(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Tesla and a pharmaceutical giant were among the stocks analysts were talking about on Wednesday. Goldman Sachs raised its price target on Tesla, but it still sees a a decline for the electric vehicle maker. Barclays also hiked its Eli Lilly target, indicating roughly 10% upside. Check out the latest calls and chatter below. All times ET. 6:04 a.m.: Target has ‘exceptionally strong merchandising’ but missing upside drivers, Piper Sandler says Piper Sandler thinks Target is a safe play for investors with a longer investment horizon. Analyst Peter Keith assumed coverage of the retailer with a neutral rating and $156 price target, suggesting shares can add 5.7% over the next year. Its shares seem “properly valued” for a retailer with this long-term outlook, he said. “We like TGT’s strong omni-channel model and believe the company has exceptionally strong merchandising capabilities. Furthermore, we believe both the 2024 EPS guidance and medium-term EBIT margin target of 6% look reasonable,” Keith said in a Wednesday note. He added, however, that “we don’t see a discernable catalyst to push sales/margin above estimates near-term.” Keith said Target provides both “best-in-class” merchandising with a strong focus on customer experience in its stores and online, and expects those traits to help revive the company’s sales for the rest of the year. The pace of recovery remains uncertain, however, after a year of slowing Target sales related to boycotts, he said. The analyst also noted that Target has management transition risk and tariff risk as its CEO had agreed in 2022 to stay on for just three more years. Shares are up only 3.6% year to date. — Pia Singh 5:51 a.m.: Barclays expects Eli Lilly to beat earnings, gain nearly 10% Investors should pick up shares of Eli Lilly as the drugmaker looks well-positioned heading into earnings season, according to Barclays. Analyst Carter Gould kept his overweight rating and raised his price target by $112 to $1,025, which implies a roughly 9.9% potential increase for the stock. Gould is bullish on Eli Lilly ahead of its quarterly results due on Aug. 8, saying he sees an attractive set-up for the stock and expects the company to beat analysts’ high consensus expectations. “We expect a strong Mounjaro print (+$71mn vs. cons) and in-line Zepbound numbers (+64% q/q), but see room for the company to raise guidance again – and progress ex- Obesity (i.e., Kisunla) adds a new dimension that was lacking over most of ’23-’24,” Gould said in a Wednesday note. He added he expects increasing appreciation and focus on the “disruptive effect” of Orforglipron, an oral nonpeptide GLP-1 receptor agonist, on the company’s current share dynamics. This year, Eli Lilly shares have advanced nearly 60%. LLY YTD mountain LLY year to date — Pia Singh 5:51 a.m.: Goldman raises Tesla price target, but still sees stock slide Don’t expect Tesla’s recent momentum to last, according to Goldman Sachs The bank raised its price target on the electric vehicle maker to $248 from $175. However, the new forecast implies downside of 5% from Tuesday’s close. The target increase comes after Tesla reported better-than-expected deliveries for the second quarter earlier this month. Since then, shares are up 25%. TSLA mountain 2024-07-01 TSLA since July 2 “While we continue to believe that Tesla is well positioned for longer-term growth given its strong position in the EV and clean energy markets … we expect weaker market conditions to weigh on earnings in the near to intermediate term. We also see valuation as full,” analyst Mark Delaney wrote. He has a neutral rating on Tesla. — Fred Imbert
Wednesday’s analyst calls: Eli Lilly gets a price target increase, Goldman sees Tesla decline
Jul 10, 2024
