Here are Tuesday's biggest analyst calls of the day: Netflix, Disney, Tesla, Roku, Coinbase & more

Published Tue, Sep 28 20218:25 AM EDTUpdated Tue, Sep 28 202110:32 AM EDT

Here are the biggest calls on Wall Street on Tuesday: Evercore ISI reiterates Netflix as outperform Evercore said it's bullish on the streaming giant's upcoming content slate. "We reiterate our Outperform rating and $695 PT on Netflix in the wake of takeaways from Co-CEO Ted Sarandos' new disclosures at the Code Conference and from the company's very recent Tudum event, which featured new key details on the company's impressively strong upcoming content slate." Berenberg downgrades Morgan Stanley to hold from buy Berenberg downgraded the investment bank mainly on valuation. "When we upgraded Morgan Stanley in April 2021, we argued that the shares had room to re-rate further to reflect that wealth and asset management was becoming a growing part of earnings and that capital return could exceed consensus expectations. Since then, Morgan Stanley has doubled its cash dividend and increased its buyback, and the stock has re-rated to 14.0x our 2022E earnings." Barclays upgrades SiriusXM to equal weight from underweight Barclays said in its upgrade of the stock that it sees an "improved" risk/reward. "Our SIRI downgrade to UW in June 2018 was based on our concerns with respect to maturity of the business model and consequent growth slowdown, less room for margin expansion and potential change in capital allocation priorities towards M & A. These concerns confirmed our belief that the stock was mispriced from a valuation perspective." Wolfe upgrades Chewy to outperform from peer perform Wolfe said the online pet retailer has "plenty of strong growth ahead." "Shares of CHWY have traded down 22% YTD, largely due to fears of steady deceleration in active customer growth post COVID. However, we believe the decline in net new customer adds during FY21 should reverse in FY22 as the impact of FY20 cohort churn moderates mathematically." Piper Sandler reiterates Tesla as overweight Piper said it thinks the third quarter will be Tesla' s best ever. "We are reiterating our Overweight rating and boosting our 2021 estimates after conducting our quarterly review of worldwide electric vehicle (EV) sales. We think Q3 will be TSLA's strongest quarter ever, and we are increasing our 2021 estimates accordingly." Read more about this call here. Bank of America reiterates Roku as buy Bank of America said the sell-off in shares of Roku is overdone. "Shares are down 35% since late July's peak, and 25% from the last earnings call. In our opinion, this is a combination of multiple news articles on competing TV launches, and a general shift in investor focus to stocks benefiting from return to work/school." Wells Fargo reiterates Disney as overweight Wells said it thinks investor concerns about subscriber guidance is overdone. "Recent commentary around F4Q21 Disney + net adds has cast a spotlight on what it will take for DIS to reach FY24 subscriber guidance. We think investors now have some causes for concern, but if the content pipeline ramps up as planned, then we believe guidance remains achievable." New Street downgrades Applied Materials to neutral from buy New Street said the stock's valuation is reasonable, but it doesn't see a catalyst for a new rating for Applied Materials. "Valuation vs. the SOXX is still very reasonable, but we don't see a near-term catalyst for a rerating. We maintain our strong positive long-term conviction, but tactically downgrade to Neutral, $140 Target Price. JMP initiates coverage of Coinbase as market outperform JMP said the crypto exchange platform will remain a leader in the industry for "years to come." "While Coinbase has experienced hyper-growth in recent years, reaching a point of scale that we argue creates competitive advantages, both the company and the crypto industry more broadly are still in the early innings of their growth cycles." Morgan Stanley downgrades Wells Fargo to equal weight from overweight Morgan Stanley said in its downgrade of the stock that it sees a more balanced risk/reward. "Time to take some money off of the table. Wells Fargo is the top performing Large Cap Bank stock YTD, up 58%. Wells is currently trading at 13.5x NTM (next twelve months) consensus EPS, half a turn above its 5-year average historical multiple of 12.8x. At these levels, we see a more balanced risk-reward skew, with less upside in the Base and Bull Cases." Read more about this call here. Oppenheimer initiates coverage of Blade Mobility as outperform Oppenheimer said the urban air mobility company is "positioned to capture outsized share once markets open." "Leveraging a proprietary technology stack that matches consumers with aircraft operators, BLDE has become the category leader in Urban Air Mobility (UAM) and we believe is positioned to capture outsized share once markets open." Berenberg initiates coverage of Poshmark as buy Berenberg said it sees an opportunity to "purchase shares of a growth business at a discount." The firm also projected 75% upside potential for online fashion marketplace Poshmark . "The second-largest player in a structural growth market, the company has a peer-to-peer resale platform with years of robust growth ahead of it, in our view. We believe stock underperformance since its January IPO affords investors an opportunity to purchase shares of a growth business at a discount." JPMorgan reiterates Exxon as overweight JPMorgan said consensus expectations are too low for Exxon. "Looking ahead, we believe a synchronized recovery in earnings and improved capital discipline could drive the 2021+ breakeven back to ~$50/bbl Brent. Further, we think that consensus expectations remain too low for 2021." Wells Fargo downgrades Microchip to equal weight from overweight Wells downgraded Microchip mainly on valuation. "Our downgrade is based on the fruition of our PT. Also, we continue to encourage investors to own shares of cos w/ secular growth stories or idiosyncratic catalysts, as opposed to companies that are mostly dependent on the semi cycle." Morgan Stanley reiterates Pepsi as overweight Morgan Stanley said the stock's valuation looks "compelling" ahead of its earnings report in October. "We expect another PEP EPS beat in Q3, and another quarter of strong organic sales growth confirming higher LT topline growth after Pepsi's reinvestment in marketing/cap-ex in recent years." Morgan Stanley reiterates General Motors as overweight Morgan Stanley restated its overweight rating on the automaker ahead of its capital markets day in October and said the company's upside will be driven by "strategy change." "We see the potential and urgency for the GM investor narrative to change meaningfully. Upside from GM will be driven more by strategy change rather than EPS in the months ahead. Evercore ISI initiates coverage of UPS as outperform Evercore said UPS has "superior" international margins. "Parcel carriers have pricing power in an inflationary environment. Headline rate increases do not fully capture the influence of surcharges (peak period, large package, and specific zones), volume caps and repricing of large enterprise agreements." Morgan Stanley upgrades Okta to overweight from equal weight Morgan Stanley said Okta is a "share gainer." "After slower topline over the past year, an improving demand environment and more buy-in with developers should drive stronger growth and upside in estimates going forward." Read more about this call here.

A visitor wearing a mask walks outside the Shanghai Disney Resort, that will be closed during the Chinese Lunar New Year holiday following the outbreak of a new coronavirus, in Shanghai, China January 24, 2020.

Aly Song | Reuters

Here are the biggest calls on Wall Street on Tuesday: