Here are Wednesday's biggest analyst calls: Tesla, Netflix, GameStop, Dave & Buster's, Amazon & more
Here are the biggest calls on Wall Street on Wednesday: Deutsche Bank reiterates Tesla as buy Deutsche reiterated its buy rating on the automaker in its 2022 outlook and said "no one else" comes close to Tesla in the U.S. "Meanwhile, we will look for Tesla to make strides with the development of its Full Self-Driving system, potentially leading to stronger take-rates and improved subscription revenue generation. UBS reiterates Apple as buy UBS kept its buy rating on shares of Apple and said its recent checks show wait times for the high-end iPhones remain mixed. "Compared to last year, wait time or days until available remain elevated for the highest priced iPhone 13 Pro Max in all of the key regions including the US, China, Japan and key markets in Europe. Although we are beginning to see modest improvement in availability on a week-to-week basis in most of the regions, specifically in the US, availability in China shows no signs of improvement. Loop reiterates McDonald's as buy Loop kept its buy rating on the fast food chain and said its better-than-expected comps could "drive meaningful multiple upside." "Given the shares of MCD are trading at ~17x our 2022 EV/EBITDA estimate, which is a modest discount to its closest peers despite MCD containing one of the most attractive same-store sales growth beat stories, we believe better-than expected comps next year could drive meaningful multiple upside." Deutsche Bank upgrades Goodyear to buy from hold Deutsche said in its upgrade of the tire company that it's a top electric vehicle beneficiary. "We upgrade Goodyear from Hold to Buy, as we believe the company is well positioned for considerable additional earnings growth in 2022 and beyond, driven by favorable market dynamics, deep restructuring benefits, large additional synergies from the Cooper acquisition, and perhaps most importantly, very favorable mix impact from electric vehicles." Read more about this call here. Bank of America downgrades Honeywell to neutral from buy Bank of America said in its downgrade of the stock that it's concerned about revenue and margin headwinds. "There is a lot to like about Honeywell. M & A and organic investments (such as Forge software) have shifted the portfolio towards structurally higher growth and margins. However, HON is likely to face revenue & margin headwinds in 1H22." Read more about this call here. Wells Fargo reiterates Amazon as overweight Wells reiterated the e-commerce giant as a signature pick and said it sees more upside. "We remain confident on AMZN' s ability to drive penetration of additional retail product categories and key emerging geographies, maintain its lead in cloud computing and execute against additional opportunities such as online advertising which we believe offer the company compelling growth and profit characteristics." Guggenheim downgrades Kraft Heinz to neutral from buy Guggenheim downgraded the stock due to concerns about inflation. " Kraft Heinz portfolio's lack of pricing power is getting more apparent as weeks pass, which, in our view, has a significant consequence in near term top and bottom line growth, but also longer term as it alters the implementation of the critical strategic plan revealed a year ago. In the new context of continued severe cost inflation, we are downgrading KHC to NEUTRAL." Morgan Stanley reiterates Netflix as overweight Morgan Stanley kept its overweight rating on the streaming giant and said it thinks "margins can ultimately continue to run." "Our OW rating on NFLX is based on the view that it will scale a large, global, and highly profitable streaming business. This thesis manifests itself in an expectation of roughly 30% EPS CAGR from '21E through '25E, and even more rapid FCF growth." Cowen initiates coverage of Tattooed Chef as outperform Cowen initiated coverage of the food company with an outperform rating and said it sees a favorable risk/reward for shares of Tattooed Chef. "We like the company's single brand focus and vertical integration, as well as its approach to scaling the business by acquiring capacity—which, compared to greenfielding a facility or utilizing co-manufacturers, appears prescient in the current landscape." Baird reiterates GameStop as not rated Baird said it expects an upbeat tone from management when the video-game retailer reports earnings Wednesday, Dec. 8 after the market closes. The firm also reiterated the stock as "not rated." "Meantime, the company will report F3Q results after the close.... We expect a more upbeat tone in the release despite the obvious secular headwinds, reflecting healthy demand trends for key hardware platforms and GameStop retail share gains." UBS initiates coverage of NXP Semiconductors as sell UBS rated the semiconductor company a sell due to increased competition. "While we believe NXP will remain a leader in its product categories with a solid business, we expect the automotive division's growth (50% of revenues) to underperform the automotive semis market, due predominantly to a relatively lower content opportunity in EVs vs. peers STM/ON/Infineon." Piper Sandler downgrades Becton Dickinson to neutral from overweight Piper said in its downgrade of the med tech company that it sees a lack of catalysts for the stock. "We're downgrading shares of BDX to Neutral today. Our decision to move to the sidelines with this stock is the lack of catalysts (revenue, margin, or otherwise) that we see for shares over at least the next six months combined with nagging uncertainty regarding the achievability of consensus margin targets later this year." Citi reiterates FedEx as buy Citi said in a note to clients on Wednesday that it sees a positive risk/reward heading into FedEx's earnings report next week. "Clearly investor sentiment has improved during F2Q22 on the back of more constructive commentary from the company regarding labor availability. With that in mind, we think F2Q results are likely to exceed consensus expectations and be flat to up sequentially from F1Q." Morgan Stanley reiterates Hostess Brands as overweight Morgan Stanley kept its overweight rating on shares of the maker of Twinkies and said it's the firm's top pick in packaged foods. "We reiterate our OW following strong Q4 measured channel data. TWNK offers a compelling growth outlook driven by attractive sweet snacks category growth, TWNK share gains, and Voortman distribution expansion." Cowen names Caterpillar a top 2022 idea Cowen named Caterpillar a top idea in 2022 and said the stock is "well positioned for a broad recovery." "We are modeling for revenue growth, gross and operating margin expansion, and EPS increases for three consecutive years. This would be the first such cycle in 14 years, something that is likely underappreciated. We see potential for revenue opportunities of $35Bn from autonomy in the next 10 years. We estimate that 33% of total revenues can benefit from the infrastructure bill." Wells Fargo reiterates Coca-Cola as overweight Wells kept its overweight rating on shares of Coca-Cola and said it likes the risk/reward heading into 2022. "We estimate there's 100bps upside flex to 2022 Street estimates for KO gross margins, and see GM a good story in KO' s delivery on algorithm in 2022. KO is a 'flex to beat' story in our view, with one of the more interesting price-cost lags in all of Consumer Staples. The stock sets up well, and we like risk-reward into next year." KeyBanc downgrades Stitch Fix to sector weight from overweight KeyBanc said in its downgrade of the online clothing company that it sees "limited near-term visibility" for the stock. "While we think that SFIX' s personalization capabilities remain some of the best in apparel e-commerce, and valuation at 1.0x 2022E EV/sales remains accommodating, limited near-term visibility drives us to Sector Weight." Barclays reiterates Exxon as overweight Barclays raised its price target on shares of the oil and gas giant to $73 from $71 per share and said "XOM's rate of change bull case continues to have legs." "We are Overweight XOM based on rate of change in chemicals and downstream, rapid deleveraging and potential shareholder return in the medium term." Cantor Fitzgerald reiterates Pfizer as overweight Cantor kept its overweight rating on the multinational pharmaceutical and biotechnology company after it said on Wednesday morning that the booster provides a high level of protection against the omicron variant. "Today (12/8), PFE and its partner, BNTX provided a positive update on the companies efforts to address the Omicron variant (B.1.1.529 lineage). The takeaways from PFE's update underscore our belief that the durability of PFE's vaccine sales for COVID-19 remain underappreciated by the Street." Cowen names Constellation Brands a top 2022 idea Cowen named the beverage company as a top pick for 2022 and said it sees an attractive entry point. "With shares currently trading at a HSD (high single digits) discount to the S & P 500, we believe this offers an attractive entry point for investors looking for a defensible stock, that provides exposure to a best in class beer business, a leaner wine & spirits portfolio and a renewed focus on cash returns to shareholders. STZ is now our overall Top Pick." New Street raises price target on Tesla to $1,580 from $1,298 New Street raised its price target on shares of the automaker to a Street high of $1,580 per share and said it sees "multiple strong catalysts." "We expect Tesla to sustainably trade in the 50-100 P/E range (and probably in the higher-end through a strong year), and the stock to therefore end the year at least at $1,580 TP, presenting a further 50% upside from recent levels." Raymond James reiterates Dave & Buster's as strong buy Raymond James reiterated its strong buy rating after the company's third-quarter earnings report and said the stock is undervalued. "We reiterate Strong Buy rating on PLAY shares following the company's better than expected F3Q results (margins) and encouraging F4Q guidance. Sales are trending slightly above '19 levels (stronger walk-in partially offset by weaker special events), while profitability continues to significantly exceed management's post-COVID recovery targets."

A GameStop store is pictured in New York, January 29, 2021. Carlo AllegriI | Reuters