Rating Quick Look | Overall upgrade of US stocks to "overweight"! AMD, NVIDIA are optimistic, Tesla's target price is lowered

BlackRock: Upgrades US Stock Rating from "Neutral" to "Overweight"

BlackRock stated that with the excitement of investors towards artificial intelligence, the stock market rebound driven by technology stocks should "expand as inflation further declines, the Federal Reserve begins to cut interest rates, and the market maintains an optimistic macro outlook."

Credit Suisse: Lowers Tesla's Target Price from $225 to $185, Maintains "Hold" Rating

Tesla's fourth-quarter performance announced last week was disappointing, not only due to a significant decline in growth but also because of the lack of emphasis on the vision or plan for the growth stagnation period. Based on the slowdown in growth and the decrease in free cash flow, Credit Suisse lowered its EBIT estimates for Tesla's fiscal years 2024 to 2025 by 12% and 23%, respectively. The bank maintains a wait-and-see view on the company in the short term, considering the recent profit prospects, returns, and corporate management.

Credit Suisse also lowered its sales forecast for Tesla's fiscal years 2024 to 2025 to 2.03 million and 2.37 million vehicles, with growth rates of approximately 12% and 17% respectively. The gross margin is expected to remain stable at around 16%, taking into account capital expenditures of over $10 billion. The bank predicts earnings per share of $2.6 and $3.2 for the next two years.

UBS: Gives Apple a Target Price of $190, Maintains "Neutral" Rating

The bank pointed out that Apple's demand trend for the first fiscal quarter ending in December last year was weak, and the potential accumulation of iPhone inventory may become headwinds for the second fiscal quarter ending in March this year.

According to industry analysis firm Counterpoint, Apple sold 73 million iPhones in the first fiscal quarter, lower than the bank's estimate of 75 million, mainly due to moderate demand in the United States and China. iPhone sales in China fell by 18% year-on-year in December last year. According to Apple's Chinese website, iPhone 15 prices were lowered in January, indicating an inventory clearance.

Morgan Stanley: Maintains "Overweight" Rating for AMD, Raises Target Price from $128 to $193

The bank still sees long-term development opportunities for AMD but believes that the development of the artificial intelligence ecosystem will take time.

The bank stated that after a challenging year for AMD's core business last year, it remains optimistic about its prospects because it believes that all businesses will recover this year, in addition to strong growth in artificial intelligence.

However, since the last earnings release, AMD's stock price has risen by over 75%, and the market's informal expectations for MI300 chip sales seem to equate the supply chain with revenue, thereby weakening the enthusiasm for the stock to some extent.

Morgan Stanley expects AMD's artificial intelligence sales in the fiscal year 2024 to far exceed the $2 billion guidance target. However, while AMD is still developing its ecosystem, it will not assume that the first year's sales will be high or define the first year's opportunity too early. In the field of artificial intelligence, the bank prefers Nvidia.

Bank of America: Maintains "Buy" Rating for BYD, Target Price of HKD 300

The bank is optimistic that BYD's new DMi technology will help revive the growth momentum of plug-in hybrid electric vehicle (PHEV) sales and benefit its overseas business profitability. Huaxing Capital: Lowered the target price of Dongfang Zhenxuan from HKD 29 to HKD 23, maintaining a "hold" rating.

The bank expects Dongfang Zhenxuan's revenue for the second half of this fiscal year, ending in May, to increase by 41% YoY, benefiting from the strong performance of its new account "Together with Hui" and the stability of its flagship account.

At the same time, the bank predicts a 13% YoY decline in adjusted net profit for the second half of the fiscal year, due to investments in and development of proprietary brand products, as well as higher employee expenses.

Huaxing Capital has raised its revenue forecasts for Dongfang Zhenxuan for the current and next fiscal years by 15% and 26% respectively, driven by strong GMV performance. However, the adjusted profit margin forecasts have been lowered by 10 and 8.5 percentage points respectively, based on changes in revenue mix and higher promotional expenses.