Here are the biggest calls on Wall Street on Tuesday: Citi initiates Occidental Petroleum as buy Citi said in its initiation of the stock that the energy company's free cash flow was compelling "Numerous peers with double digit yields are enhancing cash return to shareholders, a relative negative for OXY, but few offer an ability to flip the script on the terminal value debate while OXY's lower enterprise value multiple points to healthy equity appreciation while deleveraging." Read more about this call here. Cowen upgrades Textron to outperform from market perform Cowen says it sees business jet momentum for the "underappreciated" stock. " TXT' s % of pre-owned bizjets for sale dropped ~50% since last September to 4.2%, and dealers report buyers' frenzy, driving prices up. Aviation's order mix also is improving with ~20% of bookings from first time customers and corporates starting to return." Read more about this call here. Bank of America reiterates Zoom as buy Bank of America lowered its price target to $385 from $480 after the company's earnings report on Monday and says that "churn risks" are rising. "Zoom reported solid 2Q results, with revenue of $1.02bn, up 54% YoY, vs the Street's $990mn. Gross margins improved 400bps YoY to reach 76.2% and operating margin at 42% was also healthy." Read more about this call here. Needham reiterates Coinbase as buy Needham kept its buy rating on the crypto company and says it sees trading revenue growing quickly. "We view Coinbase as an attractive way to play the growing crypto asset universe, which includes overlap in the high growth areas of stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), borrow/lend applications, and 'yield farming.'" Berenberg reiterates Callaway Golf as buy Berenberg reiterated its buy rating on the golfing company and says it's still "well-positioned to deliver substantial value in the medium term." " Callaway continues to exceed management and investor expectations for growth as demand for golf remains exceptionally strong. Additionally, the company's new Topgolf segment is delivering impressive results, with positive expectations heading into H2." Citi reiterates AT & T as buy Citi lowered its price target on the telecommunications company to $32 from $34 but says it sees room for multiple expansion. "We believe the sum-of-parts valuation for AT & T' s remaining core communications business still trades at a meaningful valuation discount relative to its competitors, even considering the relative differences in contract-related cost capitalization." Bank of America reiterates Netflix as buy Bank of America says it's very bullish on the streaming giant's content for the remainder of 2021. " Netflix' s 2H21 content slate so far seems solid compared to other platforms and we might see new content announcements on Sept 25 during TUDUM, Netflix's first global fan event." Wells Fargo reiterates Gap and Victoria's Secret as top picks Wells kept its top pick status on several retail stocks but said supply chain challenges could be a headwind in the near term. "On the stocks, with whipsaw moves earnings days depending on the degree of buyside revisions into 2022 and beyond, we continue to see a trickier setup for our universe into 2H as they digest potential NT lost sales from tightening supply, rising inflationary pressures, along with ongoing uncertainties around COVID. ... .That said, our Top Picks in the space remain CPRI, GPS , VSCO , TPR and HBI." UBS reiterates Micron as buy UBS raised its price target on shares of Micron to $110 from $100 and said the stock is well-positioned to take advantage of the "secular tail-winds" in memory. "Net-net we see a long DRAM cycle already baked into the stock, but strong server demand, nimble hyperscaler procurement and challenging tech migrations all point to a shorter DRAM cycle, and although we lower our near term estimates to factor in inventory build and our PT to $100, we think MU is well positioned to benefit from secular tail-winds in memory and we maintain a Buy rating." Jefferies initiates Virgin Galactic as buy Jefferies said in its initiation of Virgin Galactic that the company's outlook was very attractive. "Initiating at Buy With Attractive LT (long term) Prospects of Space Tourism Potentially Creating a $1.7B Company by 2030." Telsey reiterates Five Below as outperform Telsey reiterates its outperform rating on Five Below ahead of the company's earnings report Wednesday and says it sees multiple initiatives to drive growth. "We are maintaining our above consensus 2Q21 estimates, given a healthy consumer spending environment, a good start to the back-to-school season, benefits from lapping store closures from last year, and gains from strategic initiatives." Wells Fargo reiterates Chewy as overweight Wells Fargo kept its overweight rating on shares of the online pet retailer and says it's bullish heading into Chewy's earnings report Wednesday. "Despite a note of caution from management on the 1Q earnings call regarding supply chain challenges (a $40MM headwind to 1Q revenue), we expect another strong revenue quarter (we forecast $2.16B, +27% YY), driven by continued robust customer growth and engagement." Jefferies reiterates Blackrock as buy Jefferies says Blackrock is a key beneficiary of a "record secular backdrop" for ETFs, for which the asset manager is the market's leading provider. "The ETF industry is on pace for another record year as the secular demand trend for passive products continues to gather steam." Goldman Sachs reiterates CrowdStrike as buy Goldman says it's bullish heading into the company's earnings report Tuesday after the bell. "We believe CRWD is positioned to deliver another strong quarter as recent industry conversations, channel checks, and survey results have been positive. Conversations we've had generally reﬂect elevated demand as recent threat volume and ransomware attacks have elevated Endpoint protection to the number one priority within Security Software."
The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.
Shannon Stapleton | Reuters
Here are the biggest calls on Wall Street on Tuesday: