Here are the biggest calls on Wall Street on Friday: JPMorgan reiterates Netflix as overweight JPMorgan said in a note to clients on Friday that Netflix shares are "controversial," but the firm still sees "strong secular growth" in streaming. "However, as we wrote post-4Q earnings, we continue to believe strong secular growth remains in global streaming as NFLX accounts for less than 10% of TV time in the U.S.— its biggest market — and NFLX's penetration of global broadband households ex-China is less than 30%." RBC downgrades Redfin to sector perform from outperform RBC said in its downgrade of the real estate brokerage that the company's thesis is "broken." It sees slowing growth for Redfin . "Share gains are simply not materializing at a fast enough rate, home-inventory challenges and lack of secular story should make for slower growth and recent agent hiring tilts the gross margin risk/reward unfavorably where management has set a higher 2H bar." Read more about this call here . Pivotal downgrades Roku to sell from hold Pivotal said in its downgrade of the stock after its disappointing earnings report on Thursday that it sees too many negative catalysts. "The bottom line is with increasing competition, a potential significantly weakening global economy, a market that is NOT rewarding nonprofitable tech names with long pathways to profitability, and our new target price we are reducing our rating on ROKU from HOLD to SELL." Deutsche Bank adds a catalyst call buy idea on Charles Schwab Deutsche Bank said the company's earnings growth profile is "defensive" in a market-correction scenario. "We are initiating a Buy Catalyst Call on Charles Schwab hedged against the S & P 500 Index. We think investors will more fully embrace the magnitude of the earnings leverage to the earliest stages of an expected FOMC tightening cycle, and this will become evident in 1Q22 earnings results and related management commentary, and upon expectations for accelerating earnings growth in 2Q22." Read more about this call here. Telsey reiterates Home Depot as outperform Telsey said in a note to clients on Friday it sees "positive momentum" heading into Home Depot 's earnings next week. "First, the housing market has remained solid, with elevated home prices, healthy remodeling activity and solid household formation. Second, while home-improvement sales have slowed, given challenging comparisons from last year, monthly sales data from the U.S. Census Bureau shows Building Materials, Garden Equipment, and Supply retailers still saw strong YoY growth — 15.0% in November, 12.0% in December, and 12.7% in January." JPMorgan reiterates Apple as overweight JPMorgan kept its overweight rating on shares of Apple . The firm said China iPhone shipments appear to be trending better than average. "International shipments (Apple) demonstrate better than seasonal trends in January." Goldman Sachs downgrades Tencent Music to sell from neutral Goldman said in its downgrade of the Chinese music company that the growth outlook is hampered by competition for Tencent Music. "We lower our 2021E/22E/23E revenue estimates by 1%/5%/9% to factor in challenges across business lines, including consumers' reduced willingness to pay amid weak macro, sluggish user expansion against fierce competition, and slower-than-expected non-subs growth on the back of tightening regulations." Evercore ISI adds Albemarle to the tactical outperform list Evercore said in a note to clients on Friday that investors should buy the dip in shares of the chemical-manufacturing company. "We are adding ALB to our Tactical Outperform list following a ~18% downdraft in the stock post 4Q/ YE earnings. Our central question ahead of 4Q results at ALB was if underlying strength in the lithium market would flow through to the income statement. This definitively did happen with pricing guided up 40-45% and volumes up 20-25% in the Lithium segment, driving EBITDA up 75% YoY." Daiwa initiates coverage of Block as buy Daiwa said it sees "sustained top-line expansion" for the digital-payments company formerly known as Square. " Block i s one of the few firms in the payments space that reaches both merchants and consumers, and it is focusing on potential synergies between the two business domains." Bank of America reiterates Intel as underperform Bank of America said the company has a "high-risk plan" with no reward payoff until 2026. "No cash generation for three years even with government incentives. We attended Intel analyst day in San Francisco where it laid out an ambitious plan to drive 2x EPS growth through 2026." MoffettNathanson downgrades Altice USA to neutral from buy Moffett said the cable company is the "wrong stock at the wrong time." "There's a time for highly levered fix-it stories. This isn't that time. With interest rates rising and risk appetites falling, Altice USA' s 'just be patient' message is uniquely ill-suited to the times. Frankly, we're frustrated with ourselves for having done a poor job 'reading the room.' Altice USA is the wrong stock for the times." Deutsche Bank reiterates Robinhood as hold Deutsche raised its price target on shares of Robinhood to $14 per share from $12, but the firm said there's too much near-term uncertainty. "We are using a market P/E of ~21.5x on this 2024 EPS estimate, given the substantial uncertainty of future forecasted earnings, we think inherent in HOOD's current business model and status of being a relatively early stage company in many aspects." Morgan Stanley reiterates Lucid as underweight Morgan Stanley kept its underweight on the electric vehicle company ahead of earnings later this month. The firm said investors will be watching Lucid' s delivery guidance very closely. "While the shares are pricing in a scenario in between our $16 base case and our $60 bull case we would prepare for high levels of volatility around the share price given the stock's unusually low free float, high short interest and what we believe to be a steadfast/strategic commitment by its 63% controlling shareholder." Bank of America reiterates Walmart as buy Bank of America kept its buy rating on shares of Walmart after its earnings report Thursday . The firm said the big-box retailer is well positioned for the rest of 2022. "We expect modest gross margin expansion in F23E on pricing, mix and productivity initiatives, while SG & A (Selling, General & Administrative expenses) should see some pressure from higher wages and supply chain costs, particularly in F1Q." Raymond James upgrades Fastly to strong buy from outperform Raymond James said in its upgrade of the cloud computing company that the fundamentals are stronger than investors think. "We are upgrading shares of FSLY to Strong Buy on what we believe is an overreaction to the conservative top-line guidance management unveiled for 2022. We believe the downdraft in the shares is in response to the top-line guide that consists of two camps: The bears believe it is a sign that some mix of pricing and volume are weakening, and management lacks confidence in the business." Read more about this call here.
Apple CEO Tim Cook attends the premiere for season two of the television series "Ted Lasso" at Pacific Design Center in West Hollywood, California, U.S. July 15, 2021.
Mario Anzuoni | Reuters
Here are the biggest calls on Wall Street on Friday: