Here are the biggest calls on Wall Street on Monday: BMO upgrades PayPal to outperform from market perform BMO upgraded the payments company on valuation. "Following 2021's de-rating, from 51x to 28x rolling two-year-forward P/E, we upgrade PYPL on valuation; relative to our estimate of +21% annual organic revenue growth potential, the historical industrywide function implies 34x fair value." Read more about this call here. Piper Sandler upgrades Wolfspeed to overweight from neutral Piper called the semiconductor company a "clear leader" in the electric vehicle space. "We prefer larger, more profitable, cash-generating names that have a clear growth profile for 2022. In addition, we also like some long-term secular plays as well. In electric vehicles, we believe WOLF is a clear leader in the space." Susquehanna upgrades Canadian Pacific to positive from neutral Susquehanna said in its upgrade of the railway company that "cyclical optimism remains intact." "We remain buyers of NSC, UNP, and CSX and upgrade CP to Positive as a levered play on our cyclical optimism following December's acquisition of KSU." Compass Point names Callaway Golf as a top pick in 2022 Compass Point dubbed the golf company a top idea for 2022 and said it sees more growth in all lines of the business. " Callaway Golf is on an operational roll, with tremendous momentum in the core golf business and the Topgolf (TG) acquisition." Piper Sandler names Qualcomm a top 2022 pick Piper named Qualcomm a top pick in 2022 and said the company is "highly profitable." "For connectivity, we like Qualcomm due to its participation in the 5G penetration in Android and its position across areas like automotive and IoT (internet of things)." Wells Fargo names Farfetch and Under Armour as top 2022 picks Wells named Farfetch and Under Armour as top idea in 2022 and said it sees a "much improved" setup. "While we acknowledge that early 2022 likely will be challenging given the lapping of stimulus-driven top-line compares and record margins, we see the market beginning to look past these concerns and bracing for a much-improved 2H22 setup early in the year. In our view, the best way to play our space on the long side would be TPR, CPRI, BBWI, SIG, FTCH and TDUP, as well as ASO and UAA ." Bank of America names Citi a top idea Bank of America named Citi a top idea for the first quarter and said the stock is at an inflection point. "Positively for shareholders, new CEO Jane Fraser (appointed March 2021) appears to be operating with a sense of urgency to right-size the franchise (announced exit from consumer banking in 13 countries) and to address regulatory concerns (tied to risk controls) while preparing to lay out a vision for the Citi franchise. Execution risk cannot be underestimated." Bank of America upgrades Sea Limited to buy from neutral Bank of America said in its upgrade of the consumer internet company that it sees a favorable risk/reward. "From its peak, Sea is down c. 40% and at current levels is trading at 2023E P/S of 5.9X. In our view, the sharp decline in stock price largely factors in the impact of near-term gaming slowdown and concerns on rising losses in e-com due to expansion in Europe/India." Piper Sandler upgrades McDonald's to overweight from neutral Piper Sandler said in its upgrade of the stock that it likes the fast food giant's top-line momentum. "We are upgrading MCD shares. Our recent proprietary survey work leaves us incrementally confident around McDonald's industry-leading ability to deliver on consumers' sustained preference for drive-thru experiences and elevated demand for core hamburger and chicken cuisine categories." Read more about this call here. Goldman Sachs names Microsoft a top 2022 pick Goldman said it's "highly constructive" on the software space this year. "As we highlighted in our initiation, we preferred reasonably priced high-quality growth software franchises such as MSFT , CRM, ADBE, NOW, and WDAY." BTIG names Starbucks a top pick in 2022 BTIG named Starbucks as a top pick for the first half of 2022 and said the stock has a "compelling return profile." "We believe that prior sales momentum is returning as coronavirus disruption fades and customer mobility returns, setting up a strong sales and earnings recovery over the coming quarters." Mizuho names Chevron a top pick in 2022 Mizuho said in a note to clients on Monday that Chevron has a "best-in-class" balance sheet. "In Integrated Oil we continue to prefer CVX over XOM, given similar payouts, but best-in-class balance sheet and higher leverage to Brent." Barclays upgrades Wells Fargo to overweight from equal weight Barclays said in its upgrade that banks will outperform the market in 2022. "While we are favorably disposed to our coverage in general, particularly against an expected backdrop of improving net interest margin off historic lows, we are making some rating changes. Looking at Money Centers, we are making BAC our Top Pick and upgrading WFC from EW to OW." Read more about this call here. Citi upgrades Vivid Seats to buy from neutral Citi said in its upgrade of the ticket and resale company that the pullback in the stock is "unwarranted." "While the omicron variant has injected some volatility into equities exposed to live events – including Vivid Seats – we view the pullback as unwarranted." Guggenheim names Nike as a top 2022 idea Guggenheim kept its buy rating on shares of the athletic retailer and said it sees "favorable secular tailwinds" in 2022. " Nike remains our Best Idea heading into 2022. Overall, our NKE investment thesis remains firmly intact. Nike is the leader in the athletic (and broader active/athleisure) industry with favorable secular tail winds." Oppenheimer reiterates Coinbase as outperform Oppenheimer kept its outperform rating on shares of Coinbase and said it likes the setup heading into the company's earnings report. "With the stock trading at a discount to other high-growth fintech stocks, we recommend investors to take advantage of this dislocation." Goldman Sachs names Marvell, Advanced Micro Devices and Micron as top 2022 ideas Goldman said in its preview of the semiconductor industry for 2022 that it likes stocks with secular growth. "As such, we continue to stress the importance of idiosyncratic drivers and recommend a barbell approach with secular growth even at a high multiple (e.g. AMD , MRVL , TER, PI) on the one hand and cyclical growth at a low/reasonable multiple (e.g. MU, ADI, ON, QRVO) on the other." Needham initiates Vacasa as buy Needham said the travel company is "just starting to scratch the surface of opportunity." "We see VCSA as a beneficiary of rising demand for alternative accommodations in the travel industry and of consumers' growing desire to serve as both supply and demand for lodging. As a supply aggregator, VCSA is just scratching the surface of this opportunity, and we see a runway for it more than doubling its active homes by '25E, driving a 25% revenue CAGR and a > 10% adj. EBITDA margin." Deutsche Bank reiterates Tesla as buy Deutsche reiterates its buy rating on the automaker after its "impressive" delivery numbers and said it sees more upside. "We continue to believe Tesla's trajectory for its battery technology, capacity and especially cost could help accelerate the world's shift to electric vehicles and extend Tesla's EV lead considerably." Read more about this call here . Guggenheim reiterates Amazon as buy Guggenheim kept its buy rating on shares of Amazon and said investors should purchase the stock now ahead of earnings growth in the second quarter. "We would be buying this stock early in FY22 ahead of stronger, more normalized growth starting in Q2. No changes to estimates." Loop names Best Buy and RH top 2022 picks Loop said Best Buy and RH were likely to benefit from macroeconomic tail winds in 2022. "Given our optimistic but cautious 2022 outlook, we prefer companies that we believe are well positioned to benefit from macroeconomic tail winds, have specific near-term catalysts, and are trading at what we consider to be reasonable valuations. Thus, our top picks for 2022 are Best Buy, PROG Holdings and RH." Stephens names Wendy's as best idea for 2022 Stephens selected Wendy's as best idea for 2022, saying it likes the "valuation protection." "We are naming Overweight-rated WEN as our 2022 Best Idea. With WEN, investors get a unique combination of: (1) inflation protection due to the highly franchised revenue streams; (2) COVID protection given the off-premise-heavy service model; (3) valuation protection given the discounted multiple." MKM names Delta Air Lines a top pick in 2022 and upgrades United Airlines to buy from neutral MKM said in a note to clients on Monday that it sees 2022 as a transition year for the airlines. "We believe the most upside within the group will come from companies that benefit from international and corporate recovery (American, Delta, United), and/or have a compelling cost story (Alaska, United, Allegiant). As such, Delta remains our top pick for 2022, while Alaska is a close second. Within this report, we are upgrading United to Buy from Neutral, downgrading Southwest and Spirit to Neutral from Buy, and downgrading to JetBlue to Sell from Neutral."
A Citibank sign in front of one of the company's offices in California.
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Here are the biggest calls on Wall Street on Monday: