Here are Monday's biggest analyst calls of the day: Apple, Tesla, Best Buy, Starbucks, Exxon & more

Published Mon, Feb 28 20228:36 AM ESTUpdated Mon, Feb 28 202211:39 AM EST

Here are the biggest calls on Wall Street on Monday: Morgan Stanley downgrades Foot Locker to underweight from equal weight Morgan Stanley downgraded Foot Locker and said it's concerned about revenue potential after the company said it would sell fewer Nike products. "While the stock has de-rated intraday, our EPS forecasts still sit ~50% below the Street with ongoing risk to out-year numbers that could push the stock even lower." Read more about this call here. Jefferies initiates coverage of GoPro as buy Jefferies said that it sees improved visibility for the camera tech company. "GPRO's impressive strategic realignment over the past ~1.5 years, incl: prioritization of GoPro .com, shift toward higher ASP (average selling price) product, & scaling Sub. model, has borne fruit in a much healthier business with greater go-forward visibility." Read more about this call here . BMO downgrades Gilead Sciences to market perform from outperform BMO said in its downgrade of the stock that it's a "show me" story. "We are not negative on the name, but view Gilead as a 'show me' story and look to management for further de-risking of assets before we are more constructive." Bank of America double upgrades PulteGroup and Toll Brothers to buy from underperform Bank of America said in its double upgrade of PulteGroup and Toll Brothers that it sees a favorable risk/reward. "In our year-ahead report we noted that homebuilders stocks could face a challenging setup with rising interest rates, but valuations are now trading at the low end of the historical range and [the] spike in mortgage rates is now already well known to investors." Read more about this call here. UBS downgrades AbbVie to neutral from buy UBS said in its downgrade of the stock that it's struggling to find "meaningful upside." "Great execution to date but upside from here reliant on higher risk drivers. We are downgrading ABBV to Neutral from Buy following a review of our model and near-term pipeline opportunities." Bernstein raises price target on Tesla to $450 from $300 Bernstein reiterated its underperform rating and raised its price target on Tesla to $450 per share. The firm also said the stock's valuation is just "not attractive." "That said, we note that (1) despite the recent pullback, tech stock valuations are still elevated vs. history, and (2) Tesla's growth comparables typically have much higher margins and are arguably less cyclical than automotive companies." Read more about this call here. BMO upgrades Dollar Tree to outperform from market perform BMO said in its upgrade of the stock that it expects upside after the company raised prices to $1.25. "We are upgrading DLTR to Outperform and raising our TP to $170 as we see a favorable risk/reward. We believe that expectations are too low for the GM% (gross margin) impact of the shift to $1.25 at Dollar Tree, which could support upside to 2022 earnings guidance." JPMorgan reiterates Target as overweight JPMorgan kept its overweight rating on shares of Target and said it likes the stock heading into earnings this week. "On TGT, given generally bearish positioning, stock at the low end of what we see as the appropriate range, and expected upside to 4Q EPS and guidance (relative to expectations), we like the stock into earnings." BMO upgrades Block to outperform from market perform BMO said in its upgrade of the payments stock that it sees organic revenue growth upside potential. "We also expect SQ will surprise positively on growth and earnings; our SQ model is more bullish than consensus due to out-year forecasts for a softer landing for Cash App (faster user growth and broader product monetization) and Afterpay accretion to revenue growth." Read more about this call here. Bank of America reiterates Best Buy as buy Bank of America kept its buy rating on the electronics retailer ahead of earnings later this week, but the firm said the next few quarters look challenging for Best Buy. "As two-year growth rates decelerate from pandemic and stimulus-boosted double-digit levels, we expect the next two quarters to be the most challenging from an earnings-growth perspective for BBY. Thereafter we are modeling a rebound to positive YoY EPS growth beginning in 3Q23." Jefferies downgrades Bally's to hold from buy Jefferies said in its downgrade of the casino stock that it's concerned about the "market's patience" for gaming profitability. "Our rating change to Hold from Buy is not driven by the quarter but by the change in the market's patience for digital-gaming profitability and BALY 's anticipated protracted investment cycle in land-based gaming." JPMorgan reiterates Apple as overweight JPMorgan kept its overweight rating on shares of the tech giant and said its recent buy-side survey points to "upside" for Apple shares. "Sustaining double-digit growth through the year would require execution-led upside to implied guidance for F2Q growth in the mid-single digit percentage, as well as higher-than-consensus growth rates in the following quarters of F3Q and F4Q." Gordon Haskett downgrades Jack in the Box to hold from buy Gordon Haskett said in its downgrade of Jack in the Box that it sees reduced visibility. "Downgrading to Hold: Multiple Expansion Limited by: Moderating Share Gains, Reduced Margin Visibility & Declining Franchise Mix." Bank of America reiterates Starbucks as buy Bank of America kept its buy rating on shares of the coffee giant. The firm said it sees "short-term weakness" but "long-term strength." "Since its F1Q earnings release, SBUX has underperformed restaurant peers and remains well below '21 highs. While historically Starbucks' US comps have been the fundamental factor most highly correlated with valuation, since the pandemic emerged, however, valuation has untethered from U.S. comps as investors have contemplated pressures elsewhere." Morgan Stanley downgrades Lear to equal weight from overweight Morgan Stanley said in its downgrade of the automotive-seating company that it's concerned about decelerating growth. "While LEA has a strong Seating business which is powertrain agnostic, our prior OW rating was premised around the E-Systems business accelerating growth, specifically within BEVs, while producing a healthy margin." Morgan Stanley reiterates Salesforce as overweight Morgan Stanley kept its overweight rating on shares of Salesforce and said it sees a favorable setup heading into earnings on Tuesday. "Muted buyside expectations, solid Q4 checks and robust 1H outlook supports a favorable setup into Q4. Execution toward both growth and margin expansion is key to narrowing the discount vs. peers." Wells Fargo reiterates Citi as overweight Wells Fargo kept its overweight rating on shares of Tesla, but the firm said consensus estimates are too high due to the situation in Ukraine and Russia. "We reiterate our view that 2022E EPS consensus is too high by 20%-25%, and that Citi's in-person investor day this Wednesday will require the firm to lower guidance. Indeed, we take our Street-low 2022E EPS from $6.00 to $5.90 (consensus = $7.53) due to the situation with Russia." Canaccord initiates coverage of Virgin Orbit as buy Canaccord said the space-satellite company has an "exceptional" market opportunity. " Virgin Orbit is one of just three commercial launch operators that has carried out multiple consecutive orbital missions (three to date). Being in the same exclusive club as Rocket Lab (RKLB) and SpaceX has enabled the company to aggressively take share in the small-launch market, which primarily serves the high-growth satellite-services ecosystem developing in low-Earth orbit." Bank of America reiterates Exxon and Chevron as buy Bank of America reiterated its buy rating on shares of Exxon and Chevron . The firm said it's bullish on the oil giants heading into their analyst day events. "While we retain Buy ratings on both, the rate of change beyond a call on oil prices favors ExxonMobil in our view." Wolfe upgrades Lockheed Martin to outperform from peer perform Wolfe said in its upgrade of the stock that it sees "greater international defense spend." "At LMT , we are raising estimates on our analysis of international defense spend and the company's outsized international exposure relative to defense prime peers."

Apple CEO Tim Cook speaks at the Anti-Defamation League's "Never is Now" summit in New York, December 3, 2018.

Brendan McDermid | Reuters

Here are the biggest calls on Wall Street on Monday: