Here are the biggest calls on Wall Street on Monday: Bank of America initiates coverage of Allbirds as buy Bank of America said that it sees "robust growth with a line of sight on profitability." " Allbirds is a leading footwear company with a unique competitive moat given its focus on sustainability. With an aided brand awareness of only 11% in the US, we see opportunity for its innovative, sustainable product development to capture market share in the $1.8tn global athletic footwear and apparel market." Barclays initiates coverage of NerdWallet as overweight Barclays said the personal finance company is a "high-quality content business at a discount." "We initiate coverage of NerdWallet with an OW rating and $29 price target. We see this as an opportunity for investors to buy a high-quality content business at a discount." Bank of America reiterates Bath & Body Works as top pick Bank of America said in a note to clients on Monday that the retail chain store is undervalued. "Our top holiday pick remains BBWI, an undervalued growth compounder; we expect strong demand as teacher gift buying resumes and its domestic manufacturing limits supply issues." Benchmark reiterates Roku as buy Benchmark kept its buy rating on shares of Roku and said the stock is a "share gainer." "This feels like Spring of 2020, even including a COVID spike, when bears argued that Roku would see increasing competition and decreasing leverage in 3P negotiations; while we acknowledge that competition has grown, we believe Roku will be a share gainer, with upside to net adds both domestically and from international expansion, plus total platform revenue outperformance leading to a similar upwards share move." Citi downgrades Merck to neutral from buy Citi said in its downgrade of the stock that it's concerned about the company's drug pipeline and that it will abandon its HIV drug Islatravir. "We are downgrading MRK to Neutral. We place a high probability that MRK will abandon islatravir development in the next three months given likely high regulatory concerns." Read more about this call here . Raymond James upgrades Bumble to outperform from market perform Raymond James said in its upgrade of the dating app company that investors should buy the weakness. "We are upgrading shares of Bumble to Outperform after the stock's ~30% pullback following 3Q21 results. Bumble shares have traded off driven by below-expectations paying user additions in both Bumble App (impact from turning off third-party payment methods) and Badoo (ongoing COVID concerns in emerging markets)." Stephens downgrades U.S. Bancorp to equal weight from overweight Stephens said in its downgrade of the bank that it's concerned about "outsized" travel exposure. "Our bullish thesis on U.S. Banc was based upon an anticipated increase in volume within the company's profitable payments business as activity returns to pre-Covid levels. Volume in 2021 rebounded. However, the company has outsized exposure to travel/hospitality/ entertainment, which has lagged." Truist reiterates Amazon and Alphabet as buy Truist reiterated its buy ratings on Alphabet and Amazon, but the firm said it sees Alphabet as the fastest grower and best performer this holiday season. "We expect another record-setting ecom holiday season (+10% to 15% Y/Y), driven by a healthy consumer and highly effective digital channels, fine-tuned by two years of pandemic. We see GOOGL as the biggest beneficiary showing the highest Y/Y growth, but also FB, AMZN, EBAY, ETSY and TTD." HSBC reiterates Apple as hold HSBC raised its price target on Apple to $145 from $140 due to strong demand for the tech giant's products. " Apple shares have increased 22% YTD and 14.4% QTD (25.2% and 7.9% respectively for the SP500 index) driven by yet another record September quarter with revenues up 29%, driven by strong demand for iPhone (sales up +47% y/y) and iPad (+21% y/y), coupled with +25.6% growth in Services." JPMorgan reiterates Disney as overweight JPMorgan reiterated its overweight rating on shares of Disney after reviewing its 10-K filing with the Securities and Exchange Commission. The bank said the entertainment giant is still one of the "best brands" in the industry. "We reviewed Disney's 10-K filing and highlight notable changes from the prior year, incremental commentary, and our thoughts in this report. There were significant disclosures related to the company's DTC initiatives, with content spend across the company increasing to $25b in F21, up from $20.2b in F20. Disney expects to spend as much as $33b on content, including sports, in F22." Deutsche Bank reiterates Micron as buy Deutsche Bank kept its buy rating on shares of Micron and said it sees a favorable risk/reward. "Our recent checks with the supply chain point to supply shortages limiting set builds in PCs and smartphones, but that is offset by robust demand especially for server DRAM with enterprise IT spending continuing to recover and hyperscale customers planning to invest aggressively for growth, leading to DRAM price declines better than feared despite elevated inventory levels." Citi upgrades Burlington and TJX Companies to buy from neutral Citi said in its upgrade of the stocks that it has a more "optimistic" view of the off-price sector. "We believe F22 is likely to have many curveballs, and the off-price model thrives on curveballs. While we are already Buy rated on ROST, we are upgrading TJX and BURL to Buy (from Neutral) to reflect our overall more optimistic view of the off-price sector." Deutsche Bank downgrades UPS to hold from buy Deutsche said in its downgrade of the stock that it sees a more balanced risk/reward. "We have great respect for UPS' s management team and the turnaround the company is pursuing and achieving. But after the 120%+ increase in equity value per share since our upgrade 21 months ago (+70% vs. S & P 500 and > $100 billion of incremental equity value), we see risk/reward as better balanced." Read more about this call here. Deutsche Bank downgrades Canadian Pacific to hold from buy Deutsche Bank said in its downgrade of Canadian Pacific that it's concerned about additional debt and new equity. "The bottom line is we believe the near-term risks associated with higher debt and equity + optimistic EPS expectations have potential to more than offset the long-term benefits of the KSU acquisition over the course of 2022."
A video sign displays the logo for Roku, after the company's IPO at the Nasdaq Market in New York, September 28, 2017.
Brendan McDermid | Reuters
Here are the biggest calls on Wall Street on Monday: