Big Moves | Wall Street Bullish on Buying Nvidia! MEITUAN-W, PDD Could Rise Another 60%?

Morgan Stanley: Maintains "Buy" rating on MEITUAN-W, target price of HKD 180

If calculated at the latest closing price of HKD 112.8, this price implies a 60% upside potential!

The bank stated that MEITUAN-W's first-quarter performance was solid, with expectations of increased unit profits from delivery services and growth potential in transaction volume and market share for in-store businesses.

The report stated that in terms of core local commercial operations, the bank cited MEITUAN-W management's disclosure that it expects revenue to increase by 30% year-on-year for the full year, and operating profit under non-international accounting standards is expected to increase by more than 20%.

In terms of business segmentation, delivery sales are expected to increase by more than 20% year-on-year, and unit profits may improve; operating profit margins for in-store, hotel, and tourism businesses are expected to remain at around 35%. Management also expects that its delivery business has advantages in terms of merchants, users, and delivery networks that competitors cannot replicate, and in the long run, it expects market share to increase from the current 70% to more than 75%.

Morgan Stanley: Gives JIUMAOJIU a "Buy" rating, target price of HKD 23

If calculated at the latest closing price of HKD 13.5, this price implies a 70% upside potential!

The report stated that in terms of new store openings, "Tai Er" and "Song" have opened about 31 and 13 stores respectively so far this year. Management maintains its target of opening 133 stores for "Tai Er" and is optimistic about "Song" exceeding its target of opening more than 25 new stores. The average selling price of "Tai Er" remains stable compared to 2022, while "Song" has been adjusting its menu to provide more value-for-money products.

The group also expects not to lower menu prices. The current annual revenue and operating profit margin of "Song" are both higher than the five-year target. Currently, "Tai Er" is divided into first-tier (35%), second-tier (50%), and third-tier (15%) stores according to city level. Compared with first- and second-tier cities, the operating profit margin of lower-tier cities is higher because of lower rent and employee costs.

In addition, the strong sales growth of the group's self-owned brands such as "Tai Er" and "Song" hot pot and the same-store growth brought about by store renovations can drive the group's performance, but attention should be paid to downside risks, including pressure from raw material prices, delayed store expansion due to personnel flow or other issues, food safety issues, intensified competition in the same category or consumer shifts, and macroeconomic environment weakening.

Citigroup: Maintains "Buy" rating on NVIDIA, target price of USD 420

If calculated at the latest closing price of USD 378.34, this price implies an 11% upside potential!

The bank advised investors to buy NVIDIA.

Analysts pointed out that NVIDIA CEO Huang Renxun reiterated the company's goal of introducing generative artificial intelligence into data centers at the 2023 Taipei Computer Show on Monday. Analysts estimate that the three products released by Nvidia indicate that the company is trying to establish a strong presence in a potential and largely undeveloped comprehensive acceleration computing market by relying on its existing AI acceleration advantage. This market ranges from AI networks to CPU-centric server markets, with a total size of over $1 trillion.

Barclays: Raises Pinduoduo's target price from $100 to $103, up 3%

If calculated at the latest closing price of $65.32, this price means there is still 58% upside potential!

Credit Suisse: Maintains Microsoft's "outperform" rating, raises target price from $350 to $420, up 20%

If calculated at the latest closing price of $328.39, this price means there is still 28% upside potential!

Analysts say Microsoft is still the preferred choice in the field of AI. Given the "rapid increase" in AI-based products released by the company, analysts have raised their revenue expectations for Microsoft from $40 billion to $57 billion and their earnings per share expectations from $2.00 to $2.90.

JPMorgan: Upgrades Chevron's rating from "underweight" to "neutral", raises target price from $161 to $170, up 6%

If calculated at the latest closing price of $150.62, this price means there is still 13% upside potential!

The bank said Chevron's valuation has normalized and the company's risks are also fairly balanced at current prices. Chevron's valuation premium has narrowed significantly, and the upward space of the new target price is basically consistent with the average level of its US peers after a period of poor performance. Chevron "has solid defensive characteristics in a market where defense has become more important".