Here are Friday's biggest analyst calls of the day: Uber, Shake Shack, Airbnb, Peloton, Nikola & more
Here are the biggest calls on Wall Street on Friday: BTIG upgrades Shake Shack to buy from neutral BTIG said in its upgrade of the burger chain that fundamentals have bottomed and foot traffic is increasing. "We are upgrading shares of Shake Shack to Buy from Neutral despite the sales and margin miss in 3Q21, as we believe the company's fundamentals have bottomed with upside trajectory ahead." Read more about this call here. Morgan Stanley downgrades Citrix to underweight from equal weight Morgan Stanley downgraded the cloud computing and virtualization tech company after its earnings report and said it sees Citrix heading into a period of increased uncertainty. "While 3Q rev was ahead, 4Q rev/margins/EPS guide was below expectations. Mgmt plans cost cuts to restore margins and unlock resources to invest for growth. In the context of rising competitive threats, we think a more aggressive commitment to product innovation is needed to secure durable growth." BTIG downgrades Nikola to neutral from buy BTIG downgraded the fuel-cell vehicle company mainly on valuation and timing. "While we are constructive on the long-term opportunity for FCEV (Fuel Cell Electric Trucks), the timing remains a risk. We downgrade NKLA from Buy to Neutral and remove our $16 PT." JPMorgan upgrades Vonage to overweight from equal weight JPMorgan upgraded the cloud communications provider after its earnings report on Thursday and said the company's transformation is ahead of schedule. " Vonage is halfway into its three-year transformation process, but the numbers posted in yesterday's earnings report suggest that it is running ahead of schedule." Bank of America reiterates Uber as buy Bank of America reiterated its buy rating on shares of the ride-sharing company after its earnings report on Thursday and said it likes the company's improved financial position. "Big picture, Uber is benefitting from scale and driver supply tailwinds, with mobility rebounding, and we expect these trends to continue through '22." Stifel downgrades Peloton to hold from buy Stifel downgraded the exercise fitness company after its earnings report on Thursday due to cost pressures and supply chain constraints. "We are lowering our rating to Hold following the rapid deterioration in the company's full year outlook, which was initially provided last quarter and significantly reduced alongside F1Q:22 results. Peloton lowered FY:22 revenue guidance by $800mm (or 15%) at the midpoint, citing limited visibility due to challenging compares, reopening economies, and cost pressures related to supply chain constraints and commodity prices." JPMorgan upgrades Sarepta to overweight from equal weight JPMorgan said in its upgrade of the drug research and development company that it sees an attractive entry point on the potential of Sarepta's gene therapy SRP-9001. "Even with this conservative approach to the model, we see an attractive valuation entry point in SRPT shares on the potential of SRP-9001, as well as the commercial franchise, helping to provide a valuation backstop and broader pipeline having the potential to drive upside." Cowen downgrades Vimeo to market perform from outperform Cowen downgraded the stock after its earnings report on Thursday and said it sees more "muted growth." " Vimeo reported in line 3Q rev growth of +33% y/y, while gross margin was ahead on scale efficiencies & infra optimization. However, mgmt called for more muted growth than expected for both 4Q21 & FY22 given difficult comps and headwinds related to OTT and pricing changes." UBS downgrades Novartis to neutral from buy UBS said in its downgrade of Novartis that it sees slower topline growth. "The stock trades at a substantial discount to the sector at 13x core 2022E PE, which is out of step with recent history but we think this situation likely continues because a lack of major clinical catalysts means that there is little to drive a re-rating in the coming months." Stifel downgrades Gildan Activewear to hold from buy Stifel said in its downgrade of the Canadian clothing company that it sees cotton price volatility. "We are raising the 12 mos. TP to $43 from $41 but downgrading GIL shares to Hold from Buy. Our constructive thesis for volume and margin recovery has largely run its course and incremental risks from cotton price volatility and potential global minimum tax regulation will challenge visibility and potential for multiple expansion." Barclays upgrades GlaxoSmithKline to equal weight from underweight Barclays upgraded the pharmaceutical company and said it sees several near-term positive catalysts for the stock. "Whilst we still have longer-term concerns about the pipeline at New GSK, we expect the recent momentum in shares to continue into 2022 going into the spin." Deutsche Bank downgrades Papa John's to hold from buy Deutsche Bank said it sees a more balanced risk/reward after Papa John's strong earnings report on Thursday. "While we remain very positive on the medium term to long term outlook at the company, and continue to be impressed by management's execution, we are moving our rating to Hold on the stock as we believe the Risk-Reward has become more balanced following the most recent move and the presumed incorporation of today's guidance into go-forward sell-side estimates." Read more about this call here. Argus downgrades Qorvo to hold from buy Argus said in its downgrade of the semiconductor radio frequency company that it continues to see a challenging supply chain environment. " Qorvo guided for high-teens percentage sequential declines in revenue and non-GAAP EPS for fiscal 3Q22 (the current holiday quarter). Guidance was well below the pre-reporting consensus for fiscal 3Q22. Like nearly all technology companies and most companies in general, Qorvo is seeking to navigate a challenging supply-chain environment." Jefferies reiterates Airbnb as buy Jefferies kept its buy rating on shares of Airbnb after its earnings report on Thursday and said it sees solid momentum continuing. "Best qtr in the books on accelerating recovery. What we liked: (1) Solid operational and financial performance as cross-border and urban just start to recover. (2) 3Q momentum continued into Oct with global net nights booked ahead of 2019. (3) Supply grew in 3Q to highest number of active listings in history."
Here are the biggest calls on Wall Street on Friday:
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