(This is CNBC Pro’s live coverage of Tuesday’s Analyst Call and Wall Street Chat. Refresh every 20-30 minutes to see the latest posts.) Tuesday’s Analyst The conversation focused on major home remodeling stocks and aircraft manufacturers. Mizuho started Home Depot with a “buy” rating and expects an upside of about 10%. UBS reiterated that Boeing is a buy, noting that the stock is expected to rise significantly. Elsewhere, analysts welcomed the latest announcements from NVIDIA chips, with some inching up their stock price estimates. Check out the latest calls and chats below. Always Eastern Time. 6:31 a.m.: Jefferies begins Zoom with hold rating, expects intense competitive pressure going forward Intense competition and short-term growth slowdown could weigh on Zoom’s stock price, according to Jefferies. There is sex. The investment firm initiated adoption of its conferencing software platform with a hold rating. Analyst Samad Samana set a price target of $70, which corresponds to a 6% increase in the stock price. Zoom stock has fallen 8% this year. Samana expects corporate revenue to be the biggest driver of growth going forward, as management focuses on upselling to Zoom’s largest customers. Other attractive factors for Zoom include his recently announced $1.5 billion buyback program and its “substantial” $7 billion cash balance. The analyst said, “FCF in FY2025 is expected to be $1.46 billion, with potential for additional approvals and mergers and acquisitions going forward (which could lead to accelerated growth).” . Additionally, Samad predicts that Zoom’s customer mix will continue to grow for the better. “Customers with TTM turnover of $100,000 or more expanded from 24% of total ZM turnover in Q1 2023 to 30% in Q4 2024. , we anticipate that it will undoubtedly generate higher quality revenue streams and have the potential to facilitate multiple expansions,” he said. . Investors will need to be patient, as Samad believes 2025 will be another investment year for Zoom. However, this ultimately paid off, with the combination of the company’s three drivers of revenue growth, international expansion, and reduced online abandonment leading to revenue growth expected to increase from 2026 to 2027. It will accelerate to about 4%. — Lisa Kai-Lai Han 5:56 a.m.: UBS upgrades Chart Industries to acquisition target, forecasts 18% upside UBS says improved execution, recent acquisitions and public policy support boost Chart Industries He says he should. The bank upgraded the industrial equipment maker’s stock to “buy.” Analyst Manav Gupta also raised his price target to $170 from $152. This updated price target suggests Chart Industries stock could rise 18% from here, on top of its 5% rise this year. GTLS YTD As one of his 2024 Mountain GTLS catalysts, the analyst highlighted the gains from Chart Industries’ recent Howden deal, which he said was undervalued by the market. “While the Howden acquisition reduced the cyclicality of the portfolio through the addition of an aftermarket services business, it also led to an increase in net debt of up to $3.4 billion, leading to multiple downgrades across three rotations,” he said. writing. But Mr. Gupta expects Chart Industries to generate more than $600 million in free cash flow this year. Additionally, he believes net debt could fall from $3.7 billion to $3.1 billion by the end of 2024. “Once leverage drops to this level, we believe GTLS could see 2x to 3x expansion, which would represent upside above our price target,” he added. Once the company achieves its leverage ratio target, it could potentially launch a share buyback program. The company’s net debt will fall below $2 billion by 2026.” He pointed out that it should be pushed up. As an example, he pointed to the Department of Energy’s recent announcement that it will provide $750 million in project funding to 52 projects across 24 states to focus on reducing the cost of clean hydrogen production. “Although GTLS has not received any direct project funding, we believe this is a major positive for the company.As green hydrogen production increases, GTLS has We will need more trailers,” Mr. Gupta added. — Lisa Kailai Han 5:50 a.m.: UBS reiterates its intention to buy Boeing UBS says Boeing’s struggles since the start of the year have created an entry point for long-term investors. Analyst Gavin Parsons reiterated his buy rating on the stock and price target of $275. This prediction means he will rise 53% over the next 12 months. Boeing is the worst-performing stock in the S&P 500 this year, falling 31% due to a myriad of manufacturing issues. Earlier this year, part of an Alaska Airlines 737 Max 9 plane exploded during a flight. “There is a great deal of uncertainty regarding regulatory actions, MAX production rates, MAX-7 and -10 certifications (among others), which makes the stock difficult to own for many investors,” Parsons said. he wrote. “However, as for the stock… it trades at just 11 times Boeing’s FCF target of $10 billion, and normalized FCF pricing is slightly to significantly below that, especially when considered over a multi-year time horizon. , we think this is a good buying opportunity.” — Fred Imbert 5:50 a.m.: Mizuho begins buying Home Depot due to upcoming rate cuts Mizuho says upcoming rate cuts means good things for Home Depot. The bank initiated a Buy rating on the Home Improvement stock and set a price target of $415. This suggests a potential 12% upside from Home Depot’s Monday closing price of $371.91. Analyst David Bellinger cited a favorable home improvement environment as a catalyst for the stock’s rise, which has already risen 7% this year. HD YTD Mountain HD YTD YTD “From a homebuyer’s perspective, we believe nothing allows consumers to spend more within a category than purchasing a home and the many additional purchases that come with it.” he writes. “A potential Fed rate cut should spur an increase in home turnover and purchases before and after a home sale, such as painting, flooring, and the possibility of major post-purchase renovations.” Bellinger He believes Home Depot is best positioned in a more complex professional market. The bank’s recent first-quarter comments suggest that Home Depot could face some turmoil in the near term, before the stock price recovers. “The macro pressures we have called for point to negative growth in the low single digits due to improving demand, after which we expect the company to outperform the market,” the bank said in its recent first-quarter commentary. Stated. — Lisa Kailai Han 5:50 a.m.: Analysts cheer Nvidia’s announcement Nvidia unveiled a new artificial intelligence chip on Monday, causing some analysts to further raise their expectations for the chip maker. Wells Fargo raised its price target to $970 from $840, suggesting an upside of nearly 10%. The bank also maintained its overweight rating. Analyst Aaron Lakers said, “We believe NVIDIA’s presentation firmly reinforced the company’s long-standing positive claims about the differentiation of its full-stack/accelerated computing platform, which we continue to see This includes expanding monetization opportunities.” Goldman Sachs also raised its price target to $1,000 from $850. The new forecast suggests an upside of about 13%. NVDA YTD Mountain NVDA Year-to-date Results “Overall, we believe that Nvidia’s 1) unique ability to innovate at data center scale (rather than the GPU or chip level), 2) large-scale eco, and 3) ultimately , its compelling position as one of the key enablers and beneficiaries of the continued buildout of Generative AI infrastructure,” analyst Toshiya Hari said in a note, reiterating his buy rating. stock. Bernstein’s Stacy Rasgon maintained an outperform rating and $1,000 price target. She said, “Fuck Taylor Swift, you’re not the only one who can fill a stadium.” [CEO] jensen [Huang] “The company gave its GTC keynote in front of a packed crowd at the SAP Center in San Jose. Blackwell GPUs were launched in perhaps the most anticipated announcement. The company provided details on its upcoming B200 GPU. “The world’s most powerful chip”, it consists of two dies (both exclusive to the reticle) connected to a single component via a 10 TB/s linkage, and contains 208 billion transistors. I am. ” — Fred Imbert
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