Here are Thursday's biggest analyst calls: Tesla, Nvidia, Carnival, Mobileye, Disney, Snowflake & more

Published Thu, May 25 20238:48 AM EDT

Here are Thursday's biggest calls on Wall Street: Bank of America reiterates Nvidia as buy Bank of America raised its price target on the stock to $450 per share from $340 after Nvidia's blowout earnings report on Wednesday and said it's "uniquely positioned to help transform the nearly $1tn of traditional data centers towards accelerated/AI driven computing." "Nvidia's (NVDA) Q1 sales were 10% ahead, with pf-EPS 19% ahead of consensus, and data center $4.3bn vs $3.9bn expected." Read more about this call here. Baird upgrades Nvidia to outperform from neutral Baird upgraded Nvidia after its earnings report Wednesday and says the AI wave is "in formation." "As AI-related order momentum continues into the second half, annualized earnings of $10 are at reach within 2-3 quarters in our view, reflected in the valuation post earnings. Read more about this call here . Citi upgrades Carnival to buy from neutral Citi called the cruise operator a "recovery meets turnaround" story. "Our upgrade is the culmination of: (1) our recent cruise work (pricing, web traffic, virtual fireside chat, earnings read-throughs), (2) our belief that the balance sheet is at a turning point, with the opportunity to become significantly 'less ugly' in the years to come." Wells Fargo initiates Mobileye as overweight Wells said the autonomous driving tech company has upside potential. "We initiate Mobileye at Overweight; $50 price target (34x EV/EBIT on C2025 est.). Put simply, the key tenet of our thesis is Mobileye's platform strategy / positioning, and upside potential, via SuperVision & Chauffeur adoption into 2024+. Wells Fargo upgrades Leidos Holdings to overweight from equal weight Wells said shares of the engineering company are not pricing in enough upside. "We think LDOS' current valuation bakes in too much fear around short-term uncertainty, while not taking into account 2024 sales/margin/cash flow upside." Morgan Stanley reiterates Tesla as overweight Morgan Stanley said Tesla's "20-million unit volume goal cannot be achieved without securing a diverse range of partnerships across global regimes." "We have taken note of Elon Musk's accelerating number of engagements with world leaders on future investment opportunities. Tesla's stated 20-million unit volume goal cannot be achieved without securing a diverse range of partnerships across global regimes." Susquehanna upgrades Caesars to neutral from negative Susquehanna said it sees a more balanced risk/reward for the stock. "We are upgrading our rating on CZR to Neutral (from Negative) following our assessment of a more balanced risk/reward at current levels (LV vs. regional/digital) and increased our price target to $39." Daiwa upgrades Ford to neutral from underperform Daiwa said it's bullish on the Ford Pro line. "The Ford Pro segment stood out in terms of strong market position, diversified end markets and potential to generate recurring revenue. We believe Pro could grow faster as an independent company with flexibility to expand beyond chassis, for instance, in upfitters." Morgan Stanley initiates Teva as equal weight Morgan Stanley said it sees too many execution risks right now for the pharma company. "Teva is emerging from a period of restructuring, deleveraging and litigation management, with the focus now shifting to the pivot to growth." Citi downgrades Dish to neutral from buy Citi said in its downgrade of the stock that it has "substantial capital needs." "We are reducing DISH to a Neutral/High Risk rating as the substantial capital needs combined with the drop in market value of its securities have increased uncertainty and dilution-risk for DISH equity." Citi reiterates Disney as buy Citi said transitioning ESPN to "streaming could add ~$20 per share to Disney's equity value." "We believe ESPN's transition to streaming could add ~$20 per share to Disney's equity value. The lion's share of the upside we see stems from: 1) sports fans that have already cut the cord signing up for ESPN+, and 2) higher ARPU from existing ESPN+ subs." Oppenheimer reiterates Microsoft as outperform Oppenheimer said it has high confidence that Microsoft's revenue growth will accelerate. "Two business positives out of Microsoft Build 2023 developer conference, which we attended in-person: 1)Azure OpenAI customers now top 4500, up 80% from 2500 disclosed on 4/25, 'the fastest growing service in Azure history,' and 2)Bing will be default search engine on ChatGPT starting today for Plus users, with free tier 'soon.'" JPMorgan upgrades Vipshop to overweight from neutral JPMorgan said the China e-commerce company is the "best defensive play in ecommerce space." "We believe Vipshop will be the best defensive play in the China ecommerce space in the next six months on earnings visibility/upside risks and the share price correction over the past week (-13% vs. KWEB -6%) offers an entry point for investors." Read more about this call here. KeyBanc upgrades Six Flags to overweight from sector weight KeyBanc reinstated coverage and upgraded shares of Six Flags saying that things are trending in the right direction. "Following a difficult transition in 2022, we see merit to X' ongoing strategic shift and are encouraged as recent reported results and data (i.e., geolocation; see page 23) support trends moving in the right direction." RBC upgrades Toll Brothers to outperform from sector perform RBC said it sees "demand improvement and margin resiliency" for the homebuilder. "We believe sentiment has been overly negative on a relative basis given TOL's high-end, West Coast, and build-to-order exposures, with recent trends providing evidence that it has experienced improvement similar to peers." Read more about this call here . Redburn downgrades American Express to sell from neutral Redburn said it's concerned about the "rising cost of growth." "For American Express, which seeks to capture growth outside the US, consensus underestimates the level of reward spending that will be needed to convince consumers to use its card. This will weigh on profit margins." Rosenblatt downgrades Snowflake to neutral from buy Rosenblatt downgraded the stock after its earnings report Wednesday and said it sees slowing growth. "Wednesday after the market, Snowflake reported Q1 Product revenue growth of 50%, ~3%above our expectation, with most geographies in-line (except for APJ) and with net revenue retention still a healthy 151%" Barclays downgrades XPeng to underweight from equal weight Barclays downgraded the China electric vehicle company after its disappointing earnings report. " XPEV reported disappointing Q1 results and provided a weaker- than-expected Q2 guide. Amid multiple challenges and with a highly uncertain outlook, we downgrade XPEV to UW."