Here are Monday's biggest analyst calls of the day: Tesla, Tyson, Netflix, Walmart, Apple & more

Published Mon, Feb 14 20228:37 AM ESTUpdated Mon, Feb 14 20228:28 PM EST

Here are the biggest calls on Wall Street on Monday: Piper Sandler reiterates Tesla as overweight Piper Sandler raised its price target on shares of Tesla to $1,350 per share from $1,300. The firm said "cash flow & capital efficiency imply improving financial health" after reviewing the company's latest 10-K financial report. " Tesla' s Gross Margin: Near-term Risk, Long-term Upside. Gross margin is hard to predict; downside in '22 would neither surprise nor discourage us." Citi reiterates RH as buy Citi kept the home-furnishings company as a top pick and said it sees a "favorable" risk/reward. "We recognize the concerns for RH: (i) a potential 'give-back' year in home furnishings spending (ii) stock market weakness causing a slowdown in affluent spending and (iii) rising rates slowing the housing market. Despite these concerns, we still see a favorable risk/reward for RH based on the several catalysts for growth in 2022 & beyond, most notably RH England opening & the launch of RH Contemporary." Wells Fargo reiterates Home Depot and Lowe's as overweight Wells Fargo kept its overweight rating on the home improvement retailers and said it sees a strong setup heading into earnings later this month. "As concerns around inflation, rising rates and tough compares enter the narrative, we see a solid setup with HD/LOW shares-DD% YTD (SPX -7%), upward revisions coming and strong FY22 commentary likely on deck." KeyBanc reiterates Apple as overweight KeyBanc kept its overweight rating on the tech giant and said its survey checks show robust new user growth. "However, we are optimistic on recent reports of strength in iPhone in China and India, which supports our view of AAPL' s strong new user growth, and we remain above consensus for FY22 on iPhone, Services, and adj. EBITDA." Deutsche Bank upgrades Discover to buy from hold Deutsche Bank said in its upgrade of the stock that it sees elevated loan growth leading to greater revenue. "We are upgrading DFS to Buy with a new price target of $145, which represents ~16% upside from current levels." Jefferies downgrades JPMorgan to hold from buy Jefferies said in its downgrade of the banking giant that it sees limited near-term earnings catalysts. "We also downgrade JPM /USB, with fewer meaningful EPS upside drivers in sight. For JPM, we see limited upside given a still-premium multiple after the cost-related EPS reset, as well as tough fee comps." Read more about this call here. Barclays downgrades Tyson Foods to equal weight from overweight Barclays said in its downgrade of the poultry company that it sees limited near-term catalysts for the stock. "While TSN reported strong results last week, we see limited upside potential at current levels, and despite slightly increasing our PT to $100, we downgrade TSN to EW from OW. Another strong beef quarter and better-than-expected chicken and prepared foods results are currently priced in, in our view." Jefferies reiterates Alcoa as buy Jefferies kept its buy rating on shares of Alcoa. The firm said even with Russia/Ukraine concerns, the outlook for aluminum is positive. "The escalation of Russia/Ukraine tensions could lead to a supply shock and cost push inflation in aluminum and other commodities. The risk to our price forecasts is clearly to the upside. Even without Russia/Ukraine, we believe the outlook for aluminum — and for Alcoa — is positive." Raymond James downgrades Texas Instruments to market perform from outperform Raymond James said in its downgrade of the stock that it has concerns about "new spending details" that are not priced in. "We are downgrading TXN from an Outperform to a Market Perform rating due to rising capital intensity late in the cycle, with new spending details that we and the market weren't expecting." Bernstein reiterates Tesla as underperform Bernstein kept its underperform rating on the automaker and predicted it "will not be the first company to commercialize a ride-hailing network." "We believe that Tesla will NOT be the first company to commercialize a ride-hailing network, in large part because it is not using (and appears unlikely to use) a geofenced approach, which will likely be a key parameter of early stage robotaxi operations." Bank of America upgrades Duke Energy to buy from neutral Bank of America said in its upgrade of the energy company that it sees a "solid set-up with plenty of upside." "We recap and refresh our thoughts on Duke Energy f ollowing the year-end update and are moving our rating to Buy from Neutral based on our view that mgmt. is in a position to over-deliver on certain aspects of the plan." Wedbush adds Shake Shack to the best idea list Wedbush added the burger chain to its best ideas list and said a post-pandemic recovery is not priced in. "We are adding SHAK to the Wedbush Best Ideas List (BIL). We believe current expectations do not bake in a post-Omicron recovery resembling pre-Omicron Q4's trendline." Wedbush upgrades Micron to outperform from neutral Wedbush said in its upgrade of the stock that it sees better semiconductor growth in the near term. "Faster growth in semiconductor content should also translate to greater memory requirements over the next few years (and stronger sales for memory players including MU )." Read more about this call here. UBS upgrades Allstate to buy from neutral UBS said in its upgrade of the insurance company that it sees margin expansion. "We are upgrading shares of ALL to Buy as we believe that underlying margin improvement beginning in 2H22 will drive upward EPS estimate revisions and multiple expansion." Needham reiterates Netflix as underperform Needham kept its underperform rating on the streaming giant and said the "bear case" for the stock continues to evolve. "Since downgrading NFLX to Underperform in 4Q19, many investors who don't like NFLX as an investment idea talk to us regularly. NFLX call volumes have grown. More interestingly, what institutional investors are worried about now is different from before. The bear case is evolving. Loop initiates coverage of Cisco as buy Loop said it sees a "compelling" risk/reward for the tech conglomerate. "A Franchise Value and GARP Networking Name. We are setting a Buy rating and $71 price target representing an upside of over 25%. We see a compelling risk/reward in CSCO shares. In our view, it has one of the best-in-class management teams at the helm in the entire networking sector and enjoys a deep bench of equally talented managers." JPMorgan upgrades Goodyear Tire to overweight from neutral JPMorgan said in its upgrade of the tire company that it sees "deep value for patient investors." "We are upgrading Goodyear shares to Overweight from Neutral after the firm reported solidly better 4Q21 results Friday but at the same time pointed to a softer than expected 2022 outlook, citing inflation, sending the shares -27.4% lower (their worst single day performance in nearly 35 years) vs. the S & P 500 -1.9%." Read more about this call here. Morgan Stanley reiterates Walmart as overweight Morgan Stanley said in its sees a positive risk/reward heading into Walmart earnings later this week. "Q4 preview: sales upside, some margin pressure, in-line/slight EPS beat & potentially muted stock reaction. Key debate: does WMT guide to 'algo' US EBIT growth in F'23? We don't think so, but neither the stock nor consensus is demanding it. Risk/reward is positive." Stephens names Callaway Golf a best idea Stephens named the golf company as a best idea and said it sees several positive catalysts going forward. "We are changing our Best Idea from IAA to ELY. We believe that Callaway has a number of catalysts ahead of it, with an analyst day upcoming in 2Q, an improving supply chain, and Topgolf traffic improving through 1Q." Read more about this call here. Bernstein initiates coverage of DiDi Global as outperform Bernstein said the Chinese ride-sharing company has a sturdy leadership position. "Customer loyalty is better than expected. Order share dropped only ~7 pts, to 74% in Dec after the review, significantly ahead of the second player's 16%. We expect DIDI to invest in marketing shortly after resuming new customer acquisition."

Tyson food meat products are shown in this photo illustration in Encinitas, California.

Mike Blake | Reuters

Here are the biggest calls on Wall Street on Monday:

NEXT PRO TALK

5 Days Remaining

Wed, July 6 2022 - 12:00pm

CNBC PRO Talks: Top tech investor and analyst Gene Munster provides stock picks and strategy for the beaten-up sector

More In Street Calls

Here are Friday's biggest analyst calls of the day: Apple, FedEx, Coinbase, Honeywell, Micron & more

Michael Bloom5 hours ago

Energy stocks are the best bet in the market right now, says JPMorgan

Pippa Stevens

Bank of America downgrades Micron, says recovery is 'unlikely' this year

Sarah Min