Here are Tuesday's biggest analyst calls: Nvidia, Micron, SolarEdge, Nike, Tesla and more

Published Tue, Dec 21 20218:30 AM ESTUpdated Tue, Dec 21 20211:02 PM EST

Here are the biggest calls on Wall Street on Tuesday: KeyBanc downgrades Oracle to sector weight from overweight KeyBanc said in its downgrade of Oracle that it's concerned the company's deal for Cerner will be near-term neutral to top-line growth. "Downgrading ORCL to Sector Weight following announcement today of the all-cash $28B acquisition of health-care [info] provider Cerner (CERN/OW). While we concur the all-cash deal should be accretive to earnings, it would be near-term neutral to top-line growth and dilutive to EBIT margins." Read more about this call here. Morgan Stanley reiterates Tesla as overweight Morgan Stanley said in its auto predictions note for 2022 that it sees the automaker finally entering India. "We think Tesla India is going to start getting serious investor attention in the coming months/quarters as the company seeks to greatly expand its international non-China manufacturing and commercial footprint. In our view, a path to a sub-$20,000 EV will be critical to 'unlocking' the Indian EV four-wheel market." Read more about this call here. Wells Fargo names Micron a top 2022 pick Wells Fargo named Micron a top pick for 2022 and said it sees a "valuation re-rate." "As such, MU remains our top pick; continue to view MU as $8/sh.+ through-cycle EPS story, with underlying fundamentals deserving of a valuation re-rate." JPMorgan names FedEx a top 2022 pick JPMorgan named FedEx as one of its top picks for 2022 and said the company's June investor day should be a significant catalyst. " FDX just hit bottom on Ground margins and has tackled its labor challenges, setting up for a constructive investor day in June – the first one in 10 years." Read more about this call here. JPMorgan downgrades Cigna to neutral from overweight JPMorgan said in its downgrade of the health-care company that it's concerned about slowing membership growth. "We believe U.S. Medical margins will improve in 2022, partially driven by CI' s pricing strategy. However, we think this could result in slower membership growth next year." UBS names Nvidia a top 2022 pick UBS named Nvidia a top pick and said the company has "stable" revenue sources. "In semis, we continue to favor the compute and memory verticals due to our structurally bullish demand view around AI and the push of more compute (and memory) to the edge. In compute, we favor NVDA as it builds more stable revenue sources around its wide GPU and software moats." Bank of America upgrades Micron to buy from neutral Bank of America upgraded the stock after its solid first-quarter earnings report on Monday and said it likes the improved outlook. "Overall we view MU as a compellingly growth-at-a-reasonable price (GARP) beneficiary of secular data center, 5G, metaverse, auto trends and a catch-up candidate after underperforming the SOX Index meaningfully in CY2." Read more about this call here. Cowen names SolarEdge a top 2022 pick Cowen said the solar company is poised to take advantage of the rush to solar technology. " SolarEdge is well positioned to take advantage of the strength in the global residential and commercial solar market, given its strong residential offering and new storage product which provides attractive value for rooftop solar customers." Atlantic Equities downgrades Alibaba to neutral from overweight Atlantic Equities said in its downgrade of the Chinese tech company that it's concerned about Alibaba's track record of slow growth. "At the investor event, management underscored its commitment to continued investment in lower tier cities and international markets, the near-term focus being on 'value creation' with profits only arriving in the medium to long term. While we support investment for growth, the company's track record leaves us concerned regarding execution capabilities, and shared data points also do little to inspire confidence." Read more about this call here. JPMorgan names Eli Lilly and AbbVie top 2022 picks JPMorgan named its favorite biopharma picks for 2022 and said it likes companies trading at a discount. "Our recommendations are skewed towards names that we believe have the longest runways for EPS growth ( LLY ) or those trading at a steep discount to peers ( ABBV )." Jefferies names Wells Fargo and Signature Bank as top 2022 picks Jefferies said in its 2022 bank outlook that it likes stocks that are "organic growers" and "middle-of-the-pack rates names." "We favor organic growers that do not require rates for continued strong EPS growth ( SBNY /WAL/SIVB) and middle-of-the- pack rates names ( WFC /KEY/FITB) that are not too dependent on the all-or-nothing Fed trade." Deutsche Bank names Delta Air Lines and Southwest Airlines as top 2022 picks Deutsche Bank named several airline stocks as top picks heading into next year and said it likes quality names with strong balance sheets. "As such, we remain constructive on the sector for 2022 and reiterate our buy ratings on the stocks with a focus toward the highest quality names from a balance sheet, liquidity, and earnings perspective: DAL , LUV, ALK, ALGT, SNCY, and SKYW." Baird downgrades United Rentals neutral from outperform Baird said in its downgrade of the equipment rental company that labor may be a "bigger challenge" in 2022. "Downgrading URI and HRI to neutral. Both stocks have significantly outperformed a strong market since our June 2020 initiations, benefiting from tight equipment supply/demand dynamics in 2021; this benefit likely dissipates as supply chain normalization leads to improved OEM production and higher equipment supply in 2022." JPMorgan reiterates Nike as overweight JPMorgan reiterated its overweight rating on the athletic retailer after its earnings report on Monday and said it sees continuing gross margin expansion. "We see NKE 's brand momentum across geographies as sustainable and providing insulation to macro volatility and supporting sustainable multi-year +HSD-LDD (high single digits/low double digits) top-line growth." RBC names Boeing a top 2022 pick RBC named Boeing a top pick in 2022 and said it sees improving free cash flow. "Key catalysts remain the Boeing 737 MAX and 787 inventory reductions. We expect Boeing MAX deliveries into China to resume in 1Q22, followed by a resumption in 787 deliveries in 2Q22."

Jensen Huang, CEO of Nvidia

Rick Wilking | Reuters

Here are the biggest calls on Wall Street on Tuesday: