Here are Monday's biggest calls on Wall Street: Truist upgrades Shake Shack to buy from hold Truist said in its upgrade of the burger chain that near-term concerns about a recovery create a buying opportunity. "We are upgrading SHAK's shares to BUY from HOLD. Our upgrade is not a call on earnings (11/4) as we expect a miss. Instead, we believe that NT concerns around a slow urban sales recovery and inflation creates a strong buying opportunity." Guggenheim reiterates Amazon as buy Guggenheim kept its buy rating on the e-commerce giant but said it sees supply chain pressures continuing. "Looking to Q4, we would anticipate that these costs will approach $4 billion in Q4 as Amazon sees a full quarter's impact of these effects and a higher seasonal unit volume. We see this continuing to pressure Amazon in coming quarters. Global supply chain disruptions have also raised Amazon's cost of operations, and we expect this pressure to also continue." UBS initiates coverage of Signet Jewelers as buy UBS said the jewelry retailer has a "fortress balance sheet." " Signet is the leading jewelry retailer worldwide (6.5% share) and has made transformational changes over the last 3.5 years. The company now has a unique omnichannel offering (eCommerce + stores), stronger pricing power, a more efficient store footprint, and fortress balance sheet." Cantor Fitzgerald downgrades Tilray to neutral from overweight Cantor downgraded the stock due to balance sheet concerns. "In our view, there is nothing wrong with Tilray management articulating a $4Bn topline vision by 2024 (6x current levels), but we believe that M & A will need to be the main driver of that growth trajectory for them, and we do not think that Tilray has the B/S at present to back that up." BTIG downgrades CrowdStrike to neutral from buy BTIG downgraded the cybersecurity company due to rising competition. "We are downgrading CRWD to Neutral from Buy. Our checks lead us to believe that competition is on the rise and that tailwinds to CRWD's growth in CY22 will downtick from CY21." Stephens upgrades Starbucks to overweight from equal weight Stephens said in its upgrade of the coffee giant that the market is being shortsighted about Starbucks' investments. "Contrary to the market, we believe Starbucks is making a smart move by spending more on employee wages. Labor is the most important competitive advantage in the foodservice industry — now more than ever. And by paying its employees more than the competition can/will pay, Starbucks is positioning itself to take market share for years." Read more about this call here . Morgan Stanley reiterates Salesforce a top pick Morgan Stanley reiterated Salesforce as a top pick and said it sees improving fundamentals. "Our updated TAM driven forecast bolsters confidence in a 20% 5-year revenue CAGR, which combined with durable op margin expansion delivers a nearly 30% FCF CAGR. Improving fundamentals should support a durable multiple into CY22, making CRM our top large cap software pick Barclays downgrades Tripadvisor to underweight from overweight Barclays said in its double-downgrade of the stock that it sees a "less pronounced recovery." "Despite TRIP 's recent progress of returning to positive EBITDA and monthly unique users reaching 70% of 2Q19 levels, we think the broader travel recovery will likely slow and not reach 2019 levels until peak travel season in mid-2022 at the earliest." Read more about this call here. JPMorgan upgrades Newell Brands to overweight from equal weight JPMorgan said in its upgrade of the consumer and commercial products company that it sees improving margin. "We believe NWL can improve margins starting in 2Q22 driven by margin accretive innovation, pricing in the existing portfolio, significant cost cuts, with management reiterating its focus on continued operating expense rationalization, better logistics/execution and strict cash flow management going forward, which should help to improve NWL's margins ahead." Read more about this call here. Morgan Stanley names Ferrari a top electric vehicle pick Morgan Stanley said in a note to clients Friday night that Ferrari is the firm's favorite electric vehicle stock. "Our favorite EV stock has one of the world's strongest/most exotic brands, a 2-year waitlist, generates cash, and is developing EV capability in its skunk works. Oh… and we think you get the EV business for less than $1bn." Read more about this call here . Credit Suisse reiterates Peloton as outperform Credit Suisse kept its outperform rating on shares of Peloton and said it's neutral heading into the company's earnings report later this week. The firm also said "past capacity & supply chain investments could put Peloton in a strong position as the holiday and winter selling season approach." "Incremental demand from the Bike price cut (3rd party data shows strong reception) unlikely to show this quarter as sales are booked on delivery. An early read into how Tread sales are faring may reshape full-year expectations." Morgan Stanley reiterates Sunrun and Plug Power as top ideas Morgan Stanley said in a note to clients on Monday that Sunrun and Plug Power were two of the firm's favorite picks heading into earnings. Sunrun reports earnings later this week while Plug Power reports next week. "We believe both RUN and PLUG will deliver strong revenue growth, and believe both companies will reiterate strong growth outlooks notwithstanding supply chain pressures." Loop reiterates Apple as buy Loop kept its buy rating on the tech giant after its earnings report last week and said investors should continue to buy the dip. "Maintaining our $165 PT after AAPL's September Q EPS on 10/28 while acknowledging potential P & L (profit & loss) bumpiness through March Q. That said, we remind investors that the updated iPhone SE arrives by April 2022 (we believe) and that Loop Capital Supply Chain Analyst John Donovan believes this could add 10M builds / Q. Additionally, we believe investors will then also begin placing attention on iPhone 14 builds." Baird downgrades Bank of America to underperform from neutral Baird said in its downgrade of the stock that it sees an unfavorable risk/reward. "Downgrading BAC to Underperform, expectations elevated and risk/reward unattractive. We are cutting BAC to Underperform, as we believe the risk/reward of the stock is generally unfavorable as it trades near ~2.2x TBV and ~13x-14x normalized EPS." Read more about this call here . Bank of America resumes Pinterest as neutral Bank of America resumed coverage on shares of Pinterest and said it sees difficult comps "With PayPal publicly indicating that the company is not pursuing a deal, and Pinterest setting an earnings date on Nov 4th, we are reinstating our Neutral rating. There is speculation that PayPal was deterred by stock reaction to deal leaks, or that Pinterest holders wanted a higher bid, but no official details available." RBC downgrades Thomson Reuters to sector perform from outperform RBC downgraded the stock mainly on valuation. "Following strong share price performance YTD, we are downgrading Thomson Reuters from Outperform to Sector Perform. We continue to view Thomson Reuters as a high-quality core holding with an ability to deliver annual total returns of approximately +10%." Bank of America downgrades Lockheed Martin to neutral from buy Bank of America said in its downgrade of the stock that it sees slowing growth. "We are lowering our PO to $375 based on a DCF analysis and downgrading LMT to Neutral as we expect fundamental headwinds, slowing growth and an inconsistent strategy to weigh on the stock's performance." Bernstein upgrades Spotify and Activision Blizzard to market perform from underperform Bernstein said in its upgrade of Spotify that it sees more growth in streaming. The firm also upgraded Activision Blizzard and said it sees a balanced risk/reward. "At SPOT, new industry data drives an increase in our global market forecast for music streaming. ... At ATVI, the fallout from cultural turmoil, and the associated risk to future timing and quality of releases, not to mention the ability to recruit and retain talent going forward, cause us to take down/push out our forecast. But we believe the market has discounted this into the stock such that the risk/reward for investors is balanced from here." Bank of America downgrades Stanley Black & Decker to underperform from neutral Bank of America downgraded the stock due to increasing competition. "We are lowering Stanley back to Underperform (from Neutral) post a lackluster Q3 and guide-down, and on the verge of its $1.6bn buyout of the remaining 80% of MTD. Stanley is working to offset higher input costs with higher selling prices." Northland downgrades Advanced Micro Devices to market perform from outperform Northland downgraded the stock due to slowing growth. "We expect semiconductors, in general, to be weak next year as digital transformation and work from home demand slows. We also expect inflation to be persistently high, pressuring multiples. We expect that CY21 was a peak growth year for AMD and believe earnings growth will slow going forward." Northland upgrades Intel to market perform from underperform Northland said in its upgrade of the stock that it sees a balanced risk/reward. " INTC been in the semiconductor industry for over 50 years. They have amassed a tremendous amount of semiconductor tribal knowledge in terms of process technology. As numerous companies have proven over the last 30 years it is a high hurtle to become a chip manufacturer particularly in the lead edge logic market."
An Amazon employee works in the picking station for merchandise at the Amazon fulfillment center in Robbinsville, New Jersey, November 26, 2018.
Shannon Stapleton | Reuters
Here are Monday's biggest calls on Wall Street: