Here are the biggest calls on Wall Street on Monday: Bank of America reiterates Netflix as buy Bank of America said it thought Netflix' s earnings report later this month would be "irrelevant" and that investors should focus on the company's long-term growth. "Given the seasonally small net add numbers in 2Q we don't expect a beat or miss will be that important to investors and expect 3Q guidance." Goldman Sachs adds Alcoa to the conviction buy list Goldman said in its addition of the stock to its conviction buy list that Alcoa screened well in the global initiation to reduce carbon emissions. "First, the company has significant leverage to a positive commodity price outlook, where we estimate every 10% increase in aluminum prices corresponds to a ~20% increase in EBITDA. Second, Alcoa has been successful in its deleveraging strategy, which we expect to free up balance sheet capacity for capital returns." Read more about this call here. Bank of America adds Halliburton to the US 1 list Bank of America said in its addition of Halliburton to its conviction buy list that the stock should benefit from elevated oil prices. "As discussed in our report 2Q21 earnings preview published last week, we believe recent OPEC actions will keep oil prices elevated, while an OPEC+ extension could mean less upside to international activity next year than previously thought." Morgan Stanley reiterates Microsoft as overweight Morgan Stanley kept its overweight rating on Microsoft and said it sees upside in the shares. "Channel work and our CIO survey point to building momentum across the Cloud, Hybrid and On-premise portfolio, which should power a solid Q4. While investors seek reassurances margin expansion continues into FY22, our model suggests durable high-teens EPS growth and upside in the shares." Bernstein reiterates Apple as outperform Bernstein kept its outperform rating on shares of Apple and said it sees a "modest" revenue beat when the company reports earnings later this month. "While AAPL may continue to fare well amid a seasonal trade, we believe that risk reward is balanced to modestly negative over the next six months. " Morgan Stanley reiterates Coca-Cola as overweight Morgan Stanley said it saw an attractive long-term outlook for the beverage giant. "We are Overweight on KO. Short term, we see a well-above- consensus post-COVID topline/EPS recovery ahead through 2022, and longer term, see a return to pre-COVID outsized sales growth vs. peers, improved execution with a reorganization, and higher margins with productivity/lower marketing spending." Seaport upgrades KB Home to buy from neutral Seaport said in its upgrade of KB Home that it saw a compelling entry point for the stock. "Upgrade to Buy as recent share price weakness creates opportunistic entry point and we see fundamentals as still tilted to the positive." Bank of America initiates Squarespace as buy Bank of America said in its initiation of the website building and hosting company that it had more upside. "We are initiating coverage on Squarespace with a Buy rating as we believe strong top-line growth, a highly-predictable revenue base, international expansion, upmarket initiatives, margin expansion, and penetration of a large market opportunity will drive upside to the current stock from here." Bank of America reiterates SolarEdge as buy Bank of America reiterated its buy rating on the solar company and said it had attractive value. "With SolarEdge having lagged in recovery relative to [Enphase Energy] and [Generac Holdings], we perceive investor focus on greater near-term tailwinds for peers, with discount on multiple for [SolarEdge]. We emphasize attractive value for SEDG especially against a [discounted cash flow] backdrop with shares trading at ~8-8.5% discount rate by our estimates – particularly notable against the broader cleantech sector, especially with SEDG as consistently profitable [free cash flow]." Goldman Sachs upgrades Qualcomm to neutral from sell Goldman said in its upgrade of the stock that Qualcomm should benefit from an earlier iPhone launch this year. "We upgrade Qualcomm to Neutral as we believe the company is poised to beneﬁt from multiple tailwinds in H2 including an earlier iPhone launch and improving supply situation. Adjusting our model for these puts us more in line with consensus. We increase our Handsets segment estimates to reﬂect both updated handset market expectations which include Huawei share shift to Qualcomm." Deutsche Bank reiterates Apple as buy Deutsche Bank said the tech giant would benefit from a continuation of the 5G iPhone upgrade cycle when it reports earnings later this month. "We believe AAPL is well positioned to report F3Q results above current Street estimates of down -18% q/q, as we see potential revenue upside in iPhones, Macs and Accessories (AirTags). We note that AAPL has previously suggested revenue in F3Q will decline more than normal seasonality due partly to supply chain constraints impacting iPads/Macs." Mizuho reiterates Amazon as buy Mizuho said it sees margin potential and strength in advertising ahead of the company's earnings report later this month. "Although the quarter tracks in line, we remain positive on Amazon' s advertising in 2H on back-to-school and long-term outlook due to the incremental opportunity of demand-side platform which could drive upside of 20% using Google as a proxy." Cowen reiterates Snap as outperform Cowen kept its outperform rating on the social media company ahead of its earnings report later this week and said it sees more top-line growth for Snap. "We expect accelerating 2Q21 top-line growth driven by strong pricing, with [average revenue per unit] +52% y/y due in part to easy 2Q20 comps at the onset of the pandemic and rising users, +22% y/y." Barclays reiterates McDonald's as overweight Barclays kept its overweight rating on shares of McDonald's and said it was best positioned in a "defensive trade." "We believe upward estimate revisions through 2Q21 earnings season will mark the end of the 'recovery trade'. Why? 2Q21 beats will be annualized into future estimates, while compares 'less easy,' stimulus benefits waning & novelty of eating out fading, coupled with ongoing food & labor inflation tempering EPS upside. We believe the names best positioned in a return to a 'defensive trade' are [McDonald's], [Wendy's] & [Restaurant Brands International]."
An Amazon.com delivery driver carries boxes into a van outside of a distribution facility on February 2, 2021 in Hawthorne, California.
Patrick T. Fallon | AFP | Getty Images
Here are the biggest calls on Wall Street on Monday: