- Bank of America upgraded FedEx to buy from neutral.
- Credit Suisse upgraded Dunkin' Brands to outperform from underperform.
- Rosenblatt upgraded Palo Alto Networks to buy from neutral.
- Morgan Stanley upgraded Charter to overweight from equal weight.
- Evercore ISI upgraded Allstate to outperform from in line.
- Morgan Stanley downgraded Liberty Formula One to equal weight from overweight.
- Susquehanna upgraded D.R. Horton to positive from neutral.
- Bank of America downgraded Caterpillar to underperform from neutral.
- Goldman Sachs downgraded Micron to neutral from buy.
- Baird downgraded Deere to neutral from outperform.
- Leerink initiated Teladoc as outperform.
A FedEx delivery truck is seen on August 07, 2019 in Fort Lauderdale, Florida.Joe Raedle | Getty Images
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The markets began Monday under pressure but analysts say there are still quality stocks to buy. Upgrades include FedEx, Dunkin' Brands, Palo Alto Networks and more.
Here are the biggest calls on Wall Street on Monday:
Bank of America upgraded FedEx to 'buy' from 'neutral'
Bank of America upgraded the stock after Amazon's decision to end its third-party delivery business.
"The shares areΒ trading at 13.6x, above the bottom of its 12.5x-18.5x historical range, and we target closer to its midpoint after recently lowering F20 by 20% and F21 by 14%.Β While we recently lowered our PO, we believe the recent decision by Amazon to pause its Shipping with Amazon (SWA) third-party delivery business highlights the difficultly to efficiently enter the business.Β We also highlight the integration of FedEx's Express and Ground networks for select e-commerce deliveries which should reduce network costs, its deployment of dynamic routing software at Ground, the conversion of SmartPost packages into Ground, and the shutdown of belly space, which is aiding airfreight rates.
Credit Suisse upgraded Dunkin' Brands to 'outperform' from 'underperform'
Credit Suisse double upgraded the stock on valuation among other things.
"DNKN has underperformed since the market selloff, down 23.5% YTD relative to the S&P 500 -13.5%, and is now trading near valuation lows on FY21 "fresh" consensus estimates. DNKN's pure-play 100% franchised business model is viewed as one of the most attractive in restaurants, warranting a premium to restaurant peers, and we see limited risk of mass closures given the health of its franchisee system, attractive category dynamics, what appears to be broad eligibility for franchisees to take advantage of benefits from the government stimulus and high US exposure (nearly 90% of operating profit). DNKN has improved its positioning in recent years, with efforts around espresso, value, operations and digital."
Source: cnbc.com
