Here are Friday's biggest analyst calls of the day: Tesla, Schwab, Amazon, Microsoft & more

Published Fri, Apr 23 20218:20 AM EDTUpdated Fri, Apr 23 20218:22 AM EDT

Key Points

Morgan Stanley raised its price target on Tesla to $900 from $880.
Piper Sandler downgraded Kraft Heinz to neutral from overweight.
Wolfe initiated Microsoft as outperform.
Berenberg initiated JFrog as buy.
Deutsche Bank reiterated Charles Schwab as a top pick.
Wolfe initiated Zoom as outperform.
Jefferies reiterated Snap as a top idea.
Morgan Stanley downgraded Harley-Davidson to equal weight from overweight.
Credit Suisse raised its price target Alphabet to $2,500 from $2,360.
BMO raised its price target on Amazon to $4,200 from $4,000.
Morgan Stanley upgraded Skechers to overweight from equal weight.
Raymond James upgraded American Airlines to market perform from underperform.
Wedbush upgraded IMAX to outperform from neutral.
Jefferies initiated Spotify as buy.
Jefferies upgraded Electronic Arts to buy from hold.

Here are the biggest calls on Wall Street on Friday: Morgan Stanley raised its price target on Tesla to $900 from $880 Morgan Stanley raised its price target on shares of Tesla ahead of the company's earnings report on Monday and said investor expectations about Tesla's progress in China might be too high. "It seems the investor mood towards Tesla's outlook in China is being 'dialed back.' This is a good thing, in our opinion, as market expectations for Tesla in China long term are quite a bit too high, in our view…" Piper Sandler downgrade Kraft Heinz to neutral from overweight Piper downgraded the food company and said it now sees an "unattractive" risk/reward due to commodity cost inflation. "We continue to believe that KHC is better positioned to drive organic revenue growth than it has been in recent years. However, with a 44% increase in its share price since late September, coupled with broad surges in commodity cost inflation, we now consider the risk/reward to be unattractive near-term." Read more about this call here. Wolfe initiated Microsoft as outperform Wolfe said in its initiation of the tech giant that Microsoft shares are "more attractive than they appear." "While on the surface shares may appear fully valued by trading at 32.5x CY22E P/E for low double digit growth, a premium multiple to comps of a similar profile, we see an upside scenario that supports high teens EPS growth in both CY22E and CY23E, making shares more attractive than they appear on the surface." Berenberg initiated JFrog as buy Berenberg initiated the software platform company with a buy rating and said it saw saw an "underpenetrated" opportunity. " FROG 's software platform enables its users to build and release software faster while ensuring code integrity. ... An underpenetrated upsell opportunity implies sustainable > 120% net retention as margins expand, driving multiple expansion." Deutsche Bank reiterated Charles Schwab as a top pick Deutsche Bank reiterated Schwab as a top idea after the company provided its spring business update and said the stock has more upside potential. "At SCHW's spring business update, Walt Bettinger (President & CEO), Peter Crawford (CFO) and Joe Martinetto (COO) provided an updated outlook on business trends, integration planning and revenue and expense scenarios for 2021. Overall, we view the outlook positively and possessing greater upside potential than downside risk to both our estimates and Consensus." Wolfe initiated Zoom as outperform Wolfe said in its initiation of the teleconferencing company that it saw an "attractive" entry point. "While the stock is arguably the most controversial 'COVID winner' we believe that the incremental $100B+ [total addressable market] related to Zoom Phone and Zoom Rooms will create growth durability for many years to come and thus would be looking at the current price, which on our upside model equates to roughly 12x CY23, as an attractive entry point." Jefferies reiterated Snap as a top idea Jefferies reiterated the social media company as it's "top growth idea" after its strong earnings report on Thursday. " SNAP beat the street's Q1 revenue, EBITDA, and daily average users by 3%, $54M, and 5M, respectively. We believe investors will be pleased to see revenue growth accelerate to +66% y/y, representing the fastest growth since Q4'17." Morgan Stanley downgraded Harley-Davidson to equal weight from overweight Morgan Stanley said in its downgrade of the motorcycle company that the market was "under-appreciating the secular challenges ahead." "The market has turned bullish on the potential turnaround of Harley Davidson . While Q1 earnings were strong and management's strategy for "profitable growth" appears to have resonated with investors, we believe the market is under-appreciating the secular challenges ahead, driving our UW rating." Read more about this call here. Credit Suisse raised its price target on Alphabet to $2,500 from $2,360 Credit Suisse raised its price target on Alphabet and said it sees higher advertising prices will benefit the company. "We maintain our Outperform rating based on the following thesis points: 1) ongoing monetization improvements in Search advertising through product/AI driven updates, 2) greater-than-expected revenue contribution from non-Search businesses." BMO raised its price target on Amazon to $4,200 from $4,000 BMO raised its price target on shares of the e-commerce giant ahead of its earnings report next week and said it expects "share gains" to continue. "We think AMZN' s difficult comps owing to the acceleration of eCommerce during the pandemic are well understood, but nevertheless will remain the top focus for the print. With that said, we are more intrigued by the potential change in margin profile as some COVID related expenses could fade as vaccinations rise and restrictions ease." Morgan Stanley upgraded Skechers to overweight from equal weight Morgan Stanley upgraded the shoe company after its earnings report and said it had an "attractive" business model. " SKX reported impressive 1Q21 results. It also delivered on all of the items we were looking for to upgrade the stock: improved EBIT flow-through, profit and loss visibility, & a more balanced management compensation structure." Raymond James upgraded American Airlines to market perform from underperform Raymond James said in its upgrade of the airline that it sees an "improved" profitability profile. "We are upgrading AAL from Underperform to Market Perform due to balanced risk-reward based on our (unchanged) bull-bear analysis following the recent pull back in shares, with our EPS est. largely unchanged." Wedbush upgraded IMAX to outperform from neutral Wedbush said in its upgrade of the movie projection company that it was a "COVID recovery story." "We are upgrading shares of IMAX to OUTPERFORM, and raising our price target to $26. IMAX is a COVID recovery story. Pent-up demand for out-of-home entertainment drove outsized market share for IMAX in China, Japan, and elsewhere in Asia over the last several months, particularly in Q1:21." Read more about this call here . Jefferies initiated Spotify as buy Jefferies said in its initiation of the music streaming service that it sees the company as the "primary audio platform for creators." " Spotify is more platform than streaming service. ... We believe we are in the early innings of a creator economy where content creation/distribution/marketing has been democratized, in which Spotify will become the primary audio platform for creators." Read more about this call here . Jefferies upgraded Electronic Arts to buy from hold Jefferies upgraded the video game company and said the stock was "underappreciated" among other things. "We are assuming coverage of Electronic Arts , upgrading the stock to Buy and introducing a price target of $165. We believe investors have been too negative and have underappreciated the underlying assets at EA. We see green shoots pointing towards a return to normalized growth."

An American Airlines Airbus A321-200 plane takes off from Los Angeles International airport (LAX) in Los Angeles, California.

Mike Blake | Reuters

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