Here are Monday's biggest analyst calls of the day: Apple, Tesla, Netflix, Target, Shopify & more

Published Mon, Nov 15 20218:44 AM EST

Here are the biggest calls on Wall Street on Monday: Oppenheimer downgrades Akamai to perform from outperform Oppenheimer said in its downgrade of the content, networking and cloud service company that it sees tougher comps. "We upgraded AKAM' s stock almost five years ago when EBITDA margins, growth (5% vs. 9% now) and valuations were at all-time lows. We thought these metrics would move back to peak levels, which they have. However, we now see difficult year-over-year comparisons on all three metrics due to increased competition from well-funded and disruptive startups that will stop at almost nothing to gain share, in our opinion." Deutsche Bank upgrades Dollar Tree to buy from hold Deutsche Bank said in its upgrade of the stock that it sees a more favorable risk/reward after activist investor Mantle Ridge announced a stake in the company last week. "We are upgrading DLTR to Buy from Hold as we now see improved risk/reward through potential operational and profitability improvements at Family Dollar (FDO) given a greater sense of urgency with Mantle Ridge's influence." Argus downgrades Wayfair to hold from buy Argus said in its downgrade of the stock that it sees a weaker outlook. "We believe that the Wayfair share price depends in part on continued revenue growth; however, revenue has now fallen for two straight quarters." JPMorgan reiterates Apple as overweight JPMorgan reiterated its overweight rating on shares of Apple and said iPhone demand is still solid. "Despite the moderation in lead times as supply improves, it remains stable in the US ‒ indicating solid demand trends, and it remains the most elevated on a geographic basis in China ‒ indicating much higher than anticipated demand, which bodes well for interest/demand for the iPhone 13 series in aggregate globally relative to investor expectations for a softer volume cycle than the iPhone 12 series." JPMorgan reiterates Netflix as overweight JPMorgan kept its overweight rating on shares of the streaming giant and said it continues to be bullish on the company's content slate. " NFLX is up +26% YTD (vs. the SPX +25%) & we remain positive on shares based on continued strengthening of the 4Q content slate, greater distance from pandemic pull-forward, improving seasonality, & potential for greater traction in APAC, where NFLX has low penetration." Morgan Stanley initiates coverage of CrowdStrike as underweight Morgan Stanley said it sees an unfavorable risk/reward for the cybersecurity company. "After multiple years of rapid growth as a next-gen security leader, we see growing signs of increased competitive and pricing pressure likely making share gains more difficult for CRWD into '22. The potential for decelerating revenue growth creates an unfavorable risk-reward at ~26X CY23 sales." Read more about this call here. Goldman Sachs initiates coverage of Vita Coco as buy Goldman said the coconut water company has a long runway for growth. "We see COCO as an innovator within the CPG universe, especially as the company essentially scaled the coconut water category in the U.S. — developing a rich pipeline of coconut water products that fuse functional beneﬁts with authentic, better-for-you ingredients while cultivating a loyal base of young, urban consumers (in part, by investing early in social media)." Read more about this call here. Credit Suisse downgrades EVgo to neutral from outperform Credit Suisse downgraded the electric vehicle charging provider mainly on valuation. "Raise TP to $17, but downgrade to Neutral as recent stock rally appears to have priced in the benefits of the infrastructure bill and expanded partnerships with GM and Uber. … EVgo is an industry leader that builds, owns, and operates fast chargers for Electric Vehicles (EVs) in the United States." UBS downgrades Tencent Music Entertainment to neutral from buy UBS said in its downgrade of the Chinese music streaming company that it sees slowing growth. "We downgrade TME from Buy to Neutral, as we expect its revenue growth to slow down to single digit for the next few years (vs. low-teen in our previous estimates). While TME is below its historical average, we see limited catalysts to drive a re-rating." Citi opens a positive catalyst watch on Lam Research Citi opened a positive catalyst watch on the semiconductor company and said it sees a bottom forming for the stock. The firm also reiterated its long-term buy rating. "We believe the group is forming a bottom in 4Q after underperforming SP500 ~400bps/~500bps in 2Q/3Q on 2-3 quarters of memory correction concerns. Lam stock, with outsized memory sales exposure, underperformed the group ~2,300bps in last two quarters and trades at a 12% discount to US peers vs 1% three-year historical premium." Atlantic Equities initiates coverage of KLA Corporation as overweight Atlantic Equities said that it sees a long runway for growth for the semiconductor company. "We initiate on KLA with an Overweight rating and $490 YE22 PT. KLA is the leading vendor of process diagnostic equipment, supplying tools that enable semiconductor foundries to identify defects and measure non conformities in the manufacturing process." Piper Sandler reiterates Chipotle as outperform Piper Sandler kept its overweight rating on shares of the chain restaurant and said it sees "compounding global growth." "We reiterate our Overweight rating and $2,600 price target on CMG shares. Separately, and near-term, we find our +15% 4Q21 same-store sales estimate achievable based on 750 bps of price and the Smoked Brisket LTO (limited time offering), loyalty engagement, TV marketing, and return of walk-in dining as drivers." Bank of America reiterates Target and Walmart as buy Bank of American kept its buy rating on shares of Target and Walmart ahead of earnings later this week and said both companies have strong inventory positions. "Recent stock price increases for WMT & TGT (+9% & 15%, respectively, since 10/4 vs. S & P 500 +9%) suggest expectations could be high going into 3Q earnings reports. However, TGT & WMT remain our top picks as we see support for a strong F3Q..." Citi downgrades 23andMe to neutral from buy Citi said in its downgrade of the genetic testing company that its valuation was "too rich." "We are downgrading ME from Buy/High Risk to Neutral/High Risk and increasing our target price from $12 to $13. After a 70%+ run over the past month, we think current valuation leaves little room for upside." Evercore ISI initiates coverage of ChargePoint Holdings as outperform Evercore said the electric vehicle charging company is in a strong market position. "We believe CHPT is viewed as an index for charging and investors look to it first for exposure to the sector given its scale, global reach, and being the 'arms dealer' for the industry." UBS upgrades Chevron to buy from neutral UBS said in its upgrade of the stock that "discipline and oil leverage imply [an] attractive return." "Within the universe of Integrated Majors, CVX has one of the highest relative oil price sensitivities by virtue of its business mix. The central theme of our updated forecasts is tight oil markets as post-Covid demand recovers but supply is constrained by a multi-year shortfall in investment and continuing industry caution in responding to price signals." Read more about this call here. Jefferies downgrades Petco to hold from buy Jefferies said in its downgrade of Petco that it sees a more balanced risk/reward. "Comp normalization in the quarters ahead might be underestimated by consensus, while GM% (gross margin) skews incrementally negative near term. Further, we are reassessing our vet assumptions given challenging labor conditions." Mizuho reiterates Tesla as buy Mizuho kept its buy rating on shares of Tesla and said it's navigating the chip shortage better than competitors. "Despite rising competition, TSLA (Buy-PT$950) remains the global BEV (battery electric vehicle) leader, with ~19% market share in the SepQ (~21% YTD) as we believe it has navigated chip shortages better than peers." Evercore ISI adds a tactical outperform on Cisco Evercore added a tactical outperform idea on shares of Cisco and said it sees more upside heading into the company's earnings report on Wednesday. " CSCO will report Jul-qtr results on Wednesday November 17th after market close – we expect the company to report upside to current expectations notably on GM's (gross margin) that we think could surprise investors as supply issues could temper the magnitude of sales upside." Loop downgrades Shopify to hold from buy Loop downgraded the stock mainly on valuation. "Our downgrade is based on Shopify's valuation, as opposed to a more bearish view of the company's fundamentals. Shopify remains one of the most compelling long-term fundamental stories in our coverage universe in our opinion, and we continue to believe the company is increasingly cementing its position as the dominant online "retail operating system." JPMorgan adds Dollar Tree to the focus list JPMorgan added the stock to its focus list and said it sees a favorable risk/reward. "We rate DLTR Overweight. Multi-year, we see DLTR returning to a double-digit EPS 'compounder' with top- and bottom-line drivers in place at the core DT banner (w/ DT Plus roll-out incremental) and stabilization at the Family Dollar concept." Needham reiterates NXP Semiconductors as buy Needham kept its buy rating on the semiconductor company and said it's one of the top electric vehicle plays over the next five years. " NXP presented its long-term product strategy and financial model at its investor day on November 11th, 2021. Management expects its growth drivers will be automotive plus IoT and Industrial (smart home, industrial automation and EV charging), and anticipates outgrowing the market in these areas due to its leadership position." Deutsche Bank reiterates Disney as buy Deutsche Bank kept its buy rating on shares of Disney and said the long-term outlook is intact. "We are lowering our 12-month price target to $191, from $200, driven primarily by higher Parks expenses and, to a lesser extent, lower DTC revenue."

The Netflix logo is seen on its office in Hollywood, California.

Lucy Nicholson | Reuters

Here are the biggest calls on Wall Street on Monday: