Here are Tuesday's biggest analyst calls of the day: Cisco, Starbucks, CrowdStrike, Apple, Utz & more

Published Tue, Apr 12 20228:38 AM EDT

Here are Tuesday's the biggest calls on Wall Street: Citi downgrades Starbucks to neutral from buy Citi said in its downgrade of the coffee giant that it's concerned about labor risks. The firm also reiterated its neutral rating on shares of McDonald's and said it's concerned about the company's Russia business. "We do not think the Street is accurately modeling the impact of losing the Russia business at MCD , and for SBUX, the recent management transition as well as U.S. labor shifts pose unknown risks to out-year numbers, keeping us on the sidelines. Read more about this call here. Citi initiates Chipotle as buy Citi said Chipotle is a "best-in-class growth leader." "A once euphoric reopening feeding frenzy on restaurant stocks is now a purge, brought on by supply chain disruptions, labor shortages, and, most-recently, multi-decade high input inflation. Amidst this dislocation, there are opportunities for investors to gobble up category leaders with idiosyncratic drivers trading at attractive valuations." Wolfe downgrades JetBlue to underperform from peer perform Wolfe said in its downgrade of the airline that it sees operational struggles and worsening capacity cost trends. "We're lowering our rating on JBLU from Peer Perform to Underperform for 3 reasons: 1) JBLU has among the worst capacity-adjusted cost trends, 2) its recent operating struggles." Read more about this call here. Compass Point upgrades Charles Schwab to buy from neutral Compass Point said in its upgrade of Charles Schwab that it sees an attractive risk-reward balance. "We are upgrading to Buy from Neutral. At current valuations, we see positive risk/reward as the upside potential for a higher rate environment more than oﬀsets a more challenging market outlook and the potential impact of 'cash sorting.'" KeyBanc downgrades Chegg to sector weight from overweight KeyBanc said in it sees slowing U.S. growth for the education technology company. "Downgrading Chegg to Sector Weight and modestly lowering our 1Q estimates after observing a downtick in growth trends in our proprietary Key First Look Data from credit/debit transactions." BMO downgrades Waste Management to market perform from outperform BMO said in its downgrade of Waste Management that it lacks near-term visibility on the stock. "While solid waste industry fundamentals remain favorable and the company has previously outlined a robust pipeline of organic capital expansion projects, we believe the current share price captures this upside and we struggle to find near-term catalysts that could push the stock higher. As a result, we have lowered our rating to Market Perform." Read more about this call here. Bernstein reiterates Boeing as outperform Bernstein said it's "finally time" to buy shares of Boeing. "But, a recession has never been good for commercial aero and is the key risk to watch. We still see COVID recovery as most important to drive demand and stock upside. It remains well underway, despite China issues. MAX deliveries are up in March even without China recovery, as MAX-oriented airlines have taken very few deliveries so far because of the grounding and pandemic." Mizuho reiterates Coinbase as neutral Mizuho lowered its price target on the crypto company to $150 per share from $190, noting it sees Coinbase losing market share. "The rapid ascent of competing exchanges like Crypto.com as well as others makes us increasingly worried about looming retail pricing pressure and the long-term sustainability of COIN's business model." Morgan Stanley reiterates Microsoft as overweight Morgan Stanley said it sees "solid secular growth in an uncertain macro environment" for Microsoft . "Leadership across key growth categories and CIO's indications of stable Enterprise IT spending into CY22 should help offset impacts of a volatile macro environment." Morgan Stanley downgrades Hewlett Packard Enterprises to underweight from equal weight Morgan Stanley said in its downgrade of Hewlett Packard Enterprises that it expects the stock to underperform over the next 12 months. "While supply chain backlog should mask impact to near term results, cautious demand data is starting to accumulate." Cowen reiterates Netflix as outperform Cowen lowered its price target on Netflix to $590 per share from $600 ahead of the company's earnings next week. The firm said it's concerned about subscriber additions due to the Ukraine-Russia conflict. "Our US survey suggests NFLX still holds a wide lead in living room TV, even as TikTok gains mobile video viewing share. We also slightly lowered 1Q ARPU to reflect a stronger USD. We slightly reduced our sub forecast; in turn our Price Target goes to $590 from $600." Citi reiterates Apple as buy Citi said in a note to clients that it sees an attractive buying opportunity for Apple shares. "We do recognize that regulatory risks remain a major overhang on the stock, but we view these are headline risk rather that fundamental risk. Such headlines could provide a near-term stock pullback which we would use a buying opportunity for Apple shares. Apple's current market value does not reflect new product category launches such as AR/VR headsets and Apple Car in 2025." Goldman Sachs upgrades CrowdSrike to buy from neutral Goldman said the cybersecurity company has a compelling valuation. "We continue to view CRWD as well positioned in the sweet spot of demand ahead of accelerating deterioration of the threat environment, with Endpoint expected to remain a top CIO priority within Security." Read more about this call here . Credit Suisse downgrades Utz to neutral from outperform Credit Suisse said the snacks company has insufficient pricing power. "We continue to view Utz as a relatively well-positioned company in the attractive salty snacks category with significant opportunities for margin expansion." B. Riley downgrades Skyworks to neutral from buy B. Riley said it sees too many macro risks for Skyworks. "Action is triggered by concerns macro-related risks above could manifest in reduced mobility-related mid- to late-year estimates where we currently see the greatest estimate risk." Bank of America reiterates Nvidia as a top pick Bank of America said the selloff in shares of the stock is "overdone." "We believe the recent weakness in NVDA is overdone, with stock now down -26% YTD (vs. SPX -7%), including a sharp drop in just the last week." Bank of America reiterates Bed Bath & Beyond as underperform Bank of America said in a note to clients that "reality is about to hit hard" for shareholders heading into the company's earnings report on Wednesday. "The stock is one of our top Underperform ideas for 2022. BBBY' s 4Q comp guidance of down high single digits implies comps down roughly 10% on a 3-year basis vs. +23% 3-year home furnishings industry growth per the US Census." Citi downgrades Cisco to sell from neutral Citi said it sees difficult comps for Cisco. "We are downgrading Cisco to Sell from Neutral, and we are upgrading Juniper from Sell to Neutral. We see both Juniper and Buy-rated Arista gaining more share from Cisco and note in a few quarters the Y/Y comps will become more difficult for Cisco. As these share shifts evolve, we see a compression in Cisco's valuation multiple." Read more about this call here .

Tim Cook at the Apple launch event, March 8, 2022

Apple

Here are Tuesday's the biggest calls on Wall Street:

More In Street Calls

Here are Friday's biggest analyst calls of the day: Amazon, Apple, Salesforce, Costco, Block & more

Michael Bloom

Salesforce is too cheap to ignore despite possible slower growth, JPMorgan says

Jesse Pound

Ride out the market storm with Apple, Wedbush's Dan Ives says

Jesse Pound