- Evercore ISI reiterates Hershey as outperform.
- Cowen names Paylocity as a best idea.
- Goldman Sachs initiates coverage ZipRecruiter as buy.
- Telsey reiterates Nike as outperform.
- Guggenheim names Boston Beer a best idea.
- Bank of America names Uber a top second-half pick.
- Jefferies reiterates Amazon as buy.
- Credit Suisse initiates coverage of Figs as outperform.
- Citi reiterates Micron as buy.
- Bernstein reiterates Apple as market perform.
- RBC initiates coverage of Flywire as outperform.
- Needham initiates coverage of ChargePoint Holdings as buy.
Here are the biggest calls on Wall Street on Monday: Evercore ISI reiterates Hershey as outperform Evercore ISI kept its outperform rating on the food and chocolate company, saying that Hershey continues to execute and that inflation looks "manageable." "Over the last year, Hershey has executed very well. It has partnered closely with retailers by leveraging its regional data analytics and consumer insights. This unlock coupled with strong merchandising especially around seasonal periods, mix benefit, increased marketing and a flexible supply chain drove ~150bp of market share over the last year." Needham initiates coverage of ChargePoint Holdings as buy Needham began coverage of the electric vehicle charging company with a buy rating and said it should "maintain leadership in a rapidly growing industry." " CHPT 's early mover advantage, capital-light business model, ~610mm cash pile, superior product offerings, seasoned management team and strong customer relationships will allow it to maintain leadership in a rapidly growing industry, we believe." Cowen names Paylocity as a best idea Cowen named the cloud based payroll and human capital management company a top idea and said Paylocity was an "attractive" growth investment. "Shares have underperformed YTD -12% despite accelerating demand, which we attribute to shares being caught up in the broader market pressure on premium multiple growth names and an overemphasis on record retention commentary from large incumbents ADP & PAYX." Goldman Sachs initiates coverage ZipRecruiter as buy Beginning its coverage of the online job marketplace, Goldman Sachs said it sees a positive risk/reward. "Over the next 3 years (2020-23), we expect ZIP will grow at a 25% revenue CAGR and a 17% adj. EBITDA CAGR, reflecting the shift in recruiting dollars online, a strong employer demand environment, and significant investment acceleration into the forward opportunity." Telsey reiterates Nike as outperform Telsey said Nike likely faces some "near-term pressures" but the positive momentum is continuing. "Nike likely faced a mixed environment in 4QF21. On the positive side, demand for athletic apparel & footwear and Nike products in the US was strong, as evidenced by 1Q21 results from athletic retailers and brands and commentary around 2Q21 trends-to-date." Guggenheim names Boston Beer a best idea Guggenheim named the beverage and beer giant as a best idea and said growth remains "healthy." "We reiterate our BUY rating on Boston Beer and we are raising the stock to our 'Best Idea' As the stock has significantly underperformed recently, we wanted to take a closer look at the somewhat counterintuitive data points that make the assessment of Boston Beer more challenging. Although optically softer, retail category growth remains healthy given the especially strong comparisons in March, April, and May last year that should begin to subside in June, in our view." Read more about this call here. Bank of America names Uber a top second-half pick Bank of America named Uber a top stock for the second half of the year and said several catalysts are coming. "We see several important potential catalysts (positive and negative) for Uber including potential IPOs in the sector that could change comps or asset values, competitive launches, end of U.S. unemployment stimulus (Sept), or Federal/State legislation on driver employment. We also see a number of shopping related catalysts for Facebook including Shop Pay rollout on Facebook, shoppable ads on Instagram's IGTV and Reels, and business messaging initiatives." Jefferies reiterates Amazon as buy Jefferies reiterated its buy rating on shares of the e-commerce giant and said Prime Day should help advertising revenue. "Prime Day kicks off tomorrow and could be the first of two events this year as press reports suggest AMZN is considering hosting a second in the Fall. We estimate the June event will contribute $9.5B to GMV and $6.8B to Net Sales, which represents an 8% tailwind to 2Q growth. We also see Prime Day helping boost advertising revenue and Prime adoption, particularly in int'l markets where penetration is lower." Credit Suisse initiates coverage of Figs as outperform Starting its coverage of the medical apparel company, Credit Suisse said Figs is an "attractive asset." " FIGS is disrupting the innovation-starved and stagnant $12B US healthcare apparel industry by reengineering the core scrubs category, using cues from performance sportswear brands (like Lululemon) to replace low-fashion, ill-fitting incumbents. Rapid new customer growth, low market share today (2%), and solid customer affinity/repeat rates support our forecast for +39% revenue growth in '20-'23." Read more about Figs here. Citi reiterates Micron as buy Citi restated its buy rating on shares of Micron and said investors should buy any dip in the stock. "Our checks indicate pushouts from the PC/handset supply chains (combined 50% of MU revenue) in the semiconductor industry. We expect this to result in flat DRAM prices during 4Q21 but DRAM pricing to increase in C22 due to low supply growth. As a result, we expect less upside to MU estimates during 4Q21 then for growth to resume in 2022." Bernstein reiterates Apple as market perform Bernstein kept its market perform rating on the tech giant and said it's more "constructive" on the stock ahead of the company's iPhone product launches. "Should investors look to build positions in AAPL now, given that we are three-months away from the next iPhone launch? Several considerations would suggest yes. In addition to the notable historical trading pattern, Apple's valuation has declined materially YTD, following the shares appreciating 78% in 2020." Read more about this call here. RBC initiates coverage of Flywire as outperform RBC initiated coverage of the global payments software company, saying it is "uniquely positioned." "We are initiating coverage of FLYW with an Outperform rating and a $44 price target, as we believe the company is uniquely positioned to solve various payment friction points embedded in its key verticals, which include education, healthcare, and travel, and see the company generating 30%+ revenue CAGR over the next three years.
People hold a banner at the Amazon facility as members of a congressional delegation arrive to show their support for workers who will vote on whether to unionize, in Bessemer, Alabama, U.S. March 5, 2021.
Dustin Chambers | Reuters
Here are the biggest calls on Wall Street on Monday: