Here are the biggest calls on Wall Street on Friday: Morgan Stanley reiterates Apple as overweight Morgan Stanley said it thinks Apple will "outperform expectations" ahead of the tech giant's iPhone event on Monday. "Investor expectations remain muted which creates a compelling setup into the fall should early iPhone 13 data points outperform expectations." Read more about this call here. Deutsche Bank reiterates Visa as buy Deutsche Bank said it's "emerging structurally bullish post-Covid" on shares of Visa. "Further, the company sees BNPL (buy now, pay later) as more of an opportunity than a headwind and disintermediation risks are overblown, in our view, given the significant value the V network brings to the BNPL providers and AMZN will remain a valued partner." Cowen initiates coverage of Humana and UnitedHealthcare as outperform Cowen said Humana has the highest organic growth in the industry. The firm also began coverage of UnitedHealthcare and said it has a "unique" vertical integration strategy. " HUM and UNH remain our top structural longs in the group, but both face near-term exposure to the Budget reconciliation bill and fear of rebounding medical cost trends." Needham initiates coverage of Sunrun as buy Needham said Sunrun is a key beneficiary in the rapidly developing rush to solar products. "We think the industry, which has expanded rapidly since 2016, can keep growing at a fast pace due to EV adoption, a focus on energy resilience, rising utility rates, and heightened environmental awareness." Read more about this call here. Bank of America downgrades Cigna to underperform from buy Bank of America said in its downgrade of the health insurer that it had "no catalysts to re-rate." "We are double downgrading Cigna (CI) from Buy to Underperform on lower visibility in its earnings trajectory over the next couple of years. Morgan Stanley reiterates Zoom as overweight Morgan Stanley said it sees more growth potential for Zoom than the market is giving it credit for. "While SMB (small midsize business) churn in the near term provides a bigger headwind than anticipated and ZM is seeing some normalization of sales cycles as they move upmarket, we still believe the current discussion around ZM misses the company's ability to leverage its positioning to build out a more fulsome platform." Evercore ISI adds a tactical outperform on Palo Alto Networks Evercore said Palo Alto Network's upcoming analyst day could serve as a catalyst for the stock. "We are adding PANW to Tactical Outperform ahead of the company's upcoming 9/13 Analyst Day on Monday September 13. We believe there is potential for the upcoming event to serve as a positive catalyst for the stock should the company's LT outlook come in above expectations." BMO raises price target on Dave & Buster's to $58 from $54 BMO raised its price target on the stock to a Street high after the company's earnings report on Thursday and said it likes Dave & Buster's cash-flow outlook. "The extent to which PLAY will re-accelerate unit growth on the back of the business momentum remains uncertain, but cash flow outlook provides broader capital allocation opportunities." Wedbush reiterates Alphabet as outperform Wedbush said the internet giant will be a significant driver of the growth in digital advertising. "We continue to see Google's efforts to broaden its commerce initiatives as driving a stronger product for advertisers, particularly SMBs (small midsized business), and a stronger competitive product." Credit Suisse downgrades Freeport-McMoRan to underperform from neutral Credit Suisse said in its downgrade of the mining company that it sees higher-than-expected copper and gold pricing. "In our view, FCX is front and center in the inflation debate given copper price strong relationship to the 10-year breakeven and FCX's very high beta to the copper price. The empirical data shows copper and inflation rate of change are often similar whereby FCX stock is much higher beta to those two data sets Wells Fargo reiterates Ford as a top pick Wells kept its top-pick status on the automaker and said it's a key beneficiary of a recovery. "Having been most impacted by the semi issues so far, Ford also stands to benefit most from the likely recovery in 2022/23." Piper Sandler initiates coverage of Aspen Aerogels as overweight Piper began coverage of the energy infrastructure insulation maker with an overweight rating and said its a key component in the production of batteries and electric vehicles. "Unsurprisingly, Tesla is at the center of the action, and it's our favorite way to invest. But lesser known Aspen Aerogels (ASPN) is also worth a look; we are initiating coverage on ASPN with an Overweight rating and a $58 price target. Read more about this call here. Cowen initiates coverage of Oatly as outperform Cowen said the oat milk company has a long runway for growth. " Oatly is the category builder, and its global footprint — most notably as first mover in Asia, where an estimated 65% of the population is lactose intolerant — presents a significant opportunity." Needham reiterates DraftKings and Penn as buy Needham said it's bullish on DraftKings and Penn heading into the NFL season as sports betting ramps up. "There are four key themes we are focused on in the sports betting industry as we head into the NFL season kickoff (1) TAM — per capita spending and market access, (2) Convergence of sports betting and sports media, (3) Official data (4) Omnichannel opportunity and asset value. See below for a discussion and state level industry charts." Mizuho reiterates Nvidia as buy Mizuho reiterated its buy rating on shares of the graphics company and said it's a dominant player in artificial intelligence. "Reiterating Buy PT$235, as we see NVDA continuing to drive Data Center and AI leadership positioning it well in 2021 and beyond; no change to estimates." RBC reiterates Chipotle as outperform RBC said it sees "accelerating" development and "margin expansion" for Chipotle. " CMG remains our preferred name among the company-owned restaurant models, as we see continued strong earnings growth driven by SSS momentum, accelerating restaurant development and margin expansion." Jefferies raises price target on Moderna to $485 from $425 Jefferies reiterated its hold rating on shares of the biotech company but raised its price target on the stock to a Street high. The bank said investors should be patient with Moderna's "ever-increasing sizable pipeline." "Indeed — the key question longer-term investors ask is whether MRNA will work beyond vaccines and will work as a 'treatment' for cancer and cardiology." Bank of America reiterates JPMorgan and Morgan Stanley as buy Bank of America kept its buy rating on shares of JPMorgan and Morgan Stanley. BofA said it sees an "attractive" risk/reward. "We recommend that investors w/ longer term investment horizons stay focused on business momentum vs. relative valuation when picking stocks. We believe that JPM, MS, PNC, SIVB, FRC offer an attractive risk/reward despite their premium valuations given the strong execution at the top and potential for idiosyncratic drivers of EPS growth/stock outperformance."
Chipotle restaurant in New York City
Scott Mlyn | CNBC
Here are the biggest calls on Wall Street on Friday: