Here are Thursday’s biggest analyst calls of the day: Okta, Five Below, Costco and more

Published Thu, Sep 2 20218:26 AM EDTUpdated Thu, Sep 2 20219:12 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

Here are the biggest calls from Wall Street analysts for Thursday, Sept. 2. Needham upgrades Okta to buy from hold Okta 's better-than-expected quarterly report should boost the stock, according to a note from investment firm Needham. "Concerns that core Okta was slowing should be soothed as core delivered 39% y/y Revenue growth, 43% RPO growth, and 47% Total Calculated Billings growth adjusted for accounting changes. These numbers represent a solid acceleration." Jefferies reiterates overweight rating on Five Below Jefferies analyst Randal Konik said in a note that investors should buy the dip in Five Below. "FIVE shares reacting negatively to sales trends that slightly missed Street but are difficult to model in a COVID world. What matters is 1) comps were up big (+21% vs. '19), 2) new store growth remains high (near mid-teens% YoY), and 3) Q3 outlook appears inline to slightly better." Read more about this call here . Jefferies reiterates buy on Costco, raises price target to Street high Jefferies hiked its price target for Costco to $525 per share from $500, making it the most bullish among major Wall Street firms. "We see potential upside to our FY22 profit est. based on [gross margin] +6 [basis points] and SG & A modeled flat as % of sales, which we view as conservative given potential for mix benefits & leverage." JPMorgan downgrades AB InBev to underweight Rising costs could take a bite out of AB InBev's profits, according to JPMorgan "Already in the midst of a multi-year earnings downgrade cycle, we do not see an inflection point in ABI's earnings momentum near-term. Taking into account in FY22E the largest raw material inflation headwinds ABI has ever faced, we cut EPS by 6%, putting us 10% below company consensus." Read more about this call here . Citi re-establishes coverage of Clover Health at neutral The Wall Street firm is cautious on the health stock after a rocky first few quarters since going public. "We see opportunities stemming from industry tailwinds including the aging population plus greater penetration of Medicare Advantage (MA), and CLOV 's relatively small size driving potential outsized growth stemming from organic gains, new market entrance, and attractive direct contracting (DC) opportunity. These positive characteristics are tempered by some of the challenges that [management] has had out of the gate with managing cost and projecting enrollment." JPMorgan reiterates buy rating on Caterpillar JPMorgan raised 2022 and 2023 earnings estimates for Caterpillar . "In our coverage, CAT is the largest beneficiary of a residential construction cycle coupled with higher investment in infrastructure. As a result, we have updated our model to reflect the impact of both." KeyBanc reiterates overweight rating on Netflix Upcoming shows and movies should help Netflix's subscriber growth get back on track, according to KeyBanc. "As Netflix's content slate kicks into gear, we remind investors that content resonates differently across regions. Shows like Money Heist resonate in select international markets, while The Witcher (slated for 4Q) and Stranger Things (2022) have domestic and international audiences. Given content timing, our view is international leads the net add recovery in 3Q, followed by a broader recovery in 4Q." Wells Fargo lowers price target on Dave & Buster's Wells Fargo reiterated its underweight rating on Dave & Buster's and lowered its price target by $7 to $38 per share, warning in a note to clients that the continued pandemic could hurt the business. "The recent delta flare-ups across many of the brand's key markets (e.g., TX, FL) have likely dampened the recovery curve entering 3Q21 and, along with persistent labor & commodity inflation, could temper the company's outlook for the balance of '21." Deutsche Bank initiates coverage of Starbucks with a hold The investment firm is cautiously optimistic on shares of Starbucks even though investor expectations are high. "After much deliberation, we find ourselves on the fence here; with a price target that is ~8% above current levels and an overall bias to believe that the path of least resistance is for shares to head higher over time, and perhaps even in the near future." JPMorgan downgrades Unilever to underweight from neutral Rising input costs could hurt Unilever's profit margins, JPMorgan said in a note. "Despite 4% negative revision to consensus EPS21/22e YTD, we continue to see downside risks as input cost headwinds take a toll on profitability." Evercore ISI reiterates outperform rating on Apple Evercore is sticking by Apple even after South Korea passed a new law targeting Apple's app store fees. "It is unclear how many developers will choose to implement alternative payment methods and also how many consumers will choose to use these methods given the inherent fraud concerns and general inconvenience that come with less trusted third-parties. In addition, South Korea accounts for only ~2% of App Store revenue, so the impact here will be relatively immaterial even if a significant portion of South Korean developers shift to third party payments." —CNBC's Michael Bloom contributed to this report.

Customers carry their items after shopping at Costco in Washington D.C., May 5, 2021.

Ting Shen | Xinhua News Agency | Getty Images

Here are the biggest calls from Wall Street analysts for Thursday, Sept. 2.