Here are Tuesday's biggest analyst calls of the day: Tesla, Alphabet, Caterpillar, DraftKings & more

Published Tue, Oct 12 20218:34 AM EDT

Here are the biggest calls on Wall Street on Tuesday: Goldman Sachs initiates coverage of Nike as buy Goldman said Nike has a "continued focus on innovation to drive growth." "We are initiating on Nike with a Buy rating based on: i) a healthy industry backdrop with a company-speciﬁc continued focus on innovation to drive growth; ii) room to expand its DTC initiative which should drive higher gross margins over time; iii) a high cash balance which should enable additional investment and capital return to shareholders." Read more about this call here . Atlantic Equities upgrades Square to overweight from neutral Atlantic Equities said in its upgrade of Square that the company's growth potential remains substantial. "We are upgrading the stock to Overweight and recommend taking advantage of the recent pullback in the stock, with the gross profit multiple now at the low end of the typical historical range." Roth initiates coverage of Penn as buy and DraftKings as sell Roth initiated coverage of Penn and said it's one of the most competitive gaming stocks in the sector. The firm also began covering DraftKings and said it doesn't think the company's market share is sustainable. "We also believe investors are overlooking Penn' s opportunity to cross-sell online gaming to its 20M+ legacy casino loyalty members. … We don't believe DraftKings' 20-25% market share is sustainable as mid-tier peers ramp customer acquisition and better cross-sell land-based databases. While we believe an industry-leading product creates some market share advantages, we see advantages from Daily Fantasy Sports fading over time and DraftKings losing market share, particularly in iGaming." Deutsche Bank downgrades Altice USA and Charter to hold from buy Deutsche downgraded Charter and Altice USA due to increasing competition. "We believe this period of favorable conditions for the Cable industry is now transitioning to a more competitive environment, driven by new Fiber-To-The-Home (FTTH) builds by incumbent telcos combined with expansion in fixed wireless competition." Credit Suisse upgrades MGM to outperform from neutral Credit Suisse said in its upgrade of the hotel and casino company that MGM is not getting enough credit for its "transformation." "We are upgrading MGM from Neutral to Outperform and raising our target price to $68. MGM has gone through a transformation, recently announcing four transactions, and we believe the market is not giving full credit. Pro forma, we see three drivers of upside: a cleaner more simplified organization with a more attractive capital structure, upside to numbers and improving sentiment." Read more about this call here. Compass Point upgrades Callaway Golf to buy from neutral Compass Point said in its upgrade of the stock that the company is successfully sidestepping supply chain issues " ELY indicated that they have taken measures to shift production capacity from Vietnam suppliers that are suffering difficulties from a manpower standpoint." Deutsche Bank reiterates Charles Schwab as a top pick Deutsche Bank kept its top pick status on shares of the financial services company and said it's best leveraged for higher interest rates. "We continue to prefer SCHW within our coverage overall, with the best leverage to potentially higher interest rates, as evidenced by average potential upside of ~75% over the next 2 years across our interest rate scenarios." Jefferies reiterates Netflix as buy Jefferies raised its price target on the stock to $737 per share from $620 and said it's bullish heading into Netflix' s earnings report next week. "After 12+ months of sideways trading, NFLX stock has jumped ~22% in less than 2 months despite little movement in estimates. In fact, NFLX is now trading at 8.5x 2022 revenue ests the top of its 3-year range despite revenue growth ests of ~14.7% vs > 24% when valuation peaked last. Street is baking in a beat or getting more comfortable with the competitive positioning." Oppenheimer reiterates Tesla as outperform Oppenheimer kept its buy rating ahead of Tesla' s earnings report next week and said it remains bullish on the stock. "We believe upside in shares from here is rooted in progress related to its autonomy program along with continued leadership in EV. We believe the company is making incremental progress on multiple fronts and remain bullish on shares." Cowen upgrades Airbnb to outperform from market perform Cowen said in its upgrade of the stock that it expects the "alternative in lodging mix to be permanent." "Upgrading ABNB to Outperform alongside our latest analysis of Online Travel market share & profits. Keys: 1. Expect step-up of Alternative in Lodging mix to be permanent 2. Believe Street underestimating ABNB at 17% bookings growth in 22E; we are > 20% above consensus." JPMorgan reiterates Alphabet as overweight JPMorgan kept its overweight rating on the internet giant and said investor sentiment continues to be positive ahead of the company's earnings report later this month. "After delivering ~$670B of market cap gains this year, we see GOOGL as clearly the most liked, best owned, and least discussed of the mega-cap Internet names." Bernstein reiterates Royal Dutch Shell as outperform Bernstein reiterated its outperform rating on the oil and gas company and said it thinks Shell is an "energy-Amazon." "We think Shell could be viewed as an energy-Amazon one day because at the core of today's strategy lies something different, which is customer centric. Growing demand from customers and consumers for cleaner energy solutions is now clear." Goldman Sachs reiterates Caterpillar and Deere as buy Goldman reiterated its buy rating on shares of Caterpillar and Deere and said both stocks are key beneficiaries of the economy reopening. "In our Machinery coverage, we continue to see a multi-year recovery for Ag & Construction Machinery capital stock, though near-term execution risk is clearly elevated." Oppenheimer reiterates Starbucks as outperform Oppenheimer kept its outperform rating on shares of Starbucks , but the bank said earnings revisions could "cool down." "Our updated analysis implies less room for ongoing margin upside as: 1) Street estimates have 'caught up;' and 2) profit flow through is impacted by cost inflation and investments. Importantly, our outlook for US sales remains robust and above consensus for '22." JPMorgan reiterates General Electric as neutral JPMorgan reiterated its neutral rating on shares of General Electric and said it sees "substantial downside." "We think that, on consensus numbers (we are well below), the stock is overvalued by ~20%, with more substantial downside based on a more complete accounting for liabilities which compound should there be a shortfall to an optimistic consensus." Read more about this call here. Evercore ISI reiterates Amazon as outperform Evercore reiterated its outperform rating on shares of Amazon and said it thinks the company's "fulfilment/logistics expansion will almost certainly unlock new retail growth." "Still the Highest Quality name in 'Net land (perhaps across Tech), given its TAMs, competitive position, and execution track record. Applying historical multiples to reasonably haircut '23 estimates still provides 30%+ 12-month upside, and we think the mkt will anticipate H2:22 easing comps. Finally, AMZN's dramatic fulfilment/logistics expansion will almost certainly unlock new retail growth."

CEO of Tesla Motors Elon Musk reacts following the company's initial public offering at the NASDAQ market in New York June 29, 2010

Brendan McDermid | Reuters

Here are the biggest calls on Wall Street on Tuesday: