Here are Tuesday's biggest analyst calls of the day: Tesla, McDonald's, Walmart, Petco & more

Published Tue, Mar 29 20228:32 AM EDTUpdated Tue, Mar 29 20229:32 AM EDT

Here are Tuesday's biggest calls on Wall Street: Morgan Stanley reiterates Alphabet as a top pick Morgan Stanley said it sees "outsized" ad revenue for Alphabet. "Upside: Still an Innovation Driven Cash Flow Story: We continue to believe GOOGL' s innovation focus across its platform can drive outsized ad revenue and FCF growth." Goldman Sachs double downgrades Reynolds to sell from buy Goldman said in its downgrade of Reynolds that consensus estimates are too high. "While we continue to be impressed with the company's scaled position in its respective categories, strong executional prowess and evident pricing power, both management's EBITDA guidance and FactSet consensus estimates appear to be too high to us." Read more about this call here. Barclays upgrades Fortinet to overweight from equal weight Barclays said in its upgrade of the cybersecurity company that it sees long-term margin growth. "We are more positive on FTNT because of its customer, geographic, and vertical diversity amidst an elevated security threat backdrop." Read more about this call here. Morgan Stanley downgrades Pinterest to equal weight from overweight Morgan Stanley said in its downgrade of the stock that it sees "multiple headwinds" with "too much uncertainty." "We see multiple larger forward rev headwinds as PINS' user and time spent trends are challenging (US time spent now at 2017 levels) and PINS shifts existing time spent toward lower monetizing creator videos." Read more about this call here. Credit Suisse reiterates Tesla as outperform Credit Suisse said that despite supply chain challenges, the case for Tesla is "amplified." The firm said it was bullish heading into Tesla's delivery numbers this weekend, but that it was watching for any impact of the Covid situation in China. "Lastly, we see the recent China COVID flare-ups as a potential risk to the downside – given Tesla deliveries are typically heavily weighted toward the end of the quarter, it is certainly possible that Tesla's likely quarter-end wave will be somewhat limited by the rise of COVID." Credit Suisse downgrades The RealReal to neutral from outperform Credit Suisse said in its downgrade of the luxury goods seller that it sees a tough path to profitability. "1)We're disappointed by guidance to only $100m+ of EBITDA by '25 considering Consensus was already at +$109m (no upside, despite being several years in the future), 2) REAL's path to profitability is significantly longer and requires much more GMV vs the initial IPO model to achieve profitability." Cowen names McDonald's a top Europe idea Cowen said that McDonald's has strong value perception among European consumers. "Despite 40% European mix of sales, the investor narrative is generally on the U.S. business. We have confidence in 2022 U.S. SSS outperformance that should lead to positive sales revisions, driven by the brand's scale and nearly complete store remodel program." Baird names Global Payments a fresh pick Baird added the payment company to its fresh pick list, saying Global Payments is an inflation beneficiary. "We like that sentiment remains weak, while Merchant trends seem good/improving. Industry data and GPN comments at a recent conference both seem good, and enough to at least offset Russia/fx headwinds." Goldman Sachs reiterates Walmart as buy Goldman said Walmart is well-positioned in an inflationary environment. "In light of this backdrop, we reiterate our Buy rating for WMT given it continues to lead the market with the lowest prices (and widest price gaps), which should support market share gains, while also providing the company optionality to raise some prices, if needed, in order to offset the cost pressures and maintain its competitive position." Loop downgrades Etsy to hold from buy Loop said in its downgrade of the stock that the "macroeconomic environment has materially worsened." "We are lowering our rating on Etsy from Buy to Hold and lowering our price target from $185 to $140. We're lowering our sales estimates this year and next to be more in line with consensus. Though ETSY beat expectations last quarter, we think the macroeconomic environment has materially worsened since our last note in late February. Morgan Stanley downgrades NortonLifeLock to equal weight from overweight Morgan Stanley said it sees "limited catalysts for the stock." "Slowing topline and macro suggest downside risk to FY23 consensus rev estimates, while NLOK faces an uncertain regulatory path for closing the proposed Avast transaction." Read more about this call here . Atlantic Equities reiterates Charles Schwab as overweight Atlantic Equities raised its price target on the financial services company to $120 per share from $105, noting it's a "best-in-class asset-gathering franchise." "While Schwab is highly rate sensitive, our Overweight recommendation is underpinned by the firm's best-in-class asset-gathering franchise, which will deliver sustainable and compounding revenues streams for many years to come." KeyBanc reiterates Airbnb as outperform KeyBanc said its survey checks show that consumer travel continues to hold up well. "We continue to view Overweight rated ABNB as most-levered to a global travel recovery, which creates an upward bias to our/Street room night estimates of 407M/405M." Argus upgrades AutoZone to buy from hold Argus said in its upgrade of AutoZone that earnings continue to rebound with more opportunities for growth. "We see opportunities for further growth as the average age of vehicles increases and the company gains market share in the commercial segment." UBS reiterates Levi Strauss as buy UBS kept its buy rating on the stock, but said it's cautious heading into earnings next week. "We reiterate our Buy rating on LEVI's due to its attractive long-term EPS growth outlook. In the near-term, we doubt the company's 1Q22 earnings event sends the stock meaningfully higher." Wedbush adds Petco to the best ideas list Wedbush added the pet store company to its best ideas list, saying it sees "durable" market share gains. "Adding WOOF to the Best Ideas List as the company's holistic premium pet care business model is gaining momentum and should deliver durable market share gains in the high-growth (and mostly non-discretionary) pet care industry.' Deutsche Bank downgrades CVS to hold from buy Deutsche said in its downgrade of the drug store giant that the risk-reward profile is starting to skew negative. "We are downgrading CVS shares to Hold from Buy as we now see a risk/reward profile that skews negative driven by multiple factors: we see the potential for near term negative revisions in the pharmacy segment from manufacturer participation in the 340B program." Read more about this call here. Jefferies reiterates Rent the Runway as buy Jefferies said the designer apparel and accessories company is a key beneficiary of the wedding boom this year. "There are expected to be 2.6M weddings in the U.S. in 2022, the highest level since 1984, or +20% the annual avg. between 2010-2019. The event backlog provides RENT with a significant opportunity to attract new users looking for occasion-wear with one-time use cases."

Levi Strauss & Co. CEO Chip Bergh rings the opening bell on New York Stock Exchange (NYSE) during the company's IPO in New York, U.S., March 21, 2019.

Lucas Jackson | Reuters

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