(That is CNBC Professional’s stay protection of Tuesday’s analyst calls and Wall Road chatter. Please refresh each 20-Half-hour to view the newest posts.) Analysts kicked off the week with two huge upgrades. Piper Sandler raised its ranking on Residence Depot, citing an bettering outlook for the house enchancment market. Morgan Stanley additionally upgraded Starbucks, noting {that a} latest decline in shares has created a sexy entry level. Elsewhere, Boeing acquired a downgrade from Wells Fargo, citing concern across the a regulatory audit. Try the newest calls and chatter beneath. All occasions ET. 6:01 a.m.: Wells Fargo downgrades Boeing as FAA audit begins A manufacturing audit could be the final straw for Boeing , based on Wells Fargo. The financial institution downgraded shares of the plane firm to equal weight from chubby on Tuesday, concurrently decreasing its value goal to $225 from $280. That is solely 3% larger from the place Boeing inventory closed on Friday. Even after Boeing’s 12.6% sell-off final week, analyst Matthew Akers believes that the inventory’s valuation nonetheless doesn’t look engaging to justify the continuing Federal Aviation Administration audit. “With FAA taking a closer look into BA’s production, we think the risk of production/ delivery impact increases significantly,” he wrote. “Given BA’s recent track record, and greater incentive for FAA to find problems, we think the odds of a clean audit are low.” Whereas the company is just auditing Boeing’s 737 Max 9 airplanes for now, Akers believes that the investigation might increase to different fashions with widespread elements. Boeing shares fell greater than 2% following the the downgrade. — Lisa Kailai Han 5:38 a.m.: Residence Depot to outperform market and Lowe’s, Piper Sandler says After greater than 4 years of preferring Lowe’s over Residence Depot , Piper Sandler is now putting its bets on the latter. The financial institution upgraded shares of the house enchancment retailer to an chubby ranking on Tuesday and raised its value goal enhance to $400 from $311. The change implies that Residence Depot might rally 12% from its present value. Analyst Peter Keith cited a modest enhance in big-ticket remodels as a catalyst for the improve. “We are taking a more bullish stance on home improvement — and more specifically, large remodel projects — as home equity extraction activity (cash-out refi’s + HELOC originations) is trending toward improvement in 2024,” wrote analyst Peter Keith. Keith added that he believes Residence Depot shares might outperform each the market and shares of competitor Lowe’s, citing the previous’s larger publicity to professional prospects. “Home Depot has been building the ecosystem to support their complex Pro customer for several years, but it was only at their June 2023 Investor Day that they quantified the sub-category as one of their biggest opportunities with a $200B [total addressable market],” he wrote. In the meantime, Residence Depot has a extra favorable margin setup and better capability for stronger earnings development, Keith added. Shares of Residence Depot are up 2.6% this yr. — Lisa Kailai Han 5:38 a.m.: Morgan Stanley upgrades Starbucks It is time to purchase shares of Starbucks after the espresso chain’s latest struggles, based on Morgan Stanley. The financial institution upgraded the inventory to chubby from equal weight, elevating its value goal to $120 per share from $112 per share. That forecast implies upside of 30.5% from Friday’s shut. “After recent weakness driven by real headwinds across SBUX’s global business, we see interesting risk-reward skew here,” analyst Brian Harbour wrote. “Out of consensus, weak sentiment, softer data trends, challenging commentary … near-term earnings risk, China and Middle East exposure — these legitimate headwinds have brought SBUX’s stock under substantial pressure after a constructive 4Q23 and investor day,” the analyst added. “But we’d rather wade into the controversy perhaps somewhat early, and look beyond the current quarter, as these ‘penalty box’ periods can be interesting entry points.” Starbucks shares are down 4% yr up to now and 14.2% over the previous 12 months. SBUX 1Y mountain SBUX in previous yr — Fred Imbert