Here are Tuesday's biggest analyst calls of the day: Amazon, Coinbase, AMC, Microsoft, Shake Shack & more

Published Tue, May 25 20218:27 AM EDT

Key Points

William Blair reiterated its outperform rating on Microsoft.
Morgan Stanley lowered its price target on Virgin Galactic to $25 from $30.
Wedbush upgraded Shake Shack to outperform from neutral.
Goldman Sachs downgraded Domino's Pizza to neutral from buy.
Goldman Sachs upgraded Shake Shack to buy from neutral.
Citi reiterated its sell rating on AMC.
Barclays initiated Abbott Labs as overweight.
MKM upgraded Canopy Growth to buy from neutral.
JPMorgan initiated Coinbase as overweight.
Mizuho initiated Adobe as buy.
Loop reiterated its buy rating on Amazon.
Mizuho lowered its price target Coinbase to $225 from $315.
Stifel resumed CyberArk as buy.
Bernstein initiated Constellation Brands, Molson Coors and Boston Beer as outperform.
Credit Suisse reiterated its outperform rating on Charles Schwab
Baird reiterated its outperform rating on Zoom.

Here are the biggest calls on Wall Street on Tuesday: William Blair reiterated its outperform rating on Microsoft William Blair reiterated its outperform rating on shares of the tech giant and said it was a "long-term wallet share gain story." "At a high level, the two core pillars of Microsoft 's bull narrative —Microsoft 365 and Azure—are well understood by the investment community. What is perhaps less appreciated is how over the last 15 years Microsoft has expanded its IT wallet share through expanding into new product areas (i.e., increasing its total addressable market) and taking share in the markets it serves." Morgan Stanley lowered its price target on Virgin Galactic to $25 from $30 Morgan Stanley lowered its price target on the space flight company and said it sees risk to near-term revenue for Virgin Galactic. "Last weekend's successful flight test was a critical milestone, but previous delays highlight downside risks to near-term revenue. We update our model to factor in more conservatism regarding our first commercial flight forecast to 2022. We lower our PT to $25 and maintain our Equal-weight." Wedbush upgraded Shake Shack to outperform from neutral Wedbush upgraded the fast food restaurant chain and said the "reward outweighs the risk." "We believe the magnitude of shares' post-Q1 decline is a reflection of investors' concern that near-term top- and bottom-line trends may be an indication of SHAK' s medium- to longer-term trajectory." Goldman Sachs downgraded Domino's Pizza to neutral from buy Goldman said in its downgrade of the pizza chain company that it saw a more "balanced" risk/reward. "We continue to see DPZ as a leading limited service restaurant Pizza player, with superior franchise economics that can sustain growth and help drive the company's long term unit and system sales growth targets of 6% to 8% and 8% to 10%." Read more about this call here. Goldman Sachs upgraded Shake Shack to buy from neutral Goldman Said in its upgrade of the stock that it was one of the "last reopening plays in the space." " SHAK shares pulled back after the company reported 1Q earnings that missed expectations, as the top-line recovery is more prolonged given the company's small comp base and more importantly, its strong tether to urban and tourist-driven locations. The company's small size and unique footprint drive a lag in the company's recovery from COVID, making it one of the last reopening plays in the space." Read more about this call here. Citi reiterated its sell rating on AMC Citi reiterated its sell rating on the movie theater chain and said AMC shares were "overvalued." "We arrive at our target price by applying an ~11x multiple to our 2023 adjusted EBITDA estimate. We maintain our Sell rating, as we believe that the shares are overvalued at prevailing levels Barclays initiated Abbott Labs as overweight Barclays said in its initiation of Abbott Labs that it sees a "return to revenue growth" for the med tech industry. "We initiate coverage on Medical Devices with a Positive industry view: We could be at the beginning of another multi-year period of outperformance for medtech. COVID disrupted a decade of outperformance and years of accelerating revenue growth, and relative valuations are not pricing in the return of mid-single digit revenue growth levels." MKM upgraded Canopy Growth to buy from neutral MKM upgraded the cannabis company and said the risk/reward was "favorable." "While we don't expect a significant 4Q'21 operational beat (June 1), we believe sentiment is so low as to render risk/reward very favorable. Over the last three months, Canopy and sector shares are down ~40% (vs. S & P 500 +7%)." JPMorgan initiated Coinbase as overweight JPMorgan initiated the crypto company with an overweight rating and said it sees multiple "growth opportunities" for the company to gain more users. "We see Coinbase occupying a key position in the US market for transacting cryptocurrencies, a technology we expect will grow and become more embedded in financial and other markets. We see the cryptomarkets as durable and growing, and expect Coinbase has the opportunity to influence and benefit from this market growth as it innovates." Read more about this call here. Mizuho initiated Adobe as buy Mizuho initiated the stock with a buy rating and said the company was at the "forefront of creativity and productivity." "We initiate on ADBE with a Buy rating and a $600 price target. In our view, ADBE's expansive portfolio of software solutions has made it the gold standard in content creation, consumption, and collaboration" Loop reiterated its buy rating on Amazon Loop reiterated its buy rating on the e-commerce giant and said its advertising business was a "rising star." " Amazon' s advertising business has become a significant driver of profit growth: We look at Amazon's advertising businesses as three different efforts: (1) the price-per-click (PPC) advertising on Amazon.com and other ecommerce sites, (2) the over-the-top (OTT) services through FireTV, IMDb, live sports, etc. and (3) the online streaming platform Twitch." Mizuho lowered its price target Coinbase to $225 from $315 Mizuho lowered its price target on shares of the crypto company and reiterated its neutral rating and said a "crypto winter" could be coming. "The harsh winter of 2018 resulted in volumes drying up, which adversely impacted COIN' s transacting users and retail revenues (~80% of total). Although all outcomes are still feasible for 2021, a crypto winter may mean 15% to 20% potential downside to current consensus sales expectations." Stifel resumed CyberArk as buy Stifel resumed coverage of the cyber security company and said it sees "multiple expansion" among other things. "We believe CyberArk has a number of drivers to sustain 30% annual recurring revenue growth along with returning to the Rule of 40 (via 20%+ revenue growth and 20%+ operating margin) in 2025 as it progresses through its model transition and we expect multiple expansion as this plays out." Bernstein initiated Constellation Brands, Molson Coors and Boston Beer as outperform Bernstein launched coverage of several beer and beverage companies and said they have "compelling" valuations among other things. "We launch coverage of US Beer/Malt Beverages: Constellation Brands, Molson Coors Beverage Company and The Boston Beer Company . Mainstream light beer has dominated the US beer industry for decades. But any company targeting growth today needs to look beyond Joe Six Pack's favorite suds. All three of our coverage companies are doing this in different ways and all three have compelling valuations, in our view." Read more about this call here. Credit Suisse reiterated its outperform rating on Charles Schwab Credit Suisse reiterated its outperform rating on the financial services company and said "now is the point in the cycle to own" the stock. "We remain bullish on SCHW' s consistently strong organic growth (5% to 10% range) given its two secular growth businesses in the retail (online broker) and institutional channels." Baird reiterated its outperform rating on Zoom Baird reiterated its outperform rating on the teleconference company ahead of its earnings report next week and said it remains "positive on the long-term opportunity." "We expect strong FQ1 results, with a beat in the pre-pandemic range. The big question will be FQ2 guidance, and the level of conservatism given possible re-opening impacts. We expect sequential growth off of the likely FQ1 beat, and still expect current full-year guidance and estimates to prove conservative. While there will clearly be some reduced use cases, we remain positive on the broad video growth opportunities, along with its surging Zoom Phone business."

A medical worker wearing a mask walks near the AMC movie theater in Times Square amid the coronavirus pandemic on May 7, 2020 in New York City.

Alexi Rosenfeld | Getty Images

Here are the biggest calls on Wall Street on Tuesday: