Big Moves | Apple, Tesla, Meta Platforms, Netflix, NetEase! Target prices all significantly raised!
Goldman Sachs said that India could become a major driving force for Apple's revenue and shipment growth in the next five years, citing Apple's manufacturing investments in India and the country's "economic prosperity." In a bullish scenario, the bank believes that Apple's stock could rise to $270 and reiterated Apple as its top pick.
Deutsche Bank: Raises Netflix's target price by 16% to $475 from $410
Based on the latest closing price of $450.05, this price implies a 6% upside!
The bank is optimistic about the revenue and user growth brought by Netflix's "pay sharing" plan, as well as the potential for advertising revenue. The bank expects the "pay sharing" plan to generate an additional $900 million in revenue this year, $3.4 billion in 2024, and $4.5 billion in 2025, with total revenue in 2022 reaching $32 billion.
Morgan Stanley: Raises Apple's target price by 16% to $220 from $190
Based on the latest closing price of $193.99, this price implies a 13% upside!
The bank believes that India could become a major driver of Apple's revenue and unit growth in the next five years, citing Apple's manufacturing investments in India and the country's "economic prosperity." In a bullish scenario, the bank believes Apple could rise to $270 and reiterates Apple as its top pick.
Morgan Stanley: Maintains "Overweight" rating on CLOUD MUSIC, raises target price by 8% to $130 from $120
Based on the latest closing price of $106.22, this price implies a 22% upside!
The bank notes that CLOUD MUSIC's stock price has risen 45% year-to-date, outperforming the 2% increase in the Hang Seng Technology Index during the same period, mainly driven by positive surprises from three mobile games: "Eggy Party," "Racing Master," and "Yan Yun's Sixteen Tones."
The bank believes that these three mobile games have strong vitality, therefore raising its forecast for the company's game revenue growth to 16% YoY and expecting a 24% growth in the second half of the year. In addition, considering the promotion of overseas versions of "Eggy Party," "Racing Master," "Yan Yun's Sixteen Tones," "Mission Zero," "Eternal Abyss" on PS5 and mobile games in the next 6 to 9 months, the bank expects an annual increase of approximately RMB 15 billion or 20% contribution based on 2023.
The bank believes that the company's new games will mainly drive growth starting from the third quarter of this year, with game revenue expected to increase by 9% YoY to RMB 18.3 billion in the next quarter. Under non-GAAP, operating profit and net profit are expected to increase by 17% and 13% YoY, respectively, to RMB 6.7 billion and RMB 6.1 billion.
Citi: Maintains "Buy" rating on Baidu, lowers target price by 2% to $181 from $184
If calculated at the latest closing price of $149.66, this price implies a further 21% upside!
Baidu is expected to release its second-quarter results in mid-August, and the performance is expected to meet the expectations of the bank and the market. Benefiting from the continued rebound in offline vertical industry advertising spending, it is predicted that Baidu's core advertising revenue in the second quarter will increase by 11.5% year-on-year to reach RMB 19.1 billion. At the same time, due to the delay in the intelligent transportation project, it is predicted that Baidu's intelligent cloud revenue will grow by 3% to RMB 4.39 billion.
The bank currently expects Baidu's net income in the second quarter to increase by 12.8% year-on-year to RMB 33.46 billion. The non-GAAP earnings per ADS are expected to reach RMB 14.48. Core business revenue is expected to grow by 10.8% to RMB 25.7 billion, with non-advertising business revenue expected to increase by 9% to RMB 6.6 billion.
The bank pointed out that advertising and cloud business will continue to improve in the third quarter, but considering the relatively high base of last year, the advertising revenue in the third quarter is conservatively expected to increase by 5.6% year-on-year, and Baidu's intelligent cloud revenue is expected to increase by 10%. The bank has also lowered its overall revenue forecast for the company from 2023 to 2025 by 0.9%, 0.8%, and 0.9%, and the non-GAAP net profit forecast by 1.3%, 1.1%, and 1.3% to reflect the impact from iQiyi and the slowdown in cloud business revenue.
Bernstein: Raises Meta Platforms' target price by 27% to $350 from $275
If calculated at the latest closing price of $310.62, this price implies a further 13% upside!
Baird: Raises Tesla's target price by 19% to $300 from $252
If calculated at the latest closing price of $290.38, this price implies a further 3% upside!