Here are Tuesday's biggest analyst calls of the day: Apple, Tesla, Nike, SoFi, Six Flags & more

Published Tue, Jan 18 20228:42 AM ESTUpdated Tue, Jan 18 20229:35 AM EST

Here are the biggest calls on Wall Street on Tuesday: Goldman Sachs reiterates Boeing as buy Goldman kept its buy rating on the aerospace stock and said it's bullish heading into earnings next week. "While 4Q results will still show trough aero fundamentals, we think BA will be able to provide positive updates on China MAX, higher production rates on MAX, and 787 delivery resumption." Morgan Stanley downgrades Dollar General to equal weight from overweight Morgan Stanley said in its downgrade of Dollar General that it sees cost pressures accelerating. "The '22 investment setup is less favorable in our view; our EPS estimates are ~3.5% below consensus as we expect comps to continue decelerating (we model +1% given a tricky low end consumer backdrop) and EBIT margin contraction (~30 bps) as momentum from recent initiatives fades and cost pressures accelerate." Deutsche Bank reiterates Apple as buy Deutsche raised its price target on the stock to $200 per share from $175 and said consensus estimates are too low. "In addition to strong business fundamentals, we think AAPL shares will benefit from a flight to quality in an inflationary environment." Read more about this call here. Credit Suisse raises price target on Tesla to $1,025 from $830 Credit Suisse reiterated its neutral rating on the automaker, but the firm said it sees a "strong growth margin trajectory." "With Tesla's demand exceeding supply likely for the foreseeable future, Tesla's path of volume will be purely a function of its production; we expect Tesla to maintain EV leadership given its holistic approach on supply." BMO Capital Markets upgrades Under Armour to outperform from market perform BMO said in its upgrade of the stock that it sees a compelling risk/reward. "We upgrade UAA to Outperform, believing the recent sell-off discounts UAA's pandemic transformation by re-focusing on profits over growth for growth's sake, a topic we've discussed at length." Read more about this call here. Wedbush downgrades Brinker International to neutral from outperform Wedbush said in its downgrade of the owner of Chili's that it has concerns about pricing power. "We no longer believe that the probability of higher annual top- and bottom-line growth rates going forward relative to EAT 's growth rates pre-COVID is high enough to justify a premium to EAT's pre-COVID valuation multiples." Bank of America reiterates Wells Fargo as a top pick Bank of America kept its buy rating on the banking giant. The firm said it's bullish on the company's execution. "There are two turnaround stories in large-cap banks, Citi and Wells Fargo . Notably, the Wells franchise is generally well-liked by investors given a strong deposit base and leverage to an improving US economy. Plus, mgmt seems further along on strategy execution." Goldman Sachs upgrades ConocoPhillips to buy from neutral Goldman said in its upgrade of the stock that it sees "leverage to the oil price recovery." "We upgrade ConocoPhillips to Buy from Neutral as we model the upside from the Permian acquisition from Shell, see leverage to the oil price recovery and project superior returns on capital. Wells Fargo downgrades Sherwin-Williams to equal weight from overweight Wells said in its downgrade of the paint and coatings stock that it sees margin challenges. "We are downgrading SHW to EW from OW following another EPS reduction and as our confidence in forecasting the margin side continues to be challenged." Read more about this call here. Bank of America reiterates Netflix as buy Bank of America kept its buy rating on the stock ahead of the streaming giant's earnings report later this week. The bank said 2022 should be a better year for the company. "We continue to see Netflix's ability to grow as its global content investment strengthens its value proposition." Morgan Stanley upgrades Zscaler to overweight from equal weight Morgan Stanley said in its upgrade of the cloud-based security company that it's bullish on Zscaler's pipeline of products. " Zscaler is a key enabler of modernizing security architectures for the Cloud. Our checks suggest a strong pipeline of larger deals in '22. While high multiple stocks are tough right now, we think ZS can outperform given potential for accelerating rev growth and significant upside to fwd estimates." Morgan Stanley names TJX Companies a top pick Morgan Stanley said in a note to clients that it sees positive earnings revisions and multiple expansion for TJX. "Off-price retailers have experienced unprecedented freight & labor pressures, which should normalize in 2H22, while ongoing store sales gains leverage the stepped up expense base. 2022 sets up well, with likely softer 1Q22 sales/earnings followed by acceleration through the year leading to positive EPS revisions & multiple expansion." Morgan Stanley names Caesars Entertainment and Wynn Resorts top 2022 picks Morgan Stanley named Caesars and Wynn as top picks for 2022. The firm said it likes companies that are undervalued. "We expect 2022 US casino revenue to be higher than 2019, but not as far above as we saw in 2Q/3Q21. Both Vegas and US Regionals should benefit from the return of the > 65 year old demographic, while Vegas should also see support from returning int'l customers (int'l flight capacity to Vegas currently at only 45% of pre-COVID levels) and convention visitatio Morgan Stanley downgrades Gap to underweight from equal weight Morgan Stanley said it sees earnings "erosion" for Gap . "We are most cautious on mall-based specialty retailers & department stores. After a year of record operating margin gains … the highest ever, in some cases … we think mall-based retailers & department stores' EBIT margins & earnings likely suffer some erosion that could continue for the next several years, in-line with the 5-year trend exhibited pre-Covid." Read more about this call here. Gordon Haskett downgrades Airbnb to hold from buy Gordon Haskett said in its downgrade of Airbnb that many catalysts are already priced in. "Many catalysts either unlikely to come to fruition for the foreseeable future (increasing take rates on hosts, loyalty program, paid positioning, etc.) or already well appreciated (LT stays, best-in-class marketing)." Barclays initiates coverage of Joby as equal weight Barclays said in its initiation of the electric aerospace company that expectations are too high. " Joby is holding on to a head start, but expectations are high; we initiate at EW with a $6 PT. Joby has the most refined product and prototype that has documented over 1,000 flight tests, possibly the furthest eVTOL flight at over 150 miles on a single charge and a clear capital advantage." Oppenheimer upgrades Six Flags to outperform from market perform Oppenheimer said in its upgrade of Six Flags that it likes management's execution and that it sees margin potential. "Our $54 price target represents 11.4x 2023E adjusted EBITDA of $610M, in line with the group average. We believe this multiple is warranted, given its industry positioning as the world's largest regional theme park operator, margin improvement potential, and management's track-record and incentive." Morgan Stanley names Constellation Brands a top pick Morgan Stanley named the beer and wine producer a top pick in 2022. The firm said it has an attractive valuation. "Our Top Pick is Constellation Brands , as we see building evidence of rebounding beer topline growth and market share post COVID, an improved corporate topline/margin profile after the low-end wine divestiture, and attractive valuation relative to LT growth potential." Goldman Sachs initiates coverage of SoFi as neutral Goldman gave the online personal finance company with a neutral rating and said growth is already reflected in the current valuation. "We forecast SOFI to realize a 37% 4-year adjusted revenue CAGR with $1.1 bn of EBITDA by 2025. First, Lending should realize a growing loan book driven by the end of the student loan moratorium, share gains in personal loans, and expansion into mortgage." Citi opens a positive catalyst watch on Intel Citi added a positive catalyst watch on Intel and said it sees "upside from strong PC end market demand." "Given the upside and Intel's 55% exposure to the PC end market, we are raising estimates on Intel. We are raising our C21 revenue and EPS estimates from $73.5 billion and $5.29 to $73.7 billion and $5.32 and C22." Wells Fargo initiates coverage of Lithia Motors as overweight Wells said it likes the auto retailer's omnichannel strategy. "We are initiating coverage of Lithia Motors, Inc . with an Overweight rating and $345 price target. The traditional dealer model is under pressure as automakers & startups move online." Morgan Stanley names Palo Alto Networks a top 2022 pick Morgan Stanley said the cybersecurity company is a top pick for 2022, and it sees further topline growth. "Greater adoption of the Next Gen Cloud Security platform and early innings into a firewall refresh cycle could sustain if not accelerate topline growth for PANW in 2022." William Blair upgrades Snowflake to outperform from market perform William Blair said in its upgrade of cloud-computing stock Snowflake that investors should buy the dip. "The company is clearly benefiting from multiple secular tailwinds, many of which were accelerated by the pandemic." Seaport initiates coverage of Foot Locker and Nike as buy Seaport initiated coverage of several athletic retailers. The firm said the stocks will benefit from a return to social activity. "We are initiating coverage of the Apparel/Footwear sector, including DECK, FL, GCO, NKE, SCVL, and TLYS with a Buy rating; and BOOT, COLM, CROX, UAA, VFC, WWW and ZUMZ with a Neutral. ... .The early stages of COVID drove demand for categories aligned with getting outdoors or lounging around the house. But as normal behavior has resumed, there has been renewed demand for categories associated with a return to social activity." Goldman Sachs adds Las Vegas Sands to the conviction buy list Goldman said in a note to clients that the casino stock is compelling. "We add LVS to the Americas Conviction List, consistent with our view on Sands China, highlighting the following positives vs. US peers: 1) higher mass market exposure, 2) completed investments in Macau through the pandemic that could drive share gains in a recovery (Plaza renovations/expansion and Londoner rebranding), and 3) optionality to invest further." Argus upgrades Delta Air Lines to buy from hold Argus said in its upgrade of the airline that the stock is undervalued. "We are raising our rating on Delta Air Lines Inc . to BUY from HOLD and setting a price target of $46. Delta's customers are among the most satisfied of any legacy carrier and have provided the company with sustained pricing power."

Shoppers wait in line to enter stores as Black Friday sales begin at The Outlet Shoppes of the Bluegrass in Simpsonville, Kentucky, November 26, 2021.

Jon Cherry | Reuters

Here are the biggest calls on Wall Street on Tuesday:

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