Brokerage Reports: Barclays (Overweight) on BABA, JPMorgan (Overweight) on BA, Evercore (Buy) on TSLA, Citi (Buy) on NVDA, Goldman (Buy) on GOOGL.

Barclays Raises Price Target on Alibaba (BABA) to $137 from $107

Analyst Comments: They expect Alibaba’s September quarter results to be mostly as expected. They predict a mid-single-digit growth in gross merchandise volume (GMV) and a low single-digit increase in customer management revenue (CMR). The gap between GMV and CMR is narrowing as Alibaba enhances its monetization efforts. Starting September 1, Alibaba began charging a 0.6% technology platform fee and is launching a new advertising platform to boost monetization, aiming to compete better in the market.

Management believes that in about a year, CMR growth will match GMV growth once the new ad platform is fully implemented. Besides its main China e-commerce business, they expect Alibaba’s international e-commerce and cloud businesses to perform as expected in terms of revenue and profit margins. Specifically, they see continued revenue growth in the cloud sector, which may soon achieve double-digit growth with stable profit margins around 10%.

Analyst: Jiong Shao

JPMorgan on Boeing (BA) (Overweight; Price Target $195)

They are lowering their price target for Boeing from $235 to $195 after a recent announcement. Future forecasts depend on many uncertain factors, resulting in various possible outcomes. Boeing is expected to burn cash in the first half of 2025, with $4 billion in debt maturing soon, leading to concerns about needing more funds. They don’t know how Boeing will manage these financial challenges but have included a potential $15 billion equity raise in their models as a possible solution.

Analyst: Seth Seifman

Evercore ISI Raises Price Target on Tesla (TSLA) to $195 from $145

Analyst Comments: At an event held at Warner Brothers in LA, Tesla showcased various new products like the Cybercab, Robovan, and Optimus to an audience of over 2,000 and over 3 million viewers online. Although investors had expected and anticipated these announcements, they were disappointed by the lack of specific details. As a result, Tesla’s stock fell 9% on Friday, while stocks of competitors like Uber and Lyft rose by 10%, as investors now see lower chances of competition from Tesla in the near term.

Analyst: Chris McNally

Citi on NVIDIA (NVDA) (Buy; Price Target $150)

Citi believes that both GPUs and ASICs will play essential roles in developing AI and machine learning infrastructure. ASICs will serve specialized models, while GPUs will be used for more complex training and inference tasks. They predict NVIDIA’s GPU sales will grow by 118% in 2024 and 84% in 2025. Sales to major cloud providers are expected to double in 2024 and grow by 67% in 2025. They also forecast that custom ASIC sales will grow significantly in 2024 but stabilize in 2025.

NVIDIA is the leader in AI accelerator installations among major US cloud providers, holding a 67% market share. The company benefits from superior chip performance, strong scaling abilities, and a large customer base, helping enterprises manage multi-cloud strategies.

Analyst: Atif Malik

Goldman Sachs Lowers Price Target on Alphabet (GOOGL) to $208 from $217

Analyst Comments: Goldman Sachs discusses Alphabet’s current business environment, including two antitrust lawsuits and future challenges related to AI in search. They do not predict outcomes but evaluate potential impacts from the lawsuits, especially if Alphabet loses its exclusive search engine position on third-party platforms. They note that the ability to implement AI solutions across various applications is vital for Alphabet’s competitive edge. While aware that current uncertainties may cap investor interest, they believe Alphabet’s current valuation already reflects these challenges. They maintain a Buy rating but lower the price target to $208.

Analyst: Eric Sheridan

Wedbush Upgrades Affirm (AFRM) to Neutral from Underperform, with a Price Target of $45

Analyst Comments: They think lower interest rates will help Affirm by reducing funding costs and increasing growth in gross merchandise volume (GMV). The company’s credit quality has exceeded expectations in recent years due to the short duration of its products, and they anticipate this trend will continue, at least in the short term.

Barclays on Flutter (FLUT) (Overweight; Price Target $275)

They project that Flutter’s UK business will shrink as its global operations grow. They estimate that the UK will contribute less to overall EBITDA, dropping from 42% in 2024 to 23% in 2027, while the US’s contribution is expected to rise from 30% to around 47%. They analyze that a potential increase in tax rates could impact EBITDA but expect some mitigation.

Analyst: Brandt Montour


JPMorgan on Apple (AAPL) (Overweight)

Their tracker for iPhone 16 shows improving demand, especially for Pro models. In the fifth week of iPhone availability, they see stronger lead times for the Pro models, suggesting a recovery in demand compared to the initial post-launch weeks.

Morgan Stanley Downgrades Caterpillar (CAT) to Underweight, Lowers Price Target to $332 from $349

Analyst Comments: They are concerned about increasing risks of inventory de-stocking and expect limited support from major projects. With the stock’s good performance so far this year and a mid-cycle valuation, they believe Caterpillar’s earnings may be at risk of downward revisions. They anticipate that channel inventories in U.S. construction equipment may need to be reduced, leading to a downturn.

JMP Securities Downgrades Duolingo (DUOL) to Market Perform from Outperform

Analyst Comments: They are downgrading Duolingo due to concerns about its valuation after a 78% stock increase since the Q2 earnings report. While they expect strong Q3 results and commend the company’s management, they believe the current stock price reflects the potential of Duolingo’s new initiatives, including video calls that enhance learning experiences.

Goldman Sachs on Meta (META) (Buy; Price Target $636)

Goldman Sachs is raising its price target for Meta to $636 from $555 due to improved revenue growth estimates for late 2024 and into 2025. They see positive signals from Q3 growth and increased confidence in sustaining growth drivers in the medium to long term. They believe Meta is likely to meet or exceed its Q3 guidance and maintain mid-teens revenue growth through 2025.

Analyst: Eric Sheridan

Piper Sandler Upgrades SentinelOne (S) to Overweight, Raises Price Target to $32 from $25

Analyst Comments: Piper Sandler is upgrading SentinelOne’s stock as they see several positive factors that could boost the shares before the year ends. These include gaining market share against competitors, increased partner activity that positions SentinelOne for more revenue, and a clearer narrative around their AI and automation initiatives.

Analyst: Rob Owens

Goldman Sachs Downgrades AppLovin (APP) to Neutral from Buy, Lowers Price Target to $150 from $103

Analyst Comments: They are downgrading AppLovin due to balanced risk versus reward ahead of quarterly results. While they have increased revenue forecasts based on the company’s strong software offerings, they believe the recent stock performance already reflects these improvements. They also note that the company’s app segment appears stable as AppLovin seeks to balance growth and profit margins.