(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Microsoft and Lyft were among the stocks being discussed by analysts on Friday. Oppenheimer raised its price target on Microsoft to $500 on the potential of increasing AI adoption. Lyft, meanwhile, was upgraded to buy at Loop Capital. Check out the latest calls and chatter below. All times ET. 7:54 a.m.: Citi lists AT & T as a new top stock pick AT & T is Citi’s new top stock in its U.S. telecommunications infrastructure and operations universe. The bank also reiterated its buy rating for the stock in a Friday note. Shares of AT & T are up 9% on the year, but analyst Michael Rollins’ $20 price target implies that shares could rise another 9%. “We believe AT & T is establishing a runway for better financial performance, including annual service revenue growth, from its strategic product investments and performance,” the analyst wrote. Rollins also cited an improving sector backdrop as a catalyst, predicting that large-cap telecommunications stocks are due to outperform large-cap cable. Meanwhile, he also noted that sentiment is due to improve, especially as investors grow to appreciate AT & T’s dividend payments more. “We see further room for Telco sentiment to improve on the prospects for the large-cap Telcos to construct capital allocation strategies to improve the prospects for longer-term annual revenue growth, which does not seem to be priced into the shares of T and VZ with their dividend yields trading significantly ahead of their bond yields,” Rollins wrote. “We expect market confidence around dividend durability for T and VZ to improve with better FCF in 2024 and in 2025.” — Lisa Kailai Han 7:37 a.m.: Buy 3M with new CEO in charge, BofA says New leadership at 3M can help restore growth, according to Bank of America. Analyst Andrew Obin upgraded the Post-it and Scotch parent to buy from neutral and raised his price target by $15 to $120. Obin’s new target suggests 22.2% upside from Thursday’s close. William Brown began the role as CEO on May 1, succeeding Michael Roman. Before 3M, Brown was CEO of L3Harris. Obin said the change comes at an “opportune time,” with the company recently getting over challenges tied to the spinning of its healthcare business and lawsuits. He also cited Brown’s focus on operations and innovation, which he boost growth. “We see the new CEO refocusing the company on growth and operations,” Obin told clients in a Friday note. “With major litigation settlements behind it and uncertainty about remaining lawsuits reduced, investors are likely to focus on improving operations, potential cyclical leverage, and inexpensive valuation even when adjusted for future legal liabilities.” Shares traded 1.6% higher before the bell. The stock has added 7.5% in 2024. — Alex Harring 7:26 a.m.: BofA upgrades Skechers, calls stock a consistent compounder Skechers is a rare consistent compounder that investors should have in their portfolio, Bank of America said. Analyst Christopher Nardone upgraded the shoe maker to buy from neutral and raised his price target by $16 to $87. Nardone’s target implies shares can advance 22.4% over Thursday’s close. “We are upgrading Skechers … on the basis that the wholesale environment is improving, broader footwear trends remain solid, and implied 2H sales guidance could prove conservative,” Nardone told clients. Nardone also noted that the stock is a “double digit grower” that’s currently trading at a discount to peers. In addition to hiking the price target, the analyst also raised earnings per share expectations for the second quarter of 2024 and full year. Looking toward the second half of the year, he said Skechers has a “compelling’ set-up. Skechers shares rose more than 2% before the bell on Friday. The stock has added about 14% in 2024. — Alex Harring 7:12 a.m.: Buy underperforming Huntsman shares, JPMorgan says Investors should pick up shares of Huntsman despite its rough patch, according to JPMorgan. Analyst Jeffrey Zekauskas issued a rare double-upgrade from underweight to overweight for the chemical products manufacturer. Zekauskas also hiked his price target by $5 to $27, which now implies a 13.9% rally over the next year from Thursday’s closing level. While Zekauskas said the stock has been a “serial underperformer,” he said sometimes it makes sense to own a laggard before their comeback. That’s especially true for stocks like Huntsman that are tied in some ways to interest rates and other macro factors, he said. “We think the value of the shares has most likely approached a cyclical bottom,” he said. “We think there is ample room for above-average capital appreciation over a longer period of time from this price-point.” Shares have fallen more than 5% in 2024, putting the stock on pace for its third straight losing year. — Alex Harring 7:11 a.m.: Deutsche Bank raises price target on Take-Two Interactive Take-Two Interactive shares should build on its recently strong performance, according to Deutsche Bank. Analyst Benjamin Soff raised his price target on the stock to $190 from $180, implying upside of 14.7% from Thursday’s close. Soff also reiterated the video game maker as a top pick. Shares are up just 2.7% year to date but have soared 11.7% over the past month. “Take-Two remains our top pick in the video games space based on the company’s strong track record of creative execution, paired with a robust development pipeline, which should lead to multiple commercially successful titles in the coming years,” Soff said. He also pointed to “the potential for further margin expansion as the business adds scale and captures the benefits of its transformation initiatives over time.” — Fred Imbert 6:56 a.m.: PVH shares can rally more than 40%, UBS says PVH can surge with more strong earnings in its future, according to UBS. Analyst Jay Sole upped his price target on the clothing maker by $14 to $174, now suggesting upside of 43.4%. Sole has a buy rating on the Calvin Klein and Tommy Hilfiger parent. Earlier this week, PVH posted a first-quarter financial report that beat analyst expectations on both lines. In addition, the company shared solid guidance for earnings per share in the current quarter and full year. After the earnings report, Sole said he believes the sales growth rate should continue accelerating and gross margins should reach new heights. He also told clients to expect more quarters with earnings beat and expectations for future results increased. “We think PVH has the brand strength and balance sheet to drive earnings growth over the long term,” he said. “Importantly, we anticipate more beat and raise quarters over the NTM.” PVH has slipped about 0.7% in 2024, bucking the broader market’s ascent. — Alex Harring 6:45 a.m.: Morgan Stanley says Colgate-Palmolive is still a smart investing idea Colgate-Palmolive remains a top pick of Morgan Stanley given its defensiveness and likelihood of sustained outperformance. Analyst Dara Mohsenian reiterated her overweight rating and top pick distinction within the household and personal care space. Mohsenian’s $103 price target reflects a 9.6% upside over Thursday’s close. He said organic sales growth should be above peers and market expectations through the long term. Looking through the end of this year, he said there’s upside potential on organic sales growth and earnings per share. “We see a sustained OSG inflection above peers/consensus/what the market is pricing in and clear NT EPS upside,” Mohsenian told clients. The analyst also called the stock more defensive than peers, and said balanced results show it can likely continue posting outsized gains. Mohsenian’s call comes amid a solid year for the stock, with shares advancing nearly 18% in 2024. — Alex Harring 6:44 a.m.: Best Buy shares can return to $100, Loop says Loop Capital sees more room for Best Buy to run. Managing Director Anthony Chukumba upped his price target for the electronics retailer by $7 to $100, now implying a 13.4% rise from Thursday’s close. Chukumba maintained his buy rating on the stock. Chukumba pointed to Best Buy prices inching closer to Amazon’s and computer sales as reason for optimism on share performance. “Best Buy’s price gap with Amazon narrowed from our last pricing study, with Best Buy at virtual price parity in three of the five categories we surveyed,” he told clients. “We are also encouraged by Loop Capital Markets’ technology analysts’ latest PC channel checks, which are consistent with Best Buy’s recent PC sales trends and upbeat commentary.” Shares have already climbed about 12.6% in 2024, slightly outperforming the S & P 500 after sliding the prior two years. If Chukumba’s price target is reached, it would mark the first time shares have touched the $100 level in over a year. — Alex Harring 6:13 a.m.: UBS shaves $10 off Boeing price target as signs point to weak deliveries UBS sees less room for Boeing shares to bounce as delivery numbers now appear softer than previously estimated. Analyst Gavin Parsons cut $10 off his price target to $240, which still reflects upside of 25.4%. He has a buy rating on the aircraft maker. Parsons said Boeing should be able to deliver 400 MAXs this year, lower than the earlier forecast of 425. In the same vein, it should send off 70 of the 787s, also down from the 85 figure previously anticipated. The analyst said Boeing should now see a loss of $1.7 billion in free cash flow in 2024. He previously expected the company to finish the year with a gain of $900 million. Parsons’ outlook comes as the company grapples with a reputational crisis. Shares have fallen more than 26% this year. BA YTD mountain BA in 2024 — Alex Harring 5:59 a.m.: Buy United Rentals as scale propels growth and returns, JPMorgan says Investors should snap up United Rentals shares as it leads the rental equipment industry in growth, according to JPMorgan. Analyst Tami Zakaria initiated coverage at an overweight rating. Zakaria’s $780 price target implies as 23.7% upside from Thursday’s close. “The equipment rental industry is expected to be a key beneficiary of multi-year non-residential and infrastructure projects in the US,” she wrote to clients Friday. “URI’s scale should drive above industry-average growth and returns.” United Rentals has identified five demand tailwinds that collectively account for over $2 trillion in spending over the long term, Zakaria said. She also said that scale makes the company’s per-unit economics more attractive than peers. Shares have added about 10% in 2024, modestly lagging the broad S & P 500’s gain of more than 12%. Zakaria also initiated Herc Holdings at neutral, noting slower growth. Still, her $155 price target suggests shares can rally 15.4% from Thursday’s close. — Alex Harring 5:45 a.m.: Wall Street analysts react to Nio earnings Nio reported weaker-than-expected earnings for the first quarter on Thursday. U.S. shares of the Chinese electric vehicle maker tumbled nearly 7% in the session following the report, bringing its 2024 loss to more than 45%. Here’s some of the biggest takeaways from analysts on how the stock has done and what could come next: Morgan Stanley’s Tim Hsiao (overweight rating, $10 price target implying 103.7% upside) : “We think the sell-off is overdone and look for the NIO’s shares to regain the lost ground in the coming days, while more meaningful stock re-rating would hinge on sales momentum into 3Q and, to a greater extent, ONVO’s order conversion.” Bernstein’s Eunice Lee (market perform rating, $5.50 price target suggesting 12% upside): “Our recent channel check suggests robust order intake from May carried on through to early June primarily due to BaaS monthly subscription fee being lowered to c. RMB 500/month after discounts & promotions, vs. RMB 980/month at the beginning of 2024. In addition, a portion of Xiaomi SU7 prospects have turned to NIO ET5/T as the waiting time was too long.” Bank of America’s Ming Hsun Lee (neutral rating, $6 price target reflecting 22.2% upside) : “NIO commented that its orders in May exceeded its maximum production capacity of 20k units per month. In the coming few months it expects up to 20k units of monthly delivery (excl. ONVO). With higher sales volume, better product mix, and procurement cost reduction, we assume NIO’s vehicle margin to improve sequentially in 2Q24/2H24. On the other hand, NIO sees R & D expenses for 2024 to stay flattish YoY versus 2023 and SG & A expenses growth < 20%.” — Alex Harring 5:42 a.m.: Oppenheimer raises Microsoft price target Microsoft’s partnership with OpenAI and the increasing adoption of artificial intelligence-related tools could spark another strong period for the tech giant, according to Oppenheimer. Analyst Timothy Horan raised his price target to $500 from $450, reiterating his outperform rating. Horan’s new forecast implies upside of 17% from Thursday’s close. Microsoft shares are up more than 12% year to date. MSFT YTD mountain MSFT year to date “Microsoft will regain a dominant platform role like its PC-era influence in a larger AI-driven market, and expand its multiple,” the analyst said. “A majority of new AI applications are built on this partnership because of the strength of OpenAI’s LLMs, Microsoft’s great enterprise relationships, infrastructure optimized for OpenAI, training data, a complete IT bundle, and the AI flywheel of learning from Copilot usage,” Horan added. “Microsoft’s platform supports on-prem (hybrid cloud) and is the best at data privacy, both key issues for enterprises. Combined, Microsoft has unsurpassed network effects, the true barrier to entry of any technology company.” — Fred Imbert 5:42 a.m.: Buy Lyft as targets look ‘highly achievable,’ Loop says Loop Capital has moved off the sidelines on Lyft amid what could be a “successful turnaround.” Analyst Rob Sanderson upgraded the rideshare platform to buy from hold. Sanderson’s $20 price target implies a 27.5% upside from Thursday’s close. Sanderson pointed to Lyft’s targets of a 15% compounded growth rate in gross bookings through 2027 and margin expansion of approximately 4% of those bookings as reasons for optimism. He also called these benchmarks “highly achievable.” Paired with expectations for compound annual growth in adjusted EBITDA of 40% or more through 2027, Sanderson said the stock can “easily” support a multiple of 15-times 2025 estimates. “We are more confident that the new management team … is on track in repositioning the company and has a firm handle on the levers for executing a successful turnaround’,” Sanderson wrote to clients in a Thursday note. Lyft shares popped 1.7% before the bell on Friday. The stock has added more than 4% in 2024, underperforming the broader market. LYFT YTD mountain LYFT year to date — Alex Harring
