Morgan Stanley's optimism about the rise in Super Micro Computer Inc. (SMCI) stock price is more driven by the rapid growth expectations of the AI server market, which is projected to increase from $41 billion in 2023 to $283 billion in 2028! Meanwhile, Macquarie prefers Silver Entertainment and Sands China as top picks in the Macau gaming stocks
Mizuho Bank: Downgrades Tesla's rating from Buy to Neutral, with a target price lowered from $270 to $195
JP Morgan: Maintains an "Overweight" rating on AMD, with a target price of $1150
"We expect AMD's leadership position to continue, thanks to a balance of custom solutions and rapid time-to-market.
Furthermore, our optimistic expectations for the company's stock price increase are more driven by the rapid growth expectations of the AI server market, which is projected to grow from $41 billion in 2023 to $283 billion in 2028, rather than further expansion of already high valuation multiples."
Barclays: Upgrades Disney's rating from "Neutral" to "Overweight", with a target price raised from $95 to $135
The bank believes that better-than-expected free cash flow and profit guidance, along with tailwinds such as the Hollywood strike, Hulu merger, and cost reductions, are helping boost investor confidence. The stock has been soaring since the beginning of the year, rising over 30% compared to the S&P 500's 10% increase during the same period.
However, the bank believes that Disney's next phase "may be more impactful, as many transformation factors are still ongoing and may be more evident in the data starting from next year." In the most optimistic scenario, faster-than-expected streaming profitability could be beneficial for the stock price.
Analysts expect Disney's streaming business to achieve breakeven one to two quarters earlier than the company's guidance (4th quarter of 2024), believing that Disney may achieve better streaming profits than Netflix, with estimated potential profit margins between 25% and 30%.
Macquarie: Top picks for Macau gaming stocks are Sands China and Wynn Macau, with an "Outperform" rating
According to third-party data, Macau's average daily gaming revenue over the past week was 621 million Macau dollars, remaining flat on a weekly basis. The bank assumes that the daily gaming revenue for the remaining days of this month will range between 600 million and 650 million Macau dollars, resulting in a monthly gaming revenue of 19.1 billion to 19.5 billion Macau dollars, approximately 74% to 75% of the 2019 level