Here are Tuesday's biggest analyst calls of the day: Netflix, Alphabet, FedEx, Carvana, Pepsi & more

Published Tue, Jun 29 20218:27 AM EDT

Here are the biggest calls on Wall Street on Tuesday: Morgan Stanley reiterates Pepsi as overweight Morgan Stanley reiterated its overweight rating on the beverage company and said it expects a "beat and raise" for Pepsi's upcoming second quarter earnings report. "We expect Q2 earnings to be a positive catalyst for PEP' s stock with an expected organic topline and EPS beat, as well as raised FY21 EPS guidance post a solid Q1 and an expected Q2 beat, with PEP also well hedged on commodities vs peers, and having EPS flex with EPS guidance only in-line with LT algorithm despite an expect large drop-off in COVID costs worth 8% to EPS in 2020." Jefferies reiterates Alphabet as buy Jefferies reiterated Alphabet as a top pick and said ad spend looks "bigger than expected." "We hosted an expert whose firm generates 60-70% of revs from YouTube advertising. Q2 ad spend from his clients should end up > 130%, with Q3 looking much bigger than expected. Ad budgets for 2021 have finally firmed up, with a sizable shift away from linear TV into YouTube and Facebook. On iOS 14.5 and users opting out of tracking, ad budgets shifted to Android devices on FB instead of iOS due to better targetability." Guggenheim downgrades Fox to neutral from buy Guggenheim downgraded the media company following reduced estimates. "Our revised estimates reflect our view of the advertising market as well as adjustments for the timing of y/y shifts in the sports calendar, production timing, and incremental investments. We are lowering our rating on FOXA to Neutral from Buy and are maintaining our $41 price target." MoffettNathanson reiterates Netflix as neutral Moffett reiterated its neutral rating on shares of the streaming giant and said it may need to consider sports or advertising on its service. "While Netflix has a fundamental opposition to advertising, perhaps emerging pressure to find growth as well as a more developed advertising video on demand ecosystem may make Netflix more amenable to advertising on the service." Morgan Stanley upgrades Textron to overweight from equal weight Morgan Stanley said in its upgrade of Textron that it sees the return of "sustained growth in business jets." "The market has already started valuing return of business jets, but the Red-Hot Capex Cycle in the US could provide further upside. ... .We were previously cautious regarding a recovery of business jets as we've seen many false positives since the Financial Crisis." Goldman Sachs names General Electric a top idea Goldman reiterated its buy rating on shares of General Electric and said it was the "ultimate" re-opening story. "We view GE as the ultimate self-help, re-opening levered story in Industrials. For 2021, GE is a 2H driven FCF story where we expect FCF towards the high of the $2.5-$4.5bn range (GS: $4.2bn). Longer term, we see upside to the 2023 FCF baseline of $7bn driven by Aero recovery and FCF upside in Renewables." Read more about this call here. Barclays initiates Marathon Petroleum as overweight Barclays said in its initiation of the refinery company that it had "repurchasing capability." "The domestic demand picture is brighter, but uncertainty remains over what normalized refining economics will be. In the meantime, few companies can boast the sheer amount of repurchasing capability as MPC ." Bank of America adds FedEx to the US 1 list Bank of America added the shipper to its US 1 list and said it liked the stock's "valuation at a discount." "We add Buy rated FedEx a top transport pick, to the US1 list, replacing Buy-rated Union Pacific, which hit its 52-week limit. FDX shares trade at 13.6x our F22 EPS estimate, near the low end of its historical trading range, a steep 5.1x turn discount to UPS, and one of the few large cap stocks in our coverage trading at a discount to its historical average." Piper Sandler downgrades Carvana to neutral from overweight Piper Sandler downgraded the stock mainly on valuation. "It's hard to argue: online platforms are stealing share from used car dealerships, and without Carvana's trailblazing work, this trend wouldn't be so obvious. However, there's a price for everything, and we think CVNA is now fairly valued." Citi upgrades CSX to buy from neutral Citi said in its upgrade of the railroad company that it sees a "longer runway for volume growth" from CSX among other things. "First, while volume has been somewhat disappointing YTD it's largely due to supply chain constraints, which should ease providing a better run-rate exiting '21 and a growth tailwind in 2022. Second, robust Truckload pricing should translate to better rail pricing in 2022 as contracts reset on a lag." Wells Fargo upgrades Keurig Dr Pepper to overweight from equal weight Wells said the pullback in the beverage company's stock creates a compelling entry point. "We think KDP's relative outperformance has been under-appreciated and misunderstood expect momentum to sustain with structural portfolio advantages go-forward and see a positive macro overlay which disproportionately benefits domestic-focused KDP vs multi-national peers—an increasingly more constructive pricing backdrop in N. American beverages." UBS lowers price target on Tesla to $660 from $730 UBS lowered its price target on the automaker on valuation and said the autonomous vehicle "opportunity" was already priced in. " Tesla 's lead in EV powertrain will likely shrink while the autonomous vehicle opportunity is already fully priced – therefore, we cut our PT to $660 (from $730), staying Neutral." Read more about this call here. Wells Fargo raised its price target on DoorDash to $215 from $170 Wells Fargo raised its price target on the delivery company to a Street high and said the share price now has a "firm floor." "The DoorDash story has shifted briskly from 'sustaining FY20's gross order value run rate' to 'how many new geos & verticals, and how fast?' With continuing strong est. Y/Y gross order value growth in May and fears of share unlock supply passed, we think the share price now has a firm floor."

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Here are the biggest calls on Wall Street on Tuesday:

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Here are Tuesday's biggest analyst calls of the day: Netflix, Alphabet, FedEx, Carvana, Pepsi & more

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