Wall Street analysts are long-term bullish on these recovery plays like Micron and Ulta

Published Sat, Nov 28 20208:24 AM EST

(This story is for CNBC PRO subscribers only.) Investors should begin to focus on companies that will emerge from the pandemic stronger than before, according to Wall Street analysts. As the coronavirus vaccines begin to launch, analysts said this week that clients should buy stocks that are poised for a rapid recovery. CNBC Pro combed through Wall Street research to find buying opportunities set to emerge on the other side. They include DuPont, Capri Holdings , Micron , Lyft and MGM Growth Properties . Capri Holdings The luxury space is "alive and well," Wells Fargo analyst Ike Boruchow said in his recent upgrade of Capri to overweight from equal weight. The global fashion company is the owner of brands like Michael Koors, Versace and Jimmy Choo. Boruchow said that "investors are beginning to view CPRI as a portfolio of brands vs. a single branded company." In particular, the firm sees the Kors brand "stabilizing" and believes CPRI's luxury assets are set to accelerate into 2021. "We also believe 'wear to work' and dress categories that have been under pressure since the start of the pandemic have bottomed," he said. Capri has also heavily invested in its various businesses and JPMorgan believes the company's luxury assets are ready to blossom. "We see this as a clear recovery name set for EPS upside and multiple expansion," Boruchow wrote. Shares finished the week up almost 4% Micron The computer memory and data storage company has underperformed the semiconductor index this year, but it's still a buying opportunity according to Deutsche Bank analyst Sidney Ho. Shares are of the company are up 20% for 2020 compared to the SOX which is up 42%. "We believe MU, as a laggard year-to-date, has benefitted from a rotation into 'value' names as the market looks forward to a global economic recovery in CY21," he said. Ho raised his price target on the stock this week to $70 from $60 and said memory pricing will become a "margin tailwind" heading into 2021. The firm added that it also sees other key catalysts ahead for the stock with surging 5G smartphones, data center infrastructure, and gaming. "As the global economy starts to recover from the COVID pandemic, we view MU as a solid 'recovery' pick as demand drivers accelerate," he said. Lyft Shares of Lyft are up almost 2% since Lyft's third-quarter earnings earlier this month where the company reported a significant increase in revenue and ridership. That has KeyBanc analyst Edward Yruma convinced the stock is well-positioned to outperform in a post-coronavirus world. "Rideshare has a very attractive secular outlook for 2021," he said. Yruma called Lyft one of the most "compelling earnings growth opportunities" in the firm's coverage. "Lyft is poised to benefit from an early stage reopening trend as its combination of micro mobility as well as rideshare makes it an alternative to public transportation in urban markets," he wrote. The firm also sees delivery as a long-term opportunity and urged clients to buy the stock in anticipation of the economy reopening. "While near-term trends may remain somewhat volatile given the potential for COVID-19 restrictions, its largely pureplay focus on rideshare makes it most leveraged to a recovery in U.S. mobility," Yruma said. Micron- Deutsche Bank, Buy rating "As the globally economy starts to recover from the COVID pandemic, we view MU as a solid 'recovery' pick as demand drivers accelerate. When combined with disciplined supply growth demonstrated collectively by the memory industry and MU's relentless effort to close the technology gap with market leaders, we see memory pricing turning from a margin headwind to a margin tailwind heading into CY21. ... .We believe MU, as a laggard year-to-date, has benefitted from a rotation into 'value' names as the market looks forward to a global economic recovery in CY21." Ulta- Oppenheimer, Outperform rating "However, with the vaccine developments and the potential for pent-up demand, we are increasingly confident in the full normalization of the business sometime during the 2H of FY21. ... .We continue to look favorably on ULTA's long-term prospects. A few key reasons: 1) a differentiated offering and unique value proposition; 2) superior merchandisers with a strong track record of newness/innovation; 3) relative attractiveness of the beauty category; 4) potential to deliver above-average growth rates in retail." Capri Holdings- Wells Fargo, Overweight rating "With the MK brand showing signs of stability and CPRI's luxury assets set to accelerate into 2021– we see this as a clear recovery name set for EPS upside and multiple expansion. ... .We also believe 'wear to work' and dress categories that have been under pressure since the start of the pandemic have bottomed. .... .Luxury space is alive and well." DuPont - Citi, Buy rating "Ultimately, we think DD is an attractive post-COVID-19 recovery play, as it should benefit from a solid rebound in its core end-markets. Continued execution on cost control, M & A, and liability management should lift investor confidence, unlocking value. ... .DD has improved EBITDA margins from ~20% in 2015 to ~24% in 2020E through a laser-like focus on costs and portfolio upgrading. These actions have allowed DD to create industry-leading segments that comp highly against peers. " Lyft- KeyBanc, Outperform rating "While near-term trends may remain somewhat volatile given the potential for COVID-19 restrictions, its largely pureplay focus on rideshare makes it most leveraged to a recovery in U.S. mobility. ... .Rideshare has a very attractive secular outlook for 2021. ... .Lyft is poised to benefit from an early stage reopening trend as its combination of micro mobility as well as rideshare makes it an alternative to public transportation in urban markets. ... .We believe a combination of operating discipline as well as our view that the promotional environment will remain controlled gives LYFT one of the most compelling earnings growth opportunities in our coverage." MGM Growth Properties- Union Gaming, Buy rating "The lower risk recovery play with a 7%+ yield. The best of both worlds: recovery and stability. ... .We recognize the lingering uncertainty on the timing of a full Las Vegas recovery, but with this much liquidity and rent/credit support from non-Las Vegas properties, we see very little risk to MGP's rental income or dividend, even if parts of the economy are required to shutter again . With this in mind, we prefer shares of MGP that pay a handsome dividend while the recovery plays out."

Lyft President John Zimmer and CEO Logan Green and the Lyft Board of Directors speak as Lyft lists on the Nasdaq at an IPO event in Los Angeles March 29, 2019.

Mike Blake | Reuters

(This story is for CNBC PRO subscribers only.)

Investors should begin to focus on companies that will emerge from the pandemic stronger than before, according to Wall Street analysts. As the coronavirus vaccines begin to launch, analysts said this week that clients should buy stocks that are poised for a rapid recovery.

CNBC Pro combed through Wall Street research to find buying opportunities set to emerge on the other side.