Here are the biggest calls on Wall Street on Wednesday: Bank of America raises price target on Peloton to $135 from $123 Bank of America raised its price target on shares of Peloton and said it was bullish on the company's partnership with UnitedHealthcare. The firm also reaffirmed its neutral rating on the stock. "The UnitedHealthcare partnership adds to potential demand drivers in FY22 (but likely bigger impact in FY23) that includes tread launch, Intl expansion, marketing spend, new products (strength?) and corporate wellness programs and the stock was up 5% on the news." Morgan Stanley reiterates Netflix as overweight Morgan Stanley said it expects the company to continue adding subscribers this year after Netflix's second-quarter earnings report on Tuesday. "2Q results and 3Q guidance were broadly in-line but continue to reflect the COVID compares to 2020 and a reopening consumer. Looking to 4Q, content investment will ramp substantially and net adds should follow. Video games emerge as next content genre extension, but it remains early." Read more about this call here. Rosenblatt reiterates Microsoft as buy Rosenblatt kept its buy rating on shares of Microsoft and said it sees robust fundamentals heading into the company's earnings report next week "As we move into FY22, we think Microsoft 's fundamentals are likely as strong at any point in recent history. We think Azure continues to take share, demand for PCs remains robust, and Office, Teams, and Dynamics likely continue to grow in the double digits." Piper Sandler reiterates Chipotle as overweight Piper restated its overweight on shares of the Mexican chain restaurant after its earnings report on Tuesday and said it was the "dominant large cap growth investment option" among restaurants. "Following strong 2Q21 results it is clear to us that Chipotle is (1) people ready (leaving the company well-positioned to reach or exceed its target of ~200 new stores open this year), (2) thoughtfully leveraging its value proposition." JPMorgan names Sunnova and Sunrun as top picks JPMorgan called Sunnova and Sunrun top picks and said they were best positioned to meet demand in the near term. "We highlight Overweight-rated Sunnova (NOVA) and Sunrun (RUN) as top picks for 2H21 owing to elevated inventory levels, which should position both companies relatively better to meet expected demand near-term." Berenberg initiates coverage of Zillow as buy Initiating coverage of the online housing marketplace, Berenberg said Zillow is a "dominant" name in real estate. "It's dominant name in real estate made the company an invaluable resource for homebuyers, creating large real estate advertising potential. The Zillow 2.0 transformation shifts focus to the considerable iBuyer total addressable market, which, given the size of the investment with which ZG is backing it, is likely to prove a meaningful differentiator to peers, in our view." Bernstein reiterates Amazon as outperform Bernstein raised its price target on the e-commerce giant to $4,200 from $4,000 and said Amazon' s stock was still compelling ahead of its earnings report next week. "But the stock has started to work again after being range-bound for the better part of the last year, and we're incrementally optimistic on the potential for a greater B2B (business-to-business) push under Andy Jassy." Morgan Stanley reiterates Apple as overweight Morgan Stanley said it saw upside to consensus heading into the company's earnings report next week. "iPhone and iPad builds underscore potential upside to consensus June and September quarter AAPL revenue estimates." Baird reiterates Boeing as a top pick Baird kept its outperform rating on top pick Boeing and said the company's liquidity outlook was strong. "We model over $20 billion in debt paydowns over the 2022-2024 period, but with estimated cumulative [free cash flow] of $28 billion over this time horizon BA will have plenty additional liquidity to further de-risk the balance sheet if needed. … We would expect given a much healthier demand environment management could then begin to think of slowing the restructuring and other cash uses." Cowen initiates coverage of Frontier as outperform Cowen said it likes Frontier's balance sheet and "talented" management team. "The build will take time, with a multi-year FCF burn, but the transformation should result in a superior future-proofed network driving toward an appropriately higher fiber EBITDA multiple." Bank of America reiterates Marvel, Advanced Micro Devices and Nvidia as buy Bank of America kept its buy rating on several semiconductor companies and said it believed the stocks could outperform. "We reit. Buys and strongly positive view on secular growth semis – NVDA , AMD , MRVL – which we believe can outperform broader semis in an environment of decelerating growth for large markets such as PCs, autos, and smartphones." Deutsche Bank upgrades Electronic Arts to buy from neutral Deutsche said in its upgrade of Electronic Arts that it is bullish on the company's upcoming pipeline of video game releases. "We believe EA's outlook is very achievable, and that street expectations are too low, which creates a favorable set-up for this fiscal year." Read more about this call here. Wells Fargo reiterates Disney as overweight Wells Fargo reiterated its overweight rating on shares of the entertainment and media giant and said it did not think the company's third-quarter earnings would be a game changer. " DIS has been rather rangebound of late. Sentiment is generally positive, but with FH2 slower for DTC growth it's lighter on catalysts and we don't expect F3Q21 to be a game-changer. The one area that could prove incremental is Parks because while expectations are already bullish there's not a lot of data to drive forward estimates." MKM upgrades Allegiant to buy from neutral MKM said in its upgrade of the discount airline that it had a "unique" business model. " Allegiant's low aircraft ownership costs allow them to flex their capacity up or down depending on the environment. We also believe Allegiant's customer base is more insulated from concerns of the Delta variant given high vaccination rates." BMO upgrades IAC to outperform from market perform BMO said in its upgrade of the internet holding company that it likes IAC's portfolio and the stock's valuation. "It's been a particularly active 12+ months (MGM investment revealed, MTCH spin, investor day, VMEO spin) and we think investors are catching their breath with the IAC story." Goldman Sachs upgrades Halliburton to buy from neutral Goldman said in its upgrade of the stock that it sees an "upsized" dividend and a strong margin outlook. "We believe that HAL presents an opportunity at current levels given the combination of the recent pullback, a stronger than expected margin outlook through 2023, accelerated deleveraging prospects, and the potential for improving capital return to shareholders through an upsized dividend as early as 2022." Read more about this call here. KeyBanc reiterates McDonald's as overweight KeyBanc said the fast-food chain is well positioned for global growth. "Despite improved prospects for sustainable global share gains, MCD stock is relatively unchanged over the last three months and has underperformed broader equity indices, which we believe sets up a favorable risk/reward scenario for the second half of the year." Bank of America upgrades The RealReal to buy from neutral Bank of America said in its upgrade of the luxury consignment retailer that it sees "multiple expansion" for RealReal. "We think a discount is warranted given the longer trajectory to EBITDA profitability, but we think there is room for multiple expansion from here as margins improve." Morgan Stanley reiterates Tesla as overweight Morgan Stanley kept its overweight rating on shares of the automaker and said it's cheap as a tech stock but expensive as an auto stock. " Tesla has leadership in: EV manufacturing, Software, EV infrastructure, Batteries, Autonomous Vehicles and a suite of enabling technologies and adjacent businesses (Insurance, Energy) that have strategic value and substantial growth potential, in our view."
A Peloton Interactive Inc. Tread exercise machine for sale at the company's showroom in Dedham, Massachusetts, U.S., on Wednesday, Feb. 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
Here are the biggest calls on Wall Street on Wednesday: