(This is CNBC Pro’s live coverage of Monday’s analyst call and Wall Street chatter. Please refresh every 20-30 minutes to see the latest posts.) Stocks analysts talked about Monday include a major chipmaker and a shoe maker business. Morgan Stanley raised its price target on Nvidia to $144, implying a 16.5% upside. Meanwhile, UBS upgraded Birkenstock stock to buy from neutral. See the latest calls and chats below. All times are Eastern Time. 6:27 a.m.: Deutsche Bank raises price target on Walmart Deutsche Bank believes a variety of catalysts will push Walmart shares higher. Analyst Krisztina Katai maintained a buy rating on the retail giant but raised her price target to $77 from $71. Walmart shares are up 29% this year. Katai’s latest forecast is about 14% of the stock’s closing price on Friday. “We believe the strengthening profitability of WMT’s high-margin alternatives business – allowing the market to value its two businesses separately – will provide further multiple upside, making the investment case for WMT compelling,” Katai wrote. The analyst added that Walmart sees an opportunity to gain more revenue as higher-income consumers shop at its stores, which could be a sign of changing perceptions of the brand. “In addition, the quality of the product categories is improving (for example, WMT sells Apple computers), and we believe this quality will start to drive upside as the sales mix improves,” she added. Cathay also highlighted that additional profit opportunities may exist in other value streams, including advertising, memberships, marketplaces, fulfillment services and data monetization. Meanwhile, the company’s e-commerce profitability is growing, although it remains a loss-making business for the company. Other catalysts for Walmart come from potential supply chain automation, private label penetration, store remodeling and growing international business. — Lisa Kailai Han 6 a.m.: Goldman Sachs puts a buy rating on Verizon An improving industry backdrop will benefit Verizon, according to Goldman Sachs. The bank gave the telecoms giant a buy rating for the first time. Analyst James Schneider has a 12-month price target of $50 for the stock, which would represent a 21% upside from Friday’s closing price. Verizon shares have risen 9% in 2024. However, Schneider believes that the stock may continue to rise amid a favorable industry backdrop. “We are seeing an improving competitive environment for U.S. mobile network operators, with a period of reduced capital intensity – something that has not been seen in more than a decade,” he wrote. “We believe Verizon can Continued returns on revenue, EBITDA and free cash flow growth over the next 18 months, with the potential for buybacks in 2025 – and believes the stock could be re-rated when that happens,” Moore highlighted as a catalyst. Verizon’s core wireless business has improved execution in what analysts say is a self-sustaining trend. He also pointed to Verizon’s aggressive deleveraging efforts, which could help its capital allocation story. Moore added that Verizon has “significant runway” in its fixed wireless product cycle to grow within its consumer and enterprise base. “Coupled with continued modest FiOS net incremental growth, we believe Verizon can grow its broadband business for the foreseeable future, mitigating ongoing wireline declines,” he said. — Lisa Kailai Han 5:47 AM: Morgan Stanley Lee raises Nvidia price target According to Morgan Stanley, Nvidia prices should continue to rise as the next generation of chips arrives. Analyst Joseph Moore raised his price target on Nvidia to $144 from $116. The new forecast means shares could rise nearly 17% from Friday’s closing price. Moore has an overweight rating on the stock. Nvidia’s stock price has soared 149% this year. The analyst noted that the artificial intelligence darling has a high valuation bar based on its valuation, but other factors mitigate that higher price-to-earnings ratio. NVDA YTD Peak NVDA Year to Date “We wouldn’t be banging the table on these levels given the massive appreciation since the last earnings report, but this remains the most compelling narrative in the AI semi-finished space as we move from the H100 Transitioning to H200 and then Blackwell, visibility and backlog will improve dramatically,” he wrote. As a catalyst, Moore cited strong demand for Hopper, Nvidia’s current chip microarchitecture. “As the H100 begins the transition to the H200 (bringing better memory bandwidth and higher memory content from HBM3e) and Hopper builds continue to ramp up, we believe sales of both products will remain strong,” he wrote. Meanwhile, analysts noted that “considerable enthusiasm” for Nvidia’s next-generation AI GPU, Blackwell, will likely continue to drive the company’s artificial intelligence-related earnings higher. — Lisa Kailai Han 5:47 AM: UBS upgrades Birkenstock to Buy UBS believes Birkenstock is poised for significant gains ahead. The bank upgraded its rating on the shoe maker to “buy” from “neutral.” Its price target was raised to $85 from $52, implying an upside of 56% over the next 12 months. “Our upgrade to BIRK is based on: 1) BIRK is successfully executing its [direct-to-consumer] The expansion strategy is better than we expected. 2) We see BIRK rising rapidly in the Asia-Pacific region. 3) We see [average sales prices] “The stock rose above previous expectations on the back of a positive sales mix shift toward DTC and the successful launch of higher-priced products in new categories,” analyst Jay Sole wrote. He also noted that his previous neutral rating on the stock was based on Concerns about the brand’s momentum, among other factors, have sent BIRK shares up nearly 12% this year.
