Editor-DN
(This is live coverage of CNBC Pro’s Friday analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to see the latest posts.) A streaming company and maker of self-driving technology for vehicles. The biggest analyst was among the calls. Friday. Morgan Stanley raised its price target on Netflix to $700 from $600. Wolf Research, meanwhile, upgraded Mobileye Global to Outperform, calling for a 30% increase. Check out the latest calls and chatter below. ET at all times. 8:32 a.m.: Rosenblatt downgrades Arista, says it already downgrades market share to Nvidia Rosenblatt analyst Mike Genovese cut Arista Networks from buy to sell on Friday. Having said that, its AI strengths can be overestimated in a competitive market. “We believe Ethernet is a long-term winning technology, but Arista may not have the leverage needed to support the current stock price or higher. … We believe Ethernet is a “The winning technology is there, but most of the losses seem to be over. Nvidia,” Genovese wrote in a note, adding that Nvidia’s data center networking business already makes it a bigger player than both Arista and Cisco. Is. Arista, which makes software-driven cloud networking solutions for data center storage and computing clients, will likely gain enterprise share, according to Genovese, although the business likely won’t generate high operating margins and EPS multiples. will do The analyst cut his price target on Arista from $120 to $210, implying a potential downside of about 29% for the shares. “Arista’s multiple could shrink as investors realize its AI opportunity is lower than most expectations and is unlikely to materialize above estimates,” he said. — Pia Singh 8:31 am: JPMorgan downgrades Corteva Corteva’s first-quarter results are likely to disappoint amid mounting pressure around crop chemical prices, according to JPMorgan. Analyst Jeffrey J. Zekauskas JPMorgan downgraded Corteva to neutral from overweight, saying the agrochemical company is unlikely to meet expectations given growing macro headwinds. He cited destocking in South America and Europe as well as reduction in crop chemical prices. “We are not inclined to buy Corteva shares ahead of the 1Q:24 earnings report, given the weak 1Q:24 earnings we expect,” Zekauskas wrote on Friday. “We believe the company’s earnings guidance could be neutral, cautious, or negative due to a potentially weak 1Q:24 earnings performance and uncertainty over domestic corn planting levels.” Corteva has fared better this year, jumping more than 17 percent. But the analyst’s $57 price target, down slightly from $58, is slightly above Thursday’s close of $56.46. The stock fell more than 2% in premarket trading. — Sarah Min 8:09 am: Raymond James upgrades GitLab, says stock could offer ‘long-term value appreciation’ Raymond James thinks GitLab is an attractive software name in an industry that The development runway is ahead of itself. Analyst Adam Tingle upgraded GitLab to market outperform and assigned a $70 price target, suggesting shares could rise by about 20.5%. He said the company’s growth rate should reach or exceed 30% year-on-year as FY25 progresses. Shares of GitLab are down 7.7% this year. The DevSecOps and CI/CD industry, or continuous integration and continuous delivery/deployment used to streamline software, “is a primary end market for GitLab to be one of the more attractive secular development industries in software. Tingle said in a note Friday. “GTLB can offer long-term value appreciation as organizations look to consolidate vendor complexity into a single comprehensive solution due to the company’s DevSecOps platform … We see multiple vendors creating integrated suites for CI/CD. A substantial $35B TAM offering opportunities for, and believes that GitLab is an early innovator,” Tingle said. — Pia Singh 7:13 am: JPMorgan cuts Boeing price target, but says demand should underpin long-term growth Investors may abandon Boeing as long-term investment, according to JPMorgan Shouldn’t. Analyst Seth Seifman lowered his price target by $20 to $210, giving the aerospace company shares a potential upside of 21.1%. He kept his overweight rating on the stock, which has declined 33.5% this year. “We expect Boeing to emerge from the 737 MAX crisis and improve cash generation in 2024, including reconfirmation of the 737 MAX in the stock chain, increased deliveries, and execution,” Seifman wrote in a note Thursday. will be driven by a number of catalysts, including improving The analyst assumed a slow, moderate, ramp in its 787 Dreamliner fleet. Safeman’s lower expectations for 737 and 787 deliveries, key drivers of Boeing’s cash generation, delayed its cash flow expectations for the company. “The path forward on yields is not very clear, and while demand should pick up significantly over time, investors should maintain near-term expectations,” he said. — Pia Singh 6:34 am: Novo Nordisk could grow another 30% next year, BMO Capital Markets analyst Evan Segerman has coverage on leading pharma giant Novo Nordisk with an Outperform rating and a $163 price target. started, which suggests approx. 30% up for the stock. Shares of Novo have already risen more than 21 percent this year. “Novo (is) well-positioned to be one of the two winners in the obesity market… While other biopharma players are entering the obesity landscape, Novo’s approval of Vigovi in 2021 (and Saxenda’s approval in 2014) has been established as a leader since.” Segerman wrote in a note Friday that he sees the obesity market growing to more than $130 billion. “The widening chasm driven by manufacturing, clinical data, patient data, diversified pipelines, and access supports our bullish view on Novo.” The analyst said his new rating is based on: Novo Nordisk’s several developing obesity and T2D assets that have the potential to expand the company’s existing portfolio. The company’s expanded manufacturing with Catalent, which it has agreed to buy in an effort to ramp up production of the weight-loss drug Vigovi. Segerman said that would allow it to continue to supply a “capacity-constrained market.” The company’s significant volume of secondary outcomes data that can drive revenue and opportunities in the Medicare market. — Pia Singh 6:19 am: UBS upgrades DocuSign, says e-signature stock could have further margin upside Shares of DocuSign are now overvalued, according to UBS. Analyst Karl Keirstead raised his rating on the stock from sell to neutral. He raised his target price from $14 to $62, suggesting a potential upside of 4.2% for DocuSign over the next year. This year, the stock is trading just above flat. “While we look at eSignature’s high market penetration, competition from the likes of Adobe and mixed traction with CLM, we conclude that DocuSign is largely ahead of the headwinds of material Postcode expansion,” Keirstead wrote. has exited and further margin upside is likely”. The stock is trading at a more reasonable premium to Zoom, the analyst said in a Friday note, adding that its risk/reward ratio now “appears more balanced.” DocuSign’s latest quarter reflects encouraging demand trends, likely accelerating billing growth and increasing its margins, he said. DOCU YTD MOUNTAIN DOCU Year to Date — Pia Singh 5:54 am: Citi cuts Tesla price target on demand Citi Research analyst Itay Michaeli cut his estimates on Tesla as the electric vehicle company’s Disappointing first quarter shipment results could be revealed. The analyst kept his neutral rating on the stock but cut the price target from $16 to $180. That means shares could rise 3.1 percent over the next year. This year, Tesla’s stock has fallen about 29.7 percent, as the company has struggled with increasing competition from China and growing its own sales even after cutting prices. “Given NT Tesla’s demand headwinds (linked to product age, saturation in our view), we still see more downside than our NT estimates,” Michaeli wrote in a note Thursday. “Our LT estimates have also been trimmed, although we currently remain unchanged in next-generation EV assumptions.” Tesla CEO Elon Musk announced last week that he will unveil a new robotaxi product in August, which analysts say could be “a big step forward if the company has any plans to introduce a robotaxi.” with a more reliable deployment path” could be a positive step. — Pia Singh 5:50 am: Morgan Stanley reiterates overweight rating, raises price target on Netflix Netflix could be in for a strong period of long-term growth, according to Morgan Stanley. Analyst Benjamin Swinburne reiterated his overweight rating on the streaming stock and raised his price target from $100 to $700, suggesting Netflix shares could rise 11.3%. The stock is up nearly 27 percent this year. “Netflix’s track record includes pivoting from DVD to streaming, scaling the world’s largest studio, and successfully monetizing password sharing. This track record, new call options (ads, games, live sports ) and combined with 25%+ EPS CAGR, a premium multiple,” Swinburne wrote in a Friday note. The analyst forecasts 25% compound annual growth between 2024 and 2028 and 30% for its bull case, given the company’s revenue growth and scale. Content outside the US, original programming and a vast content library may be some of Netflix’s underappreciated competitive advantages, he said. — Pia Singh 5:50 am: Wolfe Research Upgrades Mobileye Global According to Wolfe Research, investors need to buy Mobileye Global after a sharp decline in early 2024. Analyst Shreyas Patil upgraded the autonomous vehicle technology company to outperform peers. Its $41 price target implies a 30% upside over the next 12 months. Shares have struggled in 2024, losing 27.5%. However, Patil believes the risks that plagued the stock earlier this year may be behind Mobileye. MBLY YTD Mountains MBLY Year to Date “The big debate, at the moment, seems to be around Mobileye’s competitive position, particularly for their ‘hands-free’ monitoring system ($1000-$2000 (average selling price)). ; 50% (gross margin) ) and “hands-free / eyes-off” driver ($3,000-$6,000 ASP; 50% GM), Patil said in a note. 3 key factors are needed for widespread adoption to match MBLY’s capabilities in performance, and scalability,” he said. “And we are increasingly confident that this will become evident in the next 6-12 months. Ga, driven by increased new business awards from high-volume OEMs.” – Fred Umbert
