LB Takeaway | Netflix Could up Another 74%? Microsoft price target cut by 11%!

Piper Sandler: Maintain Microsoft's "overweight" rating, cut price target by 11% to $312 from $352

Calculated at the closing price of $267.66 in the previous trading day, this price means that there is still room for 17% to rise!

Reason: The bank believes that the annualized run rate of Microsoft's cloud computing is on track to cross the $100 billion milestone for the first time, with an estimated 29% growth year over year this quarter. However, analysts lowered their expectations, mainly due to the continued strength of the dollar into July and further currency headwinds. Analysts are still more bullish on Microsoft than Oracle.

Cowen: Maintain Netflix's "overweight" rating, price target $325

If calculated by the latest closing price of $186.975, this price means that there is still 74% room for improvement!

Reason: The bank noted that surveys show Netflix remains the most popular living room TV choice, while TikTok gaining mobile share. The bank slightly increased the number of paid net additions in 2023 to reflect upcoming ad tiers.

Goldman Sachs: rating "Neutral" for Affirm Holdings for the first time, price target $22

Based on the previous trading day's closing price of $23.34, this price implies a 5% decline.

Reason: Affirm is the leading "buy now, pay later" provider in the US, the bank says, with the "broadest" offering, a track record of enterprise merchant integration and "robust" underwriting processes and disclosures. However, analysts say the "changing" buy now, pay later regulatory environments pose potential regulatory risks that could slow adoption by consumers and merchants.

In addition, the bank believes that Affirm's trading margins may be pressured by increased credit loss provisions and financing costs amid rising interest rates and weaker consumer credit.

Goldman Sachs: downgraded Upstart from "neutral" to "sell", with a 65% price target cut from $40 to $14

Calculated at the previous trading day's closing price of $27.09, this price means that there is 48% room for decline.

Reason: The bank sees slower revenue growth as a sign of increased competition and higher funding costs for Upstart partners, reducing the company's visibility into long-term growth and shared earnings beyond 2023. Analysts say slower growth and less confidence in Upstart's "differentiation" in credit underwriting could prompt a further valuation cut to bring it more in line with its lending peers.

Morgan Stanley: Maintain Lilly “Overweight” rating, raise target price by 7% to $395 from $369

If the previous trading day's closing price of $330.47 is calculated, this price means that there is still 20% room for improvement!

Reason: The bank expects biopharma revenue to remain resilient if economic activity slows and continues to believe that companies that can grow revenue in the second half of the decade are in the best position in the space.

UBS: Maintain Sunny Optical's "Neutral" rating with a price target of HK $135

If calculated at today's closing price of HK $111, this price means that there is still 22% room for growth!

Reason: The bank takes a cautious view on Android due to weak demand for smartphones, continued decline in phone specifications and continued losses in the iPhone lens business.

The bank believes that there is a potential downside risk to the company's sales in mobile phone lenses and mobile camera modules, or fails to meet the full-year target, and is expected to lower its annual growth guidance at the interim results meeting. In addition, due to the decline in average selling price, Sunny's sales may decline more than the decline in sales, which will cause further pressure on profit margins.