Here are Monday's biggest analyst calls of the day: Apple, Uber, Clorox, Chipotle, Walmart & more

Published Mon, Feb 7 20228:35 AM EST

Here are the biggest calls on Wall Street on Monday: Bank of America reiterates Apple as buy Bank of America kept its buy rating on Apple and said the stock is well positioned for outperformance in 2022. "We view the robust cash flows at Apple as attractive in a volatile macro environment where even Mega-cap tech names have not been immune to significant volatility." Morgan Stanley upgrades TSMC to overweight from equal weight Morgan Stanley upgraded Taiwan Semiconductor Manufacturing Company and said the stock's valuation is attractive. "Stock valuation is already attractive enough to look beyond the 2022 tech downcycle. Long term, the reduced capex burden and significant outsourcing from Apple and Intel are key reasons why we form a positive outlook for year 2024." Bank of America reiterates Uber as buy Bank of America kept its buy rating on shares of the ride-sharing company and said it's bullish heading into Uber 's investor day later this week. "At analyst day expect mgmt. to outline a strong case for Uber's growth levers and margin trajectory from here, which could build a better case for multiple expansion." Citi reiterates Clorox as buy Citi reiterated its buy rating on shares of Clorox. The firm said investors should stick with the cleaning products stock and buy the dip. "Indeed, we continue to believe CLX has multiple LT sales growth levers and can over time recover margins, and in the meantime has one of the best balance sheets in the group. Although we are taking our medicine now, we think the stock is a Buy at these levels." Needham reiterates Netflix as underperform Needham kept its underperform rating on shares of the streaming giant. The firm said it's skeptical of Netflix's plan to win the "streaming wars." "What should NFLX do, in our opinion? 1) Add an advtg tier to accelerate rev growth and expand its TAM; 2) buy an old media library to improve its content ROICs and moat from owning IP; 3) add sports and news; and/or, 4) sell. NFLX can NOT win the 'streaming wars' given its current strategy, we believe." Read more about this call here. Raymond James reiterates Chipotle as outperform Raymond James kept its outperform rating on shares of the burrito chain ahead of its earnings report on Tuesday. The firm said investors should buy the weakness. " CMG shares are down ~15% YTD which we attribute to QTD comp concerns (industry slowed) and the broader selloff in high growth/multiple stocks." Baird reiterates Peloton as outperform Baird kept its outperform rating on shares of the fitness company ahead of its earnings report on Tuesday. The firm said it is skeptical of a deal for Peloton from Nike, Amazon and others. "While Peloton could bring significant value to other platforms, we currently assign a relatively low probability to a successful deal." Morgan Stanley reiterates Walmart as overweight Morgan Stanley kept its overweight rating on the big-box retailer. The firm said its recent survey checks show that Walmart+ continues to gain members. "Latest AlphaWise data shows Walmart + membership continues to increase, with ~15m members total (~12% household penetration) & ~1m net members added in the past quarter." Morgan Stanley reiterates Coca-Cola as overweight Morgan Stanley kept its overweight rating on shares of the beverage company. The firm said it's bullish heading into earnings. "We are Overweight KO. Short term, we see an above consensus post-COVID topline/EPS recovery, and longer term, we see a return to pre-COVID outsized sales growth vs. peers, improved execution with a reorganization, and better margin performance than peers with a less onerous price/cost gap." RBC downgrades Cigna to sector perform from outperform RBC said in its downgrade of the health-care stock that it sees a slower road to multiple expansion. "Despite the 4Q21 EPS beat and in-line 2022 guide, CI shares traded off post-earnings on expectation for persistent medical cost pressure in 2022, weighing particularly heavily on the stop-loss book, as well as the absence of Medicare Advantage and IFP (individual and family plans) membership growth, even amid recent geographic expansions. JPMorgan initiates coverage of Frontier Communications as overweight JPMorgan gave the cable company an overweight rating and said it sees "valuation upside." "We are encouraged by Frontier's reinvigorated focus to rapidly deploy fiber and improved capital structure post-bankruptcy, but acknowledge building and selling fiber in an increasingly competitive broadband ecosystem remains a key risk." Wells Fargo reiterates Bank of America as overweight Wells Fargo raised its price target on shares of Bank of America to a Street high of $66 per share from $63 and said it sees a "better rate backdrop." "There is a sea change for Central Banks. As of Friday (2/4), the bond market erased the pandemic effect based on the 10-year treasury yield reaching the highest level since Dec 2019." Read more about this call here. Credit Suisse reiterates Disney as outperform Credit Suisse kept its outperform rating on shares of Disney ahead of earnings later this week. The firm said investors will be watching the company's progress on streaming growth. "Structural streaming concerns also remain top of mind, including whether Disney+ can develop content to broaden out beyond its Disney/Marvel/Star Wars fan base and if Netflix's slow growth patch suggests a corollary lesser streaming TAM/margin outlook for its competitors, like Disney+." Morgan Stanley upgrades Snowflake to overweight from equal weight Morgan Stanley said the data storage stock is undervalued. "With the core data warehousing business outperforming, new nascent expansion opportunities gaining steam, and significant FCF generation within reach, investors are undervaluing the durability and quality of growth at Snowflake with shares trading at 0.43X EV/CY23 Sales/Growth vs. peers at 0.54X Read more about this call here. Citi downgrades Stanley Black & Decker to sell from buy Citi double-downgraded the tool manufacturer due to slowing growth. "We downgrade SWK to Sell (from Buy) due to recent margin dilutive acquisitions, potential m/s loss, and lack of new innovative products." Argus upgrades Hershey to buy from hold Argus upgraded Hershey after its earnings report last week. The firm said the chocolate manufacturer is "financially sound." "HSY shares have outperformed over the past quarter, gaining 17% compared to a 1% decline for the S & P 500 and a 9% gain for the industry. Hershey recently reported fourth-quarter results that topped expectations."

Uber Technologies CEO Dara Khosrowshahi during the opening bell at the New York Stock Exchange during the company's IPO, May 10, 2019.

Brendan McDermid | Reuters

Here are the biggest calls on Wall Street on Monday: