Rating Quick Look | NVIDIA's target price raised to $1000 after earnings report! JD, BYD face price cuts.

Bernstein: Raises NVIDIA's target price from $700 to $1,000

Morgan Stanley: NVIDIA's quarterly performance can support investors' confidence in Asian AI supply chain stocks, giving it a "hold" rating

The market's response to NVIDIA's last quarter performance shows that the artificial intelligence investment boom is far from over. There is still ample purchasing power in the market, which is believed to support investors' confidence in Asian artificial intelligence supply chain stocks.

NVIDIA's overall revenue, profit, and data center business performance in the last quarter were all positive. Profit increased by 769% year-on-year. The company also expects first-quarter sales to reach $24 billion this year, higher than the market's expectation of $22 billion, which is believed to have a 10% to 15% impact on the stock price.

Mizuho Bank: Lowers JD.com's target price from $35 to $32

Goldman Sachs: Raises Walmart's target price from $180 to $193, maintains a "buy" rating

Jefferies: Raises Trip.com's target price from $56 to $60

The bank pointed out that Trip.com's non-GAAP net profit in the fourth quarter of last year was $2.7 billion, higher than the market's expectation of $1.6 billion and Jefferies' expectation of $1.3 billion. Considering the latest business trends, it is now estimated that total revenue for the full year of 2024 will increase by about 17% year-on-year, with a non-GAAP operating profit margin of approximately 27.5%.

Looking ahead to the first quarter of 2024 and the full year of 2024, it is expected that first-quarter total revenue will increase by 26% year-on-year to $11.6 billion. Accommodation revenue is expected to increase by 27% year-on-year to $4.4 billion, transportation revenue by about 20% to $5 billion. Group travel revenue is expected to increase by 121% to about $850 million, business travel revenue by 13% to $501 million, and other revenue by 15% to about $852 million.

In terms of operating expenses, it is expected that sales and marketing costs will account for approximately 22% of revenue for the quarter, with a non-GAAP operating profit of $3.1 billion. The non-GAAP operating profit margin is expected to reach 27%, mainly due to improved marketing efficiency, increased conversion rates, and internal cross-selling initiatives.

Goldman Sachs: Lowers BYD's target price to HK$304, reiterates a "buy" rating

The bank believes that the market's concerns about BYD's continuous price reductions in mass-market models may put pressure on gross profit margins. Taking into account the ongoing destocking and the timetable for the launch of new models starting in March, the bank now predicts that BYD's comprehensive price reduction for 2024 will be 8.1%. It has also lowered net profit forecasts for 2023 to 2025 by 11% to 15%.

The bank expects BYD to perform well in the high-end car market. The three major high-end brands, Tang, Song Plus, and Han, delivered a total of 136,000 vehicles last year, with gross profit margins ranging from 30% to 40%. Compared to mass-market models with gross profit margins of over 20%, it is predicted that sales of its high-end models will reach 312,000 vehicles this year, accounting for 8% of total sales and 20% of automotive revenue.

The contribution of high-end brands and export business to profits is becoming more stable. With a decrease in BOM costs, Goldman Sachs believes that it can offset the impact of price reductions in mass-market models. It is expected that BYD will maintain a stable gross profit margin and unit profit this year, with car exports reaching 439,000 vehicles.