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(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Nvidia and Nike were among the major stocks garnering analyst attention Friday. The chipmaker was initiated with an outperform rating by Loop Capital, which set a Wall Street-high price target that calls for 65% upside. On the other hand, Oppenheimer downgraded Nike and cut its forecast on the stock. Check out the latest calls and chatter below. All times ET. 7:53 a.m.: Wall Street analysts bail on Dropbox Dropbox beat estimates on the top and bottom lines for the fourth quarter, but Wall Street are saying that the stock has run out of gas. Bank of America anlayst Michael Funk highlighted the fact that the company’s paying users declined in the fourth quarter compared to the third quarter and downgraded the stock to underperform from buy. “The DBX bull thesis has played out,” Funk said in a note to clients. Bank of America wasn’t the only firm to downgrade the stock. JMP and JPMorgan downgraded Dropbox to market perform and neutral, respectively. JPMorgan analyst Mark Murphy said that Dropbox’s AI tool Dash still seems like a long-term bet. “FY24 guidance does not include any benefit from Dash currently, as it will likely pursue monetization strategies for this product only in the latter portion of this year or early next year,” the note said. Shares of Dropbox were down about 14% in premarket trading. — Jesse Pound 7:39 a.m.: Texas Roadhouse ‘in a league of its own,’ Deutsche says after quarterly results Deutsche Bank is impressed by casual dining franchise Texas Roadhouse’s fourth-quarter results and believes its momentum is set to continue. The restaurant stock reported same-store sales of 9.9% in the fourth quarter as well as restaurant margin growth of 75 basis points. This could be the best fourth-quarter results across the restaurant sector, per Deutsche. The firm reiterated its buy rating and $162 price target on shares, which suggests around 21% upside potential from Thursday’s close. “TXRH continues to demonstrate that it is in a league of its own with impressive consistency and outperformance,” analyst Lauren Silberman wrote in a Friday note. A better commodity outlook, sales leverage and opportunities for productivity gains will provide tailwinds for Texas Roadhouse, according to Silberman. She also highlighted the company’s favorable outlook for the first half of 2024, which sets the company apart from most other restaurant groups pulling back. “We believe TXRH deserves to trade at a premium and we expect sentiment to remain positive, noting there is scarcity value for a US-based company with consistent execution, potential for upward earnings revisions (on top line and margins) and a clean balance sheet,” said Silberman. — Hakyung Kim 7:29 a.m.: Raymond James says Wayfair is worth buying, can rally almost 25% Raymond James turned bullish on Wayfair following a weak start to 2024. Analyst Bobby Griffin upgraded the furniture e-commerce stock to a strong buy from market perform rating. Griffin also established a $65 price target, which implies a 24.5% upside over Thursday’s close. Griffin said he’s optimistic in part due to expectations for demand hitting a post-Covid bottom. Recent cost-cutting initiatives should also allow the company to grow EBITDA as demand rebounds, he said. “While the demand recovery for home furnishings will likely be rocky … we believe the ‘pull forward’ in demand during covid is likely close to working its way through when looking at inflation adjusted sales,” he told clients. “In addition, management’s cost-cutting initiatives are encouraging, on top of improved 2023 profitability runrate.” Griffin said that Wayfair shares have a “very compelling” risk-reward ratio in the medium term. That’s because they’ve slid this year and trade at 0.7 times his 2024 sales estimate. The stock climbed more than 3% in Friday premarket trading following the upgrade. — Alex Harring 7:26 a.m.: KBW upgrades Coinbase after better-than-expected quarterly results KBW is becoming slightly less wary of Coinbase after the company reported its first quarterly profit in two years. Cryptocurrencies have seen increased demand after the U.S. Securities and Exchange Commission approved the first spot bitcoin ETFs during the fourth quarter. The crypto exchange platform also posted a 79% quarter-over-quarter rise in consumer trading revenue. Although KBW analyst Kyle Voigt is “skeptical that the current level of retail enthusiasm/speculation can persist for a prolonged period,” he raised his rating on shares to market perform from underperform. Voigt cited the tailwind from the 23% year to date and 113% 12-month price jump in crypto shares and increased retail engagement. “Coinbase offers investors unique exposure to the long-term growth of the crypto economy, and this undoubtedly has scarcity value attached to it. Additionally, we see a significant near-term revenue opportunity from the execution of the company’s current product roadmap,” said Voigt. To be sure, retail trading is still lower than previous elevated levels, he noted. Furthermore, the uncertain regulatory environment “make[s] it extremely difficult for many institutional investors to own COIN,” Voigt added. Oppenheimer is a bit more bullish on Coinbase. “With several catalysts ahead, including further adoption of spot Bitcoin ETF, halving, potential approval of ether ETF, Fed’s rate cut, and resolution of the SEC lawsuit, we think COIN can improve its fundamentals and deliver profitability over the next two years barring a macro downturn and lumpy mark-to-market treatment,” it wrote in a Thursday note following the earnings report. Oppenheimer has an outperform rating on Coinbase. — Hakyung Kim 6:31 a.m.: Carvana downgraded to underperform by Raymond James Carvana’s near-term growth outlook is in question, according to Raymond James. The firm downgraded shares to underperform from market perform on Friday. It does not have a price target on the stock for its base case scenario. Over the past year, the stock has soared more than 400%, which has raised valuation concerns. CVNA 1Y mountain CVNA in past year “The path forward remains encumbered with sector-wide affordability issues and a ‘show me’ narrative concerning CVNA’s ability to drive revenue growth alongside profitability,” analyst Mitch Ingles wrote in a Friday note. “While the company’s internal restructuring and market adaptation strategies have fortified its position, external market conditions and sector-specific challenges may dampen the near-term growth trajectory,” Ingles added. The analyst is looking for improved sales growth and sustained profitability before re-entry the used car stock. Carvana is reporting earnings Feb. 22. — Hakyung Kim 6:15 a.m.: Jefferies forecasts more than 25% upside for América Móvil Latin American telecom giant América Móvil’s falling capital expenditure guidance is setting the stock up for an “inflection point” this year, said Jefferies. Analyst Alex Wright upgraded shares to buy from hold. He also raised his price target on U.S.-traded shares to $22.22 from $19.16, implying shares could rise 27% from Thursday’s close. The company issued capex guidance of $7 billion in 2024, a decline from an average annual of $8.4 billion from 2021 to 2023 following spending on 5G rollouts and increased capacity. This should lead to a rise in free cash flow generation, said Wright said. In addition, shares are now trading near a 10-year low, creating an opportune entry point for investors, per the analyst. He named the company as one the firm’s top picks across telecom companies in the Latin America region. Year to date, the stock is down around 3.5%. AMX YTD mountain AMX in 2024 — Hakyung Kim 5:46 a.m.: UBS steps to the sidelines on Newell Brands Consumer goods company Newell Brands is currently “too difficult to defend,” according to UBS. The firm downgraded shares to neutral from buy. It also cut its price target by $1.50 to $8.50, suggesting just 6.2% upside potential from Thursday’s closing price. According to analyst Peter Grom, CEO Chris Peterson’s turnaround strategy for more consistent financial delivery and multiple expansion hasn’t yet delivered as much progress as expected. The firm forecasts Newell Brands will return to top-line growth in 2025. “At this stage we would need a more attractive valuation or greater visibility into profitable top line growth in order to become constructive again,” Grom wrote in a Thursday note. Newell shares have struggled this year, losing 7.8%. — Hakyung Kim 5:41 a.m.: Oppenheimer downgrades Nike Don’t expect much out of Nike shares in the near future, according to Oppenheimer. The firm downgraded the apparel giant to perform from outperform and slashed its price target to $110 per share from $150. The new forecast implies upside of just 3.7%. “Longer-term prospects for NKE and the company’s equity remain compelling,” wrote analyst Brian Nagel. “That said, as we re-examine closely the nearer-term outlook for NKE, we come away increasingly concerned that over the next several quarters that top-line trends at the enterprise are likely to remain sluggish … given a combination of underlying, spotty consumer demand, lulls in product innovation, and modest competitive incursions, in select categories.” Nike shares have lagged in early 2024, losing 2.3%. The S & P 500, meanwhile, is up 5.5% year to date. The stock fell 0.7% in the premarket. NKE YTD mountain NKE year to date — Fred Imbert 5:41 a.m.: Loop Capital sets Street-high price target on Nvidia Nvidia shares have had a stellar run in the last year — and Loop Capital believes there’s 65% more upside potential ahead. “We’re gonna party like it’s 1995!” the firm wrote in a Thursday note, referring to the dot-com bubble of the 1990s. The firm initiated the chipmaker with a buy rating and a $1,200 price target. The forecast, which is a Street high, implies shares gaining 65% from Thursday’s close. Over the last 12 months, the stock has soared more than 200% amid the excitement around AI. “We believe not only is there material upside to Street estimates in CY2024/FY2025 & CY2025/FY2026, but that we are at the front end of a 3–5 year GPU compute & Gen AI foundational build across Hyperscale,” analyst Ananda Baruah said in the note. “Our work suggests NVDA’s largest customers will be taking everything NVDA can give them in 2024 and 2025.” Shares added more than 1% Friday before the bell. — Hakyung Kim
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