These reports have been excerpted and compiled by Barron’s and have been recently published by investment and research firms. The reports are a sample of the analysts’ thinking and should not be construed as the views or recommendations of Barron’s. Some of the report publishers provide or seek to provide investment banking or other services to the companies they analyze.
• NVDA – Nasdaq
Purchase • Price on July 5th $126.84
By UBS
A recent supply chain survey confirmed our earlier speculation that demand momentum for Blackwell’s rack-scale systems remains extremely strong. With hyperscalers solidifying their 2025 budgets, and the order pipeline for NVL72/36 systems significantly larger than it was just two months ago, we are confident that $5 EPS in 2025 can be achieved. This comes as sentiment towards the stock remains strong, but has weakened somewhat in recent weeks, further increasing the “wall of fear.” If our outlook materializes, it should ultimately be healthy.
We raise our calendar 2025 revenue/EPS guidance by 12%/15% to $204B/$4.95. This is well above the sell-side estimate of $161B/$3.62, but we believe some investors’ expectations have risen closer to our new numbers. Given all this, we believe our $150 price target (up from $120 previously) is supportable and maintain our Buy rating.
• AAPL-Nasdaq
Outperform • Price on July 11th $232.98
Wedbush
Based on a recent Asian supply chain survey, we are seeing further signs of iPhone stabilization, which is a very good sign heading towards an AI-driven iPhone 16 supercycle.
We currently expect initial iPhone 16 shipments to be close to 90 million units (potentially upside as the September launch date approaches) versus initial market expectations of 80-84 million units, representing double-digit growth year-over-year. We strongly believe that June will be China’s last negative growth quarter, with growth beginning to recover in the September quarter. China remains key to Apple’s growth, and we believe this key region is set to grow again, starting with the iPhone 16.
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With optimism growing across the Asian supply chain since Apple’s Worldwide Developers Conference in early June, we believe this iPhone 16’s AI-driven upgrade could be a golden upgrade cycle for Cupertino as pent-up demand grows around the world. Target Price: $275.
• GLW-NYSE
Outperform • July 10 price $44.67
Oppenheimer
GLW announced that it expects second-quarter core sales to reach $3.6 billion (up from $3.4 billion) and core EPS to be slightly above the high end of guidance, or $0.42-$0.46. Management also reiterated that Q1 2024 will be the slowest quarter of the year, and expects annualized revenue to grow by more than $3 billion over the next three years. We spoke with management after the announcement. The positive surprise was largely driven by new product designs for Gen AI, in addition to strength in other segments.
Following the pre-announcement, the company has raised its 2024/2025 forecasts due to faster-than-expected contribution of sales to the Gen AI market, and has also raised its price target to $50 from $40.
• CFG-NYSE
Market Performance • Price on July 11th $36.31
Raymond James
We initiate coverage of Citizens shares with an Investment Rating of “Alongside Market Average.” While we believe the headwinds from the March 2023 bank liquidity event and its aftermath have subsided, further upside potential for CFG stock appears limited given the stock has risen 55% since October 31, 2023.
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Additionally, we expect the portfolio of terminated and active swaps to weigh on net interest margins in coming quarters.Lower loan loss reserve levels and bad loan coverage ratios relative to peers put the bank at risk of recording higher than expected loan loss reserves if the Federal Reserve does not orchestrate a soft landing.Overall, we believe CFG shares are appropriately valued at a P/E multiple in line with or slightly cheaper than peer banks.
• ITRI-Nasdaq
Purchase • Price on July 11th $100
Guggenheim
Upgrading ITRI [a provider of technology for energy] We believe that the recent drop in the stock from $110 to $100 is
S&P 500of
The company has posted 6% earnings growth in the same period, making it a good entry point for investors, and we believe bookings momentum could improve as the year progresses.
Our research and recent conversations with the company suggest that funds provided under the Bipartisan Infrastructure Act, and more specifically Grid Resilience funding provided through the Department of Energy’s Grid Deployment Office, will begin flowing to ITRI’s operations in 2025. Our 2025 forecast is slightly above consensus, and applying a target multiple of 17x EBITDA supports our valuation.
• MGM-NYSE
Overweight • Price on July 10 $43.91
J.P. Morgan
We believe the risk/reward profile of MGM stock is favorable as it offers a compelling combination of 1) relatively favorable fundamentals in Las Vegas and the regional gaming market (as well as Macau), 2) attractive free cash flow generation and associated balance sheet strength, and 3) an enviable development pipeline that is not entirely priced in. Additionally, the valuation is attractive, with a low lease-adjusted enterprise value-to-EBITDA multiple of 6.9x.
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