Analysts are bullish on stocks like Tesla, Netflix and Zoom as earnings season gets underway

Published Tue, Apr 14 202010:28 AM EDT

Key Points

Bank of America raised its price target on Netflix to $460 from $426.
Cantor Fitzgerald initiated Zoom as overweight.
Credit Suisse upgraded Tesla to neutral from underperform.
Cantor Fitzgerald initiated Slack as overweight.
Citi downgraded Deere to neutral from buy.
UBS downgraded Square to neutral from buy.
Morgan Stanley upgraded Workday to overweight from equal weight.
Citi upgraded Wynn to buy from neutral.

(This story is for CNBC PRO subscribers only.) Wall Street analysts are seeing plenty of buying opportunities as earnings season officially begins. Tuesday's upgrades include Tesla and Workday. Analysts are also getting bullish on Zoom and Netflix. Here are the biggest calls on Wall Street on Tuesday. Bank of America raised its price target on Netflix to $460 from $426 Bank of America raised its price target on the stock and said the company is benefiting from the stay-at-home orders. "We see Netflix benefiting from a near-perfect 1H setup with strong content, stay-at-home orders, suspended sports leagues and shuttered movie theatres seeing consumers globally turn to the streaming TV service. We anticipate the step-up will result in a permanent increase in penetration for Netflix's subscriber model and see its low price-point and staple nature supporting healthy fundamentals performance in a recession, even after stay-home orders are lifted. We raise our price objective to $460 from $426 based on faster uptake in our long term peak penetration model." Cantor Fitzgerald initiated Zoom as 'overweight' Cantor initiated the stock as overweight and said it sees significant upside potential in the video conferencing service. "We initiate coverage of Zoom with an Overweight rating and a 12-month price target of $150. We believe the current Covid-19 environment presents significant upside potential not currently assumed in the stock. Zoom provides a superior communication platform in a time where video and connectivity is becoming more important for all industries and business sizes. We expect the virus to provide upside to estimates and for the platform and its products to drive increased market penetration and future cross-selling opportunities. We expect these impacts to continue to drive multiple expansion." Credit Suisse upgraded Tesla to 'neutral' from 'underperform' Credit Suisse said in its upgrade of the stock that Tesla's electric vehicle competitive advantage has increased as the coronavirus pandemic continues. "We are more positive on Tesla . Yet our valuation framework reminds us that in our revised $580 TP we are already giving Tesla credit in a variety of ways – volume growth to 1.2mn units by 2025 (making it the clear #4 global luxury brand behind the German brands), solid margin expansion, a 2025 PE multiple of 18x (far more than other auto co's), and upside optionality via 'Bull' and 'Uberbull' cases. For upside, one must believe in additional volume, margin, or multiple." Read more about this call here . Cantor Fitzgerald initiated Slack as 'overweight' Cantor initiated the business messaging service and said it has the "ability to drive customer productivity and efficiency." "We initiate coverage of Slack with an Overweight rating and a 12-month price target of $30. We believe the company and platform have a number of unique, positive attributes, including its ability to drive customer productivity and efficiency, applicability across all industries and business sizes, and a growing ecosystem to facilitate seamless integration. We expect these attributes to lead to increased market penetration and margin expansion and believe these characteristics will allow the company to expand its multiple." Citi downgraded Deere to 'neutral' from 'buy' Citi said it sees a more "challenging" time of year for the company's stock due to a "lower for longer" corn price scenario. With the potential for further near-term downside in cash corn prices we think the Ag stocks are likely to be range-bound in what has historically been a more challenging (seasonal) time of year for DE's stock; we are downgrading DE from Buy to Neutral and lowering targets for DE & AGCO – now both Neutral with similar total return potential. UBS downgraded Square to 'neutral' from 'buy' UBS downgraded the stock and said it saw a more balanced risk/reward. "Our downgrade to Neutral reflects three factors. First, whereas our prior thesis centered on our expectation that SQ 's investments in 2020 would drive reacceleration of revenue growth and margin expansion in 2021 (here), we no longer have conviction in that view in the context of currently devolving consumer spending trends. Second, in the near term, we believe there remains downside risk to our recently reduced revenue and EPS forecasts because of SQ's orientation toward in-store spending. And third, SQ's current share price now exceeds our revised valuation, suggesting limited upside potential and balanced risk/reward." Morgan Stanley upgraded Workday to 'overweight' from 'equal weight' Morgan Stanley called the on‑demand financial management software company a "great franchise" at an "attractive price." "We see Workday as long-term software as a service beneficiary, penetrating a large human capital management/enterprise resource planning market expected to total ~$125 billion in spend by 2023, with best-in-class unit economics and retention rates in its premier enterprise installed base. Off ~30% from February highs, WDAY shares price in the substantial near-term Covid-19 related risks and provide investors the opportunity to get onboard with a long-term SaaS beneficiary with an asymmetric risk/reward at current levels, in our view." Citi upgraded Wynn to 'buy' from 'neutral' Citi upgraded the stock mainly on valuation. "We remain a firm believer in the long-term Macau growth story, despite the near-term GGR headwinds. Macau currently trades at ~8.6x 2-year forward EBITDA, more than 1 S.D. below the historical average of ~10.6x. We suggest buying the industry leaders – Sands China and Galaxy – our long-term top picks in the sector. We also upgrade both Wynn Macau (still sixth out of six in our pecking order) and Wynn Resorts from Neutral to Buy on valuations."