Big Moves | Netease, Meta Platforms, Netflix Target Prices Raised! Rivian Rating Significantly Downgraded

Bank of America: Maintains "Buy" rating for Meta Platforms, raises target price by 9% to $250 from $230

If calculated based on the latest closing price of $217.89, this price implies a 15% upside!

The bank pointed out that the results of its review of the advertising business were "mixed", indicating that corporate advertising spending in the first quarter slowed down compared to the fourth quarter, but advertising spending in February increased compared to January. Sensor Tower's statistics also show that Instagram's daily active usage trend is stable, and usage time is still optimistic.

RBC: Downgrades Rivian Automotive's rating from "outperform" to "market perform" and slashes target price from $28 to $14

If calculated based on the latest closing price of $13.43, this price implies a 4% upside!

The bank expressed concern about the company's profitability, although the profit margin seems to be improving, the speed of improvement may still need to be improved, especially in the case where fixed costs are a key issue. The bank still has a "constructive view" on Rivian Automotive's long-term prospects, but recent unfavorable factors make it difficult to recommend the stock.

The bank concluded, "As the industry shifts to electrification, Rivian Automotive has the ability to gain market share. We still believe that its new approach and vertical integration will bring higher scale profits." "The announcement of R2 and the increase in production can boost market sentiment, but in the short term, we believe that the catalysts for accelerating profits are limited, and profit margins will still be limited."

UBS: Upgrades Netflix to "Buy" and raises target price to $390

If calculated based on the latest closing price of $333.7, this price implies a 17% upside!

Truist: Maintains "Buy" rating for Spotify, raises target price by 17% to $154 from $132

If calculated based on the latest closing price of $134.57, this price implies a 14% upside!

The bank said that although the stock price has risen earlier this year, the company's stock may continue to rise as its service prices are lower than those of its peers. It is expected that Spotify will lower prices later this year, "while highly focusing on profit margins".

Morgan Stanley: Maintains "Overweight" rating on NetEase, target price raised to $115

If calculated at the latest closing price of $92.55, this price means there is still a 24% upside potential!

The bank stated that NetEase's stock performance from the beginning of the year to now has outperformed all mainland large-cap tech stocks covered by the bank. However, the positive factors such as the long life cycle of its casual competitive mobile game "Egg Party", the possible launch of an international version of the game, and the release of the action game "Yanyun Sixteen Sounds" in the second half of the year have not been fully reflected in the stock price. Therefore, NetEase continues to be one of the preferred stocks.

The bank raised its forecast for NetEase's game revenue growth rate in 2023 by 10 percentage points to an annual growth rate of 14% to 15%, and its operating profit forecast is 6% higher than the market's expectations. The bank believes that the company's valuation is still attractive.