Here are Wednesday's biggest analyst calls: Amazon, Sunrun, Facebook, Boeing, Etsy & more

Published Wed, Feb 2 20228:38 AM ESTUpdated Wed, Feb 2 202211:38 AM EST

Here are Wednesday's biggest Wall Street calls: Morgan Stanley upgrades Under Armour to overweight from equal weight Morgan Stanley said investors should buy the dip on the apparel maker, and that the stock has an attractive 2022 setup. "While valuation had kept us EW, the stock pullback yields an attractive entry point, as we see an opportunity for UAA to outperform peers in '22 on lower relative supply chain risk, stronger relative China performance, industry channel check momentum, and likely conservative '22 guidance and expectations." Read more about this call here. UBS upgrades Etsy to neutral from sell UBS said that it's warming to the company's valuation, but still sees a limited total addressable market. "Our fundamental view on Etsy remains unchanged. It has a strong management team with a good track record of delivering on growth and profitability." BTIG downgrades PayPal to neutral from buy BTIG downgraded PayPal after its earnings report Tuesday, saying it sees tough comps. "Downgrading to Neutral as Weaker-Than-Expected FY22 Guidance and Shift in Customer Acquisition and Engagement Strategy, Adding to Tough Comps and Ongoing EBAY Headwind, Push Us to Sidelines." Read more about this call here. Raymond James downgrades PayPal to market perform from outperform Raymond James downgraded the stock due to the company's "lackluster" outlook following earnings. "We are downgrading shares of PYPL to Market Perform from Outperform following the 4Q print that included a 2022 outlook that will raise some eyebrows and send estimates significantly lower, as well as a change in strategy around new active account growth." Morgan Stanley reiterates Boeing as overweight Morgan Stanley said it sees a positive setup for Boeing shares through April. "There's clear investor fatigue, but some investors are starting to warm up to the story. The setup here is positive as we enter a catalyst-rich period through April." Jefferies downgrades Quest Diagnostics to hold from buy Jefferies downgraded the stock due to elevated labor costs. "We downgrade DGX to Hold from Buy as we adjust down our CY23E EPS estimate to $7.96 (8% below Street) to reflect expectations for elevated labor and other operating costs persisting through '22." Guggenheim reiterates Meta Platforms as buy Guggenheim reiterated the company formerly known as Facebook with a buy and said it's bullish heading into earnings Wednesday afternoon. "We continue to believe that Meta has been the most proactive mobile-advertising platform in developing additional privacy-enhancing ad targeting and measurement solutions. We do not expect that the company will be able to offer significantly detailed insight regarding the extent to which initiatives can offset signal degradation." Bernstein downgrades Clorox to underperform from market perform Bernstein cited pricing pressure and a drawn-out margin recovery for its downgrade. "Longer term, however, we believe that – like KMB - margin recovery is likely to take longer than expected, with limited intrinsic differentiation across many of CLX' s categories likely to suppress pricing power. Bernstein upgrades Colgate-Palmolive to market perform from underperform Bernstein said it sees "clear-cut" improvement in the company's fundamentals. "On Colgate – the stock has starkly underperformed the market over the past 12 months, even despite the recent weakness for growth stocks." UBS reiterates Amazon as buy UBS said it was taking a "conservative stance" heading into Amazon earnings Thursday. "We remain constructive on AMZN shares, particularly for 2H21, though we take a more conservative stance on near-term EBIT reflecting risk that some cost pressures in 4Q remain sticky in 1H." JPMorgan resumes Block as overweight JPMorgan resumed coverage of the company formerly known as Square and said it sees an attractive valuation and growth. "We rate shares Overweight given Square's large and untapped addressable market, unique growth characteristics, and an equally unique mission and corporate culture, which in our view, justify its premium valuation." Rosenblatt upgrades Datadog to buy from neutral Rosenblatt said investors should buy the dip in shares of the cloud-scale applications company ahead of its earnings report on Feb. 10. "We expect another strong performance by Datadog this quarter, with revenues in line or marginally above expectations." Goldman Sachs downgrades Starbucks to neutral from buy Goldman downgraded the coffee giant after its earnings report Tuesday, saying it sees commodity inflation and labor costs. "We downgrade shares of SBUX to Neutral from Buy, as we see more limited upside to the stock (7% vs average 21% upside across the rest of our coverage) as cost pressures continue to ﬂow through due to commodity inﬂation and labor costs." Read more about this call here. BMO initiates Beyond Meat as market perform BMO said in its initiation of Beyond Meat that the firm is staying on sidelines due to pricing pressure. "Despite the potential sales outperformance, we remain on the sidelines in large part because required investment, ongoing pricing pressure, mix shift to lower-margin businesses and accelerated brand building creates risk to EBITDA expectations." UBS reiterates Alphabet as buy UBS raised its price target on shares of Alphabet to a Street high of $3,900 from $3,800, noting it sees more upside after the company's earnings report on Tuesday. "On Cloud, we continue to feel good that the revenue growth can surprise to the upside at some point in 2022, though our hopes for significantly faster ramp to profitability this year could get pushed out given an even more robust backlog growth that we contemplated." Read more about this call here. UBS upgrades Edwards Lifesciences to buy from neutral UBS said in its upgrade of the medical technology company that it sees an attractive entry point. "We are upgrading shares of EW to Buy from Neutral, noting an attractive entry point for a quality growth name that should fare well in recovery." Morgan Stanley reiterates Sunrun as overweight Morgan Stanley said it sees an attractive buying opportunity for shares of the solar company. "After continued underperformance, we see a strong buying opportunity in RUN, and view the stock as the most compelling among the clean tech names that we cover, driven by minimal growth reflected in the stock, a growing 'economic wedge,' low financing costs, and consumer demand for reliability." Argus upgrades Exxon to buy from hold Argus upgraded the oil and gas giant after its earnings report on Tuesday, noting it sees share repurchases and dividend hikes this year. "We expect Exxon to benefit from strong energy market fundamentals, as well as from its improving balance sheet, reduced capital spending and higher free cash flow. We also see the potential for dividend hikes, share repurchases and further debt repayment this year." Canaccord initiates Clover Health as buy Canaccord said in its initiation of the health-care company that it's well positioned for growth. "We initiate coverage on Clover Health with a BUY rating and $6 price target. Clover is in the early stages of bringing its data-driven care-management platform – which drives improved health outcomes and lower costs – to the large and growing Medicare market."

Source: Sunrun

Here are Wednesday's biggest Wall Street calls: