(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) An online car seller and a crypto trading platform were in focus on Tuesday’s analyst chatter. Carvana was upgraded to hold from underperform by Jefferies. Coinbase also got a rating increase to market perform from underperform by Raymond James. Check out the latest calls and chatter below. All times ET. 7:35 a.m.: Bernstein initiates coverage of Regeneron, says stock is among ‘best in the industry’ According to Bernstein, biotech Regeneron is approaching its “next chapter of growth.” Analyst William Pickering initiated coverage of Regeneron with an outperform rating and $1,125 price target, which suggests shares could gain 16.6% over the next 12 months. The stock has added 9.8% year-to-date. Regeneron — which has three core verticals of eye diseases, allergic and inflammatory diseases and oncology — has the strongest growth potential in asthma and eczema treatment Dupixent and oncology, according to Pickering. He has a more “cautious stance” on the company’s Eylea drug, which is used to treat wet age-related macular degeneration, that he said is facing competitive pressure from pharma company Roche’s Vabysmo drug. “While not cheap at 21x consensus ’24 EPS, you get what you pay for. We model 13% EPS growth from ’24-’27, one of the best in the industry,” Pickering wrote in the Monday note. — Pia Singh 6:40 a.m.: William Blair upgrades Oracle after strong earnings William Blair analyst Sebastien Naji upgraded Oracle to outperform on Tuesday, saying he sees continued growth acceleration led by artificial intelligence and differentiated cloud product offerings. The upgrade comes after the company reported better-than-expected earnings for the fiscal third quarter . Shares jumped more than 13% in premarket trading. “In our view, the positive demand commentary and strong bookings growth undergird the structural shift at Oracle that positions the company well for a sustained acceleration in topline growth,” Naji said in a Tuesday note. With the company’s investments in OCI, its Oracle Cloud Infrastructure platform, he believes the company is “entering a new phase of higher growth” that will drive higher profitability and free cash flow for years into the future. The lower cost of OCI has led to robust demand, especially from large webscale customers like Uber and TikTok, according to Naji. Oracle is also well-positioned in the cloud service provider market given its unique cloud offerings, he added. Oracle shares have climbed 8.3% this year. Over the past 12 months, they are up 35.8%. ORCL YTD mountain ORCL year to date — Pia Singh 6:06 a.m.: Citi initiates coverage of The New York Times with buy rating New York Times is the only analog company that has successfully transitioned to a digital business, according to Citi Research. The firm initiated coverage of the legacy media company with a buy rating and $52 target price, which implies shares could gain 18.1% over the next year. The stock is down roughly 10.1% year to date. “Our bullish view is underpinned by two observations. First, the company is in the midst of thoughtful, well-executed digital pivot that should allow it to grow revenues at a mid-single-digit pace through 2026,” analyst Jason Bazinet wrote in a note. “Second, the balance sheet is pristine with no debt, ample FCF, and robust capital returns (in the form of both dividends and buybacks).” According to Bazinet, New York Times has transformed through: print growth; print declines; divestitures; a digital pivot and emphasis on higher-priced content bundles, the latter which is still underway in showing steady growth. By 2026, he estimates the company will have $1.1 billion of cash with strong dividend increases and share repurchases, creating the possibility of further mergers & acquisitions or returning more cash to investors. — Pia Singh 5:49 a.m.: Jefferies thinks Carvana’s stock has ‘more attractive risk-reward’ after quarterly earnings Jefferies upgraded online used-car dealer Carvana to hold from underperform, noting the company’s efforts to achieve profitability. Analyst John Colantuoni raised his 12-month price target by $55 to $85. That number implies the stock could jump 8.8% from Monday’s close. “Recent expansion in Retail GPU suggests CVNA’s operational adjustments may have driven sustainable improvements to unit economics. Progress toward achieving positive cash flow also reduces downside risk and results in a more attractive risk-reward,” the analyst wrote in a Tuesday note. “That said, concern about potential pressure to unit economics once growth accelerates keeps us from becoming more positive.” restAlthough he sees Carvana becoming a “self-financed enterprise” that uses cash from its operations to fund growth and outstanding debt, he noted that Carvana hasn’t proved consistent unit growth to help support a bull thesis. Carvana shares are up more than 47% this year, soaring after the company topped fourth-quarter profit estimates. — Pia Singh 5:49 a.m.: Raymond James upgrades Coinbase The recent crypto exchange-traded fund boom should help Coinbase in the near term, according to Raymond James. The firm upgraded the crypto trading platform to market perform from underperform. “We clearly underappreciated the impact that ETP inflows would have on the valuations of cryptocurrency in general and Bitcoin in particular, which in turn has driven massive outperformance in Coinbase’s shares. Until ETP flows taper and/or reverse, we suspect the stock’s current momentum may persist,” analyst Patrick O’Shaughnessy wrote. ETP refers to exchange traded products, including ETFs. Bitcoin ETFs launched in January and some reached record trading volumes last month . The iShares Bitcoin Trust (IBIT) has popped 43% over the past month. COIN YTD mountain COIN year to date Coinbase shares received a boost from the ETF excitement, rising more than 40% year to date, as bitcoin climbs to record highs . “Until ETP flows taper and/or reverse, we suspect the stock’s current momentum may persist,” O’Shaughnessy said. — Fred Imbert
Read More:All the market-moving Wall Street chatter from Tuesday
2024-03-12 09:49:17
