Here are the biggest calls on Wall Street on Monday: Cowen reiterates Wayfair as outperform Cown restated its outperform rating on the stock but said it has concerns about "softening demand." "We trimmed our W '21-'31 forecast on the heels of eCommerce bellwether Amazon noting last week it is seeing softening demand given rising consumer mobility with vaccinations ramping." Bernstein reiterates DraftKings as outperform Bernstein confirmed its outperform rating on DraftKings and said it expects a "strong" earnings beat when the company releases earnings later this week. "During the quarter, consensus has consistently revised upwards revenue estimates for Q2 2021 as well as FY 2021 – however, according to our calculations, Q2 revenues are still likely end up above street expectations." Baird names Under Armour a fresh pick Baird named the sports equipment company as a fresh pick and said it's bullish on Under Armour's turnaround efforts. " UAA has underperformed NKE by > 40% over the past three months despite a favorable operating environment which has supported accelerated two-year growth, margin upside, and favorable 2H orders/backlog for many brands." Morgan Stanley reiterates Procter & Gamble as overweight Morgan Stanley kept its overweight rating for Procter & Gamble after the company's earnings report on Friday and said it sees a "superior" growth outlook "Specifically, we believe PG's market share momentum and successful execution changes from the last few years (which we expect to continue under new CEO Jon Moeller's leadership, replacing outgoing CEO David Taylor) will drive a superior growth outlook vs. HPC peers, despite a very difficult industry commodity/supply chain cost environment." Morgan Stanley reiterates Chevron and Exxon as overweight Morgan Stanley kept its overweight rating on Exxon and Chevron and said they exhibited free cash flow strength in their earnings reports last week. "During 1Q earnings, US super-majors CVX & XOM collectively generated more free cash flow than the past 6 quarters combined. Now, with rebounding commodity prices and capital discipline holding firm, Big Oil delivered once again, generating over $12 B in aggregate free cash flow in 2Q, the highest level since 1Q12." Stifel initiates Levi Strauss & Co as buy Stifel said in its initiation of coverage of the stock that it sees sustainable revenue growth. "In FY21 and into FY22 Levi Strauss & Co. is benefiting from secular and structural shifts that improve the growth prospects, margins, and return characteristics vs. pre-COVID expectations and evolve the business further beyond the wholesale U.S. men's bottom's business." Read more about this call here. Bank of American reiterates Exxon as a top pick Bank of America kept its top pick status on shares of Exxon after the company's earnings report on Friday and said it likes the oil giant's cash flow growth. "We continue to believe XOM will be differentiated through the recovery with outsize free cash flow to support a resumption of dividend growth that we expect before year-end." MKM upgrades Capri Holdings to buy from hold MKM said in its upgrade in the owner of brands including Michael Kors that it has "increased conviction" in the stock. "Following a string of quarters of better than expected sales and earnings (despite headwinds from wholesale and Europe), we have increased conviction that CPRI's playbook is working in what has been a 'show-me story' of its execution on acquisitions." Gordon Haskett initiates DoorDash as buy Gordon Haskett said in its initiation of coverage of the stock that it's an "upward revision" story. "We view DoorDash as more than just a COVID play, we see it as (1) a long-term play on a secular change toward convenience and (2) a topline (and bottom-line) upward revision story in the making with (a) adjacent delivery verticals (convenience & grocery store delivery) still in embryonic stages and (b) the potential for rapid international expansion followed by meaningful share gains." Gordon Haskett initiates Uber as buy Haskett said in its initiation of Uber coverage that it's a "prolonged" reopening play. "We view Uber as a company that continues to further engrain itself in the everyday lives of consumers, which will lead to share gains across both rides and delivery and in turn upward top- and bottom-line revision over the coming years." Deutsche Bank downgrades Estee Lauder to hold from buy Deutsche said in its downgrade of the stock that it no longer sees a positive risk/reward. "However, given that outperformance, EL is now essentially at an all-time high (both in absolute price and valuation), and the stock (in our view) appears to already be discounting ~$10 in EPS in FY23 with FY4Q results likely to be strong but not overwhelming, and FY22 guidance likely to be not significantly above (and maybe below) consensus." Susquehanna upgrades First Solar to positive from neutral Susquehanna said in its upgrade of First Solar that it now sees margin expansion. "As a result, although margins will continue to contract both this year and in 2022 as average selling price declines outpace cost improvements, we think margin trajectory will reverse starting in 2023 and continue into 2024. Deutsche Bank upgrades Bloomin Brands to buy from hold Deutsche said in its upgrade of the stock that the owner Outback Steakhouse had an "outstanding" earnings report on Friday and that investors should have patience. "Following pretty outstanding results on Friday, which were met with a relatively muted market reaction, we are upgrading shares of BLMN from Hold to Buy." Read more about this call here. Bank of America raises price target on General Electric to $128 from $120 Bank of America raised its price target on General Electric and said it sees improving free cash flow. "We believe GE is making operational improvements and lowering structural costs under the new leadership. While the company is facing near-term pressures in Aviation, GE's diversified portfolio includes Healthcare, Power, and Renewable Energy." Deutsche Bank reiterates Western Digital as buy Deutsche Bank says it sees Western Digital reporting a "beat-and-raise" when it releases earnings later this week. "WDC's shares have underperformed most of its peers' in the past month but comments from its peers who reported earnings in the past few weeks suggest WDC is well positioned for a nice beat-and-raise." Oppenheimer reiterates Papa John's as a top midcap pick Oppenheimer said the pizza chain restaurant's stock is underappreciated. "While shares are up 35% year-to-date (vs S & P's +17%) our work suggests PZZA's investment case remains in early innings, and we reiterate PZZA as our top mid-cap pick." Credit Suisse reiterates Lyft as outperform Credit Suisse says it sees upside potential in Lyft over the long term. "We maintain our Outperform rating on the following: 1) large, fragmented, underpenetrated addressable market of $745b, 2) autonomous and subsequent decrease to pricing offers optionality for earlier entry into steeper part of consumer adoption S-curve, 3) upside potential longer-term to generate ongoing operating leverage as the US ride share sector remains a rational duopoly." Goldman Sachs reiterates Caterpillar as buy Goldman Sachs said it was still bullish on the stock after the company's earnings report last week, but it sees "supply chain challenges." "The magnitude of accelerating supply chain challenges for the sector and CAT in 3Q were disappointing, but amid tight Construction and Resource Industries end market capital stock, we see a multi-year recovery and solid earnings growth for CAT. " Argus reiterates Amazon as buy Argus restated its buy rating on the e-commerce giant but said Prime members may be in "for a shock" with limited inventory. "After multiple quarters of blow-out growth, Amazon could see its online retail business moderate as consumers venture out and resume in-person retail shopping. We believe there is no turning back for Prime members, who may be in for a shock when they face the limited inventory and uneven sizes in physical retail stores." Correction: An earlier version misstated Bank of America's ranking of its price target for General Electric.
A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
Here are the biggest calls on Wall Street on Monday:
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