Here are the biggest calls on Wall Street on Monday: Goldman Sachs adds SolarEdge to the conviction buy list Goldman added SolarEdge to its conviction buy list and said it sees upside to consensus for the solar company. "Best positioned for upside to consensus estimates on battery storage ramp and improving margin mix." Evercore ISI upgrades F5 Networks to outperform from in line Evercore said in its upgrade of the application delivery networking company that the re-rating is "poised to accelerate." "We are upgrading FFIV to Outperform as we believe CY22 will be another strong year for security and application security in particular." Goldman Sachs initiates coverage of IBM as neutral Goldman began coverage of IBM with a neutral rating, but said the company is well positioned for accelerating transformation spending ahead. "We believe IBM is well positioned for better growth, profitability, and sustainable shareholder return with elevated enterprise transformation demand anticipated ahead." Bank of America reiterates Amazon as buy Bank of America reiterated the e-commerce giant as a top pick for 2022 and said it's well positioned for sector growth reacceleration. "We have a positive outlook for 3-5 year eCommerce growth given sub-20% penetration, and, with market share gains in 2021, we see Amazon as well positioned for sector growth reacceleration in 2H'22 and into 2023." Deutsche Bank upgrades ViacomCBS to buy from hold Deutsche Bank said in its upgrade of the stock that it's bullish on the company's streaming opportunity. "We're upgrading Viacom to Buy from Hold, and increasing our PT to $43, from $39, driven by our higher long-term streaming revenue forecast and time value of money appreciation since our last update." Read more about this call here. KeyBanc reiterates Apple as overweight KeyBanc said in a note to clients on Monday that its most recent checks show monthly Apple credit card spending suggests a strong upcoming quarter. "Our KFLD (Key first look data) consists of spend from over 1.8M unique KeyBank credit card and debit card customers in the United States; the data does not capture international spend. … Our KFLD suggests AAPL is tracking ahead of consensus Hardware for F1Q22." UBS upgrades Generac to buy from neutral UBS said in its upgrade of the back-up battery company that it sees an attractive entry point. "We upgrade shares of GNRC from Neutral to Buy. In our view, the current 19x 2022E EV/ EBITDA multiple presents a buying opportunity with GNRC well-positioned to take share in the behind-the-meter (BTM) battery storage market." RBC upgrades KB Home to outperform from sector perform, and downgrades Toll Brothers to sector perform from outperform RBC said in its upgrade of KB Home that it sees a stronger margins in 2022. The firm also downgraded Toll Brothers mainly on valuation. " KBH was a relative underperformer in 2021 as investors remained cautious on the build-to-order (BTO) business model which produced a slower GM% (gross margin) ramp compared to more spec heavy peers. … We are downgrading TOL to Sector Perform from Outperform, following strong 2021 outperformance and what we believe is a more balanced risk/reward at current levels in addition to seeing fewer near-term catalysts." UBS upgrades Zscaler to buy from neutral UBS said in its upgrade of the cloud security company that it has "greater conviction" in the company's growth prospects for 2022. "We come away from 14 conversations with IT executives and partners and 6 ZS customers with greater conviction in Zscaler's growth prospects for CY22. HSBC downgrades Nike to hold from buy HSBC said in its downgrade of the stock that it sees a lack of short-term catalysts. "In Nike' s Q2 FY22 earnings call, management mentioned that as of end-December 2021, all of its local factories were operational and employee attendance rates improved, with weekly footwear and apparel production at c80% of pre-closure volumes. However, it could still take a bit of time to get back to normal." Read more about this call here . Piper Sandler downgrades Airbnb to neutral from overweight, and upgrades Expedia to overweight from neutral Piper said it sees an attractive set-up for shares of Expedia in 2022. The firm downgraded Airbnb on valuation and elevated Street expectations. "While recent news centers on Omicron, we'd recommend online travel investors focus on the broader canvas since 2Q20. A methodical (if non-linear) travel recovery appears underway. Our look at the data suggests the following: 1) '22 will likely turn out better than '21, and 2) travelers are returning to traditional lodging and air. In this 'normalization' backdrop we upgrade EXPE to Overweight and move to the sidelines with a Neutral rating on ABNB ." New Street initiates coverage of Micron as buy New Street said it sees more upside for Micron due to "strong growth drivers specific to memory." "The secular acceleration of semiconductor growth of the last 5 years was actually stronger in memory than in logic, and we see continued strong growth drivers specific to memory, across the technology infrastructure landscape." JMP downgrades Charles Schwab to market perform from market outperform JMP downgraded the stock mainly on valuation. "In this report, we lower our ratings on SCHW and RJF to Market Perform from Market Outperform. As we discuss in more detail throughout the report, we believe both companies are bumping into valuation ceilings, reducing the risk/reward opportunity, though we remain generally constructive on their business outlooks." Oppenheimer names American Express a top 2022 pick Oppenheimer named the credit card company a top stock for 2022 and said it sees earnings per share upside for American Express. "Key fundamentals that are likely to drive incremental EPS upside through 2023 vs. consensus include: Loan demand returning/payment rates falling, more than two rate increases, and the slow normalization of credit." Goldman Sachs names Tesla a top 2022 pick Goldman raised its price target on Tesla to $1,200 per share from $1,125 and said it sees "material upside" in 2022. "We are raising our estimates, and our 12-month price target on Tesla to $1,200, following robust 4Q21 deliveries, as we see the material upside in 4Q as a sign that the company can sell more vehicles in 2022 and 2023, too." Read more about this call here . Bernstein upgrades Dell to outperform from market perform Bernstein said in its upgrade of Dell that the stock is relatively inexpensive. "We are upgrading DELL (TP=$72) to Outperform. Dell enters CY2022 with an estimated 6 weeks of backlog in its PC business and has a relatively high mix of commercial versus consumer (75/25) PCs, which should help cushion results should consumer PC demand slow." Deutsche Bank names Electronic Arts a top 2022 pick Deutsche Bank named the video game company a top pick and said it sees strong organic growth. "We believe that EA has a strong organic growth outlook, both next year and longer term, which should lead to substantial value creation over time. We are expecting the company to grow net bookings at a rate of > 6% y/y organically, and believe that EA can maintain growth around that pace over a 3-year period." Bank of America names Nvidia a top 2022 pick Bank of America named the stock a top pick for 2022 and said it has the most upside in the firm's semis coverage. " NVDA is our top pick in semis with most upside to estimates from secular growth in gaming, AI/metaverse and autos. CY22 sales growth likely to be 25-30% YoY vs our 21%." Evercore ISI names Disney a top 2022 pick Evercore named Disney a top pick for 2022 and said it's bullish on the entertainment giant adding more subscribers. "In 2022, we think investment opportunities will be more idiosyncratic (we favor DIS on the potential for 2H22 subscribers to be strong given new regional launches and the content slate ramping.)" Bank of America names Penn National Gaming a top 2022 pick Bank of America named Penn a top pick in 2022 and said it sees an inflection on profitability. "Online gaming stocks underperformed in 2021 (-47%) but could see a few catalysts in early 2022: 1) the opening of New York/Ontario, 2) renewed legislation and 3) strong revenue growth of ~+50%. A relief rally/short squeeze seems possible into big Q1 sporting events." Bank of America named Exxon a top 2022 pick Bank of America said it likes the renewed confidence in the oil-and-gas giant's dividend outlook. "Amongst the majors XOM leads our top picks again – with 2022 a transition year for its balance sheet, free cash flow, disposals and dividend growth – and at its size we believe can lead the sector weight higher through renewed confidence in its dividend outlook."
A sign hangs from a fence at Metropolitan Park, the first phase of new construction of Amazon's HQ2 development, in Arlington, Virginia, October 13, 2021.
Kevin Lamarque | Reuters
Here are the biggest calls on Wall Street on Monday: