Here are Tuesday's biggest analyst calls of the day: Amazon, Facebook, Uber, Disney, Marvell & more

Published Tue, Jan 4 20228:39 AM EST

Here are the biggest calls on Wall Street on Tuesday: Wells Fargo names Bank of America a top pick for 2022 Wells Fargo named Bank of America and American Express as top picks in 2022 and said they should benefit from a pandemic recovery. "Financials should benefit from changes in interest rates, still good credit, efficiencies from the tech revolution, still attractive valuations, and COVID recovery." Credit Suisse upgrades General Electric to outperform from neutral Credit Suisse said in its upgrade of General Electric that investors should buy the weakness. "In December, GE noted that Aviation revenue and FCF could return to pre-pandemic levels in 2023. We think cyclical recovery and FCF execution will drive the stock higher, despite a 'lack of catalyst' narrative into the spinoffs." Read more about this call here. Wells Fargo names Disney a top pick for 2022 Wells Fargo said in a note to clients on Tuesday that the stock's set-up is attractive in 2022. "The past few months have shown that DIS will likely face some serious content obstacles if it is to meet its FY24 subscriber guidance. Thus, the backdrop for DIS into 2022 is a proper execution story, in our view. Given DIS's history in delivering the content goods, we think it's an attractive set-up, so it's our favorite large-cap growth idea for 2022." BMO downgrades Sherwin-Williams to market perform from outperform BMO downgraded the paint and coatings company mainly on valuation. " SHW was one of the best performers in 2021. This came as investors looked through the supply disruptions as well as inflationary pressures on 2021 earnings with expectations that when those pressures level off SHW will capture significant value." Goldman Sachs adds Blue Owl to the conviction buy list Goldman added the capital markets company to its conviction buy list and said it sees emerging growth. "We add Buy-rated OWL to CL (~40% upside) as of the largest beneficiaries from growth in retail Alts." Jefferies upgrades Warner Music Group to buy from hold Jefferies said in its upgrade of Warner Music Group that its platform is underappreciated. "We are upgrading on a higher level of confidence: 1) digital streaming is still early and will provide steady predictable growth; 2) emerging platforms are underappreciated in Street models." JPMorgan downgrades Foot Locker to underweight from neutral JPMorgan downgraded the athletic shoe retailer due to rising competition. "We downgrade FL to Underweight given the combination of market share compression (global brand DTC expansion / wholesale competition) in an expanding TAM athletic category." Barclays upgrades Hewlett Packard Enterprises to overweight from equal weight Barclays said in its upgrade of the stock that it sees solid growth. "We are raising our rating on HPE shares to Overweight from Equal Weight. We believe core Server and Storage is stabilizing and moving to as-a-service, while Networking and HPC should see solid growth. Valuation is lowest in the group." Wells Fargo names IMAX as a top 2022 idea Wells Fargo named IMAX a top SMID-cap growth idea for 2022 and said it likes the company's international exposure. "We view IMAX as our favorite smidcap growth stock for 2022. We think IMAX is the way to play premium theater experiences + studios renewed focus on theatrical tentpoles." Wolfe downgrades JPMorgan to peer perform from outperform Wolfe said in its downgrade of the bank that it sees a more balanced risk/reward. " JPM risk-reward is more balanced as the threat of tougher reg./higher capital minimums, and expense growth are not adequately reflected in cons. This is consistent with our more tepid outlook on the Money Centers with WFC our lone OP rating." Piper Sandler downgrades Medtronic to neutral from overweight Piper said in its downgrade of the medical device company that the pathway to topline growth is cloudy. "Within the last six months, three of the most closely watched growth drivers at MDT have experienced some speedbumps." Credit Suisse downgrades Honeywell to neutral from outperform Credit Suisse said in its downgrade of Honeywell that it sees more upside potential in other stocks in the sector. "We continue to believe that HON is a high quality Industrial Software company with leading businesses across each segment. However, as we look across 'mega' cap stocks with leverage to cyclical Aerospace recovery, we see more upside potential in GE." Guggenheim downgrades Pinterest to neutral from buy Guggenheim said in its downgrade of Pinterest that it's concerned about usage weakness. "With shares under consistent pressure since reporting below-consensus user trends in 2Q21, we have been hesitant to downgrade in front of potential user stabilization. However, with data indicating continued usage weakness and another quarter of below-consensus results, we downgrade the shared to NEUTRAL from BUY." Morgan Stanley upgrades Halliburton to overweight from equal weight Morgan Stanley said in its upgrade of the oilfield services company that it thinks free cash flow will surprise to the upside. "Market sentiment last year was focused on int'l and energy transition, where it comps less favorably. Yet, we think HAL will surprise on FCF and communicate a clear message that the cash is headed to investors." Read more about this call here. Guggenheim upgrades Coca-Cola to buy from neutral Guggenheim said in its upgrade of the beverage company that the stock's valuation is compelling. "We are upgrading KO to BUY with a $66 price target as we see the company exiting FY21 transition year stronger for four reasons: 1) strong emerging markets despite still low vaccination rate, 2) on-premise recovering faster than originally forecasted, 3) restructuring and portfolio rationalization led to a more focused and agile organization." Read more about this call here. Evercore ISI upgrades BP to outperform from in line Evercore said in its upgrade of the oil and gas giant that it sees "rising returns." " BP has long outlined a view of major project starts (in addition to portfolio pruning) that improve margin mix for the aggregate upstream. We think this becomes clearer in 2022+ results and influences our investment opinion here." Baird upgrades Under Armour to outperform from neutral and names Planet Fitness a top pick for 2022 Baird named Planet Fitness as a top pick for 2022. The firm said in its upgrade of Under Armour that it likes stocks with "visible cyclical earnings recovery prospects." "However, with valuation multiples unlikely to broadly re-rate higher, we are concentrating bets behind companies with visible cyclical earnings recovery prospects, naming UAA (upgrading to Outperform) and PLNT as top 2022 ideas." Needham names Outbrain as a top pick for 2022 Needham named the web recommendation platform as a top pick and said it has meaningful competitive advantages. " OB continues to attract new website owners and new advertisers, which drives rev growth above 30%/year and EBITDA margins of about 30%/year." Wells Fargo names Discovery a 2022 pick Wells Fargo named the media company as a top large-cap value idea and said it's a stock that should be on investors' radar. "HBO and Warner Bros. are bona fide hit factories, and the mix of assets between DISCA and WarnerMedia means investors should see this as a strong global content player, albeit with a bumpy integration period ahead." Wolfe names Amazon, Uber and Facebook top 2022 ideas Wolfe named Amazon a top pick for 2022 and said it sees margin expansion for the stock. The firm also said Facebook's stock is compelling and that Uber should benefit from a pandemic recovery. " AMZN still faces some 1Q estimate risks but we think retail margin expansion in 2H22 should be a strong catalyst for shares. Across the board, digital media companies are likely to see steady deceleration from tougher comps in 1H but the risk/reward on FB is just too compelling at these levels. … UBER should benefit from a steady recovery in rideshare business and the growth story on Eats remains solid in FY22." Needham names Marvell a top 2022 idea Needham named Marvell as a top idea for 2022 and said it thinks investors will gravitate toward stocks with "high secular growth rates." "As the semiconductor industry growth rate slows in 2022 that may cause some multiple compression across the sector, we believe investors will gravitate to names like MRVL with high secular growth rates." Truist names DoorDash a top pick for 2022 Truist said it sees the delivery company entering 2022 with strong momentum. "We believe DoorDash has ended 2021 strong and the positive business momentum should carry into 2022." RBC names Amazon a top pick for 2022 RBC named Amazon a top stock for 2022 and said it's one of the largest "true alpha dogs." "The company's unmatched scale and advantage in verticalized e-commerce combined with its industry-leading cloud business gives it many shots on goal for future growth opportunities in new verticals." Cowen names United Airlines a top pick for 2022 Cowen also said United should benefit from robust summer travel. "Early in the year, domestic travel is likely to remain robust, and as businesses return to office, we should see an increase in business travel, which should be positive for the industry. We think the summer of 2022 will see robust travel on the North Atlantic, so we anticipate more international focused airlines will benefit." Wedbush upgrades Skechers to outperform from neutral Wedbush said it sees solid growth for the sneaker manufacturer. "With a solid fundamental outlook (continued international growth plus tailwinds domestically from Nike/adidas exiting some of SKX's wholesale accounts), we think SKX could finally be rewarded for the growth that investors have discounted for years."

A smartphone with Facebook's logo is seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken October 28, 2021.

Dado Ruvic | Reuters

Here are the biggest calls on Wall Street on Tuesday: