Here are Tuesday's biggest analyst calls of the day: Amazon, Tesla, AT&T, IBM, Krispy Kreme & more

Published Tue, Jan 11 20228:38 AM ESTUpdated Tue, Jan 11 20229:47 AM EST

Here are the biggest calls on Wall Street on Tuesday: Bernstein initiates coverage of General Electric as outperform Bernstein gave GE an outperform rating and said it's bullish on the conglomerate's break-up. "We join GE for the last stretch of the great unwinding. We are bullish on the stock, and ahead of consensus on mid-term operating margin expansion, particularly in the Renewables and Power segments. We view the spin as good news for investors. GE 's component parts are easily scalable public companies, and improved line of sight to financials and end markets will only benefit shareholders." Read more about this call here. Atlantic Equities downgrades Shopify to neutral from overweight Atlantic Equities downgraded the stock on valuation. " Shopify is a best-in-class ecommerce platform and its share of websites has continued to increase rapidly. Given its core product leadership, we continue to expect the company's c. $180bn GMV (gross margin value) to outperform ecommerce peers both near and long term. However, ongoing share gains are already widely expected to persist and reflected in valuation." Deutsche Bank downgrades Alcoa to hold from buy Deutsche downgraded the stock mainly on valuation. "In this note we raise our Price Target for Alcoa to $65/sh on updated aluminum view. But after the 105%+ increase in share price since our upgrade ~10 months ago, we see the risk/reward as more balanced and downgrade the stock to Hold. Management's focus on portfolio optimization and strategic actions taken to address its legacy liabilities, placed Alcoa in a strong position to benefit from higher aluminum prices over the past year." Atlantic Equities initiates coverage of JD.com as overweight Atlantic Equities gave the Chinese internet company an overweight rating and said it sees margin expansion. "The company is in a strong position to further gain share in the next few years, with user growth driven by consumers increasingly appreciating premium delivery services, and GMV (gross margin value) growth boosted by a combination of JD' s favorable exposure to the fastest-growing categories and the expansion in its product selection following the regulatory clampdown on forced exclusivity policies." KeyBanc upgrades Take-Two Interactive to overweight from sector weight KeyBanc upgraded the video game company after it announced it would acquire Zynga . The firm said Take-Two was undervalued. "Yesterday morning, TTWO announced the proposed acquisition of Zynga (ZNGA) in a cash and stock deal for $9.86/sh, a 64% premium to the last closing price. We believe the deal is a strong strategic fit, significantly improving TTWO's position in mobile and likely accelerating the path for its high-quality IP to launch on mobile." KeyBanc upgrades Advanced Micro Devices to overweight from sector weight KeyBanc said in its upgrade of the semiconductor company that it sees a cloud inflection. " AMD is poised to benefit from robust high teens cloud data center growth in 2022 and should meaningfully outpace industry growth given significant share gains." KeyBanc downgrades Intel to sector weight from overweight KeyBanc said in its downgrade of Intel that it sees limited catalysts over the near term. "While INTC does have an analyst event in February, we're skeptical any announcement can change the bearish narrative on the stock. Given all the missteps over the last several years, we believe investors await demonstrable proof points." Citi downgrades Reynolds to neutral from buy Citi downgraded the consumer products company mainly on valuation. "To be sure, we remain cognizant that competitive dynamics in REYN' s categories remain as fierce as ever, and we wonder in a post-COVID world that is marked by less cost inflation, what the sustainability of both volume growth and the price increases recently taken might be. Given these concerns, and what we see as both limited upside in our model and a balanced valuation, we step off our Buy rating for now." Piper Sandler reiterates Bank of America as a top 2022 pick Piper Sandler reiterates Bank of America as a top pick and said it sees revenue upside from higher interest rates. "The primary push-backs we have received from investors since naming BAC our top pick in the money center bank & broker/dealer space for 2022 have revolved around three primary themes: 1) Valuation, 2) Asset sensitivity being widely understood and priced in and 3) Potential markets-related revenue headwinds after a record year in 2021." Bank of America upgrades Juniper Networks to buy from underperform Bank of America said in its double upgrade of the networking products company that it sees an acceleration in order growth. "We also upgrade Juniper Networks to Buy from Underperform, and increase our PO to $40 from $22. We view management guidance for ~5% 2022 revenue growth as conservative and believe the recent acceleration in order growth." KeyBanc reiterates Netflix as overweight KeyBanc lowered its price target on shares of Netflix to $620 from $725. The firm said the streaming giant is still well positioned. "We lowered estimates as we see risk to net adds and margins from price elasticity and international ramp. However, we believe Netflix is still better positioned than peers to weather this period." MoffettNathanson downgrades Take-Two Interactive to neutral from buy MoffettNathanson said in its downgrade of the video game company that it has concerns about Take-Two's proposed deal for Zynga. "Take-Two has now gone head-first into the deep end of mobile publishing. And so right or wrong, it's undeniable that the ZNGA deal represents a huge shift in the Take-Two story precisely at the time when we were supposed to start seeing evidence of the original thesis playing out." Morgan Stanley upgrades American Airlines to equal weight from underweight Morgan Stanley said in its upgrade of American Airlines that it sees a more balanced risk/reward. "If the tide does rise the way we expect led by corporate and international normalization, the Legacies stand to benefit the most and will likely see the biggest incremental margins as well, given their relatively high fixed cost structure." Morgan Stanley reiterates Tesla as overweight Morgan Stanley raised its price target on the automaker to $1,300 per share from $1,200 and said it sees more upside in 2022. " Tesla 4Q deliveries were 20% above our forecast, annualizing to over 1.2mm units, which is already above our prior FY22 forecast. We raise our forecasts and target to $1,300 on this 'opening act' and look for more in FY22." Read more about this call here . Citi adds a positive catalyst watch on AT & T Citi added a positive catalyst watch on the telecommunications and media company. The firm also said it sees rising consensus expectations. "We are adding AT & T to Citi's positive catalyst watch list as we believe the potential for consensus expectations to rise for postpaid phone net adds and forward progress towards closing the deal with Discovery could lead the valuation gap to narrow between AT & T and Verizon." UBS downgrades IBM to sell from neutral UBS said in its downgrade of the stock that shares are vulnerable and it sees too many near-term risks. "We downgrade IBM shares to Sell from Neutral given near-term risk to Q4:21 'operating ests', lower PF EPS ests, and an elevated valuation that leaves the shares vulnerable over the next 12 months, in our view." Goldman Sachs reiterates Disney as buy Goldman named Disney as a top idea for 2022 and said it likes the company's content spend and expanding distribution. "With each streamer pursuing a different strategy, we continue to prefer stories with several potential proof points in 2022 such as Buy-rated Disney (with significant market launches and new content in F2H22)." Morgan Stanley reiterates Amazon as overweight Morgan Stanley raised its price target on shares of Amazon to $4,200 from $4,000 and said it sees accelerated share gains in 2022. "In '22, we see accelerating, share-gaining N. America retail and improving profitability from efficiencies and alleviation of labor/supply chain pressures leading to improved profitability and increased investor conviction in AMZN's long-term share-gaining story." JPMorgan upgrades Las Vegas Sands to overweight from neutral JPMorgan upgraded the casino stock and added it to the firm's focus list. The bank said it likes the risk/reward at current levels. "We think the risk-reward is favorable after massive share price underperformance in 2021 (down 35%, versus U.S. gaming up 59% and S & P 500 up 25%) with LVS (and the rest of the Macau centric U.S. listed stocks) lagging the rest of the re-opening sectors and risks priced in after a year of incremental regulatory concerns." Bank of America initiates coverage of Krispy Kreme as buy Bank of America said the doughnut company's rapid growth supports a higher valuation. "Given the robust double-digit growth profile of its top line and earnings, we believe Krispy Kreme should trade at a premium consistent with its faster growth and higher returns." Goldman Sachs adds T-Mobile to the conviction buy list Goldman added T-Mobile to the firm's conviction buy list and said the stock has an attractive valuation. "Further attainment of merger integration milestones and ramping synergies in 2022. Visibility into timing and intensity of buybacks, which could potentially commence in 2H22." Wedbush names Alphabet a top 2022 pick Wedbush named the stock as one of its top ideas for 2022 and said it sees "a stronger competitive product relative to Amazon." "We continue to see Google's efforts to broaden its commerce initiatives as driving a stronger product for advertisers, particularly SMBs (small mid size business), and a stronger competitive product relative to Amazon." Redburn initiates Rivian as buy Redburn said in its initiation of Rivian that it has the best chance to "emulate" Tesla's success. " Rivian has not just electrified the pickup truck: it has redefined what one can be, making it software-enabled and loaded with unique design features."

An AT&T store in New York.

Scott Mlyn | CNBC

Here are the biggest calls on Wall Street on Tuesday: