Here are Monday's biggest analyst calls of the day: Apple, Netflix, Wells Fargo, Grab, Nvidia & more

Published Mon, Dec 6 20218:37 AM EST

Here are the biggest calls on Wall Street on Monday: Barclays names Ingersoll Rand a top pick Barclays named the stock a top pick in 2022 and said it's well positioned for outsized earnings growth. "The consistent upgrading of the portfolio should yield valuation multiple expansion, as IR' s compounder status becomes more embedded in the investment community." Morgan Stanley initiates coverage of Rivian as overweight Morgan Stanley said Rivian that is the one company that can challenge Tesla. "Rivian's compelling product, strong management, and deterministic access to capital are underpinned by a strategic relationship with AMZN to decarbonize the final mile. We see it as 'the one' that can challenge Tesla." Read more about this call here. RBC raises price target on Tesla to $950 from $800 RBC reiterated its sector perform rating on the automaker and said it sees "solid demand" continuing. "Expanded production is one thing, but it doesn't mean anything without demand. We believe there will be solid demand for Tesla vehicles as the world shifts to electric vehicles." HSBC upgrades Meta Platforms to hold from reduce HSBC said in its upgrade of the company formerly known as Facebook that regulation risk remains high. "Shares under pressure after a regulatory setback, despite upside risks on advertising and rising interest in metaverse. Meta investment case remains a fragile balance between risks of more regulation and new business opportunities." Goldman Sachs initiates coverage of Rivian as neutral Goldman said that the stock's valuation is full right now. "We believe that Rivian has an attractive product set in terms of hardware features, a full ecosystem of software, services, and charging. We believe its ecosystem and full set of solutions, along with a growing brand presence, will not only help the company to have strong product traction, but also allow for recurring revenue opportunities as its vehicles are connected and can be updated over the air." Read more about this call here. Evercore ISI upgrades Spirit to outperform from in line Evercore said in its upgrade of the discount airline that it sees "see strategic optionality as company execution and demand improve." " Spirit shares have declined over 40% since late April. Over that timeframe '22 consensus EPS has moderated from over $2 per share to $0.30 currently – while it will take some time to work out (Spring '21), we'll take the over. Spirit was not alone in its challenges this summer, which were exacerbated by airport staffing attrition in some geographies." JPMorgan initiates coverage of Grab Holdings as overweight JPMorgan began coverage of the Asian tech company with an overweight rating and said it's well positioned for "rising online consumption." "We initiate coverage of Grab with an OW rating and SOTP-derived Dec-22 PT of $12.5. Grab's superior regional superapp platform is best geared to rising online consumption in ASEAN (Association of Southeast Asian Nations), in our view." JPMorgan initiates coverage of Hertz as overweight JPMorgan said the rental car company is a key beneficiary of inflation. "Hertz benefits from a number of very strong macroeconomic and industry tailwinds — an investment in HTZ offers investors substantial upside exposure to potentially higher than expected inflation." Cowen names Micron a top 2022 pick Cowen named Micron a top pick in 2022 and says it likes the company's "fortified" balance sheet. "We think MU should outperform broader semis in C22 based on 1) a notable reduction in customer DRAM inventory levels across server, PC and mobile markets; 2) more rational DRAM wafer capacity growth in C22 than C21." KeyBanc initiates coverage of Apple as overweight KeyBanc initiated coverage of Apple as overweight and said it sees growth and margin upside. "AAPL's user base is growing across products and geographies; its user growth fuels growth in Services, creating AAPL's ecosystem competitive advantage. We see growth and margin upside, strong shareholder-friendly capital allocation, and potential for new products and services, which create a strong investment profile. While AAPL is expensive by historical valuations, we find AAPL attractive relative to other mega-caps given AAPL's superior ROIC characteristics." Read more about this call here . JPMorgan reiterates Netflix as overweight JPMorgan kept its overweight rating on shares of the streaming giant and said it's getting "incrementally" more positive on the stock heading into the end of this year and into 2022. "Following the recent pullback we're incrementally positive on NFLX shares as the 4Q content slate strengthens in December, NFLX gains greater distance from pandemic pull-forward of subs, seasonality becomes more favorable, & traction improves in APAC, NFLX's fastest growing & lowest penetrated region." Cowen upgrades Boston Beer to market perform from underperform Cowen said in its upgrade of the beer company that the valuation re-rating is likely complete. "Since late August, SAM' s share price has compressed, reflecting the negative revisions to company guidance. However, with Nielsen trends starting to show signs of stabilization, we think the lower expectations are now priced into the stock." Oppenheimer upgrades Home Depot to outperform from perform Oppenheimer said in its upgrade of Home Depot that near-term home improvement risks have diminished. "That said, we are now more confident that: a) risks of a significant, transitional-type setback, for Home Improvement Retail and/or its leading players, have diminished, and b) underlying demand growth within the space is apt to persist, even as pandemic tailwinds abate, thereby helping to propel continued solid, if not outsized, sales and profit expansion at HD and LOW for the foreseeable future." Citi names Nvidia a top 2022 pick Citi named Nvidia a top pick for 2022 and said it prefers semi cap stocks over semi stocks. "We update our coverage rankings post 3Q earnings and into 2022. Overall, we prefer semi caps over semis on ~10% valuation discount to 5-year historical average and see a path towards $100B WFE (wafer fabrication equipment)." Morgan Stanley names Silvergate and Signature Bank as top 2022 picks Morgan Stanley named Silvergate a top pick in 2022 and said it has "higher asset sensitivity versus peers." The firm also said Signature Bank has an attractive valuation. "Our top Overweights are Signature given above-peer balance sheet growth and an attractive valuation, East West given superior profitability and above-peer loan growth, crypto-focused Silvergate given its much higher asset sensitivity versus peers, and SVB Financial given above-peer balance sheet growth and upside from higher interest rates." Goldman Sachs initiates coverage of Amgen as buy Goldman said that it sees an attractive risk/reward for the biopharmaceutical company. "With the name trading near its trough NTM (next twelve months) P/E multiple at 11.3x (50% discount to S & P vs. US large cap BioPharma peers at ~37% discount), we see AMGN as attractive at current levels." Wedbush downgrades Chewy to neutral from outperform Wedbush said in its downgrade of the stock that it sees slowing growth. " CHWY is well-positioned to capture market share given a long-term secular channel shift in the pet retail industry, but we now expect at best in-line results for 2H21 and growth below consensus in 2022, leading us to lower our rating from OUTPERFORM to NEUTRAL at the same time that we upgrade our rating on competitor Petco from NEUTRAL to OUTPERFORM in a separate research report." Wedbush upgrades Petco to outperform from neutral Wedbush said in its upgrade of the stock that it has a "standout" business model. "While the spread of the Omicron variant is a threat to store-based retailers such as WOOF near-term, we view the company's evolving holistic premium pet care business model as a standout." Citi upgrades Electronics Arts to buy from neutral Citi said in its upgrade of the stock that it sees an "attractive" risk/reward. " EA 's equity has been under pressure since it reported results in early November. At prevailing levels, we view EA's risk/reward as favorable and view the recent weakness as a buying opportunity." Cowen names Mastercard a top 2022 idea Cowen named Mastercard a top 2022 idea and said it would be "aggressive buyers" of the stock. "We are bullish given the company is positioned for above trend revenue and earnings growth in 22E, with long-term post-pandemic growth sustainably above pre-pandemic rates. With the shares -10% YTD and trading at 31x NTM (next twelve months) P/E, a discount to its pre-COVID 35x valuation multiple, we would be aggressive buyers." Morgan Stanley upgrades Wells Fargo to overweight from equal weight and downgrades Citi to equal weight from overweight Morgan Stanley said in its downgrade of Citi that it sees a lack of near-term catalysts. The firm also upgraded Wells Fargo and named it a top 2022 pick. "We're getting back onboard our Wells Overweight call, ~2 months after our downgrade to Equal-weight. Why the change? Biggest driver is higher Fed Funds Futures, as Wells is the most asset sensitive stock in our coverage. ... .We are downgrading Citi from Overweight to Equal-weight in the absence of near-term catalysts for the stock."

Wells Fargo

Rick Wilking | Reuters

Here are the biggest calls on Wall Street on Monday: