Here are Wednesday's biggest analyst calls of the day: Ferrari, Apple, Bed Bath & Beyond, Avis & more

Published Wed, Nov 3 20218:35 AM EDTUpdated Wed, Nov 3 202110:07 AM EDT

Here are the biggest calls on Wall Street on Wednesday: Morgan Stanley downgrades Gartner to equal weight from overweight Morgan Stanley said in its downgrade of the technology and consulting company that it sees a balanced risk/reward. "While we still view IT as a double-digit grower, at 29x '22 EV/EBITDA, we believe this is now priced in. We see a more balanced risk/reward, especially as '22 guidance will likely show significant EPS compression." Piper Sandler downgrades Zillow to neutral from overweight Piper said in its downgrade of Zillow that it sees no positive catalysts in the near term. "We downgrade to Neutral because ex-Home we no longer see upside to shares. Also, management's abrupt strategic shift leaves us questioning the long-term strategy. Execution may be a problem. Minimum there are 1-2 quarters of restructuring and retooling ahead." Read more about this call here . Loop downgrades Bed Bath & Beyond to sell from hold Loop said in its downgrade of Bed Bath & Beyond that the stock's valuation is overdone. "We are downgrading Bed Bath & Beyond (BBBY) to a Sell from a Hold rating following the over 70% jump in the company's stock price in pre-market trading (which followed a 9.6% rise yesterday, well ahead of the 0.4% increase in the S & P 500) based on the announcements the company entered a strategic collaboration with grocery retailer Kroger, will set up a digital marketplace, and is accelerating share repurchases." Read more about this call here. Barclays initiates coverage of Alibaba and JD.com as overweight Barclays said Alibaba has a compelling valuation. The firm also initiated coverage of JD.com and said it has a dominant e-commerce franchise. "We believe the Chinese government aims to make its home-grown internet and tech companies stronger not weaker, particularly in markets outside of China. … We believe BABA offers one of the most compelling valuations not just among Chinese ADRs but global peers under Barclays' coverage. … Unlike many of its ecommerce peers both in China and globally, JD has built a dominant ecommerce franchise oﬀ the 1P (first party) model with massive in-house logistics operations." Read more about this call here. Deutsche Bank downgrades Avis Budget to sell from hold Deutsche Bank said in its downgrade of the auto rental company that it can't justify the stock's valuation. "Our first order of business is to emphasize that this downgrade is not a call to short CAR . Simply put, it is a view that investors who owned the stock prior to Tuesday should take profits. We simply cannot justify, using any reasonable traditional valuation metric, the $10.5 billion of incremental value generated by the more than doubling of the stock in one day." Read more about this call here . Northcoast upgrades Shake Shack to buy from hold Northcoast said in its upgrade of the burger chain that it sees stronger sales. "Based on recent checks, we are raising our outlook on Shake Shack to BUY and setting a price target of $98. We believe Shake Shack is experiencing stronger sales trends in October compared to a lackluster summer which kept momentum at bay. Though we believe NYC performance continues to lag, Manhattan traffic is improving just not as much as expected." Bank of America downgrades Generac to neutral from buy Bank of America said in its downgrade of the generator manufacturer that it's concerned about supply chain issues. "The long-term outlook remains excellent and demand for most of Generac' s products is still booming, but supply chain constraints have finally started to bite as they have for everyone else." Credit Suisse upgrades DuPont to outperform from neutral Credit upgraded DuPont after its earnings report on Tuesday and said it likes management's recent moves to enhance the company's portfolio over the near and long term. "Q3 fundamental performance was better than anticipated, with the lower Q4 EPS driven exclusively by automotive production timing (we also view this as timing). However, the catalyst for our upgrade is the announced portfolio management." RBC downgrades Lear to sector perform from outperform RBC said in its downgrade of the automotive seating and electrical company that it sees margins weighed down by commodities. "We are stepping to the sidelines believing upside to LEA stock over the next 6-12 months is more tied to global production (cycle) than LEA specific factors. We don't see structural issues and like the LT strategy, but 2022 margins may be weighed down by commodities, a dilutive acquisition and continued investment." UBS reiterates Walmart as buy UBS kept its buy rating on shares of the big-box retailer ahead of its earnings report later this month and said the company continues to gain share. " WMT likely sustained most of its momentum and gained further share in 3Q. We think WMT's 3Q print will provide several data points to support the bull case and act as a positive catalyst. First, the company probably continued to gain share. Our 7.0% WMT US SSS est. suggests that it outperformed others." Raymond James upgrades T-Mobile to strong buy from outperform Raymond James upgraded the wireless company after its earnings report Tuesday and said it sees more upside to subscriber and service revenue growth. "We are upgrading TMUS to Strong Buy and raising our target price to $158, from $151, with 3Q21 results in-line, guidance tweaked up and competitive fears somewhat allayed. We think TMUS has a 5G head start that will push subscriber and service revenue growth even with headwinds from migrating Sprint subs to the full Magenta experience." William Blair upgrades Under Armour to outperform from equal weight William Blair said in its upgrade of Under Armour that it has increased conviction in the stock as the brand continues to reposition itself. "We are upgrading Under Armour to Outperform given a compelling valuation alongside our increased conviction that the repositioning of the brand has set the stage for meaningful and consistent revenue growth in tandem with ongoing margin expansion." Morgan Stanley downgrades Activision Blizzard to equal weight from overweight Morgan Stanley downgraded the video game maker and said it was wrong to expect the company to deliver amidst the management turmoil. "We were wrong about ATVI' s ability to execute and deliver its Overwatch 2 and Diablo IV pipeline in the middle of a period of high internal turmoil related to harassment challenges, multiple management changes (including the newly-announced departure of Jen O'Neal only 3 months into the role of co-head of Blizzard), and work from home." UBS reiterates Apple as buy UBS kept its buy rating on shares of Apple and said its survey checks show "easing wait times suggest supply chain headwinds could be bottoming" for the iPhone. "Although the iPhone 13 is more evolutionary than revolutionary, continued global investments in 5G and aggressive promotions by carriers supports a solid demand backdrop." Goldman Sachs adds Phillips 66 to the conviction buy list Goldman added the multinational energy company to its conviction buy list and said it has an attractive valuation. "We remove Marathon Petroleum Corporation (MPC) from the Americas Conviction List (and maintain our Buy rating), and add Phillips 66 (PSX) to the CL following relative underperformance and attractive valuation..." Bank of America reinstates BlackRock as buy Bank of America reinstated coverage of the asset manager and said it has "significant scale" and early-mover advantage. "Objective (PO) which implies 15-20% total return potential. We expect the BLK stock to outperform as the firm continues to take profitable market share through its secular growth businesses where it has a leading franchise and/or early mover advantage. Bank of America reinstates Blackstone as buy Bank of America resumed coverage of the alternative investment management company and said the stock is underappreciated. "Despite recent outperformance driven by its C-Corp conversion and a better appreciation for its growth prospects, we think the BX stock remains undervalued as its 3-5 year earnings growth trajectory and earnings quality transformation are still underappreciated." SocGen upgrades Ferrari to buy from hold SocGen said in its upgrade of the automaker that it continues to sidestep the chip shortage. " Ferrari has continued to perform strongly, increasing shipments by 19% yoy in 3Q21 after sidestepping the chronic semiconductor shortages that forced other automakers to cut output." Deutsche Bank opens a catalyst call buy on XPO Logistics Deutsche Bank added a short-term buy idea on shares of the freight company and said investors should buy the weakness. "We expect XPO shares to be weak in today's trading, following very poor 3Q operating results at its LTL (less-than-truckload) division."

Apple CEO Tim Cook speaks with visitors at the new Apple Store on Broadway in downtown Los Angeles, California, June 24, 2021.

Lucy Nicholson | Reuters

Here are the biggest calls on Wall Street on Wednesday: