- Morgan Stanley lowered its price target on Apple to $156 from $164.
- Goldman Sachs downgraded Chevron to neutral from buy.
- Credit Suisse initiated Peloton as overweight.
- RBC initiated Chesapeake Energy as outperform.
- Atlantic Equities upgraded Snap to overweight from neutral.
- Credit Suisse named Blackrock a top pick.
- Evercore ISI named Facebook, Amazon and Uber top picks.
- Bank of America reiterated its buy ratings on Nvidia and Advanced Micro Devices.
- Argus upgraded Wynn to buy from hold.
- Atlantic Equities initiated Starbucks as overweight.
- Bank of America downgraded Credit Suisse to underperform from neutral.
- Bank of America reiterated its underperform rating on GameStop.
- Morgan Stanley initiated American Airlines as underweight and upgraded United to equal weight from underweight.
Here are the biggest calls on Wall Street on Tuesday: Morgan Stanley lowered its price target on Apple to $156 from $164 Morgan Stanley reiterated its overweight rating on shares of the tech giant but lowered its price target due to what it said was "multiple compression" with Apple Services peers. Services includes the Apple App store and iTunes among other things. The firm added it was still bullish on the stock long term. "Following strong March quarter App Store results and an analysis of the key drivers of Apple 's Licensing & Other segment, we raise our already above-street FY21 and FY22 Services revenue estimates by 3% and 5% respectively, and are increasingly convinced that consensus Services forecasts over the next 2+ years are too low. For more on the call, see here . Morgan Stanley initiated American Airlines as underweight and upgraded United to equal weight from underweight Morgan Stanley said in its upgrade of United that "fundamentals are still supportive of upside." The firm also initiated American with an underweight rating and said the stock has run too far too fast. "We reiterate our Attractive view on the US Airlines despite the stocks up 85% in the last 5 months. With a clear path to re-opening now in focus, we look out to 2022+ and find consensus numbers are too low given our view of strong volume and cost tailwinds. We are ~30%+ above consensus in 2023." Goldman Sachs downgraded Chevron to neutral from buy Goldman Sachs said in its downgrade of the oil and gas company that it sees more upside in peers like Exxon. "We downgrade Chevron from Buy to Neutral after multiple years of outperformance versus global majors, particularly since 2016. We continue to have a positive view of the balance sheet, dividend sustainability, growth outlook in the Permian, and free cash ﬂow from the Australia LNG assets." Read more about this call here . Credit Suisse initiated Peloton as overweight Credit Suisse said in its initiation of the exercise fitness equipment company that it had an "expanding market" and "compelling user economics." "Initiate Coverage of PTON with an Outperform Rating and a $164 Target Price (+46% Upside Potential): An expanding market, compelling user economics, and a vertically integrated business model make this a unique opportunity in an emerging category." RBC initiated Chesapeake Energy as outperform RBC initiated the hydrocarbon exploration company and said it had a solid balance sheet and the potential to generate "peer-leading" free cash flow. "The balance sheet is cleaned after recent emergence from restructuring taking with it prior midstream contract burdens. This positions CHK to generate peer-leading FCF that can be focused on shareholder returns." Atlantic Equities upgraded Snap to overweight from neutral Atlantic Equities said in its upgrade of Snap that it sees an "attractive" entry point. "Through best-in-class innovation the company has transformed from a messaging-centric app to a broad content platform, driving a shift towards more monetisable time spent on the service." Credit Suisse named Blackrock a top pick Credit Suisse named the asset management company a top outperform ahead of its earnings report and said it had an "industry leading" business. "We expect BLK to continue generating robust organic growth due to its attractive business mix which includes industry leading businesses in ETFs, technology/solutions and active fixed income plus a sizable illiquid alts business." Evercore ISI named Facebook, Amazon and Uber top picks Evercore ISI initiated the internet sector after the bell on Monday and said it was long-term bullish. "We are retaining FB on Evercore ISI's Best 'Core' Ideas List. AMZN : Probably the broadest structural winner w/ permanent pull forward of Retail spend & ad budgets Online as well as acceleration of Cloud adoption. Probably also the single best 'Net asset. We also see reasonable valuation. UBER : Ridesharing should be one of the strongest COVID recovery sectors & Online Food Delivery is a clear COVID structural winner." Read more about this call here . Bank of America reiterated its buy ratings on Nvidia and Advanced Micro Devices Bank of America reiterated its buy ratings on the semiconductor company's and said both had compelling valuations among other things. "We reit. Buys on NVDA and AMD on the strong and nascent gaming cycle, with product cycle tailwinds and compelling valuations that are back towards 2018 levels." Argus upgraded Wynn to buy from hold Argus said in its upgrade the casino company that was a key beneficiary from a recovery in Macau among other things. "Our upgrade assumes a recovery in the Las Vegas business and growth in Boston, driven by the rollout of coronavirus vaccines and increased leisure travel. In addition, we expect Wynn to benefit from a recovery in Macau, helped by its focus on the premium mass and luxury markets, and from the launch of its iGaming/sports betting platform in 10 states." Atlantic Equities initiated Starbucks as overweight Atlantic Equities initiated the coffee giant and named it a top pick and said it continues to "innovate" and expand in to key markets. "Starbucks remains well positioned, levered to the improving consumer economy as mobility recovers, especially in the US where Starbucks is largely an owner/operator, as well as in China where Starbucks is deepening its market penetration with its store count expected to surpass 5,000 in FY21." Bank of America downgraded Credit Suisse to underperform from neutral Bank of America said in its downgrade of Credit Suisse that the company's loss from Archegos was double what it expected. "After a loss of this magnitude on an exposure where we believe risk appetite was likely in the range of CHF0.1bn, we expect new management at the investment bank and in risk to review many aspects of the investment bank client franchise and risk appetite." Bank of America reiterated its underperform rating on GameStop Bank of America reiterated its underperform rating on the gaming retailer after it announced a share offering on Monday and said there were still too many unanswered questions. " GME announced [Monday] before market open that it will be conducting a share offering of up to 3.5mn shares (would increase diluted share by ~5%). While the program is up to a dollar amount of $1bn, at GME current share price of $183, it would total ~$650mn upon completion."
A Peloton Interactive Inc. logo on a stationary bike at the company's showroom in Dedham, Massachusetts, U.S., on Wednesday, Feb. 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
Here are the biggest calls on Wall Street on Tuesday: