Rating Quick Look | NVIDIA's target price has been raised! Tencent, CLOUD MUSIC are optimistic

Mizuho: Raises NVIDIA's target price from $1180 to $1275, maintains "Buy" rating

The firm believes that the upcoming Blackwell GPU platform is expected to be successful, and the company is also planning a stock split.

Mizuho stated that with the Hopper platform and the upcoming Blackwell B100 to be launched from the third quarter of this year to the first quarter of next year, NVIDIA still has strong opportunities in artificial intelligence. In addition, the 1:10 stock split scheduled for June 7th may create more demand from retail investors, serving as another driver for the stock.

Baird: Lowers Boeing's target price from $300 to $240

The firm mentioned that Boeing's poor performance in the first half of 2024 reflects peak market negativity, exacerbated by a large number of retail investors (holding over 35% of Boeing's shares) selling off due to headline risks.

Baird adjusted its delivery volume and FCF assumptions for 2024. Last week, Boeing's CFO stated that he expects Boeing's full-year free cash flow to be negative, partly due to delivery delays, with the outlook for March indicating low single-digit positive cash flow.

Morgan Stanley: Gives Trip.com a target price of $64, with a "Buy" rating

The report indicates that Trip.com announced the issuance of up to $1.3 billion in convertible bonds, with a repurchase option attached. The bond's face interest rate is 0.5 to 1 basis point, with a conversion premium of 30% to 35%. The firm predicts that Trip.com's non-GAAP net profit will increase from nearly 17 billion yuan in 2024 to 34 billion yuan in 2029.

Based on the current non-GAAP P/E ratios of 15 times for 2024 and 12 times for 2025, and with over half of the revenue coming from overseas and international tourism in the long term, assuming the current P/E ratios are maintained, the stock price could double in 5 years.

The firm points out that assuming a 35% conversion premium and a conversion price of $68, the remaining conversion value is about $700 million, which can be settled by issuing 7 million American Depositary Shares at $100 per share, implying a dilution effect of about 1% based on the 676 million shares already issued in the second quarter.

Guotai Junan: Maintains a "Buy" rating on Tencent, with a target price of HK$459

The firm stated that the launch of the "Tencent Yuanbao" app marks the company's official entry into the consumer AI assistant field. The Yuanbao AI search and other functions have shown excellent performance with the upgraded Hunyuan model and enhanced quality content ecosystem.

The firm is optimistic about the empowering effect of AI capabilities on the company's various businesses and believes that the high-quality content ecosystem will enhance the experience of Tencent Yuanbao and other AI products. They think that the company's high-quality ecosystem and AI product capabilities will mutually reinforce each other, creating a positive cycle.

CICC: Raises CLOUD MUSIC's target price from HK$104 to HK$120

The firm noted that the quarterly net increase in membership scale has reached a two-year high, slightly better than the firm's previous expectations. They forecast a 21% year-on-year increase in membership in the first half of the year, with a month-on-month average revenue per paying user (ARPPU) up by 2% year-on-year. Product revisions may affect live streaming traffic and lead to a sequential decline in revenue. Considering changes in revenue structure and the absolute increase in copyright fees with the expansion of copyrights, which may partially offset the dilution of fixed costs due to the scale effect of music revenue, the firm conservatively estimates the company's gross margin at 33% for the second quarter and the second half of the year Based on the better-than-expected gross margin optimization, the bank raised its adjusted net profit for 2024 to 1.1 billion yuan, based on a 2024 P/E ratio of 20 times the average of comparable music and copyright companies. The competitive landscape in the music industry is stable, with a significant operational space for paywalls (15%+), and the bank expects the membership growth trend to remain unchanged. The growth in online music revenue drives the dilution of fixed costs, and the bank is optimistic about the improvement in profit margins driving continuous profit release