Thursday's analyst calls: Boeing price target cut, Nvidia to rally more than 25%

Published Thu, Apr 11 20245:50 AM EDTUpdated Thu, Apr 11 20248:58 AM EDT

(This is CNBC Pro's live coverage of Thursday's analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Nvidia and a beleaguered airplane maker were highlighted by analysts Thursday as part of their big calls for the day. Raymond James raised its price target on Nvidia to $1,100, noting revenue momentum will stay strong. On a more sour note, Bank of America lowered its price target on Boeing to $190, citing risks around the company's ongoing safety issues. Check out the latest calls and chatter below. All times ET. 8:57 a.m.: Citi downgrades Robinhood, says stock's valuations are far from fundamental outlook Analyst Christopher Allen downgraded Robinhood to sell, saying the stock's hot run-up this year is largely due to rising bitcoin prices and that the company's risk/reward ratio is now "negatively skewed." Shares have jumped nearly 44% this year. "We believe valuation levels have disconnected from the fundamental outlook," Allen wrote in a Thursday note. "We see risks to the stock here on any material pullback in BTC prices (ETF flows have slowed lately, halving event ahead creates some uncertainty), slower retail activity, or market pullback given current valuations." Allen upped his price target by $3 to $16, which still suggests 12.8% potential downside from Robinhood's latest closing price. — Pia Singh 7:50 a.m.: KeyBanc initiates Snowflake as overweight KeyBanc thinks Snowflake's ability to expand its business further our from a focus on data warehousing and further grow its generative artificial intelligence platform could drive the stock higher. The firm initiated coverage of the data cloud stock with an overweight rating and a $185 per share price target. KeyBanc's forecast implies nearly 21% upside from Wednesday's $152.97 close. "We are positive on durable +20% growth driven by continued legacy DW [data warehouse] migrations, improving public cloud migration trends, a significantly expanding product portfolio, and the use of Snowflake's easy-to-use, governed platform for developing and hosting GenAI workloads," analyst Eric Heath said. "While we do retain some caution on the impact of iceberg, visibility into consumption trends, and the nascency of the emerging product offerings, including in GenAI, early partner and customer conversations have been encouraging on the potential for increased workload adoption on the Snowflake platform," he added. Shares of Snowflake have been under pressure in 2024 with a 23% pullback. SNOW YTD mountain SNOW YTD — Brian Evans 7:37 a.m.: Nasdaq is a strong pick that can rally more than 20%, Barclays says Barclays came out of the gate bullish on Nasdaq , seeing potential for solid earnings per share growth. Analyst Benjamin Budish initiated coverage of the financial services company at an overweight rating. His $76 price target signals upside of 20.6% from Wednesday's close. "With tailwinds from capital markets, underappreciated deal-related synergies, operating leverage, and robust cash generation, we see one of the most attractive medium-term earnings growth profiles in the exchange space at a reasonable price," Budish told clients in a note. Nasdaq has a clear growth profile with a logical corporate structure and exposure to growing markets, Budish said. That comes as a result of its merger-and-acquisition work. That work around deals, as well as in operating leverage and reducing debt, has helped create what Budish calls an "attractive" growth profile for earnings per share, expected to increase at double-digit percentage rates by some measures. Budish said a rebound in capital markets activity can also help the exchange. Nasdaq shares have climbed more than 8% so far this year. — Alex Harring 7:05 a.m.: Albemarle shares could jump more than 25%, according to Berenberg Berenberg analyst Andres Castanos-Mollor upgraded chemicals company Albemarle to buy from hold, saying its investment thesis is now "relatively de-risked as both volumes and prices should trend upwards" after a disappointing fourth-quarter earnings print. He raised his price target by $30 to $160, which suggests more than 25% potential upside for shares. The analyst expects growing lithium volumes, an upside to lithium prices and no need for further equity raise to boost the company's growth. Regarding the company's $2.3 billion convertible preferred stock issuance, Castanos-Mollor said "the capital increase means that Albemarle will be able to continue to expand during a bleak 2024E for the industry, further entrenching its leadership position going forward." Shares of Albemarle have lost 11.7% this year. — Pia Singh 7:03 a.m.: Bernstein initiates coverage of Kenvue at underperform, sees further downside There's still more pain ahead for Johnson & Johnson spinoff Kenvue, according to Bernstein, which still initiated coverage of the health stock with an underperform rating on Wednesday. Analyst Callum Elliott assigned an $18 price target to the stock, which implies shares could lose roughly 11% over the next 12 months. Shares have lost 6% this year. "Kenvue has consistently lost market share across the majority of its business for the past several years," Elliott wrote in a note. "After years of JNJ's harvesting approach, we expect FY24 investment to prove inadequate, and