(This is CNBC Pro’s live coverage of Tuesday analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Analysts on Tuesday were focusing on a top pharma name and a chip maker as places where investor money can grow. Even with an outsized surge in its stock this year, Wells Fargo thinks Eli Lilly still has big growth ahead as key drug trials progress. Elsewhere, Wells Fargo started its coverage of AMD, saying the chipmaker’s tailwinds include strong demand for data centers. Vista Energy also is offering value as the company’s South American operations give it an edge, according to JPMorgan. Check out the latest calls and chatter below. All times ET. 7:24 a.m.: Benchmark reiterates DraftKings as a top idea, sees underperformance as buying opportunity With DraftKings stock ticking down roughly 2% in 2024. Benchmark thinks shares are currently attractively priced for a buying opportunity. The firm reiterated the online gambling stock as a top pick on Tuesday, with a buy rating and a $44 per share price target. Benchmark’s forecast implies nearly 28% upside from Monday’s $34.41 close. “DKNGs’ improved outlook, fueled by stronger market win margins in Q3, new user growth, traditional tax mitigation strategies, and valuation contraction ahead of the NFL season, creates an attractive entry point,” analyst Mike Hickey said. “[W]e believe DKNG warrants a premium for its market leadership and pure-play in the North America online market,” the analyst added. — Brian Evans 7:08 a.m.: Bank of America resumes TKO Group stock coverage, highlights sports rights dominance Bank of America attributes a roughly 45% rise for TKO Group in 2024 as tied to the growing solidity around sports rights, which could signal upside for the stock moving forward. The firm resumed coverage of the WWE and UFC owner with a buy rating and a $140 per share price target, equating to roughly 19% upside moving forward. TKO YTD line TKO Group share performance “The recent NBA media rights renewal underscores that the market for sports rights remains extremely strong despite the continued secular decline of the linear TV ecosystem as strong sports viewership helps sustain the linear ecosystem,” analyst Brent Navon said. “With the media industry increasingly fragmenting, we believe there is scarcity value for premium IP companies, which warrant a premium valuation,” Navon added. TKO stock has added more than 44% in 2024. — Brian Evans 6:42 a.m.: JPMorgan initiates Vista Energy at overweight The Vista Energy stronghold on the South American Vaca Muerta basin makes the company a unique play among oil company’s in the region, according to JPMorgan. The firm initiated coverage of the natural gas and oil company with an overweight rating in a Tuesday note, alongside a $68 per share price target. JPMorgan’s forecast implies more than 38% upside from Monday’s $49.10 close. Analyst Rodolfo Angele lauded the company’s founder-owned and run structure which helps align itself with shareholder values, and noted its willingness to invest in infrastructure as a key growth catalyst. “Vista has recently secured an additional frac set (to come online in 4Q24, boosting its drilling program); and (b) the industry has several projects to address Vaca Muerta’s growth,” Angele said. “As these efforts bear fruit, the anticipation of production becomes an upside risk to our base case.” “We estimate Vista’s production and EBITDA rowing by a CAGR of 30% from 2023 to 2026, with potential for upward revision if additional drilling rigs and frac sets are acquired,” the analyst added. — Brian Evans 6:13 a.m.: Wells Fargo names Eli Lilly a top pick Wells Fargo sees improved supply and tailwinds from key drug trials as growth drivers moving Eli Lilly forward. The firm listed Eli Lilly as a top pick within its biotechnology coverage universe in a Tuesday note, standing by an overweight rating and a $1,000 per share price target. Wells’ forecast implies more than 8% upside from Monday’s $921.81 close. LLY YTD line Eli Lilly share growth “We see upside to 2025 consensus numbers and note that the company has key catalysts in the form of Surpass-CVOT [cardiovascular outcome trial] trial (2025) and then Orforglipron/Retatrutide pivotal readouts in 2025/26,” analyst Mohit Bansal said. “We are less concerned about new competition since we think manufacturing and wealth of data are going to create a big moat for LLY in longer term,” Bansal added. Eli Lilly stock has added more than 58% in 2024. — Brian Evans 6:09 a.m.: Edward Jones initiates AMD stock coverage at buy, forecasts above average growth Edward Jones doesn’t see any signs of data center demand slowing down, which could expand AMD ‘s growth runway. The firm initiated coverage of the chipmaker with a buy rating in a Monday note. Shares have ticked up more than 5% in 2024. Analyst Logan Purk added that AMD’s acquisition of semiconductor firm Xilinx will help the company broaden out its slate of chip offerings and also tap into new markets, while it remains “in the early innings of cross-selling and integrating Xilinx and AMD products.” “[E]ven though PC markets have started to rebound, we believe AI-enabled PCs could drive a longer upgrade cycle, supporting higher growth for the PC market,” Purk said. “We believe our optimism is not fully reflected in the share price.” — Brian Evans
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