Here are Friday's biggest analyst calls of the day: Peloton, Wayfair, Lululemon, Baxter & more

Published Fri, Sep 4 20208:09 AM EDTUpdated Fri, Sep 4 20209:31 AM EDT

Key Points

Credit Suisse upgraded Michaels to outperform from neutral.
Citi downgraded Lululemon to neutral from buy.
JMP raised its price targt on Peloton to $109 from $59.
Bank of America downgraded Wayfair to neutral from buy.
Argus downgraded Baxter to hold from buy.

(This story is for CNBC PRO subscribers only.) Here are the biggest calls on Wall Street on Friday: Credit Suisse upgraded Michaels to outperform from neutral Credit Suisse upgraded the arts and crafts retailer after its strong second-quarter earnings report and said it sees "upside" to estimates over the next 12-18 months. "We view MIK as an attractive self-help story, which should continue to benefit from strong demand trends in its category in the near term while delivering significant productivity improvements over the medium- to longer-term, potentially supporting upside to estimates over the next 12-18 months. We believe today's pullback provides an opportunity." Citi downgraded Lululemon to neutral from buy Citi downgraded the athletic apparel retailer and said it was "priced to perfection." "Since March, the stock has surpassed our prior TP, and as we approach earnings with the stock near $400 we have to ask ourselves if we can realistically recommend buying LULU at $400 with a call it can go to at least $460 over the next 12 months. And we just can't do it. The stock trades at ~9x F21E sales and has an EV of ~$50BN, making LULU the most highly valued specialty retail brand ever, double that of the second highest valued brand in history (Victoria's Secret, in 2015)." JMP raised its price target on Peloton to $109 from $59 JMP raised its price target on the stock to a Street high and said it sees "greater" overall traffic and is "incrementally confident" about the long-tern opportunity. "Our analysis underscores our thesis that Peloton' s high-quality Content, growing Community, and Convenience—which we call Peloton's Three C's—are redefining the fitness sector as its addressable market is expanding and consumer behavior is fundamentally changing due to the COVID-19 pandemic, such that we think Peloton's current demand curves can likely continue going forward." Bank of America downgraded Wayfair to neutral from buy Bank of America downgraded the online home goods retailers and said "expectations and valuation" are too high. "While we have been impressed by both delivery execution and margin expansion during COVID-19, we are downgrading Wayfair to Neutral from Buy. Expectations and valuation are high vs. history, and we expect revenue deceleration ahead, which has been a historical valuation headwind for the stock. We think QTD stock appreciation has been fueled by expectations for upside, but given recent data points, we see less upside to Street estimates for 58% growth in 3Q." Argus downgraded Baxter to hold from buy Argus downgraded the multinational healthcare company and said it had concerns about Baxter's "weak" sales outlook. " Baxter has a broad product portfolio that has partially offset the impact of the pandemic; however, management has warned of a potential decline in full-year sales due to weakness in key areas of the business. We expect the company to face continued sales and earnings pressure as patients defer elective surgical procedures and visits to medical facilities due to COVID-19."

Niraj Shah, CEO, Wayfair

Ashlee Espinal | CNBC

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Friday:

Credit Suisse upgraded Michaels to outperform from neutral

Credit Suisse upgraded the arts and crafts retailer after its strong second-quarter earnings report and said it sees "upside" to estimates over the next 12-18 months.

"We view MIK as an attractive self-help story, which should continue to benefit from strong demand trends in its category in the near term while delivering significant productivity improvements over the medium- to longer-term, potentially supporting upside to estimates over the next 12-18 months. We believe today's pullback provides an opportunity."

Citi downgraded Lululemon to neutral from buy

Citi downgraded the athletic apparel retailer and said it was "priced to perfection."

"Since March, the stock has surpassed our prior TP, and as we approach earnings with the stock near $400 we have to ask ourselves if we can realistically recommend buying LULU at $400 with a call it can go to at least $460 over the next 12 months. And we just can't do it. The stock trades at ~9x F21E sales and has an EV of ~$50BN, making LULU the most highly valued specialty retail brand ever, double that of the second highest valued brand in history (Victoria's Secret, in 2015)."