Here are the top Wall Street analyst calls from Friday. Wells Fargo downgrades Ulta Beauty to equal weight from overweight There is little upside left for Ulta after outperforming over the summer, according to Wells Fargo. "As a result, ULTA has meaningfully outperformed our space as the company was a fairly uncontroversial 2nd derivative play. It's not difficult to understand why, if you believe that make-up … is highly tied to going-out, socializing, and special occasions — all of which began to re-emerge in mid-April after being somewhat or entirely restricted in 2020. Today, however, we believe this narrative has pushed the multiple as high as it can (reasonably) go." Morgan Stanley downgrades HP to equal weight from overweight Near-term issues for HP could make the bull case for the stock more difficult, Morgan Stanley found. "Our prior OW-rated view and $40 PT was predicated on a smooth hand-off from consumer to commercial-driven demand, strong operational execution, and sustained growth that would help re-rate shares. However, we see several reasons to be more cautious near-term based on F2Q earnings." JPMorgan reiterates buy rating on Peloton Investors should buy the dip in Peloton , according to JPMorgan. "If you had told me yesterday that PTON would guide to 1.3M [connected fitness] net adds for FY22, I would've said the stock would be up 10%. But the composition of how PTON is getting there is different than expected as the $400 V1 Bike price cut, significant marketing ramp, & increased costs for commodities (steel & semis) & freight combine to drive EBITDA negative in FY22." Loop Capital reiterates buy rating on Peloton Investors should not be concerned by Peloton's decision to lower the price of its exercise bike, Loop Capital said. "With the benefit of hindsight, it would have been unwise to sell AAPL shares when the company lowered the price of its first-generation iPod. For the same reason, we think it unwise to impulsively sell PTON after lowering the price of the Bike." Read more about this call here . Bank of America upgrades Peloton to buy Peloton appears to have several positive catalysts in the year ahead that should boost the stock, according to Bank of America. "While uncertainties remain elevated, Peloton indicated that tread leads have been 'incredibly strong', and we trust that this enthusiasm on the launch (8/30) is not unwarranted. Importantly, Peloton guided FY22 sub net adds to 1.3mn vs Street at 1.2mn, and 6months from now we think sub adds will be more important for stock than margins." Morgan Stanley downgrades AutoZone and several other retail stocks to equal weight A "mid-cycle" period should lead to less upside for retail stocks, including auto parts retailers like AutoZone , Advance Auto Parts and O'Reilly Automotive , according to Morgan Stanley. "On the negative side, 1) the group faces difficult top line compares as it cycles favorable weather, stimulus, and 'stay at home' wallet share shifts, and 2) is no longer pricing in extreme EV fears … as multiples have recovered ~2.5 turns since March." The firm also downgraded National Vision Holdings and Five Below to equal weight. Read more about this call here . Truist upgrades Dave & Buster's to buy from hold Dave & Buster's appears to be in strong position to perform better than some of its competitors in the current environment, according to Truist. "Given accelerating sales trends at restaurants, as well as Main Event, since May, we believe PLAY's sales recovery is intact, despite the spike in COVID cases. We also view PLAY as relatively well positioned to manage cost pressures including labor, due to new operating efficiencies and previously announced hiring initiatives, and food inflation, due to its low costs as a percentage of total sales." Citi raises price target for Dell to $130 per share from $120 Citi reiterated Dell as a top pick following the tech company's earnings report. "Dell commented October sales to be up mid single digits and higher than normal -2% so consensus at -1% Q/Q goes up. But investors will have two concerns: 1) Why has Dell not yet received an IRS approval for tax free spin of VMW? 2) Why did Dell storage decline -1% while others grew? We answer this inside the report. Our estimates (and consensus would also) move higher." Telsey Advisory Group downgraded Dollar Tree to market perform from outperform Telsey cut its price target on Dollar Tree to $102 per share from $125, citing the pressure from inflation on discount retailers. "Our visibility on Dollar Tree's near-term performance is clouded, given significantly higher costs—particularly supply chain, labor, and product inflation—which are likely to continue well into 2022, especially 1H22. Dollar Tree's ability to pass on higher costs by raising prices is limited, given most items in the namesake banner (~52% of sales) are priced at $1.00." Wells Fargo upgrades Farfetch Limited to overweight from equal weight The e-commerce stock looks attractive after a deep pullback from its February high, according to Wells Fargo. "With the shares off ~45% from their February highs (vs. SPX +14%), we see a favorable risk/reward on this structural 'winner.'" Deutsche Bank reiterates buy rating on Disney, lowers price target to $200 from $213 Deutsche Bank lowered its estimates for several of Disney 's business units, but it said in a note to clients that it is still bullish on the stock long term. "We believe the stock is at a tricky point here, where the valuation is high, but at the same time [direct-to-consumer] should see renewed tailwinds and the Parks outlook should continue to recover, notwithstanding resurgent COVID cases." -CNBC's Michael Bloom contributed to this report.
Inside an Ulta store location in New York.
Scott Mlyn | CNBC
Here are the top Wall Street analyst calls from Friday.