(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) An e-commerce giant and a social media name were among the stocks being talked about by analysts on Tuesday. Wolfe Research initiated coverage of Amazon with an outperform rating, calling for nearly 30% upside. Meanwhile, Loop Capital downgraded Reddit to hold from buy, citing a stretched valuation. Elsewhere, Bank of America upped its rating on Shopify to buy from neutral. Check out the latest calls and chatter below. All times ET. 7:34 a.m.: Jefferies boosts price target on Netflix ahead of earnings Jefferies sees more upside ahead for Netflix , raising its price target to $780 from $655 on Tuesday. The new target suggests nearly 19% upside from Monday’s close. “We believe NFLX is well positioned for another sub beat in Q2, with the robust content slate (e.g. Bridgerton, NFL games, Squid Game) and success of password sharing initiatives driving N-T upside,” analyst James Heaney wrote in a note to clients. He expects subscribers to increase by 18% in the second quarter to 5.8 million net adds, versus his prior estimate of 4.9 million. He also raised his full-year estimate by 1.3 million to 28.3 million subscribers. Netflix’s content slate in the second half will also support growth, Heaney said. The company is set to expect earnings after the bell on Thursday. — Michelle Fox 7:12 a.m.: Bank of America lists Broadcom as top pick Bank of America thinks Broadcom’s “multiple vectors of growth” will help boost the stock as the artificial intelligence boom continues. The analyst reiterated a buy rating on Broadcom stock and maintained his $215 per share price target. BofA’s forecast implies more than 25% upside from Monday’s close. Broadcom stock has advanced 54% in 2024. “We highlight AVGO remains one of the best and most consistent generator of cash at 45-50%+ of sales,” the analyst added, calling the stock a top pick. — Brian Evans 7:03 a.m.: Goldman Sachs increases Spotify price target Goldman Sachs thinks Spotify will surpass Wall Street’s second-quarter earnings forecasts. “We expect Spotify to report solid results with possible upside on its gross margin & operating margin trajectory – generally as we get deeper into 2024, we would expect SPOT to see increased margin momentum on the back of prior period restructuring efforts, business mix shift, and pricing/product changes,” analyst Eric Sheridan said. The firm and increased its price target to $320 from $317 on shares while maintaining a neutral rating. Goldman’s forecast implies roughly 6% upside from Monday’s $302.15 close. Shares have advanced nearly 61% in 2024. The company will report second-quarter results on July 23. “Looking at the near-term demand trends, the third-party data (contained in this report) paints an overall solid end demand environment with strength coming from international markets,” the analyst added. “In addition, overall digital advertising industry work would point to a solid/stable environment (especially in the form of a recovery of budget momentum and spend visibility in the brand advertising budgets).” — Brian Evans 6:50 a.m.: Bank of America upgrades Shopify, says company is turning a corner Bank of America said Shopify could be reaching an inflection point after years of declining margins. “We forecast solid revenue growth and [free cash flow] conversion from here, driven by 1) solid high single-digit baseline eCommerce growth, 2) steady share gains, and 3) disciplined expense spending,” analyst Brad Sills wrote on Tuesday. The analyst upgraded the e-commerce stock to buy from neutral and raised his price target to $82 per share from $78. BofA’s forecast implies nearly 28% upside from Monday’s $64.21 close. “Revenue growth and disciplined spending point to healthy margin expansion going forward. We forecast 17.4% operating margin for FY26, up from 14.3% in FY24,” the analyst added. “We expect upside to Q2 revenue growth of 23%. Shopify appears well positioned to continue capturing share of the eCommerce market, while achieving better scale and FCF conversion,” Sills noted. Shopify stock has slipped nearly 18% in 2024. — Brian Evans 6:25 a.m.: Jefferies upgrades EPAM Systems, forecasts long-term AI opportunity A longer-term artificial intelligence opportunity coupled with a recovery in spending and a bottoming of demand could help grow EPAM Systems , according to Jefferies. The firm upgraded shares of the software engineering services company to buy from hold. It also raised its price target to $237 per share from $202. Jefferies’ forecast calls for nearly 19% upside from Monday’s close. “We believe both earnings and valuation have troughed, and the potential upside from a recovery in discretionary spend, as well as the potential boost to demand from AI are not fully appreciated by the market,” analyst Surinder Thind said. “We now believe current consensus expectations of revenue growth of -1.5% y/y in 2024 and +7.5% y/y 2025 are reasonable, which is consistent with our model (i.e., our estimates are unchanged),” the analyst added. EPAM Systems stock has slipped 33% in 2024. — Brian Evans 6:08 a.m.: Piper Sandler downgrades Dollar Tree on 2024 election overhang Despite shares already pulling back nearly 27% this year, Piper Sandler thinks Dollar Tree could face more risks ahead regardless of who wins the 2024 Presidential election. “We believe the company is uniquely disadvantaged regardless of the outcome of the Presidential election (Trump = tariffs, Biden = Overtime Rule change). With tariffs seeming the more likely outcome, we believe shares have become difficult to own for anyone with a 12+ month time horizon,” analyst Peter Keith wrote. Keith downgraded stock in the discount retailer to neutral from overweight on Tuesday, and trimmed his price target to $112 per share from $143. The analyst’s forecast implies about 8% upside from Monday’s close. DLTR YTD mountain DLTR year to date “With a Trump victory, DLTR has significant tariff exposure and the company still has largely a fixed price selling model (vast majority of store priced at $1.25),” Keith said. “With a Biden/ Democrat victory, the Overtime Rule change (to push the minimum salary threshold for OT eligibility to $58K) likely gets appealed and fought in 2025. Any salary threshold change close to $58K would have a material impact on DLTR’s EPS,” he continued. — Brian Evans 5:45 a.m.: Loop Capital downgrades Reddit Loop Capital is moving to the sidelines on Reddit as it doesn’t “believe the upside reward meaningfully outweighs the downside risk.” Analyst Alan Gould downgraded the forum social network stock to hold from buy and reiterated a $75 per share price target. Gould’s forecast implies roughly 3% upside from Monday’s $72.98 close. “The stock is now trading at well over twice its March IPO price; a significant premium revenue multiple to its peers, and there will likely be selling pressure when the lockup expires on August 9,” Gould wrote on Monday. Reddit priced its initial public offering at $34 per share . “We believe users, revenue and adjusted EBITDA are likely to beat our and Street estimates,” Gould cautioned despite his downgrade. “Even if 2025 revenue is 10% ahead of our projection, which is already slightly ahead of consensus, a 10X revenue multiple would then suggest an $81 price target, which is not sufficient upside in our opinion to maintain the Buy rating.” — Brian Evans 5:45 a.m.: Wolfe Research initiates Amazon with outperform rating There’s no stopping Amazon , according to Wolfe Research. Analyst Shweta Khajuria initiated coverage of the e-commerce giant with an outperform rating. Her price target of $250 implies upside of 29.7% from Monday’s close. “At a high level, Amazon benefits from a) its leadership position in Retail, Digital Advertising, and Cloud Computing—three $1T+ market opportunities, b) differentiated value prop in each of these three verticals, c) exposure to new growth opportunities in Video, Groceries, Fulfillment (Buy with Prime), Health Care, Project Kuiper, Amazon Business; and d) an experienced management team,” Khajuria wrote. “In terms of near-to-mid-term fundamentals, we like the 2024 setup for Amazon. We expect accelerating [year-over-year] growth at AWS this year, ongoing Retail margin expansion, share gains in eCommerce driven by faster delivery speeds and mix-shift to everyday essentials, and new growth catalysts in the form of Prime Video, Grocery, and Amazon Logistics,” the analyst added. Amazon shares have been on fire this year, soaring nearly 27%. AMZN YTD mountain AMZN year to date — Fred Imbert
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