- Goldman Sachs downgraded Kroger to sell from neutral and Albertsons to neutral from buy.
- Rosenblatt reiterated its buy rating on Roku.
- William Blair initiated MicroStrategy as outperform.
- UBS upgraded Quest Diagnostics to buy from neutral.
- JPMorgan added Estee Lauder to the focus list.
- UBS downgraded Teva to neutral from buy.
- Baird downgraded Bank of America to neutral from outperform.
- JPMorgan initiated Roblox as overweight.
- Goldman Sachs upgraded Advance Auto Parts to buy from sell.
- Bernstein upgraded Boeing to market perform from underperform.
- Credit Suisse upgraded U.S. Steel to outperform from neutral.
- KeyBanc downgraded Dollar General to sector weight from overweight.
- Jefferies reiterated its buy rating on Yeti.
- Citi raised its price target on Home Depot to $375 from $288.
- Northcoast downgraded Domino's to neutral from buy.
Here are the biggest calls on Wall Street on Tuesday: Goldman Sachs downgraded Kroger to sell from neutral and Albertsons to neutral from buy Goldman said in its downgrade of the grocery company's that it sees margin pressure and inflation among other things. "That, coupled with potentially rising costs from inflation, results in multiple headwinds that could pressure margins for Grocers. Therefore, we are downgrading KR to Sell from Neutral, and ACI to Neutral from Buy." Read more about this call here. Rosenblatt reiterated its buy rating on Roku Rosenblatt reiterated its buy rating ahead on shares of Roku and said it expects a "strong" earnings report on Thursday. "We expect strong results from Roku' s Thursday night print, focusing on US ARPU relative to active accounts as its 50M+ targeted household reach is well in front of any other platform in the market. In addition, we believe there is a good chance that outside the U.S. revenue/active accounts are segmented for the first time, including country-level contribution." William Blair initiated MicroStrategy as outperform William Blair initiated the business intellligence and software company and said MicroStrategy's Bitcoin acquisition provides an "additional growth vector." " MicroStrategy provides an analytics platform that enables customers to build applications that can scale across their enterprise and layer on top of existing analytics tools. Businesses can connect every user and application to their data." UBS upgraded Quest Diagnostics to buy from neutral UBS said in its upgrade of the diagnostic lab company that "top line growth is poised to accelerate." "We are upgrading shares of DGX to Buy from Neutral as we think Consensus underestimates the top-line potential for the base business beyond COVID." Read more about this call here . JPMorgan added Estee Lauder to the focus list JPMorgan added Estee Lauder to its focus list after its earnings report and said the "bull thesis remains intact." "While we acknowledge that top line missed in F3Q and that the recovery has not been on a straight line, we think the bull thesis (China reacceleration, skincare and ecommerce growth added to the reopening which should help makeup recovery from a very low base) remains intact." UBS downgraded Teva to neutral from buy UBS downgraded Teva Pharmaceuticals and said the "lack of profit levers limit multiple expansion." "We are downgrading shares from Buy to Neutral on the view that clipped visibility into meeting long term targets and litigation uncertainty will stymie near term multiple expansion." Read more about this call here. Baird downgraded Bank of America to neutral from outperform Baird said in its downgrade of the banking giant that it now sees a more "balanced" risk/reward. "Stepping aside on BAC , solid execution reflected in multiple. BAC has executed well during the pandemic, showing the strength of its franchise, healthy earnings power, and diversified business mix. Read more about this call here. JPMorgan initiated Roblox as overweight JPMorgan initiated the social media gaming company and said execution can drive "steady" long-term returns. "Roblox uniquely offers investors exposure to multiple growth megatrends, including mobile gaming, social networking, usergenerated content, and digital identity." Read more about this call here. Goldman Sachs upgraded Advance Auto Parts to buy from sell Goldman said in its double upgrade of Advance Auto Parts that the company's "idiosyncratic drivers" should send margins higher. "As the country inches towards normalization with immunizations picking up pace, we see the auto parts retailers beneﬁting from re-opening, despite strong comps in auto parts retail in 2020. More so, in a highly inﬂationary environment, we like the auto parts space with its unique ability to pass-through higher costs to customers given the non-discretionary nature of the category." Bernstein upgraded Boeing to market perform from underperform Bernstein upgraded the aerospace company and said the market recovery "remains complex" and that it sees less risks. "We see less company-specific risk now that Boeing controls 787 deliveries, 777X expectations have been reset, and free cash flow estimates have been brought down." Credit Suisse upgraded U.S. Steel to outperform from neutral Credit Suisse upgraded the stock due to strong steel demand among other things. "We upgrade CLF and X to Outperform and raise TPs driven by higher steel price deck (spot and contract), positive operational leverage, and modestly higher target multiples vs historical averages. Read more about this call here. KeyBanc downgraded Dollar General to sector weight from overweight KeyBanc downgraded the discount retailer mainly on valuation. "We downgrade DG to SW from OW on valuation and difficult comparisons ahead as the economy likely returns to normal and as the stimulus impact wanes." Jefferies reiterated its buy rating on Yeti Jefferies reiterated its buy rating on shares of the outdoor manufacturing company and said "demand tailwinds are heating up." " YETI is a key beneficiary of the outdoors mega trend, and analysis of alternative data and consumer camping intentions shows that this strength will continue into 2021 and beyond." Citi raised its price target on Home Depot to $375 from $288 Citi raised its price target on shares of Home Depot to a Street high and said "rising home prices and high housing turnover are positive indicators for home improvement retailers." "We see favorable tailwinds for home price strength to continue in the near-to-medium term fueled by elevated demand for bigger homes and migration trends post-pandemic, a strengthening consumer, and the Fed's commitment to low rates." Northcoast downgraded Domino's to neutral from buy Northcoast downgraded the pizza restaurant chain and said labor and food inflation could pressure margins among other things. "Going forward, as Domino's laps last year's extraordinary same-store sales growth in the US, we anticipate a deceleration in comp rate even though average weekly sales volumes should remain stable."
An Estee Lauder cosmetics counter in Los Angeles, California.
Lucy Nicholson | Reuters
Here are the biggest calls on Wall Street on Tuesday: