Tech

Nvidia, Apple Target Hikes; Eli Lilly Soars to $1083

Analysts raise price targets for Apple, Broadcom, and AMD; Morgan Stanley sets Eli Lilly target at $1,083.

By Alex P. Chase

7/11, 08:39 EDT
Apple Inc.
Advanced Micro Devices, Inc.
Amazon.com, Inc.
Broadcom Inc.
Equinix, Inc.
Interactive Brokers Group, Inc.
Eli Lilly and Company
Microchip Technology Incorporated
NVIDIA Corporation
Ribbon Communications Inc.
Republic Services, Inc.
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Key Takeaway

  • Morgan Stanley raised Eli Lilly's price target to $1,083, citing optimistic Zepbound revenue projections.
  • Bank of America increased Apple's price target to $256, driven by a strong iPhone refresh cycle and GenAI features.
  • Goldman Sachs initiated Nvidia with a buy rating, highlighting its potential in autonomous technology.

Analyst Upgrades and Downgrades

Thursday saw a flurry of activity from Wall Street analysts, with several notable upgrades and downgrades across various sectors. Morgan Stanley reiterated its overweight rating on Eli Lilly, raising its price target to $1,083 per share from $1,023. The firm highlighted its optimistic outlook on the company's Zepbound estimates, projecting revenues significantly ahead of consensus. "Given we are 2x consensus '25 US Zepbound estimates ($18bn vs. ~$9bn) we note that LLY can deliver revenues well ahead of consensus even with pricing at lower levels than we model, due to our views regarding the volumes that will come to market in," Morgan Stanley stated.

Rosenblatt initiated coverage on Ribbon Communications with a buy rating and a $5 price target, citing an improved investment thesis. The firm also reiterated its buy rating on Broadcom, raising the price target to a Street high of $2,400. "We take our 12-month PT for AVGO to $2,400 from $1,650 based on a low 30s P/E multiple ahead of the 10-for-1 share split next week," Rosenblatt noted.

Bank of America reiterated its buy rating on Apple, raising the price target to $256 from $230. The firm sees a "strong refresh cycle" for Apple, driven by an aging installed base and new GenAI features. "We are raising our PO on Apple (AAPL) to $256 (from $230) on increased confidence of a multi-year iPhone upgrade cycle driven by an aging installed base and GenAI features that should provide a boost to customers' intentions to upgrade," Bank of America stated.

Focus on AI and Technology

JPMorgan reiterated Amazon as a top pick following the AWS Summit, emphasizing the company's focus on Generative AI. "As expected, Generative AI was the primary focus at Amazon's AWS Summit in NYC on Wednesday, w/ AMZN emphasizing that its full-stack capabilities, large amount of customer data, & security-oriented approach provide a differentiated offering," JPMorgan commented.

Goldman Sachs initiated coverage on Nvidia with a buy rating, citing the company's potential in autonomous technology. "The bottom-line is that we believe improved AI technology will help the industry reach higher levels of performance, although we also believe that wide scale AV adoption is still at least a few years away as a base case," Goldman Sachs noted.

Mizuho initiated coverage on Equinix and Digital Realty with buy ratings, highlighting their potential as data center beneficiaries. "For EQIX (initiate Outperform), we believe its ability to achieve consistent revenue growth and AI benefits are underappreciated at current valuation. For DLR (initiate Outperform), we see a new path to high single-digit earnings growth sustaining elevated multiples after several years of disappointing results," Mizuho stated.

Mixed Sentiments in Various Sectors

Truist upgraded Republic Services to buy from hold, raising the price target to $220 from $192. "We upgrade Republic Services (RSG) to Buy from Hold and increase our PT to $220 from $192," Truist noted.

Wells Fargo reiterated its overweight rating on Advanced Micro Devices, raising the price target to $205 per share from $190. "AMD announced a $665M (all-cash; 2H'24 close) acq. of Silo AI, the largest private AI lab in Europe. We view this as a positive tactical / strategic move focused on deepening AMD's internal open-source AI software expertise; up-the-stack capabilities," Wells Fargo commented.

Morgan Stanley downgraded Microchip to equal weight from overweight, citing a "lofty" valuation. "We think MCHP's valuation reflects lofty expectations, while a deeper trough with a heavy balance sheet will slow the pace of deleveraging," Morgan Stanley stated.

KBW downgraded Interactive Brokers to market perform from outperform, primarily due to valuation concerns. "And today we downgrade IBKR to MP from OP after a strong run in the stock, more than doubling in two years and up ~50% YTD, with our downgrade primarily driven by our expectation of slower NII and EPS growth over the next two years with global central banks beginning to cut interest rates," KBW noted.

Street Views

  • Morgan Stanley (Bullish on Eli Lilly):

    "Given we are 2x consensus ’25 US Zepbound estimates ($18bn vs. ~$9bn) we note that LLY can deliver revenues well ahead of consensus even with pricing at lower levels than we model, due to our views regarding the volumes that will come to market in."

  • Rosenblatt (Bullish on Ribbon):

    "We are initiating RBBN with a Buy rating and $5 price target because the investment thesis has significantly improved."

  • Rosenblatt (Bullish on Broadcom):

    "We take our 12-month PT for AVGO to $2,400 from $1,650 based on a low 30s P/E multiple ahead of the 10-for-1 share split next week."

  • Bank of America (Bullish on Apple):

    "We are raising our PO on Apple (AAPL) to $256 (from $230) on increased confidence of a multi-year iPhone upgrade cycle driven by an aging installed base and GenAI features that should provide a boost to customers’ intentions to upgrade."

  • JPMorgan (Bullish on Amazon):

    "As expected, Generative AI was the primary focus at Amazon’s AWS Summit in NYC on Wednesday, w/AMZN emphasizing that its full-stack capabilities, large amount of customer data, & security-oriented approach provide a differentiated offering."

  • Goldman Sachs (Bullish on Nvidia):

    "The bottom-line is that we believe improved AI technology will help the industry reach higher levels of performance, although we also believe that wide scale AV adoption is still at least a few years away as a base case."

  • Mizuho Analyst for Equinix & Digital Realty:
    (Cautiously Optimistic)

    “For EQIX (initiate Outperform), we believe its ability to achieve consistent revenue growth and AI benefits are underappreciated at current valuation. For DLR (initiate Outperform), we see a new path to high single-digit earnings growth sustaining elevated multiples after several years of disappointing results.”

  • Truist Analyst for Republic Services:
    (Overweight/Bullish)

    “We upgrade Republic Services (RSG) to Buy from Hold and increase our PT [price target]to $220 from $192.”

  • Wells Fargo Analyst for Advanced Micro Devices:
    (Overweight/Bullish)

    “AMD announced a $665M (all-cash; 2H′24 close) acq. [acquisition]of Silo AI... We view this as positive tactical / strategic move focused deepening AMD’s internal open-source AI software expertise; up-the-stack capabilities.”

  • Morgan Stanley Analyst for Microchip:
    (Neutral/Cautious)

    “We think MCHP’s valuation reflects lofty expectations while deeper trough heavy balance sheet slow pace deleveraging.”

  • KBW Analyst Interactive Brokers:
    (Neutral/Cautious) > "And today downgrade IBKR MP OP strong run stock more doubling two years up ~50% YTD downgrade primarily driven expectation slower NII EPS growth over next two years global central banks beginning cut interest rates."

  • Guggenheim analyst Itron:
    (Bullish/Positive): > "upgrading ITRI Neutral Buy establishing price target"

  • Bank America analyst Costco:
    (Bullis/Positive): > "Strong June comp announcement membership fee increase."

Jefferies analyst Darden Restaurants Inc.:
(Underperform/Bearsh): > "downgrading DRI Underperform risk NT fundamentals driven Share loss promotional environment Lowend weakness persisting..."

Jefferies analyst Spotify Technology SA :
(Buy/Bullis): > "resumed coverage stock upgraded buy increasingly confident SPOT comfortably deliver sustainable rev growth over next three years."

Jefferies Roblox Corp.:
(Hold/Neutral): > "However margin expectations lofty company investors