- Morgan Stanley reiterates Microsoft as overweight.
- Wells Fargo reiterates Bank of America as a top pick.
- Piper Sandler reiterates Chipotle as a top pick.
- Morgan Stanley downgrades Progressive to underweight from equal weight.
- Loop initiates coverage of Peloton as buy.
- Atlantic Equities initiates coverage of Etsy as overweight.
- Baird downgrades Capital One to neutral from outperform.
- Piper Sandler upgrades Visa to overweight from neutral.
- Wedbush reiterates GameStop as underperform.
- Deutsche Bank reiterates Apple as buy.
- Argus downgrades AutoZone to hold from buy.
Here are the biggest calls on Wall Street on Monday: Morgan Stanley reiterates Microsoft as overweight Morgan Stanley restated its overweight rating on Microsoft and said it saw an "attractive entry point." "Durability of growth at scale and potential for further margin expansion remain key debates for investors. A thorough examination of these debates bolsters our confidence in an 18% 3-yr EPS CAGR, making the current 26X CY22e P/E multiple an attractive entry point for a top secular grower." Wells Fargo reiterates Bank of America as a top pick Wells Fargo restated the banking giant as a top pick and said it was a beneficiary from "technology and responsible growth." " BAC remains our #1 stock pick given its cyclical positioning to the recovery and structural benefits from technology and 'responsible growth.' … Continued visibility by the CEO In our view, BAC's performance is night-and-day different vs. the last recession." Piper Sandler reiterates Chipotle as a top pick Piper Sandler restated the Mexican chain restaurant as a top pick and said estimates "appear reasonable." "We are reiterating Chipotle as our top pick for 2021 following our recent meeting with the company's CEO and CFO at our 41st Annual Consumer Conference. Our maintained estimates appear reasonable (although perhaps not beatable absent higher-than-expected levels of pricing) given the pressures of the current operating environment." Morgan Stanley downgrades Progressive to underweight from equal weight Morgan Stanley downgraded the insurance company and said it sees "margin erosion" as more consumers are driving. "After PGR 's high April core loss ratio, consensus is factoring in near term margin improvement vs. April. We disagree. People are driving again, at pre-Covid levels, which means more accident frequency." Read more about this call here. Loop initiates coverage Peloton as buy Loop began its coverage of the exercise fitness company with a buy rating and said the issues surrounding its treadmill would be "short-lived." " PTON shares are down ~40% from the January highs, in large part due to the company's voluntary recalls of the Tread and Tread+ and negative press around the safety of those products. Although we fully expect some impact from the recalls, we believe the impact will be short-lived and that management's guidance likely bakes in an excessive amount of conservatism." Read more about this call here. Atlantic Equities initiated coverage of Etsy as overweight Atlantic Equities started its coverage of the e-commerce company with an overweight rating and said it had a "unique digital retail growth story." "We are initiating coverage on Etsy with an Overweight rating and a price target of $200, +22% from current levels. We see Etsy as a unique digital retail growth story, benefitting from a number of strong consumer trends, including the growth of digital commerce, and consumers' growing desire for more meaningful consumption." Read more about this call here. Baird downgrades Capital One to neutral from outperform Baird downgraded the financial and credit card company mainly on valuation. "While we have always felt Cap One is one of the best risk-adjusted credit providers in the group, it's fully reflected in the stock here, and we see limited upside." Piper Sandler upgrades Visa to overweight from neutral Piper upgraded the credit card and payment company and said it sees improving U.S. travel trends. "We expect Visa to benefit more from a vaccine-driven U.S. recovery than Mastercard. Visa generated 45% of its pre-pandemic revenue from the United States, compared to only 32% for Mastercard." Read more about this call here . Wedbush reiterates GameStop as underperform Wedbush restated the retail video game store as underperform and said shares remain "disconnected from the fundamentals of the business" following the meme stock craze. " GameStop is well-positioned to be a primary beneficiary of the new console launches, and we remain quite optimistic of its return to profitability by FY:21. The short squeeze and retail investor enthusiasm seen in recent months have spiked the share price to levels that are disconnected from the fundamentals of the business." Argus downgrades AutoZone to hold from buy Argus downgraded the auto parts company mainly on valuation. " AZO shares have surpassed our former target price of $1385 and appear fairly valued at current levels. The shares have outperformed over the past quarter, rising 18% compared to an 8% gain for the S & P 500. However, they have fallen about 9% since mid-May." Deutsche Bank reiterates Apple as buy Deutsche Bank restated its buy rating on Apple and said it doesn't expect any major announcements from the tech giant at its Worldwide Developers Conference this week. "With WWDC kicking off … we believe there will be a few key software/hardware announcements to keep an eye on. While Apple does not always have hardware announcements during WWDC, based on news reports it seems that it is possible that Apple introduces larger MacBook Pro units using Apple silicon."
People walk in front of a Microsoft store on March 10, 2021, in New York.
John Smith | VIEW press | Getty Images
Here are the biggest calls on Wall Street on Monday: