- Barclays lowered its price target on Apple to $134 from $138.
- Jefferies reiterated Carvana as a top pick.
- Morgan Stanley upgraded Salesforce to overweight from equal weight.
- Evercore added a tactical outperform idea on Macy's.
- Bank of America reiterated FedEx as a top pick.
- Deutsche Bank upgraded UBS to buy from hold.
- Wells Fargo initiated UnitedHealth as overweight.
- Barclays reiterated General Electric as a top pick.
- UBS reiterated Home Depot as buy.
- Cowen reiterated its outperform rating on Dick's.
- UBS downgraded Wells Fargo to neutral from buy.
- Wedbush downgraded CarMax to neutral from outperform.
- Morgan Stanley named Constellation Brands a top pick.
- Tudor Pickering Holt & Co. initiated General Motors as buy.
- Tudor Pickering Holt & Co. initiated Ford as buy.
- Bank of America reiterated its buy rating on Walmart.
- Morgan Stanley reiterated Nike as a top pick.
- Jefferies assumed Netflix as buy.
- Argus upgraded Tyson Foods to buy from hold.
Here are the biggest calls on Wall Street on Wednesday: Barclays lowered its price target on Apple to $134 from $138 Barclays lowered its price target on Apple and reiterated its neutral rating on the stock and said it had concerns about the company's Services business, which includes the App Store, among other things. "Overall, we expect services growth to decelerate in the next couple of years after a very strong FY21. We are modeling 3% installed base growth and ~10% growth in revenue per user over the next two years. Longer term, we see risks associated with App Store pricing and the Google traffic acquisition cost." Jefferies reiterated Carvana as a top pick Jefferies reiterated the online used car company as a top pick and said investors should buy the weakness in shares. "A 28% pullback in CVNA' s stock since early March presents a compelling buying opportunity, particularly when considering that the fundamental outlook has improved since 1Q results (our view)." Morgan Stanley upgraded Salesforce to overweight from equal weight Morgan Stanley said in its upgrade of the stock that it now sees a more favorable risk/reward. "Well positioned for ramping digital transformation demand and more constructive margin commentary from management tilts the risk/reward significantly more favorably, particularly given the 25% relative under-performance in CRM post the Slack announcement." Read more about this call here. Evercore added a tactical outperform idea on Macy's Evercore reiterated its in line rating on shares of Macy's after the company's earnings report and said there is a "growing list of reasons" to own the stock beyond the recovery. "Although investors remain skeptical about the long-term relevance of the mall-based department store, Macy's followed Dillard's monstrous 1Q beat by also handily surpassing sales and EPS guidance." Bank of America reiterated FedEx as a top pick Bank of America reiterated the company as a top transport pick and said it was "hitting its stride." " FDX has achieved strong efficiency gains over the past year, with a 21% improvement in stops per hour, a 12% reduction in cost per stop, and a 4% reduction in fixed cost per package in F3Q21." Deutsche Bank upgraded UBS to buy from hold Deutsche Bank upgraded the investment bank and said it sees "ongoing positive momentum" as management continues to execute. " UBS 's reinvigorated Global Wealth Management and Asset Management franchises are set to benefit from ongoing positive momentum, due to management actions taken and continuous catch-up potential as well as structural and cyclical tailwinds in our view." Wells Fargo initiated UnitedHealth as overweight Wells initiated the healthcare insurance company and said it was a "leading" health plan franchise, among other things. "We see UNH as the best combination of growth, diversification, and risk across the Managed Care group. UNH has leading health plan franchises and a proven health care services and technology strategy at a time when many competitors are in the 'show-me' stage of their diversification beyond health benefits." Read more about this call here. Barclays reiterated General Electric as a top pick Barclays reiterated General Electric as a top pick and said the balance sheet recovery should "accelerate." The firm also raised its price target to $16 from $15. "As investor perceptions turn increasingly to growth prospects in 2022, we think GE should 'screen' very well (its high exposure to traditional 'late-cycle' markets), and evidence of recovery in commercial aerospace should act as a near-term catalyst to re-ignite share price momentum, which dissipated since the March Investor Meeting." UBS reiterated Home Depot as buy UBS reiterated its buy rating on Home Depot after the company's earnings report and said the home improvement retailer's revenues "demonstrated superior flow." " HD 's strong all-round 1Q sets it up well for the rest of the year. We believe the earnings power of HD's business model was on full display in 1Q. While the co'mpany's revenues were expected to be strong, it demonstrated superior flow through w. a 27% incremental margin." Cowen reiterated its outperform rating on Dick's Cowen reiterated its outperform rating on Dick's and said the company was on its way to a "$10 billion market cap." "Our inbound calls suggest a wide range of investor same store sales and EPS estimates into Q1 with sentiment having risen given strong reads into May. … We believe guidance is likely to be raised in line with the acceleration in trends since the 3/9/21 Q4 call." UBS downgraded Wells Fargo to neutral from buy UBS said in its downgrade of the banking giant that the company's risk/reward profile is no longer attractive after "sizable outperformance." " Wells Fargo shares have risen 59% year-to-date and 123% since the end of Oct. 2020 (BKX is up 37% and 74%, respectively, over these periods). Hence, the shares no longer trade at material PE discounts to other banks we cover." Read more about this call here. Wedbush downgraded CarMax to neutral from outperform Wedbush downgraded the auto retailer mainly on valuation. "While we acknowledge that this is not a 'winner-take-all' marketplace, and the fact that KMX has invested heavily towards improving its robust omnichannel experience, many larger franchised dealers and online used only players are heavily investing towards improving their respective consumer experiences as well, which could limit the extent of future market share gains for KMX going forward." Morgan Stanley named Constellation Brands a top pick Morgan Stanley said the beverage giant was a top pick with an "attractive" valuation among other things. "Our top pick is Constellation Brands as we see building evidence of rebounding beer topline growth and market share after temporary COVID product shortages, an improved corporate topline/margin profile after the wine divestiture, conservative beer margin guidance, and attractive valuation relative to LT growth potential, particularly when factoring in Canopy value and with forward share repurchases acting as a potential catalyst." Tudor Pickering Holt & Co. initiated Ford as buy Tudor initiated the auto maker with a buy rating and said the turnaround was "well under way." "We are initiating coverage on Ford Motor Company with a Buy rating and $17/sh price target, driven by our constructive view on a turnaround story already well under way. Tudor Pickering Holt & Co. initiated General Motors as buy Tudor said in its initiation of General Motors that the stock was "set to outperform." "We believe the company is well positioned to lean into the industry's transition towards electrification at an attractive valuation while bolstering equity upside through technological innovation on both the connectivity and autonomy front." Bank of America reiterated its buy rating on Walmart Bank of America reiterated its buy rating on the stock after its earnings report and said it sees "strong momentum" as the economy reopens. "We believe WMT's investments in omni-channel execution have supported (potentially sticky) share gains through COVID & position WMT well LT. We think the return to positive store traffic implies even greater support for already strong momentum in pickup as WMT continues to leverage its dominant store footprint & one-stop shopping assortment." Morgan Stanley reiterated Nike as a top pick Morgan Stanley reiterated Nike as a top pick and said it sees more "share gains." "Despite having recently trimmed our NKE PT & estimates on short-term headwinds confirmed by this survey & our proprietary predictive revenue model, we see room for share gains in 2H21 & beyond on positive EPS revisions & DTC-driven multiple expansion from already-elevated levels vs. history, keeping us Overweight." Jefferies assumed Netflix as buy After a change in analyst coverage, Jefferies reiterated its buy rating on shares of the stock and said it had "separated itself" as a "premier" service. "We're assuming coverage of NFLX with a Buy rating and a $620 PT based on 27.1x our 2023 EBITDA. We believe NFLX has separated itself as the premier, must-have over the top service. Significant free cash flow will allow NFLX to prime its original content pump, capitalizing on existing momentum and fragmentation in the market." Read more about this call here. Argus upgraded Tyson Foods to buy from hold Argus upgraded the poultry company and said it had a "healthy" balance sheet among other things. "Upgrading to BUY with $92 target. We see strong prospects for Tyson as demand for protein continues to grow and the company invests in new products, e-commerce upgrades, and capacity expansion. Tyson has a healthy balance sheet; strong return on equity; and ample financial resources, with total liquidity of $2.6 billion as of the end of fiscal 2Q."
A person walks past a Nike store in Kyiv, Ukraine, December 10, 2020.
Valentyn Ogirenko | Reuters
Here are the biggest calls on Wall Street on Wednesday: