Friday’s biggest analyst calls: Netflix price target hike, self-driving tech stock gets upgrade
[ad_1]
(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A streaming giant and a company that makes self-driving technology for vehicles were among the biggest analyst calls Friday. Morgan Stanley raised its price target on Netflix to $700 from $600. Wolfe Research, meanwhile, upgraded Mobileye Global to outperform, calling for 30% upside. Check out the latest calls and chatter below. All times ET. 6:34 a.m.: Novo Nordisk could gain another 30% over the next year, says BMO Capital Markets BMO Capital Markets analyst Evan Seigerman initiated coverage of leading pharma company Novo Nordisk with an outperform rating and $163 target price, which suggests nearly 30% upside for the stock. Novo shares are already up more than 21% this year. “Novo [is] well-positioned to be one of two winners in obesity market… While other BioPharma players are just entering the obesity landscape, Novo has been established as a leader since Wegovy’s approval in 2021 (and Saxenda’s approval in 2014),” Seigerman wrote in a Friday note, saying he sees the obesity market growing to be worth more than $130 billion. “Widening moat driven by manufacturing, clinical data, patient data, diverse pipelines, and access support our bullish view on Novo.” The analyst said his new rating is based on: Novo Nordisk’s several in-development obesity and T2D assets that are likely to expand company’s existing portfolio; The company’s expanded manufacturing with Catalent, which it has agreed to buy in an effort to boost the output of its weight-loss drug Wegovy. This would allows it to continue supplying a “capacity-constrained market,” Seigerman said; The company’s significant amount of secondary outcomes data which could expand revenue and opportunity into the Medicare market. — Pia Singh 6:19 a.m.: UBS upgrades DocuSign, says the e-signature stock could have further margin upside Shares of DocuSign are now fairly valued, according to UBS. Analyst Karl Keirstead upgraded his rating on the stock from sell to neutral. He raised his target price by $14 to $62, which suggests 4.2% potential upside for DocuSign over the next year. This year, the stock is trading just above flat. “While we remain on the sidelines given high eSignature market penetration, competition from the likes of Adobe and mixed traction with CLM, we conclude that DocuSign has largely moved past the material post-COVID expansion headwinds and has further margin upside potential,” Keirstead wrote in a Friday note. The stock is trading at a more reasonable premium to Zoom, the analyst said, adding that its risk/reward ratio now “appears more balanced.” DocuSign’s latest quarter reflected encouraging demand trends, potentially accelerating billings growth and upside on its margins, he said. DOCU YTD mountain DOCU year to date — Pia Singh 5:54 a.m.: Citi cuts Tesla price target on near-term demand headwinds Citi Research analyst Itay Michaeli lowered his estimates on Tesla to reflect the electric vehicle company’s disappointing first-quarter deliveries result. The analyst kept his neutral rating on the stock but cut his price target by $16 to $180. That implies shares could add 3.1% over the next year. This year, Tesla’s stock has plunged about 29.7%, as the company has struggled with increasing China competition and growing its sales even after lowering prices. “Given NT Tesla demand headwinds (in our view tied to product age, saturation), we still see more downside than upside to our NT estimates,” Michaeli wrote in a Thursday note. “Our LT estimates are trimmed as well, though for now we make no changes to next-gen EV assumptions.” Tesla CEO Elon Musk had announced last week that he would reveal a new robotaxi product in August, which the analyst said could be a positive move if the company has an event introducing the robotaxi “along with a more convincing deployment path.” — Pia Singh 5:50 a.m.: Morgan Stanley reiterates overweight rating, raises price target on Netflix Netflix could be in for a strong period of long-term growth, according to Morgan Stanley. Analyst Benjamin Swinburne reiterated his overweight rating on the streaming stock and upped his price target by $100 to $700, which suggests Netflix shares could climb 11.3%. The stock has added roughly 27% this year. “Netflix’s track record includes pivoting from DVD to streaming, scaling the world’s largest studio, and successfully monetizing password sharing. This track record, combined with new call options (ads, games, live sports) and a 25%+ EPS CAGR, supports a premium multiple,” Swinburne wrote in a Friday note. The analyst forecasted 25% compound annual growth rate between 2024 and 2028, and 30% for its bull case, given the company’s revenue growth and scale. Content from outside of the U.S., original programming and a deep content library with a breadth of engagement may be some of Netflix’s under-appreciated competitive advantages, he said. — Pia Singh 5:50 a.m.: Wolfe Research upgrades Mobileye Global Investors need to buy Mobileye Global after a steep decline to start 2024, according to Wolfe Research. Analyst Shreyas Patil upgraded the autonomous vehicle technology company to outperform from peer perform. His $41 price target implies upside of 30% over the next 12 months. Shares have struggled in 2024, losing 27.5%. However, Patil thinks the risks plaguing the stock earlier this year could be behind Mobileye. MBLY YTD mountain MBLY year to date “The bigger debate, at this point, appears to be around Mobileye’s competitive position, especially for their ‘hands-free’ Supervision system ($1000-$2000 [average sales price];50% [gross margin]) and “hands-free / eyes-off” Chauffeur ($3,000-$6,000 ASP; 50% GM),” Patil said in a note. “Simply put, we do not see a rival that can match MBLY’s capabilities in cost, performance, and scalability, 3 key factors needed to support wide-scale adoption,” he said. “And we have increasing conviction that this will become apparent over the next 6-12 months, driven by growing new business awards from high-volume OEMs.” — Fred Imbert
[ad_2]
Source link