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Analysts say buy stay-at-home stocks like Netflix and Kraft Heinz

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  • Goldman Sachs raised its price target on Netflix to $490 from $430.
  • JPMorgan raised its target price on Netflix to $480 from $410.
  • Wells Fargo upgraded Kraft Heinz to overweight from equal weight.
  • Bank of America resumed coverage of Monster Beverage as buy.
  • JPMorgan downgraded Twitter to neutral from overweight.
  • Berenberg initiated Roku as buy.
  • Raymond James downgraded Square to underperform from market perform.
  • Credit Suisse upgraded Smucker to neutral from underperform.
  • Jefferies downgraded Tilray to underperform from hold.
  • MKM downgraded Boston Beer to neutral from buy.
  • Wells Fargo upgraded Sherwin-Williams to overweight from equal weight.

Jack Dorsey, co-founder and chief executive officer of Twitter Inc., listens during a Senate Intelligence Committee hearing in Washington, D.C., U.S., on Wednesday, Sept. 5, 2018.Andrew Harrer | Bloomberg | Getty Images

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Wall Street analysts continue to be bullish on stay-at-home stocks as the coronavirus pandemic wreaks havoc on all parts of the market. Thursday's calls of the day include Kraft Heinz, Netflix, Roku, Sherwin-Williams and more.

Here are the biggest calls on Wall Street on Thursday:

Goldman Sachs raised its price target on Netflix to $490 from $430

Goldman Sachs raised its price target on the stock and said it thinks the coronavirus crisis was accelerating the shift from traditional content viewing to streaming.

"We expect Netflix to report 1Q results well above guidance, with over 10mn net subscriber additions, and provide initial guidance for 2Q ahead of FactSet Consensus, even accounting for management conservatism. Content additions to the platform, combined with the value of Netflix's library to those staying home during the COVID-19 crisis, drove this outperformance, more than offsetting the lingering impact of last year's price increase and growing competition in SVOD."

JPMorgan raised its target price on Netflix to $480 from $410

JPMorgan said the company is benefiting from the stay-at-home trend and a shift toward on-demand streaming.

"Recent data points have been strong in a COVID-19 environment: 1) According to Apptopia, the Netflix app was downloaded ~21M times in 1Q, the second highest quarter ever just behind 1Q19, which saw 9.6M net adds; 2) ROKU's 1Q results (pre-announced on 4/13) showed +49% Y/Y growth in total streaming hours; 3) We view Disney+ passing 50M global subs as positive for NFLX as it reflects the secular shift to online streaming; and 4) A WSJ survey published on 4/11 found the average American household increased spending on video streaming from $30 in November to $37 in March, making it increasingly clear that on-demand is not a zero-sum game."


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