Thursday's analyst calls: Coinbase gets an upgrade, health care stock primed for big gains ahead
[ad_1]
(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A major crypto stock along with a health care name were in focus among Thursday’s analyst calls. JPMorgan upgraded Coinbase to neutral, noting the trading platform will get a boost from higher crypto prices. Elsewhere, HSBC initiated coverage of GE Healthcare with a buy rating, citing in part the company’s artificial intelligence ambitions. Check out the latest calls and chatter below. All times ET. 5:52 a.m.: Buy Eastman with growth inflection point on horizon, Redburn Atlantic says Investors should snap up shares of Eastman Chemical as an unusual turn in earnings growth nears, Redburn Atlantic recommended. Analyst Colin Isaac initiated coverage of the American chemical stock with a buy rating. His $110 price target implies shares can rally about 34% over the next year from Wednesday’s close. “After a decade of stagnant earnings that has hindered stock performance, we believe Eastman is poised for multi-year growth,” Isaac told clients. “With the shares at a ten-year relative low, this outlook is not yet discounted, presenting a compelling risk/reward profile.” An “unprecedented” level of customer destocking in 2023 that significantly hurt EBITDA should reverse as conditions normalize this year, he said. Meanwhile, Isaac said a $2.5-billion investment in polyester recycling should help drive growth and returns, while helping the stock re-rate and reduce its cyclicality. The call comes amid a bout of underperformance for the stock. Shares have dropped more than 8% in 2024 after gaining just over 10% in 2023. By comparison, the S & P 500 has climbed more than 4% this year and 24% last year. — Alex Harring 5:39 a.m.: Piper Sandler grows increasingly excited about Nvidia as earnings report nears Piper Sandler is getting increasingly bullish heading into Nvidia’s earnings. Analyst Harsh Kumar hiked his price target by $230 to $850, now implying upside of 15% from Wednesday’s close. Kumar kept his overweight rating on the stock. Nvidia, which is expected to release fourth-quarter earnings next week , sees more positive momentum to its tailwinds from accelerated compute and generative artificial intelligence, Kumar said. He added that large public cloud companies will continue spending through the year as more AI products roll out. An increase in supply will help the company work through its “extremely healthy backlog” for its data center portfolio, the analyst added. “In our view, the backlog support for the entire 2024 forecast is stellar,” Kumar wrote to clients. “We continue to see NVDA as the only and hence premier full-stack accelerated compute provider and reiterate our top-large cap pick.” Despite a modest pullback in Thursday’s premarket, the stock is up more than 49% in the new year. That builds on 2023’s monster rally, when shares soared more than 230% amid the AI boom. — Alex Harring 5:34 a.m.: JPMorgan turns neutral on Coinbase amid rising crypto prices JPMorgan turned less bearish on Coinbase as cryptocurrencies jump following the approval of bitcoin ETFs . Analyst Kenneth Worthington upgraded the crypto platform to neutral from underweight. However, his $80 price target implies a steep drop of 50.11% from Wednesday’s close. “What was initially a sell-the-news event with the launch of U.S. Bitcoin spot ETFs, has now turned into meaningful Bitcoin price appreciation,” he told clients. “In our opinion, we think this Bitcoin appreciation is contributing to better spot Bitcoin ETF flows, which is in turn driving Bitcoin prices higher, and pulling other tokens higher as well.” Worthington pointed specifically to flows into these ETFs and the price appreciation of bitcoin and ethereum in recent days as reason for the upgrade. He also said crypto prices have more upside this quarter. Still, the analyst noted the “many” risks to the stock price, including valuation and if the ETFs become a competitor to Coinbase itself. Shares have rallied more than 7% before the bell Thursday. But the stock has lost more than 7% so far in 2024, giving up some gains after soaring more than 390% last year. — Alex Harring 5:34 a.m.: HSBC says buy GE Healthcare HSBC likes what it’s seeing from GE Healthcare since the company was spun off from General Electric. The bank initiated coverage of the medical technology stock with a buy rating and a price target of $100 per share. That forecast calls for upside of more than 20%. GE Healthcare was spun off from General Electric early last year. Analyst Sezgi Oezener cited a large installed base relative to rivals along with artificial intelligence ambitions that “seem more focused than most peers.” “The appointment of Taha Kass-Hout, previously VP of Machine Learning and Chief Medical Officer at Amazon (2017-23), as GEHC’s Chief Science & Technology Officer over a year ago was a major step in the company’s efforts to advance in the AI field,” Oezener wrote. “Following the increased intensity of investment in the area, the company prides itself on having launched over 40 new innovations tied to its care pathways and digital strategy, while also topping the FDA’s list of AI-Enabled Device Authorizations, with 58 more than any other peer.” GE Healthcare shares have rallied more than 7% in 2024. They soared more than 32% last year. GEHC 1Y mountain GEHC in past year — Fred Imbert
[ad_2]
