded the cloud-based data security company and said it sees long-term "durable" growth and "secular tailwinds digital transformation." "We hosted the senior management of ZS on March 9th at our Tech conference, and walked away extremely positive at the company's short, medium-term as well as its long-term durable growth profile. ZS is benefiting from a favorable demand backdrop following the SolarWinds hack and secular tailwinds of digital transformation, cloud security, and Zero Trust architecture." Barclays named FedEx a top pick Barclays named the shipping giant a top pick and said it sees improving cash flow among other things. "Following little to no cash generation in recent years, we see a brighter outlook for earnings quality improvement at FedEx. Ecommerce continues to support exceptional growth for the parcel carrier, and margin improvement opportunities are plentiful as network collaboration is expanded, TNT integration is completed and weekend capacity is absorbed." Raymond James reiterated strong buy on Dave & Buster's Raymond James reiterated its strong buy rating ahead of the entertainment and arcade company's earnings report and said it sees an "attractive" entry point. "We reiterate our Strong Buy rating on PLAY ahead of the company's F4Q release and believe the stock's recent pullback creates an attractive entry point. While we see modest upside to 4Q expectations, we'll be more focused on QTD sales which we believe have shown solid sequential improvement through March." Wells Fargo upgraded Estee Lauder to overweight from equal weight Wells Fargo upgraded the beauty company and said its long-term sales and margin potential was "attractive." "We upgrade EL to Overweight from Equal Weight and raise our target to $340 on 45x CY22e EPS, above historicals but anchored by near-term catalysts driving another step-change in the narrative. Long-term sales and margin potential is attractive." Bank of America upgraded CME to buy from neutral Bank of America said in its upgrade of the global markets company that it sees an "improving outlook" among other things. "We are upgrading CME to Buy from Neutral given our expectation of an improving backdrop for revenues ahead, as well as an attractive yield. We see an improving revenue backdrop as we get past a 1H20 tough volume comp, the economy rebounds & interest rate expectations are on the rise, and as rates head higher, volatility and volumes across asset classes will likely be elevated as well." Baird named Intel as a fresh pick Baird named the chip maker as a fresh pick after Intel announced plans to boost chip manufacturing on Tuesday. The firm said the "tide is turning in semi manufacturing" and that it was bullish on the company's strategy. " Intel just has to execute in what is the most friendly environment in past decades for U.S.-based semiconductor production. Intel has tremendous potential internally that can be monetized and unlocked over time." Wedbush downgraded GameStop to underperform from neutral Wedbush downgraded the video game retailer after its disappointing earnings report on Tuesday and said the stock was "disconnected from the fundamentals of the business." The firm did raise its price target to $29 from $16. " GameStop is well-positioned to be a primary beneficiary of the new console launches, and we remain quite optimistic that it will return to profitability by FY:21. The high-profile sustained short squeeze seen in recent months, however, has spiked the share price to levels that are completely disconnected from the fundamentals of the business." Wedbush added Wendy's to the best ideas list Wedbush added the fast food chain to its best ideas list and said it investors were too "pessimistic." "We view investor sentiment on WEN as overly negative. At a 5.8% free cash flow yield on our estimated 2022 free cash flow per share of $1.19, we believe investors are discounting an overly pessimistic view of WEN's near-, medium- and long-term top- and bottom-line potential." Bank of America upgraded Bank of New York Mellon to buy from neutral Bank of America upgraded the investment banking company and said it sees an "attractive valuation" among other things. "We are upgrading BK to Buy from Underperform given an improving revenue and earnings outlook, as well as an attractive valuation. Despite the near term low short rate headwinds, we expect the combination of rising rates, strategic initiatives, and active expense/capital management to drive stronger revenue and earnings growth over the next few years."
HONG KONG, CHINA - 2021/03/12: American FedEx Express delivery truck seen in Hong Kong. (Photo by Chukrut Budrul/SOPA Images/LightRocket via Getty Images)
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Here are the biggest calls on Wall Street on Wednesday: