Here are the biggest calls on Wall Street on Thursday: Guggenheim upgrades Roku to buy from neutral Guggenheim said in its upgrade of the stock that the company's advertising tools were underappreciated. "We are raising our rating on Roku Inc. to buy from neutral and establishing a 12-month price target of $395 implying a 22% one-year return. We expect the connected television (CTV) ad marketplace will continue to grow at a rapid pace and that Roku will be a primary beneficiary—this view is unchanged." Read more about this call here. Morgan Stanley reiterates BlackRock as overweight Morgan Stanley kept its overweight rating on BlackRock and said it sees a "China growth opportunity" coming into focus. "We favor Overweights BlackRock and Amundi as ways to play the asset management industry's secular growth story in China. Our new work sees the onshore market growing at 15% CAGR to $11tr by 2025 (from $5tr in 2020), while the offshore market could see $2tr of flows growing to $4tr in size." Baird reiterates Bed Bath & Beyond as neutral Baird says the near-term setup has improved ahead of Bed Bath & Beyond's earnings report later this month. "While escalating cost pressures and ongoing supply chain disruptions represent key 2H wildcards, we lean bullish on the long-term transformation opportunity and believe the near-term risk/reward set-up has improved following the stock's ~30% pullback the past three months." Jefferies upgrades Liberty Global to buy from hold Jefferies said in its upgrade of Liberty Global it expects free cash flow to double over the next three years. "Underpinned by very material but also credible deal synergies in the UK and Switzerland, we expect FCF to double from $1.1bn in 2020 to $2.3bn by 2024e." Needham initiates coverage of Biogen as buy Needham said Biogen's Alzheimer's drug, Aduhelm, is "underappreciated." "While Aduhelm's initial ramp may miss consensus, our survey suggests its sales can grow to > $6B WW in 2026 (vs consensus of $6.4B), which we believe is underappreciated." Read more about this call here. Goldman Sachs reiterates Micron as buy Goldman kept its buy rating on Micron ahead of the company's earnings report next week and said it sees more "muted" outlook. "We believe near-term weakness, particularly in the PC end market, combined with the company's possible decision to re-build inventory on its balance sheet (thus limiting bit shipments to customers) and its tendency to guide conservatively could lead to a muted FY1Q outlook relative to current Street expectations." Bank of America reiterates Apple as neutral Bank of America said early data is encouraging for Apple's iPhone 13. "The data over the first few days of pre-orders implies better initial demand versus last year, which could be due to the concurrent launch of all four models this year (vs last year when two models were launched in Oct and two in Nov). The longer ship times could indicate lower starting inventory, especially given the component shortages." Morgan Stanley initiates coverage of Joby as overweight Morgan Stanley said Joby is a potential disruptor in a highly regulated market. " Joby Aviation is a first mover to address the Urban Air Mobility market, which we estimate could have a Total Addressable Market of $1tn in 2040 and $9tn in 2050. As a pre-revenue company, there is significant execution risk facing the company as it operates in the highly regulated civil aviation industry." Read more about this call here. Piper Sandler upgrades Plug Power to overweight from neutral Piper said in its upgrade of the hydrogen fuel cell company that it sees an attractive entry point. "We are upgrading Plug Power to OW from N for several reasons: 1) pullback in the shares offers an attractive entry point 2) tremendous forward momentum on green hydrogen plans as well as electrolyzer sales, which bolsters our conviction in our revenue estimates." Wells Fargo resumes coverage of Schlumberger as overweight Wells resumed coverage of the oilfield services company and said it likes its digitalization strategy. "Underlying our positive outlook for SLB are what we consider its leading position in the digitalization of the global energy business, the continued post-Covid recovery in the core oilfield services operations, and its ability to generate free cash flow from operations and planned asset sales to reduce debt over the next 12-24 months. Goldman Sachs upgrades Northrop Grumman to neutral from sell Goldman said in its upgrade of Northrop that air travel recovery is occurring but that it's still too "uneven." "This leads us to believe, in the medium term, (1) business jet can outperform in many air travel scenarios, (2) aerospace OE (original equipment) is underappreciated, (3) aerospace aftermarket is a great long-term business but could be choppy near term, (4) smid-cap defense has a chance at good growth for a few share winners, (5) large-cap defense could keep underperforming the market." Morgan Stanley reiterates Zoom as overweight Morgan Stanley said it's bullish on Zoom's deal to acquire cloud contact center software company Five9. "As we noted in our initial take on the ZM /FIVN deal, we think the acquisition presents an excellent opportunity for Zoom to diversify its revenue sources." Barclays upgrades Warner Music to overweight from equal weight Barclays said in its upgrade of the music company that it sees upside to estimates and revenue. "In the case of WMG , new revenue sources have the potential to add 8%+ to overall revenues in the next two years and 15-20% to overall EBITDA in the next 2 years." Argus downgrades Delta Air Lines to hold from buy Argus said in its downgrade of the airline that it sees a slower travel recovery. "We believe that flight demand began to slow at the beginning of August due to concerns about the delta variant. We now expect a relatively slow recovery in business travel, creating continued headwinds for Delta ." Macquarie reiterates Disney as outperform Macquarie kept its outperform rating on shares of the entertainment giant, but the bank said it sees subscriber growth headwinds. "Our thesis on DIS shares has been that Disney+ is a structural growth story in the transition to DTC, and cyclical recovery at parks and box office will support growth in 2021-2022. … Disney+ will see lower than expected F4Q sub adds, but content coming and international launches should boost numbers in FY'22." Tudor, Pickering, Holt initiates coverage Tesla as sell Tudor said it has concerns about increasing electric vehicle competition. "While we think Tesla has done an amazing job of building a world class business in a number of segments and maintains key advantages within their manufacturing process with built-for-purpose facilities focused on high volume production of popular selling electric vehicles including the Model 3 and Model Y, our Sell rating is primarily related to current valuation, uncertainty of the path forward to level 4+ autonomy, and growing global EV competition that may impact longer term sales forecasts."
Eric Yuan, CEO of Zoom Video Communications poses for a photo after he took part in a bell ringing ceremony at the NASDAQ MarketSite in New York, April 18, 2019.
Carlo Allegri | Reuters
Here are the biggest calls on Wall Street on Thursday: