Here are the biggest calls on Wall Street on Wednesday: Morgan Stanley reiterates Uber as overweight Morgan Stanley said investors aren't giving the ride-hailing company enough credit for its Uber Eats business. "Delivery fees and/or subscription adoption are critical and batching is a source of upside. Stay OW ($72 PT, 50% upside) as we don't think market is giving Uber full credit for core rides/eats or on-demand." Citi reiterates Apple as buy Citi said consensus estimates were too low for the tech giant ahead of its earnings report later this month. "We are raising our estimates on Apple given checks that continue to suggest strong end-market demand for Apple in PCs, smartphones and wearables (Apple Watch and AirTags with the associated accessories), coupled with low sequential growth in Services." JPMorgan adds Apple to its focus list JPMorgan added the tech giant to its focus list and said it had a "highly favorable" view of the stock heading into earnings later this month. "As highlighted in our last week's report, we see Apple shares positioned for upside led by upward revisions to iPhone 12 volumes on the back of recent momentum and share gains in key geographies, including China, as well as upside to investor expectations for the upcoming iPhone 13 for which investor expectations remain low." Read more about this call here. Deutsche Bank adds a catalyst call buy on Carrier Deutsche Bank added a catalyst call buy idea on shares of Carrier and said the company's upcoming earnings report would be an especially positive stimulus for the stock. "We recently initiated coverage of CARR with a focus on a positive medium-term view on Commercial HVAC industry growth, improving margins and potential portfolio change (which could drive a revaluation of the remaining company). But we also view 2Q earnings as a positive catalyst for the stock." Bank of America reiterates Western Digital as buy Bank of America said it sees end markets improving for Western Digital. "The company's Data Center business went through a period of digestion at the end of last year, but 2021 is expected to be a strong year as cloud demand remains strong. Demand remains stable on the Enterprise side." JPMorgan names Broadcom and Marvel as top picks JPMorgan called Broadcom and Marvel top picks and said it sees positive earnings revisions for the stocks. "We remain positive on semiconductor stocks entering into earnings as we continue to expect positive earnings revisions as we move through the remainder of 2021 and likely into 2022 as global semiconductor demand continues to expand FASTER than the rate of supply growth, resulting in pricing power, solid order/backlog visibility and Q/Q declines in customer/channel inventories." Cowen raises price target on Alphabet to $2,900 from $2,700 Cowen lifted its price target on Alphabet and said it sees "search strength." "We raised our 2Q/3Q and long-term ad estimates on Search strength amid the ongoing ad market recovery and following our bullish Digital ad expert check call on 7/7, which suggested strong Search spend as cost-per-click's continue to drive growth amid a broader reopening." Cowen reiterates Amazon as outperform Cowen restated its outperform rating on the e-commerce company ahead of its earnings report later this month and said it sees significant margin expansion. "We remain 22% above consensus '21 Op Income est vs. starting the year at 34% above consensus; we expect consensus estimates to continue to rise throughout the year, which could drive AMZN shares higher." Credit Suisse downgrades PepsiCo Credit Suisse downgraded Pepsi to neutral from outperform mainly on valuation concerns. " Pepsi kicked off beverage earnings with remarkable results as the crucible of the pandemic yielded improvement across categories and geographies. Staples investors capitalized on Pepsi's consistency, pandemic resilience, and early investments over the last 18mo, but today's share reaction signals cooling sentiment." JPMorgan upgrades Nokia to overweight from neutral JPMorgan said in its upgrade that the multinational telecommunications company's stock has room to run. " Nokia raised its FY21 guidance yesterday on the back of positive trends in Q2, and we believe this is just the start of the upgrade cycle, driven by upside to mobile network gross margin." Raymond James upgrades Ulta to outperform from market perform Raymond James said in its upgrade of the beauty company that makeup is "poised for a recovery." "As the preeminent beauty retailer, Ulta should disproportionately benefit from improving consumption in Beauty. Ulta has a growing store base, a rarity in developed markets retail. We also believe consumer interest in self-care that grew through the pandemic has sustainability, while makeup is poised for recovery." Raymond James upgrades Estee Lauder to strong buy from market perform Raymond James said in its upgrade of the beauty company that it sees margin expansion. "Within these parameters, our top picks are EL in large-cap growth, NWL in mid-cap value, and ELF in smid-cap growth as we believe they are best poised to sustainably grow organic sales at a faster, more consistent pace relative to their peers, have more substantial margin expansion opportunity and can better capitalize on strategic opportunities." Goldman Sachs initiates coverage of Lululemon and Ralph Lauren as buys Goldman Sachs initiated coverage of several retail stocks and said it sees strong growth and margin expansion for companies like Lululemon and Ralph Lauren . The firm also added Lululemon to its conviction buy list. "As the sector emerges from an unprecedented eighteen months of volatility, the post-COVID recovery period has been supportive for apparel and brands. We forecast continued strong growth, margin expansion, and returns for our coverage universe." Bank of America downgrades Conagra to neutral from buy Bank of America downgraded the stock due to inflation concerns. "In our view, FY22 will be akin to a transition year as CAG takes action to combat inflation while at the same time cycles difficult, COVID-related volume comparisons." Read more about this call here. Goldman Sachs reiterates Chipotle as buy Goldman Sachs restated its buy rating on the Mexican chain restaurant and said it saw top-line momentum for Chipotle . "As the top line remains strong, we model restaurant level margins of 24% driven by pricing flow-through, moderate shift towards more mobile-order pick-up (vs delivery), and lower advertising expense vs the prior quarter." Susquehanna reiterates Boeing as positive Susquehanna kept its positive rating on shares of the aerospace company but said the 737 Max issues in China would remain an overhang on the stock. "The timing of the ungrounding of the 737 MAX in China remains a key unknown, which is critical for BA to hit its delivery targets over the next couple of years. This will likely remain an overhang on BA stock until resolved, but we still believe there is more upside potential for BA and SPR with that catalyst ultimately on the horizon." Guggenheim reiterates RH as a best idea Guggenheim called the furniture company a best idea and said it had improved visibility on the stock. "When combined with the benefits of RH' s high-return on investment operating model and the fact that RH is operating with elevated financial flexibility, we reiterate our $800 price target and "Best Idea" designation. Wedbush downgrades Peloton to neutral from outperform Wedbush downgraded the fitness company on growth concerns. " PTON is now embarking on the next leg of its growth story, one that in a post-pandemic era will require the company to generate its own momentum through savvy marketing and compelling new products, as consumers will not only have the full complement of in-person workout options again available to them, but also an unprecedented and ever-growing list of digital/at-home choices." Read more about this call here . MoffettNathanson reiterates Disney as neutral MoffettNathanson kept its buy rating on the entertainment and parks company and said it thought shares were likely to be range bound. "As seen in last quarter's earnings reaction, we think Disney' s valuation is now buttressed by the long-term DTC story so despite an amazing Parks' recovery, the expected slowdown in DTC subscribers will likely keep the shares range bound." Jefferies reiterates Nike as buy Jefferies confirmed its buy rating on shares of the athletic retailer and said several positive catalysts should drive the stock higher over the next several months. "With tailwinds abounding and the likelihood of very strong back-to-school and holiday selling seasons, we reiterate our Buy rating and see NKE shares up another ~25-40% from here." Citi names J.B. Hunt a top pick Citi called the trucking company a top pick and said it sees more upside for shares of J.B. Hunt after the firm's recent survey checks. "On the margin, expectations for capacity growth have improved and we're seeing employment creep higher. Collectively, the survey highlights a market at/close to peak rate growth with a solid volume outlook. This supports upside in 2Q for most of our truck/logistics coverage, but likely does not change the peak growth narrative." Oppenheimer raises price target on Goldman Sachs to $540 from $493 Oppenheimer raised its price target on Goldman to a Street high of $540 per share after a strong earnings report and said the stock was too cheap. "We nudged up our 2022 earnings estimate by ~8% mainly because announced M & A remains very strong and now appears likely to at a minimum benefit in early 2022. We know that our new $540 PT (up $47 from prior) looks outlandish relative to current trading prices, but it represents an estimate relatively close to consensus and a 70% relative P/E."
Amazon.com delivery trucks in Richmond, California, U.S., on Tuesday, Oct. 13, 2020.
David Paul Morris | Bloomberg | Getty Images
Here are the biggest calls on Wall Street on Wednesday: