Here are Thursday's biggest analyst calls of the day: Netflix, Apple, Chipotle, Square, GM & more

Published Thu, Oct 7 20218:32 AM EDTUpdated Thu, Oct 7 20218:52 AM EDT

Here are the biggest calls on Wall Street on Thursday: Goldman reiterates Alphabet and Facebook as buy Goldman Sachs said in a note to clients on Thursday that it sees Alphabet and Facebook as well positioned for digital advertising growth. "Overall, among the digital ad platforms we continue to see GOOGL and FB as best positioned to capitalize on the blurring of lines between traditional eCommerce and advertising platforms over the near term, and continue to monitor how smaller platforms (SNAP, PINS, TWTR) are making progress on the build-out of their longer-term direct-response and commerce-oriented offerings." Wells Fargo reiterates Chipotle as overweight Wells raised its price target on Chipotle to $2,180 from $1,800 and said shares are compelling. "The risk/reward continues to look compelling; we'd argue best-in-class new store returns, cash generation and visibility into ongoing SSS (same-store-sales) leverage should place shares at > 2x the market multiple." Jefferies upgrades Square to buy from hold Jefferies said in its upgrade of the stock that it's a "must own." "Amidst a backdrop of accel. disruption within payments & the broader FinTech ecosystem, we believe SQ is a must-own over the long-term as a proven innovator." Cowen reiterates Amazon as outperform Cowen lowered its price target on the shares of Amazon to $4,300 from $4,400. The bank said the stock continues to be compelling ahead of its earnings report later this month. " AMZN shares are +3% YTD and -2% since the 2Q21 print, following the 74% gain in '20. We continue to like AMZN shares as the company appears to be near the tail end of a historical fulfillment and logistics investment cycle, we estimate ~$80BN in eCommerce logistics investments in '20/'21 vs. ~$58BN the prior 5 years combined." Bernstein reiterates Apple as market perform Bernstein said in a note to clients on Thursday that Apple's valuation seems "relatively full." "We believe that Apple's valuation is relatively full today given the company is trading inline to higher than other FAAMG stocks (notably Google and Facebook), both of which not only have better expected growth, but also higher margins." Goldman Sachs upgrades Nio to buy from neutral Goldman said it's bullish on the company's electric sedan, ET7. "We believe Nio's positioning of the ET7 is strategic. The product design, such as the wheelbase, is in the same class with peer full-size premium sedans including Mercedes S-class and BMW 7." Read more about this call here . Morgan Stanley downgrades Box to equal weight from overweight Morgan Stanley resumed coverage of Box and downgraded the stock, saying it sees a lack of catalysts. "We think Box's > 45% outperformance vs. our SMID software group YTD reflects several qtrs of strong execution and the potential for continued acceleration; EW on lack of catalyst to push shares materially higher." Wells Fargo reiterates General Motors as overweight Wells Fargo says it's getting increasingly bullish on the automaker's long-term strategy after its investor day on Wednesday. "We reiterate our OW rating as we have increased confidence in GM's long-term strategy and are excited by the potential SaaS (software as a service) growth." Morgan Stanley upgrades Five Below to overweight from equal weight Morgan Stanley said in its upgrade of the retailer that it sees a good entry point. "Stock trading at a discount on freight/inventory fears, which seem overblown. FIVE outpunching its weight in inventory, freight & financial management. Good entry point for attractive growth story." Read more about this call here. JPMorgan upgrades Schlumberger to overweight from equal weight JPMorgan said in its upgrade of the oil field services company that it's "poised to deliver strong earnings growth." "In conjunction with our 2021 OFS (oil field services) Fall Playbook, we are upgrading our rating on SLB shares to Overweight from Neutral. Our upgrade reflects the company's advantaged portfolio that is poised to deliver strong earnings growth from the global recovery in upstream spending and further margin expansion." Read more about this call here. Wolfe downgrades Bank of America to peer perform from outperform Wolfe downgraded Bank of America mainly on valuation. "Two primary drivers of our downgrade: 1) Valuation; and 2) Fee Income. For valuation, even when layering in higher rates (+100bps), shares screen rich relative to other rate sensitive peers, notably MS, RJF, LPLA, NTRS." Credit Suisse reiterates Constellation Brands as a top pick Credit Suisse reiterated the beverage company as a top pick after Constellation reported strong earnings on Wednesday. "Today's print reinforced shares of STZ as our Top Pick into year-end given best-in-class demand, resilient margin profile, and cash return." Morgan Stanley reiterates Facebook as overweight Morgan Stanley kept its overweight rating on the social media company and said it's bullish about Facebook's platform innovation. "Given the current pull-back (and re-emergence of safety concerns) we remain most tactically positive FB, as we see a path toward $16+ of FCF in '22...which applying FB' s long-term 3.4% yield would imply a share price closer to ~$485 within 12 months (~45%upside)." JPMorgan reiterates Netflix as overweight JPMorgan reiterated its overweight rating on the streaming giant and said it's bullish on the company's content slate. "Even after the recent stock move we remain positive on NFLX shares based on further strengthening of the content slate in 4Q, greater distance from pandemic pull forward, stronger seasonality, & the potential for greater traction in APAC, where NFLX has low penetration." MoffettNathanson upgraded AT & T to neutral from sell Moffett said in its upgrade of the stock that it's now fairly valued. " AT & T's relentless slide, particularly when set against the market's strong gains, leaves the stock trading at an all-time low relative P/E." JPMorgan reiterates Facebook as overweight JPMorgan kept its overweight rating on the social media company and said investors should buy the dip. "We believe Facebook' s virtual ownership of the social graph, strong competitive moat, and focus on the user experience position it to become an enduring blue-chip company built for the long term." Read more about this call here. Morgan Stanley reiterates Sunrun as overweight Morgan Stanley said the solar company is one of the most "compelling" stocks in the firm's coverage. "The stock is reflecting ~5 years of continued operations followed by zero customer additions — essentially meaning that the stock price implies RUN will go out of business in 5 years (while we see significant future growth ahead). (2) We believe the rapid growth in Electric Vehicle adoption will be a major source of upside for RUN, and we believe EV customer adoption of rooftop solar could create as much value for RUN as RUN's entire current business." Bank of America reiterates SolarEdge as buy Bank of America kept its buy rating on the solar company and said it likes the consistent free cash flow generation. "Against cautious investor sentiment around chip supply for SolarEdge Technologies (and peer Enphase Energy - ENPH) with headlines from adjacent industries (Auto/EV chip shortages) driving concerns of exacerbated chip constraints through '22 – we see near-term solar volumes as discounted through '22, driving upward revision potential."

The Netflix logo is shown in this illustration photograph in Encinitas, California.

Mike Blake | Reuters

Here are the biggest calls on Wall Street on Thursday: