Here are the biggest calls on Wall Street on Monday: RBC downgrades Whirlpool to underperform from sector perform RBC said in its downgrade of the stock that it sees weak margin and more share losses. "We are downgrading WHR to UP from SP as market share losses continue in North America, margins look set to weaken in 4Q with further pressures coming in FY'22, and industry volume growth is likely to subside, all marking a likely peak in EPS despite more optimistic LT targets from mgmt." Goldman Sachs initiates Warby Parker as buy Goldman Sachs said in its initiation of the eyewear company that it's a "high-growth omnichannel brand with exposure to the structurally growing visioncare market." "Our enthusiasm is underpinned by Warby Parker's strong brand and several key growth levers including (1) an expanded brick and mortar footprint, (2) market share capture from growing customer counts and opportunities to gain greater share of wallet." Morgan Stanley raises price target on Tesla to $1,200 from $900 Morgan Stanley raised its price target on the automaker primarily due to "higher volume" and Tesla 's solid earnings report last week. "The next 12 months can demonstrate Tesla's manufacturing leadership, a step change in costs/complexity and higher growth in the vehicle user base. Our $1,200 price target implies roughly ½ the company's growth target, a 'constrained' China and virtually no autonomy." Read more about this call here. Berenberg initiates GoDaddy as buy Berenberg said in its initiation of GoDaddy that it's the global leader in domain name registration. " GoDaddy holds unique entry ticket to scale with its dominance in domains space: We see domain registration as a mere entry ticket for businesses or organizations to create a branded virtual presence." JPMorgan reiterates Disney as overweight JPMorgan kept its overweight rating on shares of Disney and says it sees a possible upside surprise over the long term driven by robust content and the launch of new markets. "Near-term, the stock may continue to be more range-bound as investors rebuild confidence in this path after two recent quarters of softer sub growth. However, an upside surprise could come from: 1) more muted growth at Hotstar in FQ4, suggesting more of an acceleration in core Disney+ subs, or 2) outsized growth in FQ1 helped by the launch of new markets, robust content, and Disney+ day." Wells Fargo raised its price target on Bank of America to $60 from $55 Wells raised its price target Bank of America to a Street high of $60 per share and says it likes the banking giant's "tech-driven model." "First,we increase estimates due to estimated greater incremental margins on new revenue,and esp. NII (net interest income) which has turned the corner, in our view. Second, its scale, tech-driven model has increased the moats around the business and should allow for continued share gains,esp. in deposits, consistent with our recent report." Citi initiates Norwegian as buy and downgrades Carnival to neutral from buy Citi said in its initiation of Norwegian that the cruise company will be free cash flow positive in early 2022. The firm also downgraded Carnival and says it thinks Norwegian will "deliver more attractive returns to shareholders." "We see momentum building in the re-opening of the cruise industry. Cruise lines are planning to have full fleets sailing by next summer and consumer interest, reflected in our web traffic data, is building, especially for highend brands. While near term uncertainties persist, industry pricing, especially for premium lines, looks robust for next summer." Read more about this call here. Evercore ISI reiterates Microsoft as outperform Evercore reiterated its outperform rating on shares of Microsoft ahead of earnings on Tuesday and says it sees a solid first-quarter report "powered by cloud momentum." "We remain bullish on the long-term setup for Microsoft and expect another 'beat/raise' quarter on Tuesday." Bank of America reiterates Alphabet as buy Bank of America says it remains "constructive" on shares of Alphabet heading into the company's earnings report later this week. "Despite added IDFA and supply chain uncertainty in 4Q, we remain constructive the stock given: reasonable 18x 2022E core earnings P/E in our SOTP (sum of the parts), expected relatively stability of search vs social due to added 4Q search activity." Bank of America reiterates Twitter as buy Bank of America kept its buy rating on shares of Twitter ahead of the company's earnings report on Tuesday and says it sees early signs of a "brand spend recovery." "We reiterate our Buy rating as Twitter has over 80% revenue exposure to brand revenues, revenue growth in 2Q showed early signs of the brand spend recovery we anticipated, and we think 2H brand advertising strength is possible as events return." Bank of America reiterates Amazon as buy Bank of America kept its buy rating on shares Amazon heading into earnings later this week and says the e-commerce giant should be relatively insulated from supply chain concerns. "Expect in-line 3Q revenue, and BAC aggregated card data suggests stable eCommerce trends in so far in 4Q, but we expect a conservative 4Q outlook given fulfilment investments, inventory constraints and tight labor market that could impact shipping times." Bernstein reiterates Apple as market perform Bernstein kept its market perform rating on the tech giant ahead of its earnings report later this week and says it's all about the iPhone 13. "Historically, Apple' s Q4 earnings results are not particularly important, but forward commentary/guidance is, as investor focus typically shifts to next year's iPhone cycle." UBS upgrades Knight-Swift to buy from neutral UBS said in its upgrade of the motor carrier holding company that it has strong free cash flow generation. "We are upgrading KNX t o Buy from Neutral because the expansion of its non-truckload business is occurring faster than we previously anticipated and KNX's strong free cash generation provides potential for further diversification through acquisitions." Wedbush downgrades Casper Sleep to neutral from outperform Wedbush downgraded the bedding and mattress company and says it has concerns about decreasing financial stability. "On Friday AMC, October 22, Casper filed an 8-K indicating that it had received a limited waiver and amendment regarding certain covenants in its debt agreement. Specifically, the lender has agreed to waive the requirement for the company to maintain at least $32m in cash for the period beginning October 18, 2021, and ending on December 31, 2021, as long as the company notifies the borrower five business days before the company reduces its cash on hand below $15m." Bernstein initiates Micron as underperform Bernstein initiated Micron with an underperform rating and says it has concerns about a delayed recovery into next year. "Though we're structurally positive, we see a cyclical downside risk coming and the financial performance of Samsung, SK hynix and Micron will not recover until late 2022." Wells Fargo raises its price target on JPMorgan to $210 from $200 Wells Fargo raised its price target on the banking giant to a Street high of $210 per share and says it sees more upside in the stock. "We also increase our target from $200 to $210 reflecting a combination of confidence in JPM's earnings capacity and consistency and as we roll-forward quarterly and annual estimates and projections in our valuation models."
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 Monday: