Here are Tuesday's biggest analyst calls of the day: GameStop, Exxon, JPMorgan, Amazon & more

Published Tue, Apr 27 20218:12 AM EDTUpdated Tue, Apr 27 20218:27 AM EDT

Key Points

Bank of America reiterated its buy rating on Apple.
Goldman Sachs reiterated Disney as a top pick.
Needham initiated Penn as buy.
Bank of America reiterated its buy rating on Amazon.
Needham initiated DraftKings as buy.
Morgan Stanley downgraded Splunk to equal weight from overweight.
Needham initiated Uber as buy.
Piper Sandler initiated Generac as overweight.
Atlantic Equities downgraded JPMorgan to neutral from overweight.
Citi added a 90-day positive catalyst watch on Weyerhaeuser.
UBS reiterated its buy rating on Levi.
Credit Suisse upgraded Charles Schwab to outperform from neutral.
Piper Sandler initiated Sprout Social as overweight.
Deutsche Bank reiterated its buy ratings on Facebook and Alphabet.
MoffettNathanson downgraded Verizon to neutral from buy.
Goldman Sachs reiterated Exxon as buy.
Telsey reiterated GameStop as underperform.
Berenberg upgraded UPS to hold from sell.
Bank of America reiterated its neutral rating on Tesla.
Bernstein initiated Coinbase as market perform.

Here are the biggest calls on Wall Street on Tuesday: Bank of America reiterated its buy rating on Apple Bank of America reiterated its buy rating on shares of the tech giant ahead of its earnings report Wednesday and said it sees a "strong" quarter. "We expect Apple to report a very strong qtr based on broad-based strength. The company continues to benefit from increased spending on electronics given the remote work/home environment and from government stimulus cheques to consumer." Goldman Sachs reiterated Disney as a top pick Goldman reiterated Disney as a top pick and said it was "best positioned in streaming" and for the reopening. "Content offering set to expand. For Disney +, we expect the service will benefit from an expanded content offering in F2Q21 earnings and throughout calendar 2021. … Ultimately, we see this funnel of original content as key for Disney+ as we believe it will boost engagement with the service, which is key to not only driving gross adds, but also lower churn in our view. Needham initiated Penn as buy Needham initiated the operator of casinos and racetracks, and said it sees a "compelling" risk/reward. "We are bullish on the online sports betting and iGaming TAM in the US and see the potential for PENN to take significant, profitable market share on the strength of Barstool's differentiated content-driven customer acquisition strategy. Read more about this call here. Bank of America reiterated its buy rating on Amazon Bank of America reiterated its buy rating on shares of Amazon ahead of its earnings report on Wednesday and said the stock should "hold up better" than peers during the reopening. " Amazon has underperformed in 2021, up 5% YTD vs. Nasdaq up 10%. With diversified revenue streams, Amazon could hold up better than eCommerce peers during a reopening, and we see better performance in 2H'21 as Street will work through concerns on 2021 revenue comps. and investment initiatives." Needham initiated DraftKings as buy Needham initiated the fantasy sports betting operator with a buy rating and called it a "leader" in the emerging gambling market. "We initiate coverage of DKNG with a Buy rating and an $81 price target and are adding to the Needham Conviction List. We see DKNG as a leader in the emerging North America online gambling market, a $35B market opportunity." Read more about this call here. Morgan Stanley downgraded Splunk to equal weight from overweight Morgan Stanley said in its downgrade of the machine-generated data tech company that the stock's valuation "appears undemanding." "Challenges closing large deals, competitive noise, and a heightened level of executive departures increase the execution risk at SPLK near term. While the valuation appears undemanding, we see more work ahead before the SPLK multiple can see meaningful expansion." Read more about this call here. Needham initiated Uber as buy Needham said in its initiation of the stock that it sees several growth opportunities for the ride-sharing company as the economy reopens. "We see the potential for the move up the adoption curve in Delivery during the pandemic to be sticky and look for Uber to benefit from its expansion into other verticals like grocery and alcohol, where recent acquisitions should help drive share quickly." Read more about this call here. Piper Sandler initiated Generac as overweight Piper initiated the generator back-up company with an overweight rating and said Generac was a "core holding." "The company is an industry leader in back-up power through its generator and power storage businesses. Numerous tailwinds are aiding the company: aging grid infrastructure and more severe weather driving increases in power outages, distributed generation growth driving electricity/battery storage business, 5G growth and grid services." Atlantic Equities downgraded JPMorgan to neutral from overweight Atlantic Equities downgraded the banking giant mainly on valuation. " JPM 's share price has risen by over 50% since we upgraded to Overweight in July 2020 and the stock continues to deliver robust and well-diversified earnings." Citi added a 90-day positive catalyst watch on Weyerhaeuser Citi added a positive catalyst watch on shares of the paper company ahead of its earnings report on Friday as lumber prices continue to skyrocket. "Lumber prices have hit $1,188/kbft, breaking another record in a market characterized by panic buying and shortages. Prices are now +240% Y/Y and more than triple the 2000-20 average; NAHB estimates the run in lumber has added ~$24,000 to the price of an average home. The surge has confounded market observers, as a correction seen in November last year proved to be temporary. .... .We're further placing a positive catalyst watch on WY for 1Q earnings scheduled 4/30." UBS reiterated its buy rating on Levi UBS reiterated its buy rating on shares of Levi said it sees a "very attractive near and long-term opportunity" for the denim jeans company. "We expect strong EPS growth to drive the stock to our $34 Price Target. The market doesn't fully appreciate the positive impact on Levi's future earnings from the combined power of reopening, an emerging denim cycle, brand investments, mix shifts, and cost savings." Credit Suisse upgraded Charles Schwab to outperform from neutral Credit Suisse said in its upgrade of the financial services company that it sees "interest rate tailwind" and a "secular growth opportunity." "We estimate SCHW will generate more than $4 in EPS by 2023 and roughly $5 by 2024 given our view that the Fed will need to raise rates in 2023-25 and SCHW will benefit given that it's one of the most interest rate sensitive US large cap companies." Read more about this call here. Piper Sandler initiated Sprout Social as overweight Piper Sandler said in its initiation of the social media software company that it sees "strong" customer expansion among other things. "We are initiating coverage on SPT with an Overweight rating based on the opportunity to serve as the social system of record for the 200M+ global businesses on social media today." Deutsche Bank reiterated its buy ratings on Facebook and Alphabet Deutsche Bank reiterated its buy rating on shares of Alphabet and Facebook and said it was bullish on both stocks heading into their earnings reports this week. "We remain positive on both mega cap ad names and rank Facebook shares at the top of our pecking order ahead of 1Q results. ... .We also continue to like Alphabet shares, as well, and see considerable upside to Google advertising estimates for 1Q and 2021. We view positioning as more crowded at Google, with particularly elevated expectations around YouTube revenue." MoffettNathanson downgraded Verizon to neutral from buy Moffett downgraded the wireless company due to increased competitive pressures among other things. "A period of greater competitive intensity now looks more likely. And the longer-term challenge of losing their 'best network' status doesn't feel so far away anymore. Yes, Verizon still looks cheap. But what looked like an attractive near term set up is now less clear. We still believe Verizon will post stronger [average revenue per unit] growth in 2021. But that alone isn't enough." Read more about this call here . Goldman Sachs reiterated Exxon as buy Goldman reiterated its buy rating on Exxon ahead of the company's earnings report on Friday and said it preferred the stock over Chevron mainly due to valuation. "We continue to see more upside to ExxonMobil vs. Chevron (CVX, Neutral) at current valuation levels, but also given sharp outperformance of CVX vs. XOM in the last ﬁve years (CVX outperformed XOM by ~35% since April 26, 2016), which we highlighted in our recent CVX downgrade note." Telsey reiterated GameStop as underperform Telsey reiterated the stock as underperform said was still waiting for new leadership and a clear direction from the company. "We continue to believe that GameStop should benefit from the new gaming cycle, with current demand outpacing supply for new generation Microsoft and Sony consoles, and its healthy balance sheet. However, the company has yet to show financial success in an industry that is rapidly shifting to digital." Berenberg upgraded UPS to hold from sell Berenberg said in its upgrade of the stock that the company's "near-term downside catalysts are limited." "Since we downgraded UPS to Sell in September 2020 the shares have underperformed peers by 12%, but remained relatively flat in absolute terms until the past few weeks. With capex now rebased lower and both volumes and pricing likely to benefit from the recovery of US industrials, we think that near-term downside catalysts are limited." Bank of America reiterated its neutral rating on Tesla Bank of America reiterated its neutral rating on shares of Tesla after the company's earnings report on Monday and said the high stock price would be "justified" if it can keep up its growth. "It remains to be seen if TSLA can capitalize on their first-mover advantage and stay dominant in the long term. Nevertheless, we continue to believe that as long as the company can fund outsized growth with little to no cost of capital, as it has over the past decade plus, its high stock price will be justified." Read more about this call here. Bernstein initiated Coinbase as market perform Bernstein initiated the crypto company with a market perform rating and said it's hard not to see a "long-term bull case" for Coinbase but that competition is "intensifying." "Coinbase has the potential to become the default on-ramp to crypto for millions of consumers & institutions, and evolve beyond retail crypto trading – much like Amazon sells more than books today. ... Competition is intensifying and there may be less moat in Crypto brokerage business."

Aaron Jagdfeld, CEO, Generac.

Scott Mlyn | CNBC

Here are the biggest calls on Wall Street on Tuesday: