Here are Tuesday's biggest analyst calls of the day: Apple, Disney, Tesla, Microsoft, Boeing & more

Published Tue, Jul 13 20218:10 AM EDTUpdated Tue, Jul 13 202110:16 AM EDT

Here are the biggest calls on Wall Street on Tuesday: JPMorgan reiterates Caterpillar as overweight JPMorgan said the construction machinery company has the potential to be the biggest winner of a potential infrastructure bill. "We believe CAT' s earnings power and FCF conversion over this upcoming cycle, supported by solid global GDP growth, continue to merit our Overweight rating. Additionally, the company has been able to cut fixed costs by restructuring its Resource business, which should provide earnings upside as volumes recover in what we expect to be a multi-year upcycle in mining." Citi reiterates AT & T as buy Citi kept its buy rating on shares of the media and telecommunications company and said it had an attractive valuation. "The second quarter presents a new opportunity to show the progress of AT & T's reinvigorated marketing strategy for wireless as well as growth for the HBO Max platform after the introduction of advertising video on demand options in June." Citi downgrades First Solar to neutral from buy Citi said in its downgrade of the solar company that several catalysts have already played out. "Our price target remains $100. Since April, FSLR has flipped from lagging its module producer peers and the broader solar sector ytd to outperforming; it reported a 1q beat and announced a major capacity expansion in Ohio." Read more about this call here. Goldman Sachs initiates Okta as buy Goldman said in its initiation of coverage that the cloud and identity management company was well positioned in the shift to digital. "We believe digital transformation and Cloud adoption will continue to drive demand for cloud native Identity Management technology and see Okta as one of the best positioned vendors to benefit." Read more about this call here. Gordon Haskett upgrades Airbnb to buy from underperform Gordon Haskett said in its double upgrade of Airbnb that it had "best-in-class" brand recognition. "[We see] continued upward revision momentum should keep investors constructive on the shares and provide valuation support – we're looking for upward revision momentum to carry into 2022." Goldman Sachs reiterates Tesla as buy Goldman Sachs kept its buy rating on shares of the automaker but said it saw several issues heading into the company's earnings report. "While we raise our 2Q21 EPS estimate and expect an in-line 2Q result, there were still several headwinds Tesla was facing in 2Q including chip shortages, high freight costs, rising input prices (e.g. commodities) and still limited [Model] S/X volumes." Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said its recent survey shows the tech giant was poised for further share gains. "2Q21 CIO Survey signals a healthy software spending environment, with Microsoft poised to garner outsized share gains particularly as Cloud Computing becomes the top CIO priority." Evercore ISI reiterates Apple as outperform Evercore ISI kept its buy rating on shares of Apple and said it was bullish heading into the company's earnings report later this month. "Apple should report a relatively in-line June-qtr, but we are currently ~5% below consensus on our Sept-qtr outlook as we see potential headwinds from both the ongoing supply shortage as well as lapping some very strong comps in most product lines." Argus downgrades United Airlines to hold from buy Argus said in its downgrade of United that investors would probably prefer the lower-cost carriers that have less debt. "However, in the near term, we think that investors will prefer airlines that are less reliant on corporate and international flights and opt instead for the shares of low-cost carriers that are able to significantly reduce debt." UBS reiterates Chipotle as buy UBS restated the Mexican food restaurant chain's buy rating and said the long term growth was compelling. "We maintain a positive view on CMG shares given multiple near & longer-term catalysts support ongoing comp momentum accelerating unit growth (toward +7-8%), and margin expansion." Susquehanna initiates Allegiant and Frontier as positive Susquehanna initiated coverage of several low-cost airlines and said leisure travel would lead the way in the recovery. "We are (finally) expanding our airline coverage, rounding out our coverage of the ultra-low cost airlines with ALGT, SNCY, and ULCC . Since our last two roll-outs a lot has changed for the airlines, with the sector narrative moving from a 'technology-driven merchandising' focus to whether the group can keep the lights on." Morgan Stanley upgrades Republic Services to overweight from equal weight Morgan Stanley said in its upgrade of Republic that waste services was a "good trade" in the current environment. "We see improving fundamentals, upside to estimates and consensus, and attractive relative valuation making waste services a good trade in the current mid-cycle environment." Evercore ISI adds Arista Networks to the tactical outperform list Evercore added the computer networking company to its tactical outperform list and said it saw an "improved" spending environment. "We are adding ANET to our Tactical ahead of the company's Jun-qtr earnings report on Monday August 2 after market close. We see the combination of an improved IT spending environment, share gains, and better cloud visibility as upside drivers in H2:21." BMO upgrades Electronic Arts to outperform from market perform BMO said in its upgrade of the video game company that pandemic lockdowns in international regions should boost engagement for Electronic Arts. "We see the video game industry trending betterthan many investors had expected coming out of the COVID-19 pandemic. Lockdowns in international regions, meanwhile, should provide an engagement boost in those markets." Read more about this call here. Morgan Stanley reiterates Disney as overweight Morgan Stanley confirmed its overweight rating on Disney and said it sees a more rapid recovery in the parks segment. "Shares have lagged the market as lower than expected streaming net adds have outweighed significantly higher earnings. While near-term (FH21) consensus Disney Plus net adds appear optimistic, we remain confident in the '24 streaming guidance and raise FY22 EPS estimates on rapidly reopening Parks." Wells Fargo upgrades Hanesbrands to overweight from equal weight Wells said in its upgrade of Hanesbrands that it was "impressed" by the company's management. "Over the past several months, we have become more impressed with the company's new leadership team and the overall direction of the business." Benchmark initiates Roblox as sell Benchmark said in its initiation of coverage of Roblox that it was concerned the pandemic pulled forward too much growth. "The pandemic delivered a step up in booking's growth of 171% in FY20, up from 39% growth in FY19. We believe the pandemic provided a sustained step up in total addressable market, player engagement and monetization. We are cautious the pandemic pulled forward growth, and normalized behavior may dampen outlier engagement trends." Wolfe upgrades Boeing to peer perform from underperform Wolfe said in its upgrade of Boeing that the company still has "strategic issues" but that it sees an improving "book-to-bill," which should mitigate the firm's downside scenario for the stock. "Bottom line, if airlines feel they can run their businesses longer-term with more debt and more cash on the balance sheet, that's good for BA. BA has strategic issues to address but an improving book-to-bill throughout 2021 will help mitigate the downside scenario we thought we saw a few months back."

Apple CEO Tim Cook greets customers at the new Apple Store on Broadway in downtown Los Angeles, California, June 24, 2021.

Lucy Nicholson | Reuters

Here are the biggest calls on Wall Street on Tuesday: