Nvidia to benefit from new chips, Ralph Lauren prepares to jump, banks react to Tesla news | Wilnesh News
(This is CNBC Pro’s live coverage of Tuesday’s analyst call and Wall Street chatter. Please refresh every 20-30 minutes to see the latest posts.) Tuesday’s analyst call focused on hot tech giant Nvidia, which was It is considered to benefit from the release of its new Blackwell chip GB200. “Our sense is that demand for GB200 server racks is very strong,” UBS analysts wrote. In the retail space, Jefferies sees good prospects for high-end company Ralph Lauren, which it expects to benefit as young people are attracted to the company’s broad product portfolio. There was more bad news for Chegg, with Jefferies downgrading the company over concerns about the impact of artificial intelligence. Elsewhere, big Wall Street banks reacted to the bullish news about Tesla’s exit from China, although not all analysts were impressed. See the latest calls and chats below. All times are Eastern Time. 7:44 AM: Barclays upgrades UMB Financial after earnings, deals Barclays said investors should give UMB Financial credit after the regional bank paired solid earnings reports with acquisitions. Analyst Jared Shaw upgraded UMB Financial to overweight from equal weight, saying in a note to clients that the bank has beaten expectations in the short term and is on track to acquire Heartland Financial. Made smart long-term moves. “We upgrade UMB stock to overweight based on the substantial improvement in standalone UMBF’s core run rate following first-quarter results and our expectation of improved post-merger earnings following the announcement of the completion of the merger with HTLF,” Shaw wrote. UMB shares fell 6.5% on Monday and are down about 7% year to date, prompting Shaw to upgrade his rating to Contrarian. Barclays also raised its price target on UMB to $95 per share from $91. The new target is 22% above the stock’s Monday closing price. – Jesse Pound 7:27 AM: Here’s how major Wall Street banks reacted to Tesla’s big move on Monday Tesla shares are down 22% this year, but some good news overseas could provide some short-term relief — it depends Who are you asking about? Tesla said its China-made cars passed national data security regulations, sending the company’s shares up more than 15% on Monday. Now, investors expect the electric car maker’s fully-sold driving software to be available in China soon. Following the news, Bank of America maintained its buy rating on Tesla. Analyst John Murphy wrote: “With FSD, Tesla is likely to see increased demand from China. Competition from domestic manufacturers is increasing, and FSD will help Tesla catch up and potentially surpass the market Other electric vehicle products on. Murphy’s $220 price target implies 13% upside potential for the stock, which fell 1.7% in premarket trading. However, Goldman Sachs analyst Mark Delaney maintained his support for the stock. Neutral rating and $175 price target. The target represents a nearly 10% downside for Tesla shares, the analyst said: “While we view the news from China as directional positive, FSD/ Increasing software revenue has become part of our approach to valuing the stock. ” On the other hand, Wells Fargo analyst Colin Langan called Tesla’s stock price action on Monday “excessive.” Langan currently has an underweight rating on the stock, and his target price is $120, which is equivalent to a 38% sell-off in Tesla stock. “Given our view of limited EPS impact and uncertainty over deal details, we were surprised by the large move of +18% (S&P flat),” the analyst wrote. As another hurdle, Langan pointed to the special Silla may have difficulty transmitting information back from China. “Data sharing may be restricted, which could limit Tesla’s ability to capitalize on U.S. technological advances,” he added. — Lisa Kailai Han 7:02 AM: Deutsche Bank sees Live Nation up 33% on strong fundamentals, according to Deutsche Bank said strong fundamentals could mean further gains for Live Nation Entertainment’s shares. The bank initiated its buy rating on the entertainment company. Live Nation shares have fallen 3% this year, but analyst Benjamin Soff’s $120 price target means the stock could rise 33% from current prices. “Our bottom line: We believe the company will deliver sustained double-digit (adjusted) operating income growth over the next several years,” the analyst wrote. “We believe this strong growth outlook and the company’s favorable “The company’s market positioning justifies Live Nation’s premium valuation.” Sove pointed to strong supply and demand fundamentals as one of the catalysts that should drive strong long-term growth. These factors include underpenetration of international markets, the continued shift of consumer spending towards experiences, an increasing number of artists touring, and the rise of social media and music streaming, making the discovery of new artists easier than ever before. Additionally, Live Nation has taken prudent steps to improve monetization of its business, including investing in its portfolio of owned and operated venues and establishing new ticket-optimized pricing models. Sovere also praised the company’s expansion into new add-on services, including offering upsell opportunities and selling ads on the Live Nation app. While a potential regulatory probe could cap the stock’s share price, Sovere doesn’t think Live Nation’s stock will ultimately suffer much damage. “We believe the most likely outcome of the potential regulatory investigation will be pro-consumer reforms, which should not cause material damage to Live Nation’s business opportunities or require more drastic structural remedies,” the analyst wrote. Measures. — Lisa Kailai Han 6:33 AM: Mizuho names DoorDash and Airbnb as two of its top picks DoorDash and Airbnb are two of Mizuho’s top picks in the gig economy services sector Mizuho currently has a Buy rating on both stocks. Rating. Food delivery platform DoorDash is up 34% year over year, while vacation property rental company Airbnb is up 19%. Mizuho has a $162 price target for the stock, which means the stock could rise 23% from current prices. James Lee said the company’s full-year profit guidance for 2024 is likely to be raised further. “We believe the key drivers include continued share gains from its industry leading position in the United States and reasonable competition in Europe. We believe that the company’s full-year profit guidance will be further raised.” Incremental earnings support is provided by favorable unit economics from labor supply,” he wrote. Lee’s price target of $200 for Airbnb is 23% higher than Monday afternoon’s closing price. The analyst believes Airbnb’s advertising products could provide meaningful long-term upside. Additionally, if Airbnb can make its prices more affordable, especially as the Summer Olympics in Paris approach, the company could gain more market share from hotels. “Given reasonable expectations for 11% growth in fiscal 2024, coupled with a boost from the Paris Olympics and equity gains from rising hotel pricing, we view risk/reward for the quarter as positive,” the analyst said. — Lisa Kailai Han 6:10 AM: Jefferies predicts ET Chegg’s core business could be hurt by new AI headwinds As AI-driven tools rise, Jefferies sees Chegg’s future The road will be difficult. Analyst Brent Thrill downgraded the ed-tech company to “underperform” from “hold” in a report on Tuesday. At the same time, he lowered his target price on Chegg stock from $7 to $4, which is equivalent to a 44% drop in the stock price. Chegg shares, which are down nearly 37% in 2024, were down another 12.7% in premarket trading. While artificial intelligence has been a tailwind for many companies, Thrill believes the emergence of such initiatives could actually hurt Chegg’s growth trajectory. The analyst pointed to the company’s disappointing second-quarter guidance as evidence of impending headwinds. “Going forward, we question the durability of CHGG’s paid subscription model in a new AI world where free AI tools have emerged as viable alternatives to CHGG’s previous dominance,” he wrote. “We Find it hard to believe the business will return to fundamental momentum and think CHGG is wrong to try to maintain its profit levels when it should be investing in growth.” 6:03 AM: Jefferies makes first buy on Ralph Lauren as it looks to To the momentum of younger consumers, Ralph Lauren is emerging as a quality growth stock, according to Jefferies. The financial firm gave Ralph Lauren stock a buy rating and set a price target of $195. That means the fashion stock could rise 17% from Monday afternoon’s closing price. Analyst Ashley Helgans pointed to improving fundamentals at Ralph Lauren as a catalyst. She wrote: “The company has been successful in boosting its portfolio over the past few years, with average unit retail revenue exceeding 70%, driven by promotional activity, product mix reductions and, to a lesser extent, flexibility like pricing constraints. “. Analysts added that emerging high-growth categories including home goods, handbags and outerwear should continue to drive margin expansion. Additionally, the company’s shift toward a direct-to-consumer portfolio will also give Ralph Lauren greater control over its brands and reduce its wholesale risk. Helgans also pointed out that the acquisition of new customers, mainly younger ones, also contributes to the company’s development and growth prospects. “A greater focus on data analytics, a stronger social media presence, enhanced marketing and celebrity status (such as Taylor Swift on the cover of Time magazine) can also help increase awareness and brand buzz,” she wrote. Ralph Lauren’s stock price It’s up 16% this year. — Lisa Kailai Han 5:53 a.m.: UBS expects Nvidia to rise 31% on the back of latest Blackwell chips According to UBS, Nvidia’s new chips mean good news for its stock price next year. UBS reiterated its buy rating on the software company, which specializes in graphics processing units. Analyst Timothy Acuri also raised his price target on the company to $1,150 from $1,100, which would be a 31% upside from Nvidia’s closing price on Monday. Although the company fell 0.6% in premarket trading on Tuesday, the stock has soared an eye-popping 77% in 2024. Acuri highlighted Nvidia’s new Blackwell chip, the GB200, as a catalyst. While the analyst initially estimated that the chip would account for about 3% of Nvidia’s GPU portfolio in 2025, he revised that number to about 37%. Unlike Nvidia’s GH200 Hopper chip, the GB200 is more suitable for large-scale artificial intelligence training and inference. As a result, companies such as Microsoft, Amazon, Alphabet, Meta and Oracle will place large orders for GB200 chips in 2025, Acuri said. “Our sense is that demand for GB200 server racks is very strong, driven in part by rapidly increasing bottlenecks in power infrastructure components, prompting increased focus among U.S. hyperscalers,” the analyst wrote. Maximizing efficiency within a given footprint However, Acuri noted that Hopper chips may “remain strong for longer” as shipments of Blackwell chips are delayed until at least late November or December of this year. — Lisa Kailai Han —CNBC’s Michael Bloom contributed to this report.
