Here are Wednesday's biggest analyst calls of the day: Tesla, Virgin Galactic, Gap, Apple & more

Published Wed, Jun 30 20218:10 AM EDT

Here are the biggest calls on Wall Street on Wednesday: Credit Suisse names Norfolk Southern a top pick Credit Suisse named the rail company as as a top pick and said it sees "upside surprises." "We raised our Q2 EPS estimate by 4%, which is now 6% above the consensus - driven by positive mix (and stronger than initially anticipated yields), and higher labor productivity. ... .And when considering that NS has been the worst performer over the last month, we like the set up heading into the print. Given that we now see 24% upside (the most in the group), we are moving NSC to our top rail pick. RBC initiates Plug Power as outperform RBC said in its initiation of the hydrogen fuel cell company that the stock would be driven by "policy developments" and "estimate revisions" for the foreseeable future. "With a comprehensive turn-key solution, PLUG offers exposure to the emerging hydrogen economy. Valuation is rich, but justified by long runway for growth. In NT, stock will be driven by policy developments, new announcements, partnerships, or acquisitions and estimate revisions." BMO upgraded Micron to outperform from market perform BMO lifted its rating on shares of Micron and said it sees a supply demand "imbalance" well in to 2022. "After staying on the sidelines for some time, the core of our positive thesis isdue to the potential we see for a continued constrained supply environment into 2022driven by a combination of supply dynamics/CapEx discipline, and demand drivers. Tobe sure, this is not a call about the upcoming quarterly earnings." Wells Fargo reiterates Gap as overweight Wells Fargo reiterated its overweight rating on shares of the retailer and said it saw a "meaningful opportunity" surrounding the company's collaboration with Kanye West's Yeezy brand. " GPS has announced many new initiatives over the past year (e.g. real estate right-sizing, cost cuts, divestitures, among others), but none have been as headline-grabbing as Gap's new partnership with Kanye West. The Yeezy/Gap collaboration was announced a year ago (back in June 2020), and earlier this month, we received our first glimpse of the collaboration." Goldman Sachs upgrades Masco to buy from neutral Goldman Sachs said in its upgrade of the home improvement product company that the stock should outperform due to "pricing and cost improvements." "As the seasonal rotation in housing takes hold, we look for MAS to outperform. ... . The tight construction labor market is also likely to extend backlogs, supporting volumes through 2022. This, along with pricing and cost improvements should beneﬁt results. Bank of America reiterates Advanced Micro Devices as buy Bank of America reiterated its buy rating on the semiconductor company and said the stock was "compelling" and "underappreciated." "Best-in-class 25%+ sales growth at 50% discount: AMD' s valuation is very compelling, in our view, at just 6x CY22 EV/sales for 25%+ sales growth from 2020-2023E." CFRA upgrades Royal Caribbean to buy from hold CFRA said in its upgrade of the stock that it was bullish as cruises resume. "Amid the vaccine rollout, our upgrade reflects a restart of U.S. sailing, with the June 26 departure of RCL 's Celebrity Edge from Fort Lauderdale, FL marking a key milestone in the return of North American (and global) cruising." CFRA upgrades Norwegian to buy from hold CFRA said in its upgrade of the cruise company that the firm now sees several positive catalysts ahead for Norwegian. " While the pandemic has taken a very heavy toll on NCLH, we now see some rays of light on the horizon, likely easing some $190M+ in monthly cash burn and despite some lingering uncertainties in a likely 'new normal' operating environment for the global cruise industry." Bank of America downgrades Virgin Galactic to underperform from buy Bank of America double downgraded the space flight company and said the company's approval to carry passengers in to space was already priced in to the stock. "Last Friday, the Federal Aviation Administration announced that Virgin Galactic received approval to carry passengers into space. ... .We continue to see Virgin Galactic as a beneficiary of the new commercial space race. However, we believe this premium is already priced into the stock and will dwindle as more commercial space companies go public." Read more about this call here. Goldman Sachs names D.R. Horton a top pick and downgrades PulteGroup to neutral from buy Goldman Sachs named D.R. Horton a top pick and said it was the stock best positioned to handle any headwinds. The firm downgraded PulteGroup and said shares would likely be "range bound" in the near term. "Although demand remains well ahead of supply, leaving us positive on the long-term fundamentals, the pace of sales is slowing sequentially, partially driven by builder efforts to manage extending construction cycles and align with starts. As such, we believe the stocks are likely to be range-bound in the near term, as valuations adjust." Read more about this call here. Deutsche Bank reiterates Tesla as buy Deutsche Bank reiterated its buy rating on shares of Tesla and said it saw several positive catalysts for the rest of 2021. "Looking at the rest of the year, we see potential for news flow around Tesla to improve after a rough first half of the year, as investor focus shifts to full self driving, China sales/sentiment bottoming, and ramp-up of new vehicles (Model S+X, Cybertruck, Semi) and plants (Austin/Berlin) leading into 2022." UBS reiterates Apple as buy UBS kept its buy rating on shares of Apple and said recent patent filings highlight the company's interest in the auto market. "Although Apple has not made a formal announcement around its plans in the battery electric vehicles and autonomous vehicle market, we believe the patent serves as a reminder that Apple is allocating resources to projects that have yet to be commercially introduced and are likely not being valued by the market." Credit Suisse reiterates Johnson & Johnson as outperform Credit Suisse kept its outperform rating on shares of Johnson & Johnson and said it sees "improving strength" and "upside." "Our updated intra-quarter analysis shows ~$100 mil of additional upside as compared to our previous intra-quarter check published on June 16th. This analysis now includes rebate-adjusted sales and price-adjusted scrips through the end of May and shows JNJ' s largest U.S. Pharma franchises tracking to 21.2% Y/Y, above our 17.7% estimate."

Tesla CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai, east China, Jan. 7, 2020.

Ding Ting | Xinhua News Agency | Getty Images

Here are the biggest calls on Wall Street on Wednesday: