Here are the biggest calls on Wall Street on Friday: Goldman initiates coverage of LivaNova as buy Goldman said in its initiation of the medical device manufacturer that it sees an "attractive breadth of catalysts." "We initiate coverage of LIVN with a Buy rating and 12-month price target of $108 (31% upside potential). In short, we see LIVN's pipeline as not fully priced into shares and expect catalysts in both 2022 and beyond to drive a revaluation higher over time." JPMorgan downgrades DocuSign to underweight from neutral JPMorgan downgraded the stock after it issued disappointing guidance for fourth-quarter sales on Thursday. "The pandemic tailwinds came to a much faster than expected halt for DocuSign, catching the company off guard. Management took full accountability for this execution misstep and deserves credit for not looking for excuses, in our view. Sales now needs to pivot from a focus on demand fulfillment to demand generation, and we think that this will take a couple of quarters to play out." Read more about this call here. Goldman Sachs reiterates Amazon as buy Goldman Sachs reiterated its buy rating on the e-commerce giant and said it's well positioned to meet supply chain challenges. "Based on management's outlook/commentary on its most recent earnings call, we believe Amazon is prepared to navigate any potential supply chain-driven inventory issues to meet consumer demand into the Q4 holiday season." Goldman Sachs upgrades Marvell to buy from neutral Goldman upgraded Marvell after its earnings report on Thursday and says the company is in the early stages of a "multi-year growth journey." "We acknowledge that staying on the sidelines has been the wrong call, with the stock up 49% YTD (vs. the SOX/SPX up 36%/22% during this time frame), as we under-estimated the inflection in the company's fundamentals as well as the attractiveness of the stock's valuation relative to the broader sector." Morgan Stanley upgrades Stitch Fix to equal weight from underweight Morgan Stanley upgraded the online fashion company mainly on valuation. "With SFIX shares underperforming the S & P by -83% YTD, we see a more balanced risk/reward at current levels. While our structural concerns around SFIX's competition and retention remain, at ~0.8x '23e revenue those concerns appear priced in." Goldman Sachs initiates coverage of MetLife as buy Goldman said the insurance company is best positioned to generate stable cash flows. "We are more selective in this environment and look for balance sheet strength and cash flows that can prevail through the accounting changes, companies positioned for organic growth, and 3) opportunities to benefit from easing Covid-19 mortality headwinds. This approach led us to our top picks EQH and MET which we think are best positioned to generate stable cash flows combined with good growth opportunities and attractive valuations." Loop reiterates McDonald's as buy Loop kept its buy rating on the fast-food giant and said comps continue to accelerate. "Our latest McDonald's U.S. franchisee checks indicate same-store sales growth is tracking ahead of expectations QTD. We completed our latest round of checks with U.S. franchisees for McDonald's. Per our contacts, same-store sales were up 8.0-8.5% to date in 4Q21, which is tracking in line with our current full 4Q estimate for 8.0% growth but ahead of consensus at up 6.8%." Cowen upgrades Marvell to outperform from market perform Cowen upgraded the stock after its earnings report on Thursday and called the company a "silicon powerhouse." "It's hard to argue this was anything but a watershed quarter with a triad of better results, better guidance, and an expanding design pipeline that anchors a new F23 guide. MRVL' s fortified portfolio sits in the sweet spot of several thematic secular growth drivers that, while initially delayed, will allow MRVL to materially outgrow broader semis." JPMorgan reiterates FedEx as overweight JPMorgan kept its overweight rating ahead of the shipping giant's earnings report later this month and said the stock has an attractive valuation. "We are constructive on FDX into the F2Q22 earnings release on December 16. After a brief rally lost momentum the stock is trading at a near-record valuation discount to UPS, which provides a decent margin of safety on a relative basis." Cowen names United Airlines as a top 2022 idea Cowen said the airline is well positioned to benefit from international travel in 2022. "2022 is likely to be another crazy year, with continued focus on COVID and its ascendant variants. We believe consumers will eventually react with some ennui and go about their lives as normally as possible. United is positioned to benefit from increasing international travel; domestic travel is already at pre-pandemic levels. United is among the best positioned of the airlines in a recovery." Cowen names Chipotle as a top 2022 idea Cowen said the Mexican chain restaurant is well positioned heading into 2022. "We believe Chipotle's 2022 comps are well positioned to exceed consensus estimates for 3 reasons: (1) an omnichannel business where we believe digital will end 2022 at 48% of sales vs 46% in 2021E, 46% in 2020 & 20% pre-COVID-19; (2) proprietary survey data that suggests accelerating consumer demand for transparent food sourcing/'what's in my food?'; and (3) we expect the brand to be more top of mind for consumers, due to menu innovation & an ad budget that grows in line with sales." Citi upgrades Morgan Stanley to buy from neutral Citi said in its upgrade of the investment bank that it sees high quality at a reasonable price. "We are very constructive on the bank stocks, and would use the recent pullback to build position with high quality names. Heading into our meeting with James Gorman, our prior Neutral rating reflected our view that this was a superior model but a lot was priced in, plus we had concerns about capital market fee revenue pools being at peak levels. We changed our view as we believe there is further multiple expansion as MS delivers on its wealth mgmt opportunity and is awarded a growth multiple." Read more about this call here . Wells Fargo downgrades Joann to equal weight from overweight Wells said in its downgrade of the fabric retailer that it sees limited near-term upside. "While Q3 profits beat Consensus and shares may trend modestly higher following recent weakness, our move to EW from OW is predicated on: 1) Comps have now missed our model for 2 straight quarters, and with Q4 tracking again below our model 2) While Q3 gross margins were better than feared, we philosophically disagree with JOAN' s decision to back out a -185bps freight drag." Deutsche Bank initiates coverage of Peloton as buy Deutsche said that investors' patience will be rewarded. "We are initiating coverage on PTON with a Buy rating and $76 price target. And while it's never fun to lead off a Buy report with a 'patience required' asterisk of sorts, that's exactly what we find ourselves doing here. But as fundamental analysts, we are most interested in looking for asymmetrical risk/reward scenarios." Read more about this call here . Deutsche Bank upgrades BP to buy from hold Deutsche said in its upgrade of the oil and gas company that it likes BP's fundamentals and valuation. "Strong fundamentals score, leading emissions momentum, low relative valuation." Cowen downgrades Smith & Wesson to market perform from outperform Cowen downgraded Smith & Wesson after the firearms maker's disappointing quarterly earnings report on Thursday. "[The quarter's] big miss, share loss, rising channel stocks, and potential reversal of robust pricing augur very tough compares for the coming three quarters." JPMorgan reiterates Honeywell as overweight JPMorgan kept its buy rating on shares of Honeywell and said the stock is "cheap." "More than any time in the recent past, we sense a growing divergence between the Bull and Bear case around Honeywell, and sentiment is swinging negative, even for those that have owned the stock for a while, frustrated by the first year of under-performance in some time. … This is all about numbers, however, which did not move much this year, and the stock enters '22 in a different spot than it entered '21 and therefore the conversation should be different." Morgan Stanley initiates coverage of Howmet as overweight Morgan Stanley began coverage of the engineering solutions company for the aerospace industry and said it sees an attractive risk/reward. "We expect COVID-19 recovery to drive meaningful upside in earnings from higher commercial aircraft production rates and aftermarket. Howmet's core competencies in the hot section of the jet engine has a steep barrier to entry. We initiate coverage with an Overweight rating and PT of $40." Bank of America upgrades Maxeon Solar Technologies to buy from neutral Bank of America said in its upgrade of the solar company that Maxeon has an attractive valuation. "The core business is trading at a discount (34% upside) to the share price of $17.16/sh. More importantly, we view the current valuation an attractive entry point for the 'barebones' business with introduction of new Max 7 panels, faster storage ramp, and BBB and other policy stimuli as a 'call option' to the Enterprise Value." Read more about this call here.
Boxes containing the Moderna COVID-19 vaccine are prepared to be shipped at the McKesson distribution center in Olive Branch, Mississippi, U.S. December 20, 2020.
Paul Sancya | Reuters
Here are the biggest calls on Wall Street on Friday: