(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A shoe stock and a doughnut maker were among the stocks being talked about by analysts on Tuesday. Morgan Stanley upgraded Skechers to overweight. Meanwhile, HSBC raised its rating on Krispy Kreme to buy from hold. Its price target implies more than 30% upside. Check out the latest calls and chatter below. All times ET. 5:53 a.m.: HSBC upgrades Krispy Kreme Krispy Kreme’s sale of its stake in Insomnia Cookies could boost its fundamentals, according to HSBC. The bank upgraded shares of the doughnut maker to buy from hold, while standing by its target price of $14. This implies that shares of Krispy Kreme could rally 31% from Monday’s close. Krispy Kreme stock is down 29% on the year, but analyst Sorabh Daga pointed to the company’s announcement that it was selling its majority stake in Insomnia Cookies as a positive catalyst. He also likes the company’s partnership with McDonald’s to put doughnuts in the fast food giant’s stores. DNUT YTD mountain DNUT in 2024 “While the stock has pulled back 26% YTD, the operating outlook has improved with the McDonald’s announcement in March 2024 and a potential debt reduction with today’s announcement,” Daga wrote. “This move comes with a rising focus on the core business of selling and distributing fresh doughnuts … We like these moves to simplify the business and strengthen the core hub & spoke model.” Krispy Kreme is expected to sell its stake in Insomnia Cookies for twice the cost of acquisition, which was in 2018. Daga added that while he expected a complete stake sale, this deal should still help balance the company’s financial leverage and improve its margins. — Lisa Kailai Han 5:53 a.m.: Morgan Stanley upgrades Skechers Shares of Skechers could see a big surge ahead after lagging the broader market, according to Morgan Stanley. The bank upgraded the shoe company to overweight from equal weight and raised its price target to $80 from $60. The new forecast implies upside of 24.5% from Monday’s close. Analysts at Morgan Stanley cited three factors for the rating change: “1) positive indicators in our proprietary work (2024 global sportswear survey & channel checks), 2) continued confidence in the potential for positive EPS revisions over NTM, & 3) room for valuation re-rating as the business’ higher profitability profile & improved marketplace positioning is more appreciated.” Skechers shares are up just 3% year to date, while the S & P 500 has popped more than 16%. SKX YTD mountain SKX year to date — Fred Imbert