Here are the biggest calls on Wall Street on Friday: Cowen names Macy's a top 2022 pick Cowen named the department store company as a top pick for 2022 and said it's a "digital retail leader getting faster and stronger." "Cowen view's M as an increasingly data centric retailer driving better customer engagement through: personalization, store fleet revisions, & inventory, + pricing optimization. Valuation also compelling at 7x FY22E P/E with $1bn of normalized FCF, ~$2bn real estate value, & approaching 40% digital penetration." Morgan Stanley reiterates Apple as overweight Morgan Stanley reiterated its overweight rating on Apple and said investors need to start incorporating "valuation optionality" for virtual reality products. "Given our confidence in the launch timing and market potential, we believe now is the time to start incorporating valuation optionality for AR/VR glasses. Berenberg upgrades Royal Caribbean to hold from sell Berenberg upgraded the cruise company on valuation. "With the shares down 8.5% in the last 12 months and underperforming the market by 38%, we are taking our recommendation on Royal Caribbean Cruises back to Hold from Sell with an unchanged $80 price target. The emergence of the Omicron variant has again tested the share price lows and it seems that absent further 'no sail' orders from the Centers for Disease Control and Prevention in the near term, which seems unlikely, the shares will be supported at current levels." Deutsche Bank upgrades Oracle to buy from hold Deutsche upgraded Oracle after the company's better-than-expected earnings report on Thursday. "We are upgrading Oracle' s shares to Buy from Hold following what we see as confirmatory F2Q results and multiple indicators of further acceleration ahead. In our recent initiation Oracle: Follow the Money, we posited the company's aggressive capital allocation was either a reliable forward indicator or one of excess optimism, and we see F2Q + guidance strongly evidencing the former." Goldman upgrades Jabil Circuit to buy from neutral Goldman said in its upgrade of the tech components and electronics manufacturer that electric vehicles and cloud are becoming a large part of the company's portfolio. "We're upgrading JBL shares to Buy from Neutral and raising our 12-month price target to $75 from $63 as fast growing end markets, including EVs and cloud, are becoming an increasingly large percent of the company's total portfolio, which we expect to allow Jabil to sustain solid top-line growth." Read more about this call here. Truist reiterates Chipotle as buy Truist raised its price target on the stock to $2,280 from $2,180 per share and said it thinks the price increases should help margins. "The price increase should boost margins, but may also suggest that CMG expects elevated costs to be more permanent than it did previously." UBS names Chevron a top pick UBS named Chevron a top pick and said the stock should benefit from high energy prices. "2022 is unlikely to be a 'beta rally' as the oil price recovers like 2021. However the combination of high energy prices and company financial performance plus equity valuation argues for a continued positive view as we embark upon new commodity and equity cycles." Deutsche Bank downgrades Carrier to hold from buy Deutsche said in its downgrade of Carrier that it sees a lack of catalysts. "We also feel that consensus forecasts for 2022 do not look particularly conservative, embedding ~12% organic growth. As such, we think the stock now lacks a catalyst to propel its next wave of outperformance; given modest upside to our new $56 PT we downgrade the stock to Hold." Needham reiterates Roku as buy Needham reiterated its buy rating on shares of Roku and said it's bullish on the company's fundamentals in 2022. "Although we are disappointed with the valuation compression of ad-driven business models in 2021, we are positive regarding ROKU' s fundamental outlook in 2022." Cowen names Applied Materials a top 2022 pick Cowen named the semiconductor company a top pick for 2022 and said it likes the stock's valuation. " AMAT is our top pick for 2022 as we see continued WFE (wafer fabrication equipment) growth from new capacity announcements, national importance of semiconductors, and technology inflections driving relative outperformance in CY22. The valuation is attractive relative to peers." Credit Suisse downgrades Peloton to neutral from outperform Credit Suisse said in its downgrade of the fitness company that it's concerned about slowing growth for Peloton. "Consumers appear fixated on reopening themes and purchases with an unclear timeline for normalization. Over the next year, we think these factors increase the likelihood of a no-to-low growth F22." UBS initiates coverage of Bank of America, Wells Fargo and JPMorgan as buy UBS said it has a bullish view on the banking sector heading into 2022. "As such, BAC's peak ROTCE (return on tangible common equity) could outpace JPM' s by ~100bp if rates rise. We think Wells Fargo is a credible self-help story with multiple idiosyncratic catalysts. Rising rates and execution of its expense plan should drive ROTCE close to pre-scandal levels. Meanwhile, JPMorgan is exhibiting rare underperformance YTD vs. peers." Goldman Sachs downgrades Southwest Airlines to sell from neutral Goldman downgraded the airline company and said it has concerns about industry inflation. "We are downgrading Southwest to Sell from Neutral as we expect the company to see higher-than-industry inﬂation over the medium-term, in part driven by investments in upgrading its technology in addition to its entrance into the GDS's (global distribution system) and expansion into higher cost airports." Read more about this call here. RBC reiterates General Electric as outperform RBC reiterated its outperform rating on shares of General Electric and said it sees "multiple opportunities for further upside." "Larry Culp & team over-delivered on FCF, methodically defanged the bear case, and announced the epic three-way breakup, with multiple opportunities for further upside." RBC initiates coverage of Medtronic, Boston Scientific and Abbott Labs as outperform RBC initiated coverage of several med tech stocks and said it likes companies that are well positioned toward diagnostics and testing. "We favor names with exposure to higher acuity procedures such as cardiology and believe MDT, EW, and BSX (less so) are well positioned in our coverage. Further, we like testing names such as ABT as we expect testing to remain elevated at new levels and like ABT's innovation focus." Goldman Sachs reiterates Costco as buy Goldman kept its buy rating on Costco after its earnings report on Thursday and said the company continues to execute. "After solid 1Q results, we continue to have confidence in COST's value proposition resonating with consumers, while the company's scale enables it to manage current inflationary pressure and supply chain challenges. Key takeaways from the call include: 1) membership strength continues, 2) increasing capex to support growth, and 3) inflation tracks higher."
Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania.
Mark Makela | Reuters
Here are the biggest calls on Wall Street on Friday: