Check out today's top analyst calls from around Wall Street, compiled by The Fly.
BERNSTEIN UPGRADES NVIDIA WITH $360 TARGET: Bernstein analyst Stacy Rasgon upgraded Nvidia (NVDA) to Outperform from Market Perform with a price target of $360, up from $300. The shares closed Tuesday up 2%, or $6.78, to $296.57. The company's March 19 analyst day and the completion of the Mellanox (MLNX) acquisition are two potential catalysts for the shares, Rasgon tells investors in a research note. The analyst, who admits not upgrading Nvidia sooner was a mistake, says improved Turing traction and the return of hyperscale cloud spending puts the company with stability.
TESLA TARGET RAISED TO "STREET HIGH" $928: Piper Sandler analyst Alexander Potter raised the firm's price target on Tesla (TSLA) to $928 from $729 and keeps an Overweight rating on the shares. The analyst says that in order to gauge Tesla's chances of success at storing one's own solar power, he recently installed a solar system to use for charging a Model X. It's easy to forget that Tesla sells batteries and solar power products as the segment was only 6% of sales in 2019, Potter tells investors in a research note. Management says that the solar and storage business will one day rival the automotive segment, and if this is true, "then investors will eventually need to pay attention," contends the analyst. With 5M new rooftops installed annually in the U.S., Potter estimates addressable market for Tesla's integrated solar roof is $165B per year. Adding two Powerwalls to each new solar roof would boost the market size by $70B per year, he adds. After logging 53,448 miles on a Model X, the analyst is "convinced that Tesla's automotive products offer a superior ownership experience." Potter goes on, "If history is any indication, we'll eventually be saying something similar about generating and storing our own solar power." The analyst says his new price target on partially capture Tesla's solar and storage opportunity in his 20-year discounted cash flow model.
ADOBE TARGET RAISED TO "STREET HIGH" $430: UBS analyst Jennifer Lowe raised her price target on Adobe (ADBE) to $430 from $360 and kept her Buy rating, citing the findings of UBS Evidence Lab indicating that the adoption and the average revenue per user of its Creative software is growing. The analyst expects the company to sustain its high-teen revenue and over 20% earnings growth, adding that its widening premium valuation relative to the broader market is warranted by its growth trend.
TENCENT MUSIC DOWNGRADED AT OPPENHEIMER: Oppenheimer analyst Bo Pei downgraded Tencent Music (TME) to Perform from Outperform as shares are likely to be range-bound on uncertain live streaming regulations and increasing competition with short video platforms. The analyst expects in-line Q4 results but is lowering 2020 estimates. Tencent Music is expected to cease master licensing agreement with one of the Big Three labels, which should further weigh on its sublicensing revenue and content cost savings are likely to be offset by higher live streaming costs, he contends. Although Pei believes its music subscription business will continue to perform well, he sees meaningful negative estimate revisions for Live Streaming and Sublicensing over the next earnings cycle and suggests investors wait for a better entry point.
NIKE BUYING RECOMMENDED ON PULLBACK: Morgan Stanley analyst Kimberly Greenberger said she sees downside risk in the 1% to 6% range for her current Q3 revenue estimate for Nike (NKE) due to the coronavirus headwind and sees risk to EPS of 2c-15c from her current estimate of 70c. While store closures in China may cause Nike to temper its full year revenue guidance, she expects the market to look past this transitory issue and would add to positions on any pullback, said Greenberger, who keeps an Overweight rating and $119 price target on Nike shares.
Tesla
+58.66 (+7.33%)
Nvidia
+6.92 (+2.39%)
Adobe
-0.62 (-0.16%)
Bought by NVDA
+1.25 (+1.03%)
Tencent Music
-0.46 (-3.50%)
Nike
-1.55 (-1.50%)