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(This is CNBC Pro’s live coverage of Friday’s Analyst Call and Wall Street Chat. Refresh every 20-30 minutes to see the latest posts.) Inside Friday’s Analyst Call So, NVIDIA and cloud stocks attracted attention. Bank of America has named Nvidia its top candidate and wants the company to reach $100 billion in free cash flow by 2025. Meanwhile, RBC Capital Markets initiated an investment in Snowflake with an outperform rating and a price target of at least 25% upside. Check out the latest calls and chats below. 6:33 a.m. ET: Piper Sandler says Tesla and Rivian will outperform their peers Electric car makers Tesla and Rivian will navigate the ever-evolving automotive landscape thanks to their respective vertical integrations is in the perfect position to On Thursday, the firm reiterated its overweight rating on Tesla and neutral rating on Rivian, with price targets of $295 and $21, respectively. Piper Sandler’s forecast suggests an upside of about 24% for Tesla and about 8% for Rivian. Analyst Alexander Potter said “this trend is a sign that vertically integrated automakers (TSLA, “Ultimately, this confirms our view that RIVN and others) are best placed to lead the way.” The automotive landscape is rapidly changing. ” Tesla stock is down 4.3% at the beginning of 2024, but is still up more than 115% over the past 12 months. Rivian is already down nearly 17% this year. — Brian Evans 6:22 a.m. ET: Wells Fargo names Boeing a top stock for 2024 Despite its already strong reputation in the aerospace sector, Wells Fargo said it can continue to grow. Analyst Matthew Akers named the stock a top priority, reiterated his Overweight rating, and raised his price target from $230 to $280. UBS forecasts suggest a rise of about 14% from Thursday’s close. “But ultimately what matters most to BA is FCF, and we are still ahead of the cash consensus for 2024, especially once deliveries to China resume, with 737 inventory liquidations of about 500 million to “We estimate there could be $1 billion in cash available. About $500 million more for the 787,” Akers said. Boeing stock soared 36.8% in 2023, but fell 6% in early 2024. —Brian Evans 6:05 a.m. ET: Jeffries Downgrades Okta His Jefferies believes Okta’s outlook is uncertain. The firm downgraded the cybersecurity stock from buy to hold on Friday. Analyst Joseph Gallo cited the recent security breach as a negative factor for the stock, but noted that he remains positive about the company’s overall strength. “Further improvement in execution and re-acceleration of growth are required to justify a re-rating of our stock further beyond our PT’s 2025 variable multiple of 6x, which will take time. I think it will cost a lot.” Indeed, analysts raised their price target for the company’s stock from $85 to $95 per share, about 14% above Thursday’s closing price. The stock price has fallen about 8% since the beginning of the year. Gallo also singled out peer Zscaler Inc. as a top candidate in the memo, noting that the company could benefit from an improving macroeconomic outlook. — Brian Evans 5:43 a.m. ET: Bank of America predicts NVIDIA’s free cash flow will be $100 billion by 2025, making it a top candidate for NVIDIA’s generation model. The prominence of artificial intelligence will continue for at least the next two years, with free cash flow and new initiatives expanding, according to Bank of America. In a note, the company reiterated its buy rating on the chip stock, set a price target of $700 per share, and identified Nvidia as a top candidate. BofA’s forecast suggests an increase of nearly 46% from Thursday’s closing price of $479.98. Analyst Vivek Arya said Nvidia’s advantage could lead to free cash flow of up to $100 billion in 2024-2025, of which about $65 billion to $75 billion could be earmarked for new growth opportunities. He claimed that there was. “NVDA’s relatively low trading multiples, with CY24/25E P/E of only 24x/20x and EPS growth of only 67%/26%, are partially attributable to This is partly due to the uncertainty of the growth outlook in CY25, and partly due to the business being very hardware dependent, unlike other large software, Internet peers with recurring revenue profiles.” said Arya. “In our view, NVDA’s robust FCF generation addresses these concerns and provides an option that will help expand the trading multiple from the historical median of 35x to 40x. ”he added Arya. Nvidia had a great year in 2023, rising over 200%. However, the stock price fell 3% in the first week of 2024. NVDA Over the Past Year 1Y Mountain NVDA — Brian Evans 5:43 a.m. ET: RBC opens Snowflake with Outperform rating Snowflake is having a strong year, and RBC thinks there’s more ahead. There are many benefits. The bank initiated coverage of the cloud company with an outperform rating and a price target of $230 per share. The forecast suggests a 25.2% rise from Thursday’s closing price. “The cloud remains the center of gravity for data,” wrote analyst Matthew Hedberg. “Despite cloud optimization trends in 2023, we believe that platforms that can support multi-cloud, cross-cloud strategies will win.” We believe an upward revision to our consensus forecast is likely. Key drivers include improving cloud optimization trends, rapid adoption of Snowpark, and introduction of new GenAI products over time.” He said that. Snowflake’s stock price rose more than 38% in 2023. However, 2024 got off to a slow start, falling 7.7% in the first few sessions of the year. — Fred Imbert
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