Here are Thursday's biggest analyst calls of the day: Zoom, Delta, GameStop, UPS, Wingstop & more

Published Thu, Jun 10 20218:33 AM EDTUpdated Thu, Jun 10 202110:07 AM EDT

Key Points

Guggenheim reiterates RH as a top idea.
Bank of America upgrades Sherwin-Williams to buy from underperform.
BTIG upgrades Wingstop to buy from neutral.
MKM initiates coverage of Delta as a top pick.
Deutsche Bank adds a catalyst call buy idea on Delta.
Bank of America downgrades Clover Health to underperform from neutral.
Credit Suisse upgrades F5 Networks to outperform from neutral.
Goldman Sachs adds ServiceNow to the conviction buy list.
RBC upgrades Marathon Oil to outperform from sector perform.
Argus upgrades Zoom to buy from hold.
Oppenheimer downgrades Fastly to perform from outperform.
RBC downgrades Anthem to sector perform from outperform.
Jefferies initiates coverage of The Original Bark Company as buy.
JPMorgan upgrades UPS to overweight from neutral.
William Blair upgrades NetApp to outperform from market perform.
Baird reiterates GameStop as neutral.

Here are the biggest calls on Wall Street on Thursday: Guggenheim reiterates RH as a top idea Guggenheim restated the furniture company as a best idea after its earnings report on Wednesday and said it was one of the most "attractive secular growth stories." "When combined with the fact that RH appears well-positioned to enter 2022 with a significant amount of unfulfilled demand while benefiting from an elevated level of product newness—inclusive of the upcoming launch of RH Contemporary—and the launch of RH International, we continue to view RH as one of the most attractive secular growth stories and reiterate our 'Best Idea' designation. Bank of America upgrades Sherwin-Williams to buy from underperform Bank of America said in its double upgrade of the stock that paint demand was "accelerating." "Our prior cautious view on SHW was based on concerns that the unprecedented DIY paint demand in 2020 could cannibalize contractor demand in 2021. However, our third year of paint contractor surveys clearly indicated the opposite view, with backlogs well above 2019 levels." BTIG upgrades Wingstop to buy from neutral BTIG upgraded the restaurant chain and said its domestic development remains "robust." "We are upgrading shares of Wingstop to Buy from Neutral following a series of franchisee calls that give us confidence that domestic development is accelerating despite record-high wing prices and widely publicized labor shortages." MKM initiates coverage of Delta as a top pick MKM began coverage of Delta, designating it a top pick. The firm said the company would be a beneficiary of business travel as employees return to the office. "Our expectation is return to the office will dramatically accelerate in late August/early September, which should then lead to higher corporate travel. There is certainly potential for a surprise in corporate travel which should ease concerns among investors. Our pick for a surprise to the upside in corporate travel is Buy-rated, and top pick, Delta Air Lines." Deutsche Bank adds a catalyst call buy idea on Delta Deutsche Bank added a catalyst call buy idea on the airline giant and said it had an "attractive" risk/reward. "As Delta is among the most leveraged names in our coverage universe to long-haul international and corporate travel, we believe an investment in the shares has an attractive risk/reward profile particularly as the recovery in demand for travel in those segments gains momentum." Bank of America downgrades Clover Health to underperform from neutral Bank of America downgraded the Medicare insurance company and meme stock. The bank said the valuation is "no longer supported by fundamentals." "After the recent spike in CLOV (up 100% in the past week), we are downgrading CLOV to Underperform from Neutral. The company is now trading at a 70% premium to ALHC its closest comp, despite a similar growth profile and lower near term margin trajectory Read more about this call here. Credit Suisse upgrades F5 Networks to outperform from neutral Credit Suisse upgraded the app delivery networking company and said it had greater confidence in the stock after meeting with management. "We are upgrading FFIV to Outperform and increasing our target price to $235 following our non deal roadshow with FFIV Mgmt. which included the CEO, CFO, and IR. Mgmt. tone was very confident and their answers to our very specific questions about underlying business trends were answered and illustrated significantly better than what we believe the market suggests about FFIV' s business." Read more about this call here. Goldman Sachs adds ServiceNow to the conviction buy list Goldman added the cloud computing software company and said it saw "improving" near-term fundamentals. "On 6/8, we hosted a virtual non deal roadshow with ServiceNow CEO Bill McDermott and CFO Gina Mastantuono. We came away incrementally positive on ServiceNow's improving near-term fundamentals with potential to accelerate subscription revenues in C22. Read more about this call here. RBC upgrades Marathon Oil to outperform from sector perform RBC upgraded the hydrocarbon exploration company and said it saw a "large upside exposure to a more bullish oil macro." "We are upgrading MRO shares to Outperform from Sector Perform based on our updated commodity price forecast and in particular for MRO, its large upside exposure to a more bullish oil macro." Argus upgrades Zoom to buy from hold Argus upgraded the teleconferencing company and said it was bullish on Zoom's new line-up of products. "While Zoom may not be able to influence secular demand for its communication services, it is rolling out product extensions like a Zoom Phone Appliance. It is also working to become a more broad-based communications platform by enabling third-party developers to create a new applications ecosystem." Oppenheimer downgrades Fastly to perform from outperform Oppenheimer downgraded the cloud computing company after an outage crippled several major websites earlier this week. "We are downgrading FSLY from Outperform to Perform and removing our $85 price target: 1) Outages happen to all cloud companies, and FSLY responded rapidly and with candor, but switching costs for content delivery network's are relatively low, and customers could look for second-source providers (AKAM/NET/Cloud); 2) The shutdown could impact new sales for a while." RBC downgrades Anthem to sector perform from outperform RBC said in its downgrade of Anthem that it sees "few near-term catalysts" for the health insurance company. "We are revising our rating to Sector Perform, as trading levels approach our price target of $399 (unchanged). While we do not see any adverse changes within the business or anything that would change our forward estimates, we see few near-term catalysts for multiple expansion beyond current levels." Jefferies initiates coverage of The Original Bark Company as buy Jefferies began coverage of The Original Bark Company and said it saw upside to estimates for the pet products online retailer. "We are initiating at Buy with a $14 PT based on a 3 part thesis: 1) underlying sub growth creates a foundation of recurring sales & cash flow; 2) wholesale distribution, driving scale leverage & acq funnel for subs; and 3) parlaying brand equity into new categories, esp. higher velocity, longer lifecycle food categories." JPMorgan upgrades UPS to overweight from neutral JPMorgan upgraded the shipping giant and said it sees "pricing power" among other things. "We are upgrading UPS to Overweight and boosting our price target to $243 after the 2021 Investor Day provided incremental positives around pricing power, capacity discipline, and the dividend yield. The upgrade completes our positive bias on parcel pricing power that started in July 2020 with the FDX upgrade to OW." Read more about this call here . William Blair upgrades NetApp to outperform from market perform William Blair upgraded the cloud services company and said it had "reopening tailwinds." "Short-term reopening tailwinds should boost NetApp's core on-premises storage business (due to pent-up demand), with longer-term staying power for this business likely to be stronger than many investors believe as enterprises standardize on a hybrid cloud architecture for cost, locality, control, and compliance reasons." Baird reiterates GameStop as neutral Baird restated GameStop with a neutral rating after it announced a new CFO and CEO on Wednesday and said the company's strategy was still a "mystery." "As GameStop's board continues to shuffle the management deck, the goal to transform into a "technology" company that delights gamers remains mostly a mystery, particularly as the video game industry accelerates the shift toward downloads, streaming and cloud services. No doubt the console transition period is providing a lifeline, but games are not dog food, and investors deserve more than memes to value a company's fundamental, long-term prospects." Read more about this call here.

Interior Design area of the Restoration Hardware store in the Meatpacking District of New York.

Source: RH

Here are the biggest calls on Wall Street on Thursday: