- Citi upgraded Yelp to buy from neutral.
- Stifel upgraded Alphabet to buy from hold.
- BMO initiated Papa John's as outperform.
- CFRA upgraded Morgan Stanley to strong buy from hold.
- Guggenheim reiterated Nike as a best idea.
- Morgan Stanley reiterated Amazon as a top pick.
- Truist upgraded Roku to buy from hold.
- Morgan Stanley named Procter & Gamble a top pick.
- Citi initiated Domino's as buy.
Here are the biggest calls on Wall Street on Tuesday: Citi upgraded Yelp to buy from neutral Citi said in its upgrade of the online review company that it was a key beneficiary as the economy reopens and consumers return to dining out. "First, we expect local businesses – particularly restaurants – to recover as the economy opens up. Second, we see Yelp generating more revenue from leads within the Services segment." Stifel upgraded Alphabet to buy from hold Stifel said in its upgrade of the stock that it was bullish on the stock as the digital advertising "bounce" continues. "The resilience and speedy recovery of Alphabet's digital advertising businesses through the course of the pandemic has impressed us. The bounce in advertising dollar flows have followed online consumer engagement, a quick return and redistribution of advertiser appetite, and digital transaction proliferation." BMO initiated Papa John's as outperform BMO initiated the pizza chain company with an outperform rating and said it sees "strengthening" cash returns, among other things. "PZZA has made meaningful strides repositioning the brand and is poised to realize accelerating growth, margin opportunities, and strengthening cash returns to shareholders over a multi-year horizon." CFRA upgraded Morgan Stanley to strong buy from hold CFRA said in its upgrade of the banking giant that it saw an "enhanced opportunity" to buy shares of Morgan Stanley. "We increase our 2021 EPS estimate by $0.45 to $6.00, and up 2022's by $0.40 to $6.55 a share. We see an enhanced buying opportunity with the shares lower today on potential risk exposure to Archegos Capital, a troubled small hedge fund. We think strong momentum in the global capital markets will continue." Guggenheim reiterated Nike as a best idea Guggenheim reiterated Nike as a best idea and said the company's issues in China will pass. "Nike has developed an outstanding relationship with Chinese consumers, in our view, as it has relied on consumer connections that it has in China, operating a hyper-local and digitally led offense, digitally led partnerships, as well as partnerships with local governments." Morgan Stanley reiterated Amazon as top pick Morgan Stanley reiterated Amazon as its top pick and said it sees a path to $4,200 a share. "While the market remains highly focused on 'comping the comp,' our work shows how AMZN's scaling gross profit base, logistics efficiency (fulfillment + shipping cost per unit improving) and growing high margin revenue streams (advertising, AWS, subscriptions) paint multiple paths toward $100bn+ of '22 EBITDA." Truist upgraded Roku to buy from hold Truist said in its upside of Roku that it sees more upside and that the company's valuation is "tenable." "We see upside to Platform gross profit (remains our focus metric), Platform revenue, and EBITDA and view 2Q21 consensus as a particularly low hurdle." Morgan Stanley named Procter & Gamble a top pick Morgan Stanley named the multinational consumer goods company a top pick and said it saw share momentum increasing among other things. "We like P & G as we see long-term PG topline/EPS growth above peers, with share momentum continuing post management changes/reinvestment behind the business, and near term visibility given conservative guidance." Citi initiated Domino's as buy Citi initiated the pizza chain company with a buy and said it sees several growth drivers pushing the stock higher. "We initiate coverage of DPZ, which is at an undemanding valuation after a 12% share correction reflecting concerns on delivery channel deceleration as broader restaurants reopen."
The Nike logo is seen on the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Here are the biggest calls on Wall Street on Tuesday: