Big Moves | Still Seen as AI Leader, Alphabet-C Target Price Gets Raised! BYD Has 155% Upside Potential?

Goldman Sachs: Reiterates "Buy" rating on Alphabet-C, raises target price to $132

At the latest closing price of $103.71, this price implies a 27% upside!

The bank said that Alphabet-C's search business revenue in the first quarter of this year was better than expected, and it continued to grow under the current macroeconomic conditions. YouTube continued to benefit from the trend of consumer shift to internet TV and short videos. The company also maintained its leading position in long videos, short videos, live broadcasts and other fields, which brought growth momentum to its revenue.

The bank also pointed out that the company's cloud business revenue growth was strong and boosted its profitability. It believed that it could become the main driving force for profit growth in the next few years, reiterated its positive view on it, and continued to regard Alphabet-C as a leading AI and machine learning-driven enterprise.

Morgan Stanley: Raises Microsoft's target price from $307 to $335, up 9%.

At the latest closing price of $295.37, this price implies a 13% upside!

Deutsche Bank: Raises Apple's target price from $160 to $170, up 6%.

At the latest closing price of $163.76, this price implies a 4% upside!

Citigroup: Gives BYD a "Buy" rating with a target price of HKD 602.

At the latest closing price of HKD 236, this price implies a 155% upside!

The bank pointed out that BYD is the first choice for the domestic automobile industry, and it is expected that its sales of new energy vehicles will be 2.96 million/3.95 million/4.71 million units from this year to next year, due to strong order backlog, improvement of supply and demand relationship in the plug-in hybrid electric vehicle (PHEV) field, and wider positioning of the average selling price in the pure electric vehicle (BEV) field. In the future, it will penetrate into the low-end and high-end fields, as well as the market share obtained in the long run.

Bank of America: Reiterates "Buy" rating on AIA, raises target price from HKD 93.7 to HKD 98.4, up 5%.

At the latest closing price of HKD 85.2, this price implies a 15% upside!

The bank said that at a fixed exchange rate, AIA's new business value in the first quarter of this year increased by 28% year-on-year to US$1 billion, surpassing the bank's expectations. All major markets recorded double-digit growth. The profit margin of new business value fell from 54.4% in the first quarter of last year to 52.3% in the first quarter of this year, mainly due to changes in the product mix in mainland China and Hong Kong. The annualized new premium increased by 28% year-on-year to US$2 billion. If calculated at the latest closing price of HKD 326.4, this price means there is still a 23% upside!

According to the report, the company's total revenue for the period increased by 19% year-on-year or 7% quarter-on-quarter to HKD 5.6 billion, exceeding market/industry expectations by 4%/10%, mainly due to its net investment income increasing to HKD 1.535 billion, while core business revenue decreased by 13% year-on-year or 5% quarter-on-quarter to HKD 4 billion, 5% lower than the bank's expectations.

The bank pointed out that the cash transaction fees and tariffs of HKEX in the first quarter of 2023 decreased by 13% year-on-year or 2% quarter-on-quarter to HKD 836 million, and the clearing and custody fees decreased by 14% year-on-year or 4% quarter-on-quarter to HKD 1.1 billion, as the quarterly ADT decreased by 13% year-on-year or remained flat at HKD 128 billion in the first quarter of 2023, and the southbound trading volume increased by 10% year-on-year or decreased by 6% quarter-on-quarter.