Bank of America Merrill Lynch has lowered Tesla's target price from $280 to $220, believing that Tesla will face increasing profit pressure due to weak demand. Unless Tesla enters new regional markets, it is expected to be difficult for the company to generate additional sales with its existing product portfolio or without further price reductions
Morgan Stanley: Raises NVIDIA's target price from $795 to $1000, maintains "overweight" rating
The firm expressed high confidence in the company's long-term investment plans, with large-scale expansion of data centers over the next 3 to 4 years indicating sustained demand, including Microsoft's billion-dollar Stargate Project.
NVIDIA indicated that 40% of data centers are already using inference technology, suggesting that the market is still too focused on chip applications in large language models, overlooking other artificial intelligence applications.
The firm also pointed out that short-term demand for NVIDIA chips remains very strong, with demand still exceeding the capacity of the supply chain. The firm believes that the shortage of NVIDIA's graphics processors will ease, but the problem will be replaced by shortages in other areas of the ecosystem, and Hopper chips will still be quickly adopted.
The firm believes that cloud graphics processors are being used at higher prices in times of supply constraints, and investors should pay more attention to changes in delivery times compared to NVIDIA chips, especially as product upgrades accelerate within the delivery period.
Bank of America: Lowers Tesla's target price from $280 to $220, maintains "neutral" rating
"The increase in inventory in the first quarter seems to be driven mainly by declining demand for electric vehicles in various regions, especially in North America, where electric vehicle sales have been basically flat since the summer of 2023."
"We believe that due to weak demand, Tesla will face increasing profit pressure. Unless Tesla enters new regional markets, we believe the company will find it difficult to generate additional sales with its existing product portfolio or without further price reductions."
Needham: Raises TSMC's target price from $133 to $168, maintains "buy" rating
Morgan Stanley: Lowers Boeing's target price from $235 to $180, the lowest on Wall Street
The reason given is the slowdown in production and longer supervision time by the Federal Aviation Administration (FAA).
Analysts wrote, "While we acknowledge that a slowdown in production may be most beneficial for safety, we believe that slower-than-expected production deliveries will have a negative impact on stock prices and free cash flow." "Ultimately, the longer the FAA regulatory pressure on monthly aircraft deliveries, the greater the challenge for Boeing to achieve its 2025/2026 aircraft production and $10 billion free cash flow targets."
Dah Sing: Maintains "buy" rating on Alibaba-SW, lowers target price from HK$100 to HK$92
The firm expects Alibaba's revenue in the fourth quarter of the 2024 fiscal year to increase by 6% year-on-year, mainly driven by growth in China's retail business customer management (CMR) revenue. For the 2025 fiscal year, Alibaba will continue to focus on user experience and investment in AIDC (Alibaba International Digital Commerce Group) to drive revenue growth in a competitive environment.
Dah Sing maintains Alibaba's revenue expectations for the fourth quarter of the 2024 fiscal year and the 2025 fiscal year largely unchanged, with revenue expected to increase by 6% and 8% year-on-year, respectively, and net profit to decline by 26% and increase by 43%, with non-US GAAP net profit margins expected to be 9.6% and 17%, compared to 13% in the 2024 fiscal year
JP Morgan: Maintains "Overweight" rating on NetEase-S, with a target price of HKD 200
The bank reiterated its positive view on NetEase and advised investors to increase their holdings before the launch of various games in the second or third quarter of 2024. The bank believes that NetEase can achieve a 10% year-on-year growth in online games in 2024.
According to the report, NetEase will renew its agreement with Blizzard and reach an agreement with Microsoft Games to explore introducing NetEase's new games to Xbox consoles and other platforms. The bank expects such collaborations to contribute to a 1% and 3% growth in NetEase's game revenue expectations for 2024/25. Considering the revenue sharing with Blizzard, the bank anticipates that such re-collaborations will help increase NetEase's profit by 1%-2% in 2024/2025