Here are Wednesday's biggest analyst calls: Chipotle, Peloton, Netflix, Coinbase, Home Depot & more

Published Wed, May 11 20228:29 AM EDTUpdated Wed, May 11 20229:41 AM EDT

Here are Wednesday's biggest calls on Wall Street: Daiwa downgrades Unity to hold from buy Daiwa said it's getting more cautious on shares of Unity after the game engine developer's earnings report on Tuesday. "We are still a believer in U' s long-term market potential. We are just taking a more cautious approach near to medium term." JPMorgan initiates Affirm as neutral JPMorgan said that it's concerned about increased competition for the fintech company. "Near-term, we believe AFRM is poised for continued hyper volume growth, fueled by partnerships with Shopify and Amazon, but our bullishness is tempered by the threat of increased competition, pricing pressure and concerns about their go-to-market strategy." JMP upgrades Peloton to market outperform from market perform JMP upgraded the stock after the exercise equipment maker's earnings report , noting the company can still take market share. "We are upgrading shares of Peloton Interactive to Market Outperform from Market Perform and establishing a $25 price target as we believe it offers a best-in-class Connected Fitness (CF) workout experience that can take share." Read more about this call here. Stifel downgrades Carvana to hold from buy Stifel said that it's concerned about the car seller's capital. "Deteriorating capital market conditions and worsening trends in the used vehicle industry have eroded our conviction in the path for Carvana to secure the necessary capital to realize sufficient scale and self-funding status." Read more about this call here. Bank of America reiterates Coinbase as buy Bank of America said it's sticking with the stock after its disappointing earnings report Tuesday. "We continue to think COIN remains well positioned to roll out new products that will generate top line growth and diversify revenues." MoffettNathanson upgrades Electronic Arts to buy from hold Moffett said in its upgrade of Electronic Arts that video game stock is a good place for investors to "hide." "As long-duration growth stories lose favor, it's natural for investors to look to more stable places to hide. In many ways, video game stocks have already gone through most of the process." Read more about this call here. Stifel downgrades Peloton to hold from buy Stifel downgraded Peloton after its earnings report on Tuesday, noting it's still concerned about growth. "While we acknowledge that it is still early in the company's transition, visibility into the normalized growth rate of the business has yet to emerge." Deutsche Bank upgrades Grocery Outlet Holdings to buy from hold Deutsche said in its upgrade of the discount grocery store company that it has "favorable store economics." "We are upgrading GO to Buy from Hold with a new PT of $40 as we see potential for EPS upside supported by a compounding inflationary environment and increasingly value-focused consumers. Citi reiterates Western Digital as a top value stock Citi said that's it's extremely bullish on the stock after Western Digital's investor day on Tuesday. "The event was very well attended as the company has been somewhat quiet with investors during the past two years, and the majority of the company's management has been replaced during the past two years." Barclays downgrades Corning to equal weight from overweight Barclays said the glass stock has upside is limited right now. "We still see a number of long-term drivers for GLW , but we believe stock upside is limited, as we are more concerned about a few of the key consumer end markets." Wells Fargo reiterates Home Depot and Lowe's as overweight Wells said sthat it's bullish heading into the home improvement retailers' earnings report next week. "That said, we think the FY22 outlook should remain intact (esp. if weather normalizes in May), as vendor reads/checks are favorable, project demand elevated & inflation pass-thru strong. So while it's prudent to lower the bar into a squishy Q1, we see reasons for relief with HD / LOW shares -30%/-26% YTD, easing compares from here and a market clamoring for safety/quality." JPMorgan upgrades Planet Fitness to overweight from neutral JPMorgan said in its upgrade of the fitness company that it sees more expansion and user growth in the future. " PLNT growth algorithm intact, supported by improving usage trends, solid franchisee economics, and unit white space as the ~2,230+ unit US chain (and ~2,320 global) approaches its 4,000+ US target." Bank of America reinstates Chipotle as buy Bank of America resumed coverage of the Mexican chain restaurant, saying it sees a long runway for growth. " Chipotle is one of the few high-growth restaurant companies and has numerous appealing attributes that support continued unit growth." JPMorgan adds Boot Barn to the focus list JPMorgan added the shoe retailer to its focus list, citing "incremental tailwinds." "We rate BOOT Overweight with consistent top-line performance of above the long-term algo of 3-5% same-store sales and 10%+ sq. ft. growth translating to a 20%+ EPS growth profile." Evercore ISI reiterates Nike as outperform Evercore said that it sees a "long-tailed explosion of sneaker demand" and that Nike is a key beneficiary of this. "We have become extremely bullish on the global demand outlook for sneakers over at least the next two years given the convergence of a unique cyclical and structural circumstances post-COVID." Bank of America reiterates Netflix as underperform Bank of America lowered its price target on shares of Netflix to $240 per share from $300 and says it sees too much "negative sentiment" around the stock right now. "We lower '23 and '24 estimates on expected saturation/slowing subscriber growth (see Exhibit 2). We lower our PO to $240 from $300 driven by negative sentiment on the category and the continued pressure driven by reopening." Goldman Sachs downgrades Coinbase to neutral from buy Goldman downgraded the crypto company after its earnings report and says it likes the stock but has too many profitability concerns. "... we believe COIN is unlikely to return to recent levels of proﬁtability in the near term absent a signiﬁcant increase in crypto prices or volatility."

A Home Depot location in Encinitas, California.

Mike Blake | Reuters

Here are Wednesday's biggest calls on Wall Street: