(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Nvidia and a beleaguered airplane maker were highlighted by analysts Thursday as part of their big calls for the day. Raymond James raised its price target on Nvidia to $1,100, noting revenue momentum will stay strong. On a more sour note, Bank of America lowered its price target on Boeing to $190, citing risks around the company’s ongoing safety issues. Check out the latest calls and chatter below. All times ET. 8:32 a.m.: Bank of America says Nike’s estimates, valuation finally look compelling Now is a good time for investors to buy the dip in Nike shares, according to Bank of America. Analyst Lorraine Hutchinson upgraded the sports goods retailer to buy from neutral and upped its price target by $24 to $113, which suggests nearly 27% upside for the stock. “Estimates finally look achievable, Nike is taking bold steps to transform, and the stock sits at a 10-year trough relative P/E,” Hutchinson wrote in a Thursday note. “Our estimates call for mid-single-digit revenue growth with margin expansion.” The analyst expects Nike to ramp up innovation ahead of its investor day, which will happen for the first time in seven years this fall. That should generate demand and excitement around its products, she said, adding that Nike’s recently announced cost savings plan could also “spur faster sales stabilization.” The company is undergoing a broad restructuring to slash costs by about $2 billion over the next three years. Nike shares have dropped about 18% this year. The company has struggled with slowing China sales and said its revenue in the first half of fiscal year 2025 could be down by low-single digits due to a softer global macro outlook. NKE YTD mountain NKE year to date — Pia Singh 6:09 a.m.: TD Cowen initiates coverage of Mastercard, Visa The opportunity of the digital payments networks market hasn’t yet been fully realized, according to TD Cowen. Analyst Bryan Bergin initiated coverage of Mastercard with a buy rating and $545 price target, which indicates 16.2% potential upside. Bergin also initiated Visa with a buy rating and $320 price target, suggesting shares could gain 16.6% over the next year. Both companies boast an attractive and durable “high-margin business” that should deliver outsized growth in the medium to longer-term, given their leading position in the global payments market. The global payments network within a consumer spend market worth $45 trillion has “retains healthy runway for digital payments penetration,” lending future upside to the stocks. International markets, particularly in Europe and Asia, should also drive higher growth for Mastercard. “Given its greater scale, outsized debit exposure and smaller VAS business, V offers a slower growth algorithm than MA which has in turn resulted in a lower multiple,” Bergin wrote in a Wednesday note. “At a ~15% discount to MA, V’s 24x valuation is less demanding. This discount has extended, and we think V shares could benefit from mean reversion.” Visa shares are up 5% year to date, while Mastercard has popped 10%. V MA YTD mountain V and MA in 2024 — Pia Singh 5:50 a.m.: Raymond James raises its price target on Nvidia, expects revenue momentum to remain strong After hosting a virtual investor meeting with Nvidia management, Raymond James is more bullish on generative AI demand and Nvidia’s leadership in the sector. The firm kept its strong buy rating and upped its price target by $250 to $1,100, suggesting 26.4% potential upside for the stock. Shares have slumped 4.7% this quarter, slipping into correction territory, soaring more than 75% year to date. “We believe concerns regarding a potential pause in customer spending ahead of Blackwell ramps are unwarranted as inferencing demand continues to outpace GPU supply,” analyst Srini Pajjuri wrote in a Wednesday note, saying he expects H200 to be a key near-term growth driver for Nvidia followed by growth in its B100 and B200 platforms in the second half of this year. “We expect revenue momentum to sustain well into 2025 given compelling TCO benefits of Blackwell, exponential growth in AI model complexity, and intense competition among hyperscalers,” the analyst said. — Pia Singh 5:50 a.m.: Bank of America cuts Boeing price target Boeing’s latest troubles made Bank of America even more skeptical on the stock’s prospects. Analyst Ronald Epstein lowered his price target on the airplane maker to $190 per share on revenue of $210. The analyst also reiterated his neutral rating on the stock. The target reduction comes after a New York Times report that regulators were investigating whistleblower claims regarding flaws on the company’s 787 Dreamliner jet. Boeing CEO Dave Calhoun recently said he would resign at the end of 2024 , as safety issues plague the company’s 737 Max plane. “Our PO of $190 (vs. $210 prior) is based on 2026e FCF of $10/share and relative value to the S & P500 of 0.9x (vs.1.0x prior),” Epstein said. “We think a lower multiple is justified given uncertainty and risks related to the management change and ongoing investigations.” The analyst noted the company “will be able to continue to benefit from the robust global air travel demand environment and, in the long run, benefit from improved quality assurance.” In the short-to-medium term, however, “there are risks due to disruptions related to management changes, multiple government investigations and the potential acquisition of Spirit AeroSystems.” Boeing shares were flat in the premarket. The stock is down 33% year to date. BA YTD mountain — Fred Imbert
Thursday’s analyst calls: Boeing price target cut, Nvidia to rally more than 25%
Apr 11, 2024
