Here are the biggest calls on Wall Street on Tuesday: Citi reiterates AMC as sell Citi reiterated its sell rating on shares of the movie company after its earnings report on Monday and says it still sees shares trading lower. "AMC reported 3Q revenue and Adj. EBITDA above the Street. Attendance trends sequentially improved and the company noted a strong start to 4Q21. Despite the beat, we would not be surprised if shares trade lower tomorrow given the run up in the equity over the last few days." Deutsche Bank reiterates Robinhood as hold Deutsche Bank kept its hold rating on the stock app company after it announced a security breach on Monday and says it only expects moderate pressure on the stock. "While there can be a wide range of stock price outcomes for security breaches, and this seems contained based on Robinhood' s description of the breach, we nevertheless think the stock may be at least modestly pressured on Tuesday." Evercore ISI reiterates Netflix as outperform Evercore kept its outperform rating on shares of the streaming giant and says it thinks Netflix video games will carry "reasonably broad appeal." "On November 2nd, Netflix rolled out its first five Mobile games to global subscribers on Android devices. We tested them all, and our initial conclusion is that they carry reasonably broad appeal." Credit Suisse upgrades Cinemark to outperform from neutral Credit Suisse said in its upgrade of the movie theater company that it's best positioned for the box office recovery. "We see Cinemark as the best positioned U.S. pure play theater operator as the box office recovery ramps up into 2022. Cinemark has gained share post COVID-19, and given its affordable pricing coupled with superior experience, we expect Cinemark's North American box office share to sustain at ~14% compared to its pre pandemic levels of < 13%." Read more about this call here. Morgan Stanley initiates Wheels Up as underweight Morgan Stanley said in its initiation of the aviation platform provider that it sees an "unattractive" risk/reward for Wheels Up. "We see ~25% downside ($5.90 PT) as our deep dive into high income households and travel spend per household speaks to a relatively small TAM/runway (only top 1%+ of US households making at least $2.7mn+/year). This limits upside to our below Street estimates; we see negative revisions driving underperformance." BTIG upgrades The RealReal to buy from hold BTIG said in its upgrade of RealReal that it sees improving fundamentals. "A New Chapter: Concerns Over Path to Breakeven Look Poised to Dissipate, Which Should Allow Investors to Focus on Improving Fundamentals." Morgan Stanley reiterates Lowe's and Home Depot as overweight Morgan Stanley kept its overweight rating on shares of Home Depot and Lowe's and says it sees upside heading into earnings next week. "Expecting beats across Retail mega caps driven by steady (and robust) top line trends with a healthy, price-taking consumer. Magnitude of beats could be lower than in past quarters given increasing margin pressures, though mega caps should manage through supply chain disruption better than peers. Credit Suisse initiates Fisker as outperform Credit Suisse initiated the electric vehicle company with an outperform and says it's a "compelling value proposition." "With electric vehicle (EV) uptake sharply inflecting and the market lacking sufficient model options, Fisker offers a compelling value proposition – sleek product at a high-volume price point. Leveraging a de-risked business strategy, Fisker can accelerate development speed and path to scaled production while also unlocking lower price points." Wolfe initiates Moderna as outperform Wolfe said in its initiation of the biotech company that it's time to turn "constructive" on the stock heading into 2022. "We see a clear catalyst pathway in 2022-23, with a mix of relatively high POS (probability of success) readouts and 'wild cards', to demonstrate the promise of mRNA in therapeutic areas outside of COVID, which should help to get investors more comfortable with ascribing credit to the pipeline." JPMorgan upgrades New Relic to overweight from underweight JPMorgan upgraded the cloud software company after its solid earnings report on Monday and says it sees more upside in shares of New Relic. "Now, there is still risk involved in the new business model, but we believe the risk/reward is skewed toward the upside given the valuation even after the big move after hours." Guggenheim upgrades Smucker's to buy from neutral Guggenheim said in its upgrade of the food products company that it likes managements execution. "We are upgrading Smucker shares to BUY as 1) we are starting to see the positive outcome from multiple management changes orchestrated in the last two years that is bringing an improved operational focus, 2) we think the growth algorithm is getting more favorable in both coffee and pet, and we see Uncrustables as an underappreciated growth driver." Morgan Stanley downgrades Old Dominion to equal weight from overweight Morgan Stanley said in its downgrade of the trucking company that the current pace of earnings growth is not sustainable. "Put another way, even using a normalized PE of 20x, implies that the market is already pricing in normalized EPS that is roughly double FY21 EPS for ODFL and SAIA. We think topping these expectations that are already priced in is going to be a tough ask in the near-term and consequently are downgrading ODFL from OW to EW and reiterating our UW rating on SAIA." Citi downgrades Nucor to hold from buy Citi downgraded the steel company on "peak price risk and valuation." "We are structurally bullish on the steel sector but tactically cautious as flat steel prices appear to have peaked. We acknowledge NUE' s quality and exposure to long steel/infrastructure. But broadly see the stock fairly valued now and potentially more vulnerable than peers given its outperformance (+120% YTD) and higher multiples/ lower FCF yield. Positive catalysts may be lacking with the Infrastructure Bill now approved." Read more about this call here. Susquehanna initiates GlobalFoundries as positive Susquehanna said in its initiation of the semiconductor manufacturing company that it's well positioned to be a global leader in semis. " GlobalFoundries is one of the world's leading pure play semiconductor foundries. It is currently ranked as the fourth largest foundry. GF's direct competitors are the likes of UMC (the third largest foundry) and TSEM (the ninth largest). GF does not compete with TSM, which accounts for 50-55% of the market." Raymond James upgrades Coty to outperform from market perform Raymond James said in its upgrade of the beauty company that it sees more upside. "After a multi-year period of veering too far in one direction in pursuit of top-line growth and then too far in the opposite direction prioritizing margins, we now believe COTY is on more solid footing to offer upside." Deutsche Bank adds a catalyst call buy on FedEx Deutsche Bank added a catalyst call buy idea on the shipping giant and says it thinks FedEx can achieve full year guidance. "The bottom line: following fiscal 2Q results expected in December, we think the tailwinds in fiscal 2H'22 will be better appreciated, with likely growing optimism that FDX management can achieve its full year guidance (vs. current consensus that is just below the low end). This is notable given the significant underperformance in FDX shares vs. UPS." HSBC upgrades Royal Dutch Shell to buy from hold HSBC said in its upgrade of the oil company that it sees the best free cash yield in the sector. "But raising Shell from Hold to Buy. Despite this caution, we raise Shell A & B from Hold to Buy. Shell stands out to us because: 1) well above-average crude price leverage translates into the biggest CFPS (cash flow per share) increases in our coverage, 2) we forecast the best free cash yield in the sector and the biggest fall in share count in our coverage (16% by 2024e)," UBS reiterated Virgin Galactic as sell UBS reiterated its sell rating on the stock after its earnings report on Monday and says it remains "supply side constrained." " SPCE reported 3Q results with modest revenues. SG & A expenses were higher than our estimate which weighed on segment operating profit. ... .Though there was some promising commentary on customer interest, our Sell thesis remains intact given current projected pace of operations and unknown timeline around introduction of the Delta class spaceships."
A Home Depot location in Encinitas, California.
Mike Blake | Reuters
Here are the biggest calls on Wall Street on Tuesday: