Tech

Top Analyst Calls: Nvidia, Apple, Tesla; Walmart Tipped for Growth

Bernstein initiates coverage on Bitcoin miners IREN and CORZ with 78% and 64% upside targets, respectively.

By Alex P. Chase

7/10, 08:57 EDT
Alaska Air Group, Inc.
Amazon.com, Inc.
Core Scientific, Inc.
Carvana Co.
Quest Diagnostics Incorporated
Alphabet Inc.
Iris Energy Limited
J. Jill, Inc.
Eli Lilly and Company
Southwest Airlines Company
Meta Platforms, Inc.
MKS Instruments, Inc.
Microsoft Corporation
Oracle Corporation
Spotify Technology S.A.
Teva Pharmaceutical Industries Limited
Target Corporation
Tesla, Inc.
Walmart Inc.
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Key Takeaway

  • Bernstein initiates coverage on Bitcoin miners Iris Energy (IREN) and Core Scientific (CORZ) with outperform ratings, targeting $26 (+78%) and $17 (+64%), respectively.
  • Argus upgrades Teva Pharmaceuticals to buy, citing a robust pipeline and margin growth; Piper Sandler downgrades Target to neutral due to lack of near-term catalysts.
  • Jefferies reiterates Walmart as top pick for its $20B EBIT growth potential; Goldman Sachs raises Tesla's price target to $248 but maintains a neutral rating.

Bitcoin Miners Initiated as Outperform

Bernstein has initiated coverage on two Bitcoin miners, Iris Energy (IREN) and Core Scientific (CORZ), with an outperform rating. The firm is optimistic about these companies due to their hybrid Bitcoin/AI data center strategy. Bernstein has set a price target of $26 for IREN, representing a 78% upside, and $17 for CORZ, indicating a 64% upside. The firm stated, "We extend our Bitcoin equities coverage to two additional Bitcoin miners with a hybrid Bitcoin/AI data center strategy. We initiate on IREN ($26, 78% upside) and CORZ ($17, 64% upside) with an Outperform."

Upgrades and Downgrades

Several companies received upgrades and downgrades from various analysts. Argus upgraded Teva Pharmaceuticals to buy from hold, citing a robust pipeline and margin growth across its primary business segments. "Upgrading to BUY. After several years of challenges, Teva appears to have steadied its ship, launching a range of new drugs and achieving margin growth across all of its three primary business segments," Argus noted.

Conversely, Piper Sandler downgraded Target to neutral from overweight, following a change in analyst coverage. Piper Sandler commented, "We like TGT’s strong omni-channel model and believe the company has exceptionally strong merchandising capabilities. Furthermore, we believe both the 2024 EPS guidance and medium-term EBIT margin target of 6% look reasonable. That said, we don’t see a discernable catalyst to push sales/margin above estimates near-term."

Reiterations and New Coverage

Jefferies reiterated Walmart as its top pick, emphasizing the company's $20 billion EBIT growth opportunity and recent technological advancements. "We continue to believe that the company is in the early innings of a $20B+ EBIT growth opportunity and share below some of the latest developments that include a partnership with Fox Robotics and Sam’s Clubs’ new exit arch technology. WMT remains our top pick," Jefferies stated.

Goldman Sachs reiterated its neutral rating on Tesla, raising its 12-month price target to $248 from $175. Despite the increase, Goldman sees a potential downside of 5% from the current stock price. "We maintain our Neutral rating on the stock, and increase our 12-month price target to $248 from $175, which is now based on 65X applied to our updated Q5-Q8E EPS estimate," Goldman noted.

Street Views

  • Bernstein (Bullish on Iris Energy and Core Scientific):

    "We extend our Bitcoin equities coverage to two additional Bitcoin miners with a hybrid Bitcoin/AI data center strategy. We initiate on IREN ($26, 78% upside) and CORZ ($17, 64% upside) with an Outperform."

  • Argus (Bullish on Teva):

    "Upgrading to BUY. After several years of challenges, Teva appears to have steadied its ship, launching a range of new drugs and achieving margin growth across all of its three primary business segments."

  • Piper Sandler (Neutral on Target):

    "We like TGT’s strong omni-channel model and believe the company has exceptionally strong merchandising capabilities. Furthermore, we believe both the 2024 EPS guidance and medium-term EBIT margin target of 6% look reasonable. That said, we don’t see a discernable catalyst to push sales/margin above estimates near-term."

  • Jefferies (Bullish on Walmart):

    "We continue to believe that the company is in the early innings of a $20B+ EBIT growth opportunity and share below some of the latest developments that include a partnership with Fox Robotics and Sam’s Clubs’ new exit arch technology. WMT remains our top pick."

  • Redburn Atlantic Equities (Bearish on Spotify):

    "While Spotify’s operating momentum has been impressive, consensus is simply forecasting too much growth. We downgrade to Sell, with 27% downside to our price target of $230."

  • Jefferies (Bullish on Oracle):

    "All eyes will be on the Aug Q, and we believe ORCL can continue to track towards $65B rev/45% opm in FY26."

  • Goldman Sachs (Neutral on Tesla):

    "We maintain our Neutral rating on the stock, and increase our 12-month price target to $248 from $175, which is now based on 65X applied to our updated Q5-Q8E EPS estimate."

  • Barclays (Overweight/Bullish on Eli Lilly):

    "The combination of step-ups in Mounjaro/Zepbound script trends... should continue to drive LLY shares higher.”

  • Morgan Stanley (Overweight/Bullishon Microsoft): > "Accelerating Growth & AI Leadership Not Priced-In"

  • Citi ( ** Bullish **on Quest Diagnostics)> "We upgrade ... DGX from Neutral To Buy (PT from$145to$165)on potential upside numbers.

  • Bank Of America( ** Bullish **MKS Instruments)> "Initiate coverage On MKS Instruments With Buy And$160PO,based14xCY25EEV/EBITDA,in line peers

-Needham(** Bullis h* *Carvana )

"WethinkCVNAcangrowunitsalesandindustrysharebyleveragingitsdigital-firstcustomerexperienceandunder-utilizedphysicalfootprint."

-BTIG(** Bullis h* *J.Jill )

"ViewtheJILLstoryasattractivegiventheabilitytocaptureshareofalargeunderservedmarketwherethecompetitivelandscapehasbecome less intense,suggestingopportunityasexecutionimprovementsunderrenewedleadershipcontinuetotakehold..."

-Citi( ** Beari sh* *Southwest Airlines)

"Citiopensapairtrade,favoringBuy-ratedAlaskaoverNeutral-ratedSouthwestAirlines.

  • TD Cowen( ** Overweigh t/Bulli sh Amazon)

    "ExpectAMZNToReport2Q24ResultsAheadofConsensus.”

  • TDCowen(* * Overweigh t/Bulli sh Alphabet)

    “Meanwhileoursurveydata suggests YouTube still gaining share among younger viewers

  • TDCowen(* * Overweigh t/Bulli sh Meta )"
    Multiple Near Term ,AISupportedGrowthDrivers