struggle to see a path to share stabilization absent significant further re-investment." Kenvue now seems to be "starting on the right path" given its plan to invest in advertising, Elliott said, adding that the company's fiscal year 2024 reinvestment plans are still likely to be inadequate, however. — Pia Singh 6:32 a.m.: Bank of America says Nike's estimates, valuation finally look compelling Now is a good time for investors to buy the dip in Nike shares, according to Bank of America. Analyst Lorraine Hutchinson upgraded the sports goods retailer to buy from neutral and upped its price target by $24 to $113, which suggests nearly 27% upside for the stock. "Estimates finally look achievable, Nike is taking bold steps to transform, and the stock sits at a 10-year trough relative P/E," Hutchinson wrote in a Thursday note. "Our estimates call for mid-single-digit revenue growth with margin expansion." The analyst expects Nike to ramp up innovation ahead of its investor day, which will happen for the first time in seven years this fall. That should generate demand and excitement around its products, she said, adding that Nike's recently announced cost savings plan could also "spur faster sales stabilization." The company is undergoing a broad restructuring to slash costs by about $2 billion over the next three years. Nike shares have dropped about 18% this year. The company has struggled with slowing China sales and said its revenue in the first half of fiscal year 2025 could be down by low-single digits due to a softer global macro outlook. NKE YTD mountain NKE year to date — Pia Singh 6:09 a.m.: TD Cowen initiates coverage of Mastercard, Visa The opportunity of the digital payments networks market hasn't yet been fully realized, according to TD Cowen. Analyst Bryan Bergin initiated coverage of Mastercard with a buy rating and $545 price target, which indicates 16.2% potential upside. Bergin also initiated Visa with a buy rating and $320 price target, suggesting shares could gain 16.6% over the next year. Both companies boast an attractive and durable "high-margin business" that should deliver outsized growth in the medium to longer-term, given their leading position in the global payments market. The global payments network within a consumer spend market worth $45 trillion has "retains healthy runway for digital payments penetration," lending future upside to the stocks. International markets, particularly in Europe and Asia, should also drive higher growth for Mastercard. "Given its greater scale, outsized debit exposure and smaller VAS business, V offers a slower growth algorithm than MA which has in turn resulted in a lower multiple," Bergin wrote in a Wednesday note. "At a ~15% discount to MA, V's 24x valuation is less demanding. This discount has extended, and we think V shares could benefit from mean reversion." Visa shares are up 5% year to date, while Mastercard has popped 10%. V MA YTD mountain V and MA in 2024 — Pia Singh 5:50 a.m.: Raymond James raises its price target on Nvidia, expects revenue momentum to remain strong After hosting a virtual investor meeting with Nvidia management, Raymond James is more bullish on generative AI demand and Nvidia's leadership in the sector. The firm kept its strong buy rating and upped its price target by $250 to $1,100, suggesting 26.4% potential upside for the stock. Shares have slumped 4.7% this quarter, slipping into correction territory, soaring more than 75% year to date. "We believe concerns regarding a potential pause in customer spending ahead of Blackwell ramps are unwarranted as inferencing demand continues to outpace GPU supply," analyst Srini Pajjuri wrote in a Wednesday note, saying he expects H200 to be a key near-term growth driver for Nvidia followed by growth in its B100 and B200 platforms in the second half of this year. "We expect revenue momentum to sustain well into 2025 given compelling TCO benefits of Blackwell, exponential growth in AI model complexity, and intense competition among hyperscalers," the analyst said. — Pia Singh 5:50 a.m.: Bank of America cuts Boeing price target Boeing's latest troubles made Bank of America even more skeptical on the stock's prospects. Analyst Ronald Epstein lowered his price target on the airplane maker to $190 per share on revenue of $210. The analyst also reiterated his neutral rating on the stock. The target reduction comes after a New York Times report that regulators were investigating whistleblower claims regarding flaws on the company's 787 Dreamliner jet. Boeing CEO Dave Calhoun recently said he would resign at the end of 2024 , as safety issues plague the company's 737 Max plane. "Our PO of $190 (vs. $210 prior) is based on 2026e FCF of $10/share and relative value to the S & P500 of 0.9x (vs.1.0x prior)," Epstein said. "We think a lower multiple is justified given uncertainty and risks related to the management change and ongoing investigations." The analyst noted the company "will be able to continue to benefit from the robust global air travel demand environment and, in the long run, benefit from improved quality assurance." In the short-to-medium term, however, "there are risks due to disruptions related to management changes, multiple government investigations and the potential acquisition of Spirit AeroSystems." Boeing shares were flat in the premarket. The stock is down 33% year to date. BA YTD mountain — Fred Imbert