(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A glasses retailer and an exercise equipment maker were among the stocks being talked about by analysts on Friday. JMP Securities upgraded Warby Parker to market outperform, calling for more than 40% upside. Meanwhile, JPMorgan lowered its rating on Peloton. Check out the latest calls and chatter below. All times ET. 6:43 a.m.: Guggenheim upgrades Roku to buy rating Shares of Roku could rally more than 20% in the coming year, according to Guggenheim. The financial firm upgraded shares of the streaming technology provider to buy from neutral. Analyst Michael Morris also established a 12-month price target of $75, which is approximately 21% higher than where shares closed on Thursday. Shares of Roku have declined close to 33% this year, but Morris expects this trend to reverse. “We expect investor enthusiasm for the ROKU story to grow into 3Q earnings in November as the company makes progress toward broadening video inventory advertising sales via third-party demand-side platforms and improved home screen monetization,” the analyst wrote. “This expected progress should further bolster confidence in ROKU as a unique top-line acceleration story in 2025.” Morris wrote that one catalyst for his optimism comes from several potential drivers for Roku’s upcoming revenue that are currently underappreciated in the consensus model. These drivers include third-party demand side platform advertising sales and expanded home-screen monetization. “We believe investors view management guidance as conservative and therefore believe the true buyside expectation for 3Q Platform revenue is ahead of the company’s 9% stated outlook,” Morris said. Meanwhile, Roku’s profit profile and valuation look more attractive than investors are currently appreciating. The analyst added that the company’s gross margin stability, greater operating scale and potential further upside have not been fully priced into the stock’s current trading price. — Lisa Kailai Han 6:25 a.m.: Wells Fargo upgrades BJ’s Wholesale Clubs to overweight Wells Fargo sees encouraging signs for BJ’s Wholesale Club on the horizon, citing an “encouraging strategic shift.” The bank upgraded shares of the warehouse club chain to overweight from equal weight, citing the stock’s 7% decline on Thursday due to lower full-year guidance in its latest earnings report. However, analyst Edward Kelly emphasized that there was still “a lot to like about Q2.” Kelly’s new price target of $92, up from $75, implies that the stock could rise another 13% from here. For a defensive name like BJ’s with accelerating comps, the analyst added that “further upside is plausible given the high ceiling of peers if credibility around execution and the LT algo improves.” As a catalyst, Kelly cited “robust” membership trends, while category performance and store growth looked encouraging. “While there may be some ST noise from the election, the path to sustained fundamental progress appears in motion for BJ,” he wrote. The analyst also viewed the company’s decision to take down its second-half margin guidance as a smart strategy, since BJ’s has traditionally lagged behind peers such as Costco and Sam’s. “This is a step that could help ignite a flywheel that has worked well for peers, & potentially support a better stock narrative,” he remarked. BJ’s shares are up more than 22% in 2024. BJ YTD mountain BJ year to date — Lisa Kailai Han 5:57 a.m.: Piper Sandler upgrades Chewy to overweight The outlook for Chewy seems bright ahead of its next quarterly earnings call, according to Piper Sandler. As Piper Sandler transferred coverage between analysts, the investment firm upgraded shares of the pet retailer to an overweight rating from neutral. Analyst Anna Andreeva also raised the stock’s price target to $35 from $22. This implies that shares of Chewy could rise 33% from their current levels. Shares of Chewy have gained 11% in 2024. Andreeva believes that this trend could continue higher on the back of rising gross margin expansion and automation and efficiency gains. “While it’s too early to tell if new pet adoption trends have meaningfully, any degree of positive new pet formation trends for a category leader like CHWY would be constructive for the stock,” she wrote. Andreeva cited Piper Sandler’s positive pet survey findings that showed strong interest in new pet ownership. Another upcoming catalyst for Chewy is its second-quarter earnings report, due on Aug. 28. “The Street is modeling sales at the high end of the guided range (+3%), same as us. Going through the quarter, we were encouraged by discounting that looks well controlled y/y, as well as sequentially, which bodes well for GM’s [gross margins],” Andreeva added. — Lisa Kailai Han 5:43 a.m.: JPMorgan lowers Peloton rating to neutral from overweight following massive Thursday rally JPMorgan is less bullish on Peloton following the stock’s eye-watering rally on Thursday. The bank downgraded the exercise equipment stock to neutral from overweight. Analyst Doug Anmuth also lowered his price target to $5 from $7. Anmuth cited Peloton’s Thursday move, where the stock gained 35% following strong quarterly results, as a catalyst for the downgrade. “We are moving from Overweight to Neutral rated as PTON’s return to growth in CF Subs & Revenue remains challenging, & visibility is limited given secular & macro pressures,” the analyst wrote. Anmuth added that Peloton may require a new CEO to actually lay the groundwork for the company’s future. However, the analyst also specified that he positive on Peloton in the long run. “We are encouraged by PTON’s recent debt re-financing & ongoing cost rationalization, & we believe the company maintains a solid brand with a valuable subscriber base ( < 2% monthly churn),” he said. Peloton stock is down 25% on the year. PTON YTD mountain Peloton year to date — Lisa Kailai Han 5:43 a.m.: JMP Securities upgrades Warby Parker It’s time for investors to buy the dip on Warby Parker shares, according to JMP Securities. Analyst Nicholas Jones upgraded the glasses and contact lenses retailer to market outperform from market perform. His price target of $20 implies upside of 44% from Thursday’s close. “We believe consensus estimates for Warby Parker Inc.’s 2025 and 2026 top and bottom lines are too low, given … WRBY’s consistent market share dynamics, and anticipated operating leverage,” Jones said. “Further, we believe that in coming quarters management will start to have increasingly constructive commentary, though the path forward is likely to remain somewhat volatile and non-linear.” Warby Parker has lagged the broader marker this year, losing 1.7%, while the S & P 500 is up 16.8%. — Fred Imbert
