Here are the biggest calls Tuesday on Wall Street. Morgan Stanley resumes coverage of GE at overweight As GE begins the process of breaking up into three companies, the aviation segment looks particularly attractive, Morgan Stanley said. "We viewed the post-COVID path forward as supported by earnings revisions from Aviation and continued deleveraging progress that would eventually allow GE to go on offense. The recently announced breakup is the logical extension of that, whereby the liabilities are well-managed enough for the pieces to stand on their own and realize the independent and strategic value of Aviation." Societe Generale upgrades AbbVie to buy from hold AbbVie 's aesthetics division is emerging as a bright spot in the typically low-growth health-care industry, Societe Generale said. "We see management executing better than we anticipated on two franchises crucial to its long-term prospects: immuno-inflammation and aesthetics (which includes half of total Botox sales). Due to its improved long-term replacement power, AbbVie is thus now replacing Bristol Myers Squibb as our preferred value call in global large cap pharma." Evercore ISI upgrades Bumble to outperform from in line A weak third-quarter report does not derail the long-term story for Bumble , Evercore said. "We think the company's fundamentals and long term opportunity remain largely unchanged and we do not view muted Q3 Net Adds as the beginning of a market share loss trend for the company. Bumble is a reopening play and the company should also benefit from key growth catalysts— international expansion, tiered pricing, and product development." Bank of America initiates Sonendo at buy The investment firm said dental device stock Sonendo showed early promise. "The company's GentleWave System technology treats tooth decay by cleaning and disinfecting the microscopic spaces within teeth while keeping the tooth structure intact. Channel checks we conducted with users were decidedly positive, with endodontists benefitting from a significantly fewer number of follow-up visits and higher levels of patient satisfaction." Mizuho upgrades Micron and Western Digital to buy from neutral Micron and Western Digital should benefit from improving demand for chips, according to Mizuho. "While we downgraded memory on 'expectations of a seasonal soft 1H22' and MU and WDC have underperformed the SMH ... until lately, our checks now indicate a better trifecta of 'Actual' demand in 1Q/1H22 that could support an improved pricing." CFRA upgrades Bank of America to buy from hold The improving U.S. economic outlook should benefit Bank of America in 2022, CFRA said. "We raise our target $6 to $51, a forward P/E of 14.6x our 2022 earnings estimate, above the 12.8x historic average, on our view that BAC benefits from higher rates and higher loan volumes in a strong 2022 U.S. economy." Wells Fargo initiates coverage of Enphase Energy at overweight The home solar company's tech lead should help it fend off competition, Wells Fargo said. "We view ENPH's primary competitive advantage as product innovation and software technology, both of which enable the various components of the solar system to interface seamlessly, provide product reliability, and allow the customer to monitor and optimize their system to their specifications through easy to use apps." Wells Fargo initiates coverage of SolarEdge Technologies at overweight SolarEdge 's push beyond the residential market should make it a strong performer in the clean energy group, Wells Fargo said. "SEDG has a significant presence in commercial & industrial markets and is expanding to the utility market, which should support continued growth." Wells Fargo initiates coverage of First Solar at equal weight The competitive nature of the solar panel industry and uncertainty around government subsidies makes it difficult to be confident in First Solar 's bull case, according to Wells Fargo. "We project FSLR to grow revenue at a 10-year CAGR of 3%, driven by an acceleration of solar deployments as global economies push to decarbonize. However, we expect continued ASP and margin pressure due to the highly competitive nature of the solar panel market, which could limit long-term EBITDA and earnings upside." Bank of America downgrades Zoom Video to neutral from buy The post-pandemic future for Zoom remains unclear after its latest quarterly report, Bank of America said. "Q3 results and outlook suggest that reopening headwinds continue to weigh on growth ... A broader slowdown in both new customer growth and expansion activity, and still heightened online churn provide little certainty as to the bottom for growth." Goldman initiates AIG and WR Berkley at buy, Allstate at sell Goldman Sachs took up a mixed outlook on insurance companies. "Our approach is to 1) identify companies best positioned for profitable growth in a favorable pricing environment while 2) maintaining a strong balance sheet to adequately navigate inflationary pressures. This, combined with a bottom-up company analysis suggests that AIG (Buy, on CL) and WRB (Buy) are best positioned to thrive in this environment while in personal insurance we see secular growth headwinds for captive agent distribution as a risk for ALL (Sell)."
A logo is displayed next to a gas turbine at the General Electric Co. (GE) energy plant in Greenville, South Carolina, U.S., on Tuesday, Jan. 10, 2017. General Electric Co. is scheduled to release earnings figures on January 20.
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Here are the biggest calls Tuesday on Wall Street.