Here are the biggest calls on Wall Street on Monday: Evercore ISI reiterates Amazon as outperform Evercore ISI said it sees many "growth opportunities" for the e-commerce giant after reports that it's considering opening department stores. "First, we see this as part of a multi-year pivot in Amazon's thinking about physical store locations—a long arc of Amazon going multi-channel." Goldman Sachs reiterates Microsoft as buy Goldman kept its buy rating on shares of Microsoft and said it sees pricing power and more upside in the stock after the tech giant announced a price increase for Microsoft 365. "We believe the recent announcement underscores the company's strong competitive positioning and long-term pricing power, particularly with respect to Commercial Ofﬁce 365 which represented ~18% of total revenue in FY21." Oppenheimer reiterates Peloton as outperform Oppenheimer lowered its price target on the exercise company to $140 from $150 ahead of Peloton's earnings report later this week and said it sees "conservative" guidance. "While we believe PTON will meet F4Q21 connected-fitness sub expectations on shorter-delivery times, we now expect FY22 guidance to be more conservative, and below consensus expectations, especially with the delayed Tread re-launch slated for September." Citi initiates coverage of Robinhood as buy Citi rated the trading app a buy and said "subscriber economics" will be the key to the company's success. "The firm has enjoyed early success penetrating the less affluent segment of the U.S. brokerage market. We see slowing growth ahead and risk of regulatory headwinds. However, the former is likely embedded in consensus estimates. And, the latter is unlikely to be material in our view." Read more about this call here. Cowen reiterates Foot Locker as outperform In a note to clients on Monday morning, Cowen wrote that Foot Locker is one of the "cheapest" stocks in retail. "Guidance can prove conservative for 2H but acknowledge a tough Q3 comparison, with opportunity for a significant acceleration into Q4 on an easier compare." Deutsche Bank reiterates Tesla as buy Deutsche kept its buy rating on the auto maker and said its Artificial Intelligence day last week has set forth a "bold vision." "We came away with greater appreciation for Tesla' s efforts in AI. Big picture, Tesla outlined a very ambitious effort to develop a high performance neural network with very scalable underlying compute and accurate and fast data labeling." Goldman Sachs initiates coverage of Robinhood as neutral Goldman said that it's concerned about the "sustainability" of retail trading levels. "While we are constructive on the longer-term story, we are launching at Neutral given 1) near-term uncertainty around the sustainability of retail trading levels, and 2) the ongoing overhang around payment for order flow, which could result in headline risk or in a worst case, significant estimate risk." Read more about this call here. Morgan Stanley names Uber a top 2022 pick Morgan Stanley said it sees 80% to its base case on shares of Uber. "We see ~$2.2bn/$3.8bn of '22/'23 EBITDA as a scaling rides business, reduced fixed cost base, platform benefits, and a money making delivery business drive profitable growth." Read more about this call here. Telsey reiterates Abercrombie & Fitch as outperform Telsey kept its outperform rating on Abercrombie & Fitch ahead of the company's earnings report later this week and said it sees "margin expansion." "With promising results from peers in the retail space, particularly in apparel, we are raising our estimates. We now look for 2Q21 EPS of $0.79 (from $0.73 previously) vs. $0.23 last year, ahead of the consensus estimate for $0.76." Cowen reiterates AbbVie as outperform Cowen reiterated its outperform rating on the biopharma company and said the stock is compelling particularly after a patent ruling in favor of AbbVie's cancer drug, Imbruvica. "Post Q2 results, meeting with management, and other recent news, we updated our ABBV model. EPS estimates and ABBV target price have been raised. We view ABBV shares as attractive, particularly given the long term visibility provided by last week's successful Imbruvica patent challenge defense." Bank of America reiterates Exxon Mobil as buy Bank of America reiterated its buy rating on the oil and gas company and said "defensive names look attractive." "While we see greatest absolute value amongst higher beta names, the recent selloff has similarly pulled higher quality names to levels that have equally attractively value. Near term, top ideas for a theoretically more 'defensive' mix includes XOM, COP, PXD and EOG" Wells Fargo downgrades Chesapeake Energy to equal weight from overweight Wells said in its downgrade of Chesapeake that it's "cautious" on growth spending and a "lack of direction" from the company. "While it is difficult to ignore the company's cash return to shareholders (3% base dividend yield) and newly announced variable dividend program (50% of FCF in 2022), we wonder if investors are becoming frustrated and/or confused by what some could call a lack of direction."
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Here are the biggest calls on Wall Street on Monday: