Here are Tuesday's biggest analyst calls of the day: Apple, Chevron, PayPal, Callaway Golf & more

Published Tue, Nov 16 20218:39 AM EST

Here are the biggest calls on Wall Street on Tuesday: Bank of America downgrades Oatly to neutral from buy Bank of America downgraded the oats company due to supply chain issues. "While we still believe in the viability of oat milk as a disruptor to both the dairy and plant-based milk categories, delays in ramping production and other operational complexities are likely to hinder the broader expansion of OTLY in the near to medium term. As such we believe the market will be less lenient toward a revenue-based story with negative EBITDA until consistent execution is achieved, and we therefore move to Neutral." B Riley upgrades Urban Outfitters to buy from neutral B Riley said in its upgrade of the stock that the company is a beneficiary of "high demand, on-trend fashion." "We see URBN continuing to benefit from a very rational promo environment particularly within limited, high demand, on-trend fashion. Our in-store and online checks show all three brands with lower levels of promotion vs. 2020 and 2019, and we believe high levels of full-price selling continued in 3Q21 and into 4QTD." Atlantic Equities downgrades Robinhood to neutral from overweight Atlantic Equities downgraded Robinhood on concerns about user growth after the company's disappointing earnings report in late October. "Our Overweight recommendation was predicated on rapid growth continuing and a gradual expansion of operating margins. However, the abrupt cessation of user growth in Q3 and per guidance for Q4 indicates that growth will be dramatically lower than our original expectations, at least in the near term." Read more about this call here. Goldman Sachs downgrades Southwest to neutral from buy and upgrades Allegiant to buy from neutral Goldman said in its downgrade of Southwest that it sees cost pressures. The firm also upgraded Allegiant and said it likes the company's fast profitability model. "We are upgrading Allegiant to Buy from Neutral as we continue to expect the company to see one of the fastest profitability recoveries of our coverage universe and ultimately produce top-of-industry margins, but now also have more clarity on the timeline/budget associated with its entrance into the hotel business. ... .We are downgrading Southwest to Neutral from Buy as we expect greater cost pressure associated with its short-term labor ramp-up and IT investments than we were previously forecasting." Read more about this call here. Bank of America reiterates Chevron as buy Bank of America kept its buy rating on the oil and gas giant and said it's in the "best shape of the last decade." "With that said, with current portfolio visibility top line growth is modest. Still, CVX retains one of the most levered portfolios to oil prices given a business mix skewed to upstream and production skewed towards oil, capacity to accelerate per share growth in cashflow and dividends positions the shares as a conservative beta play in the current commodity cycle, in our view." Loop initiates coverage of PayPal as buy Loop said the payments company has a "leading fintech platform business model." "We believe PayPal operates the most formidable 2-sided fintech enabled platform in the market. Both the consumer and merchant value propositions curated by the company drives tremendous network effects, which we believe is the key source of nearly all value creation in technology and consumer facing companies." Bank of America downgrades Warner Music Group to underperform from buy Bank of America said in its double-downgrade of the music company that it sees limited near-term catalysts for Warner Music. "However, we think shares are fairly valued and we see downside risk in the near-to-intermediate term given: (1) the~30% appreciation since Vivendi shareholders agreed to spin out Universal Music Group on June 22nd; (2) after a number of catalysts in 2021 (UMG spin, Spotify price increases/market launches, proliferation of new emerging revenue streams) there are limited near-term catalysts (through at least F1H22)." Barclays downgrades Avis Budget to underweight from equal weight Barclays downgraded the stock on valuation. "Following Avis' s print last week, data points remain firm, and qualitatively, the likelihood of higher pricing through at least mid-decade is increasing in our view. Additionally, the emergence of a key competitor from bankruptcy and the advent of a new secular growth story seems to be supportive of a re-rating in the rental car space." Argus downgrades Wendy's to hold from buy Argus downgrades the stock mainly on valuation. "Downgrading to HOLD; stock fully valued • Wendy's posted weaker-than-expected comp sales and margins in 3Q, and has lowered its full-year guidance. • We are lowering our 2021 EPS estimate to $0.84 from $0.86 and our 2022 estimate to $0.95 from $1.00. We also expect just 1% revenue growth next year." Wedbush reiterates Apple as outperform Wedbush kept its outperform rating on shares of the tech giant. The firm said it sees a robust holiday season but lengthening iPhone 13 wait times. "Heading into Black Friday we continue to see delivery times for Apple's iPhone 13 Pro lengthen as we estimate right now demand is outstripping supply by roughly 15% heading into this holiday season." Cowen downgrades Poshmark to market perform from outperform Cowen said in its downgrade of Poshmark that it's concerned about slowing international growth. "We move to the sidelines as we expect the stock could be range-bound with a lack of positive catalysts in the near term. Elevated marketing costs, strategic investments in brand building, and slower than expected international market growth could weigh on top- and bottom-line results in FY22. We believe it may take several quarters to drive upside and risk is apparent." UBS upgrades Workday to buy from neutral UBS said in its upgrade of the financial management software company that it sees a "back-office recovery." "We think Workday's multiple could expand as investor sentiment turns more positive on the back-office category over the next 12 months." Credit Suisse initiates coverage of Oracle as outperform Credit Suisse said the software company is well positioned to reaccelerate revenue. "However, as the headwinds from the transition to the cloud abate relative to the increase in (1) recurring revenue from SaaS adoption and (2) customers increasingly lifting-and-shifting database workloads to Oracle Cloud, we believe Oracle is well positioned to continue to reaccelerate revenue and operating income growth into the mid-to-high single-digits and double-digits, respectively, for multiple years." Morgan Stanley downgrades QuantumScape to equal weight from overweight Morgan Stanley downgraded the battery company due to rising competition. "In conjunction with our global battery team's publication of our detailed industry work, we feel it is appropriate to de-risk our medium and long-term assumptions for QuantumScape , driving a reduction in our DCF-derived price target to $40 (vs. $70 previously) which is in line with the current share price." Read more about this call here. UBS downgrades Arista Networks to neutral from buy UBS said in its downgrade of the computer networking company that it sees a balanced risk/reward. "We downgrade Arista shares to Neutral from Buy given ~30% revenue growth in CY22 leaves little room for upside in our view ultimately capping P/E multiple expansion from current levels." William Blair initiates coverage of Vivid Seats as outperform William Blair said the ticket resale company has a significant scale advantage. "As a result of the company's scale and proprietary technology stack, it is able to offer tickets at highly competitive prices, often lower than those offered by competing platforms. The company has also developed its own loyalty program, Vivid Seats Rewards." Bank of America initiates coverage of Callaway Golf as buy Bank of America said in its report on Callaway that "aging millennials should drive a sustained interest" in golf. "Our PO is based on an EV of 16x our C23 adj. EBITDA estimate of $576MM, or a slight premium to other Leisure Brands & Experience Models given: (1) strong market share in the growing golf equipment market; (2) expected stickiness among new entrants amid a surge in Solitary Leisure participation." Credit Suisse initiates coverage of Microsoft as outperform Credit Suisse said it sees sustained growth and profitability for the software giant. "For at least the next five years, we forecast Microsoft to deliver (1) mid- to high-teens revenue growth—driven by mid-20% growth in Intelligent Cloud, mid-teens growth in Productivity and Business Processes, and ~2-5% growth in Windows." Read more about this call here. Morgan Stanley reiterates Facebook as overweight Morgan Stanley reiterated its overweight rating on shares of Facebook and said it's a significant beneficiary of the metaverse. "The most obvious player. Importantly though, we remain positive FB primarily because of the still under-appreciated core business growth durability and free cash flow in to '22. This is even through an estimated $13.6bn of investment in the metaverse in '22 to build the next-generation version of social networking." UBS downgrades Old Dominion to neutral from buy UBS downgraded the freight company mainly on valuation. "We are downgrading ODFL from Buy to Neutral as its strong growth story appears to be fully reflected after an 84% move up in the stock in 2021TD (vs the S & P 500 +25%)."

Michael Wirth, CEO of Chevron.

Adam Jeffery | CNBC

Here are the biggest calls on Wall Street on Tuesday: