Tuesday's calls of the day: Analysts get even more bullish on Amazon, Apple, Netflix & Nvidia

Published Tue, Jul 7 20208:17 AM EDT

Key Points

Bank of America raised its price target on Nvidia to $460 from $420.
Credit Suisse raised its price target on Netflix to $550 from $465.
Baird raised its price target on Amazon to $3,300 from $2,750.
Raymond James raised its price target on Apple to $400 from $340.
Piper Sander initiated PayPal as overweight.
Stephens initiated Teledoc as outperform.
RBC initiated Nikola as sector perform.
Needham upgraded Ambarella to buy from underperform.
Morgan Stanley raised its price target on Tesla to $740 from $650.

(This story is for CNBC PRO subscribers only.) Tech stocks surged to start the week, leading the Nasdaq Composite to another record and up 16% year-to-date through Monday. Analysts were scrambling Tuesday morning to get even more bullish on the shares with price target increases on Amazon, Netflix, Apple and Nvidia. Below are summaries of these tech calls and as well as other big calls of the day: Bank of America raised its price target on Nvidia to $460 from $420 Bank of America raised its price target on the stock to a Street high and said survey checks showed "strong trends" surrounding the gaming industry and that Nvidia had "leading" long-term growth. "We maintain Buy on NVDA and raise PO to a street-high $460 from $420 now based on 45x CY21 PE ex-cash (vs. 41x prior due to rising market multiples), a premium to peers but justified based on NVDA's leading long-term growth and exposure to our favored end markets." Credit Suisse raised its price target on Netflix to $550 from $465 Credit Suisse raised its price target on the stock and said it sees the company with an "increasing" content advantage and that it expects a healthy addition of subscribers when the streaming giant reports earnings on July 16th. "Subscriber growth expectations are justifiably high heading into results, as NFLX app downloads reflect cont'd strong underlying trends that have been helped by shelter-in-place, reduced competition (no sports, theaters closed, Hollywood production stoppages), momentum building in Asia, content success and a lack of price increases. We now see 2Q global net adds of 10.55m, ahead of street/guide for 7.5m and while we continue to expect that 2H comps will be tougher (COVID pull forward + return of sports), we believe NFLX's increasing content advantage and the Asia flywheel fully spinning up will bolster confidence in sustainable growth." Baird raised its price target on Amazon to $3,300 from $2,750 Baird raised its price target on Amazon and said its checks show the ecommerce giant has gained share in "essential' products during the coronavirus crisis. "Following updated e-commerce checks through June, as well as positive Amazon -specific data, we are again increasing our revenue and operating income estimates above consensus. We believe Amazon has largely stabilized logistics operations, third parties are generally back on track, and the company has gained share in multiple 'essentials' product categories. Moreover, investors may not yet fully embed either the margin benefits of cheaper new user acquisition or the sustainability of higher growth in 2H and beyond." Raymond James raised its price target on Apple to $400 from $340 Raymond James raised its price target on the stock and said it sees a "good chance" the company doesn't provide guidance for the September quarter, due to late launch of the newest iphone. "Our note calls attention to the fact that consensus September quarter estimates for Apple are too high given the late start for iPhone production this year (and presumably a later than normal launch), meaning it's highly unlikely Apple will recognize any iPhone revenue in the September quarter. While we believe the later launch is well-understood by investors, it's not reflected in Street consensus." Piper Sander initiated PayPal as overweight Piper Sandler said in its initiation of PayPal that the company is well-positioned going forward due to the coronavirus pandemic. "We view PayPal as one of the best-positioned companies to take advantage of changes in consumer purchasing behavior due to the pandemic. We would encourage investors to build or add to positions in PYPL, especially in any future pandemic-related market pullbacks. We expect PayPal to be one of the better revenue growth stories in the payments sector in coming quarters." Stephens initiated Teledoc as outperform Stephens initiated the telehealth company and said the valuation was "attractive." "We are initiating on TDOC with an Overweight rating and $250 price target. Despite the premium (TDOC stock is up over 150% YTD and trading at 900bps premium to its historical average EV/ Revenue multiple), we see valuation as still attractive at current levels given 1) the large and ever-growing addressable market (significantly expanded by the COVD-19 pandemic) 2) TDOC's leading position in the telehealth industry & network effect, and 3) TDOC's profitability and FCF trajectory RBC initiated Nikola as sector perform RBC initiated the hybrid truck manufacturing company and said it was "difficult" to value. "Of late, market has shown demand for sustainable/alternative transportation, particularly hydrogen. NKLA' s stock skyrocketed amid enthusiasm, aided by limited free-float. As meaningful revenue/EBITDA/cash flow further out, NKLA is difficult to value and can remain a story stock untethered to trad'l valuation/fundamental metrics." Needham upgraded Ambarella to buy from underperform Needham double upgraded the semiconductor design company and said it sees stronger revenue and "alpha to the upside." "After 6+ years of being cautious on AMBA shares, we are upgrading the stock to a Buy from an Underperform rating as we introduce our CY22 estimates, which reflect a strong ramp in computer vision revenue from the three waves of computer vision design wins. Despite the COVID-19 pandemic, we believe computer vision design activity remains robust. Professional security camera design wins represent the first wave of the CV production ramp and should drive CV revenue to ~10% of revenue in FY21 (CY20)." Morgan Stanley raised its price target on Tesla to $740 from $650 Morgan Stanley reiterated its underweight rating on the stock but raised its price target and said the company appears "less risky" than other original equipment manufacturers. The firm also raised its bull case target to $2,070. " Tesla was already seen as the undisputed leader in EVs and Auto 2.0. But a resilient 2Q (demand and, likely, profit) is now making the company appear less risky/stronger financially than other original equipment manufacturers, sending the stock well above our prior bull case."

Jeff Bezos, head of Amazon, can be seen on the fringes of the company's novelties event.

Andrej Sokolow | picture alliance | Getty Images

(This story is for CNBC PRO subscribers only.)

Tech stocks surged to start the week, leading the Nasdaq Composite to another record and up 16% year-to-date through Monday. Analysts were scrambling Tuesday morning to get even more bullish on the shares with price target increases on Amazon, Netflix, Apple and Nvidia.

Below are summaries of these tech calls and as well as other big calls of the day:

Bank of America raised its price target on Nvidia to $460 from $420

Bank of America raised its price target on the stock to a Street high and said survey checks showed "strong trends" surrounding the gaming industry and that Nvidia had "leading" long-term growth.

"We maintain Buy on NVDA and raise PO to a street-high $460 from $420 now based on 45x CY21 PE ex-cash (vs. 41x prior due to rising market multiples), a premium to peers but justified based on NVDA's leading long-term growth and exposure to our favored end markets."