Rating Quick Look: Tesla, Nio Target Prices Downgraded! Alibaba, "AI Magic Stocks" AMD, Nvidia Receive Positive Outlook

CICC: Maintains Alibaba's "Outperform Industry" rating with a target price of HKD 109

The report indicates that the company has stated that the current asset and cash flow situation can ensure sufficient funds for repurchase, with enough overseas funds and remittance quotas to complete the repurchase. Currently, the company commits to a net share reduction ratio of over 3% annually, and with a cash dividend ratio of over 1%, the shareholder return rate is expected to exceed 4%.

The bank believes that if Alibaba can maintain stable long-term market share and net profit margins, a shareholder return of over 4% is already quite attractive. Regarding the dual primary listing, the company has mentioned that due to organizational restructuring and employee incentive plans in 2023, there have been some delays, but there are currently no major obstacles, and the dual primary listing plan will continue to be pushed forward in 2024.

CICC International: Maintains Nio-SW's "Neutral" rating with a lowered target price of HKD 40.3

The bank predicts a year-on-year sales growth of 19.1%/32.5% in 2024/2025 to 190,000/252,000 vehicles. The first model of the "Alps" series is expected to be launched in 2025. However, due to the independent sales network of the sub-brand and the development costs of new models, the bank expects losses to remain high. The bank believes that industry price wars will have a short-term negative impact on sector valuations, hence the target price adjustment to HKD 40.3.

Morgan Stanley: Lowers Tesla's target price to USD 320, reiterates "Overweight" rating

Morgan Stanley stated that the trend of electric vehicle price cuts continues, but demand is still declining. They believe that electric vehicles will face challenges this year, with Tesla's automotive business possibly recording pre-tax losses.

Despite Tesla being one of the most technologically advanced car companies in the world, its product portfolio is no longer novel, with almost all models launched before the pandemic. Faced with declining demand for electric vehicles in major markets, high penetration rates in certain regions of the United States, and oversupply issues in the Chinese market, they believe that price wars will continue this year.

Therefore, Morgan Stanley expects Tesla's profitability in the first half of this year to be lower than expected, with an operating profit margin estimated to be between 2% and 3%. To counter the decline in profit margins, they predict that the company will temporarily halt price reductions, lowering the full-year earnings forecast to USD 0.99 per share and the non-GAAP earnings forecast to USD 1.51 per share.

CICC: Initiates Nvidia with an "Outperform Industry" rating and a target price of USD 870

CICC believes that Nvidia, as a pioneer in the field of accelerated computing, has advantages in artificial intelligence technology and ecosystem, and is likely to benefit from the acceleration of Artificial Intelligence Graphics Computing (AIGC) infrastructure construction. The bank forecasts Nvidia's non-GAAP earnings per share to be USD 27.4 for the fiscal year 2025 and USD 32 for the fiscal year 2026, with a compound annual growth rate of 57%.

Goldman Sachs: Initiates AMD with a target price of USD 941 and a "Neutral" rating

Through long-term partnerships with major artificial intelligence component suppliers such as Nvidia, AMD, and Intel, the company provides efficient servers and storage systems, transforming itself into a leading artificial intelligence infrastructure company. Clients, including cloud service providers using Graphics Processing Units (GPUs) specifically, are heavily investing in artificial intelligence infrastructure. Morgan Stanley: Sea's revenue and profit performance over the past two years have also been compared to NVIDIA, making it a winner in artificial intelligence. However, the stock's forecasted price-to-earnings ratio for the next year is now on par with NVIDIA, both at 32 times, and the compound annual growth rate of revenue is expected to decrease from 61% from fiscal year 2021 to 2024 to 51% in fiscal year 2025 and 9% thereafter. The bank also notes that the company's enterprise artificial intelligence infrastructure services will face more competition in the future, especially from Dell and Cisco.

Morgan Stanley: Sea's target price has been raised from $43 to $70, and the rating has been upgraded from "Neutral" to "Buy".