Here are Thursday's biggest analyst calls of the day: Netflix, GM, Gap, Alphabet, Boeing & more

Published Thu, Mar 25 20218:16 AM EDT

Key Points

Goldman Sachs downgraded Tencent Music Entertainment to neutral from buy.
Morgan Stanley named Alphabet a top recovery idea.
Goldman Sachs initiated SelectQuote as buy.
Deutsche Bank added a catalyst call buy idea on Walgreens Boots Alliance.
Bank of America raised its price target on Boeing to $265 from $210.
Deutsche Bank added a catalyst call buy idea on Rite Aid.
JPMorgan upgraded Maxar Technologies to overweight from neutral.
Benchmark reiterated Netflix as sell.
Goldman Sachs upgraded Cisco Systems to buy from neutral.
MoffettNathanson downgraded ViacomCBS to sell from neutral.
Bank of America upgraded Vail Resorts to buy from neutral.
Citi reiterated its buy rating on General Motors.
Northland upgraded Advanced Micro Devices to outperform from market perform.
Wells Fargo named Ulta, Gap, Urban Outfitters, & Ralph Lauren as post-pandemic winners.

Here are the biggest calls on Wall Street on Thursday: Goldman Sachs downgraded Tencent Music Entertainment to neutral from buy Goldman downgraded the China music streaming company mainly on valuation. "After TME's 65% YTD rally, we believe the current price level has reflected most of the positives at the juncture, with its valuation running ahead of fundamentals, we downgrade TME to Neutral, to reflect a more back-end loaded growth of non-live streaming monetization revenue in our forecast horizon and a one-year delay in the Long-Form-Audio content and monetization ecosystem ramp up." Morgan Stanley named Alphabet a top recovery idea Morgan Stanley raised its price target on Alphabet to $2,350 from $2,200 and said it was a "recovery dark horse." "We begin with the recovery names across online travel, rideshare, and online advertising. Big picture, recovery names across our group have moved materially, so within this bucket we are relatively selective and most bullish on UBER and GOOGL ." Goldman Sachs initiated SelectQuote as buy Goldman initiated the health insurance broker and said it was "well positioned to scale profitably." " SLQT' s model is best positioned to scale proﬁtably, driven by best-in-class agents. The company maintains peer-high unit economics within its Medicare business, supported by its agent-force, which stands out in several ways." Deutsche Bank added a catalyst call buy idea on Walgreens Boots Alliance & Rite Aid Deutsche added a short-term buy idea on shares of Walgreens and Rite Aid and said the company's should benefit from the coronavirus vaccine. The firm kept its long-term hold rating on both stocks. "However, we believe the COVID vaccine presents both a near term and longer term positive opportunity as the bolus of vaccinations near term should drive positive earnings surprise throughout the balance of C2021, and the nature of the variant virus may mean many people in the future may receive a COVID vaccine the way they now receive a flu vaccine." Bank of America raised its price target on Boeing to $265 from $210 Bank of America reiterated its neutral rating on shares of Boeing but said the company should begin to benefit from the "aero recovery." "Like the famous phrase 'a rising tide lifts all boats' asserts, the improving sentiment on commercial air traffic is benefiting all participants: from original equipment manufacturers, to suppliers, to aftermarket names, to airlines, to aircraft lessors." JPMorgan upgraded Maxar Technologies to overweight from neutral JPMorgan upgraded the space tech company and said it was on its way to "becoming profitable in space infrastructure." "We are upgrading MAXR to OW with a $47/sh price target (~40% upside), based on a 10% FCF yield and our 2023 estimate of $5/sh. Maxar's story of 1) adding new imagery capacity, 2) becoming profitable in Space Infrastructure." Read more about this call here . Benchmark reiterated Netflix as sell Benchmark reiterated its sell rating on the streaming giant and said it had concerns as the streaming field becomes more crowded. "We maintain our Sell rating on Netflix and $472 price target off our S & P 500 linked valuation template, even as sentiment and price action around the streaming ambitions of competitors ViacomCBS and Discovery has recently been notably schizoid." Goldman Sachs upgraded Cisco Systems to buy from neutral Goldman said in its upgrade of the stock it sees "fundamental upside" as more employees begin to return to the office. "We upgrade our rating on Cisco to a Buy as the prospect of increased enterprise spending on campus networking to enable a video conferencing heavy return to ofﬁces presents opportunity for fundamental upside." MoffettNathanson downgraded ViacomCBS to sell from neutral MoffettNathanson said in its downgrade of ViacomCBS that it had concerns about the company's direct-to-consumer model among other things. "The company appropriately took advantage of the recent run by selling ~$3 billion worth of stock/converts at the elevated levels to help clean up their levered balance sheet and accelerate streaming investment. However, we have increased worries about linear affiliate fee growth after lapping the benefits of its current renewals over the next couple of quarters while also digging deeper into the linear to DTC economic trade longer-term." Bank of America upgraded Vail Resorts to buy from neutral Bank of America said in its upgrade of the ski resort company that it should benefit from pent-up demand. "We are upgrading Vail Resorts to Buy as our confidence increases in Vail's focus on using data to drive a unique, advanced commitment, recurring business model. MTN is also well positioned to benefit from high-end pent-up leisure demand in the coming ski season." Citi reiterated its buy rating on General Motors Citi reiterated its buy rating on shares of GM and said it sees more "upside paths" as the company continues to pursue electric vehicles. "For GM -Cruise, the main incremental takeaway vs. our prior GM SoP framework ( > $100 upside case) is that we now see multiple potential AV/EV upside paths beyond our prior SoP that encompass both GM and Cruise, giving us greater conviction in our GM thesis." Northland upgraded Advanced Micro Devices to outperform from market perform Northland said in its upgrade of the semiconductor company that it should gain market share at Intel's expense. " INTC expansion into the foundry market will increase AMD as a priority for TSMC and INTC will be persona non grata. For this reason, we expect AMD's market share momentum to continue." Wells Fargo named Ulta, Gap, Urban Outfitters, & Ralph Lauren as post-pandemic winners Wells Fargo said its recent survey results show that retail stocks will benefit from "pent-up demand" due to the coronavirus pandemic. "When asked which categories they are most likely to return to first post-pandemic, respondents most frequently selected make-up/beauty (40% of respondents), even surpassing going-out apparel (37%) - suggesting that these categories are most likely to benefit from pent-up demand this year as pandemic dynamics ease. In our view, this bodes extremely well for names like ULTA , URBN, RL and GPS in our space."

A shuttered Walgreens pharmacy store is seen during the coronavirus outbreak in Times Square in Manhattan in New York City, New York, U.S., March 20, 2020.

Mike Segar | Reuters

Here are the biggest calls on Wall Street on Thursday: