Big moves | B station target price cut sharply! CLOUD MUSIC, Li Auto can still rise 40%?

Goldman Sachs: Maintains "Neutral" rating on BILIBILI-W, target price lowered by 14% to HKD 170

If calculated at the latest closing price of HKD 123.5, this price implies a 38% upside potential!

The bank believes that the stock price underperformed after the earnings release due to disappointing second-quarter outlook, game delays, and weaker loss guidance from management, which led to a downside in revenue.

In addition:

1. Mobile games are the fastest-growing business segment in terms of gross profit margin for BILIBILI-W, and are expected to experience a year-on-year decline again before the release of new games, and accelerate growth again in the second half of 2023;

2. Advertising revenue is expected to accelerate growth in the second quarter of 2023, making BILIBILI-W one of the fastest-growing companies in the advertising platform, achieving a 26% year-on-year advertising growth on the June 18 shopping festival (with a compound annual growth rate of 18% over two years), mainly benefiting from the company's good advertising placement strategy;

3. Although the release of new games has been delayed, the company has gradually improved its profit margin by strictly controlling operating expenses (mainly sales and marketing expenses) and expanding gross profit margin.

Morgan Stanley: Gives BYD a "hold" rating, target price of HKD 215

If calculated at the latest closing price of HKD 245, this price implies a 12% downside potential.

The bank pointed out that BYD COMPANY's sales of new energy passenger vehicles in May increased by 14% month-on-month and 109% year-on-year, reaching 239,000 vehicles. Sales growth may be driven by the Golden Week holiday and product line updates.

The bank continued to point out that the following factors may drive further growth: 1) BYD announced that it will conduct a limited-time promotion in June, which is likely to bring additional impetus to its order volume. The current order volume has exceeded 80,000 vehicles.

1. After launching the 2023 DM-i Champion Edition Dynasty series models, the company's passenger flow and order volume in the second quarter increased significantly.

It is worth noting that if the potential modification of the Song Plus DMi and the upcoming Song L can help BYD get rid of price competition and seasonal effects from its peers, it will further increase monthly sales, and sales are expected to reach 300,000 vehicles in the third quarter.

Morgan Stanley: Gives NetEase an "overweight" rating, target price of USD 120

If calculated at the latest closing price of USD 85.78, this price implies a 40% upside potential!

The bank stated that NetEase will release four games in June, which is expected to drive performance in the second half of the year. Overseas investment will take effect in 2025, further accelerating growth, increasing the proportion of international revenue and operating leverage. Artificial intelligence will further enhance NetEase's research and development capabilities, making it a leader in the industry.

Morgan Stanley: Upgrades Ideal Motors to "Overweight" with a target price of $40

If calculated at the latest closing price of $29.15, this price implies a 37% upside!

Ideal Motors delivered 28,277 vehicles in May (up 10% MoM and 146% YoY), setting another record. The L7/L8 Air version contributed to the entire month of May since deliveries began in April.

With solid May sales, Ideal Motors is expected to exceed its Q2 guidance (76,000-81,000 vehicles) by about 3,000 vehicles if sales reach 30,000 vehicles in June.

The bank pointed out that as the flagship pure electric MPV model is expected to be launched by the end of the year, more and more new entrants are entering this field, and competition in the pure electric MPV market will intensify. In addition to the Xpeng D9, Xiaopeng and other local brands also plan to launch/upgrade their pure electric MPV product lines in the second half of the year.

The bank believes that the differentiation performance of the company's first pure electric model from its competitors is likely to determine the company's prospects for electric vehicles in 2024.

BMO: Maintains S&P "Outperform" rating, raises target price by 6.5% to $245 from $230

If calculated at the latest closing price of $212.9, this price implies a 15% upside!

The bank said the company's quarterly performance was solid, with revenue growth, strong profit margins, and free cash flow. Although the bank expects the company's revenue growth to slow down for the full year, its profit margins and free cash flow remain strong. The bank's confidence in the company achieving a profit margin of 30% or higher in fiscal year 2025 has increased.

Wedbush: Upgrades C3.ai from "Neutral" to "Outperform" with a target price of $50, up 108% from $24

If calculated at the latest closing price of $34.72, this price implies a 44% upside!

The bank said that although the road ahead is bumpy, C3.ai has experienced a turning point and will leverage the $800 billion artificial intelligence transformation opportunity over the next decade. Analysts believe that C3.ai is in a unique position to help lead the AI trend and monetize it in the next 12 to 18 months.