(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.) Meta Platforms and General Motors topped Thursday’s analyst calls. Several analysts lowered their price targets on the Facebook parent following its latest quarterly report. Meanwhile, Bernstein said GM can add to its already strong year-to-date gains. Check out the latest calls and chatter below. All times ET. 6:02 a.m.: JPMorgan moves to sidelines on Monster amid aluminum and customer troubles Monster Beverage shares could be in trouble into earnings as aluminum prices rise and the consumer faces pressure, JPMorgan said. Analyst Andrea Teixeira downgraded the energy drink maker to neutral from overweight and cut her price target by $7 to $59. Teixeira’s new target level implies shares can add just 8.6%. Teixeira’s call comes ahead of the drink producer’s quarterly financial release early next month. While the stock has already fallen over the last month, she cited lackluster excitement around price increases, raised costs tied to aluminum and challenges for the lower-income customer as key reasons for caution. “Monster remains one of the best growth stories in our coverage universe with a strong track record of delivering an above-average earnings CAGR over the past 10 years,” she told clients. But, “we believe shares fairly reflect a more challenging outlook with softer U.S. performance amid a more stretched low income consumer and potential mitigation of margin recovery story given aluminum reflation.” She also pointed to increasing competition within the broader energy and caffeinated drinks category, even as the industry as a whole continues to expand. Monster shares slipped 1.5% before the bell on Thursday. The stock has dropped more than 8% in April, bringing its 2024 loss to greater than 5%. MNST YTD mountain MNST year to date — Alex Harring 5:47 a.m.: Ford should trade up following earnings report, Wells Fargo says Ford shares should take a leg up after earnings before interest and taxes came in ahead of expectations, according to Wells Fargo. The automaker saw adjusted EBIT decline about 18% year over year to $2.76 billion. That was still better than the firm’s forecast of $2.5 billion, according to analyst Colin Langan, which can give the stock upward momentum. Ford also maintained its 2024 guidance for the measure of between $10 billion and $12 billion, but Langan said it should “lean” toward the higher end of the range. “We expect the stock to trade up on the Q1 beat & more optimistic FY24 guidance,” he said. Langan credited the Ford Pro business as driving the EBIT beat. Shares of the Michigan-based firm added 2.6% in premarket trading Thursday and are up more than 6% in 2024. Though Langan is optimistic about how the stock will perform Thursday, he has an underweight rating and price target of $10. That implies shares falling 22.8% from Wednesday’s closing level. Elsewhere, the company surpassed expectations of analysts polled by LSEG for earnings per share, while automotive revenue missed the consensus forecast. — Alex Harring 5:38 a.m.: Wall Street reacts to Meta earnings Meta Platforms disappointed investors with its weak revenue guidance , sending shares down about 13% in premarket trading. Even amid the sell-off, many banks kept their bullish ratings on the Facebook parent. Here’s what analysts at some of the largest investment firms thought: Eric Sheridan, Goldman Sachs (Buy, PT at $500) “With management referencing past investment/product cycles such as Stories and Reels … we do expect the shares to remain volatile in the coming quarters (especially so if increased investment is met with downward revenue revisions from new levels). That said, we’d note that historically management has been able to effectively navigate such investment cycles and execute to position the platform for long-term success around product/computing shifts.” Brian Nowak, Morgan Stanley (Overweight, PT at $550): “META intends to continue to invest … in order to drive more engagement and monetization, but we are buyers of META on weakness, with it currently trading at 18X our new ’25 FCF (5.5% yield) in after hours. It also implies 17X ’25 earnings (a 15% discount to the 5yr FY2 average).” Doug Anmuth, JPMorgan (Overweight, PT down to $480 from $535): “We are encouraged that Meta’s success w/Llama 3 & Meta AI has increased management’s confidence in leading in AI, & we know that building out new products takes time, but comparisons to the scaling periods of Reels, Stories, & Feed into mobile will concern many investors, even as we can see those long-term payoffs. … Despite the heavy investments, we still project double-digit revenue & EPS growth in ’25 & ’26, & Meta has a strong track record of driving returns on increased spending.” Ronald Josey, Citi (Buy rating, PT down to $550 from $590): “The key debate coming out of earnings is likely to be around the size and scale of Meta’s multi-year GenAI investment cycle. But unlike previous cycles (Mobile, Stories, Reels), we believe its GenAI investments come from a position of strength whereby Meta is a leader. More NT, the debate likely revolves around the pace of revenue deceleration given 2Q guidance and rising Capex spend. But … we believe Meta continues to have multiple tailwinds, including from Llama 3, Meta AI and Business AI (Agents).” — Alex Harring 5:38 a.m.: Bernstein initiates GM as outperform General Motors’ 2024 gains are only the beginning of a strong period for the automotive giant, according to Bernstein. Analysts Daniel Roeska initiated GM with an outperform rating. His price target of $55 implies upside of 22% over the next 12 months. Roeska noted that GM is “finding its mojo again,” adding: “The company is pivoting from lofty long-term targets back to more tangible shareholder returns.” “We expect 2024’s performance to push the stock higher, while management has four distinct opportunities to realize more value still,” the analyst said. “We are encouraged by stronger cash flows and expect the company to return > $4.5b to shareholders per year.” The note came after General Motors posted earlier this week first-quarter earnings that beat analyst expectations. The company also raised its 2024 guidance . GM shares are up more than 25% year to date. GM YTD mountain GM year to date — Fred Imbert
Sumber: www.cnbc.com
