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(This is CNBC Pro’s live coverage of Monday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) So far this morning there is a big auto stock upgrade and a big beverage downgrade, among other calls. Check out the latest calls below: 7:22 a.m. ET: Morgan Stanley rearranges bank ratings, shifts U.S. bank outlook Morgan Stanley is shifting its view on two key U.S. bank stocks heading into the new year. The firm upgraded shares of East West Bancorp in a Monday note, and raised its price target to $76 per share from $66, equating to about 16% upside. Morgan Stanley dimmed its view on Citizens Financial , downgrading the stock to equal weight from overweight but maintained its $31 per share price target, implying roughly 9% upside. East West Bancorp stock has ticked down 0.3% from the start of the year, while shares of Citizens have slipped nearly 28%. Analyst Manan Gosalia labeled East West Bancorp as a “high-quality bank at an enticing discount,” and noted its “capital strength and differentiated customer base creates the foundation for operational outperformance in light of a wide range of banking industry headwinds in 2024.” The analyst underpinned the downgrade on Citizens stock to pressure to the bank’s net interest margin in the short-term, which could decline further if interest rates remain elevated for longer. — Brian Evans 7:15 a.m. ET: Piper Sandler names Nvidia top pick, highlights attractive multiple and valuation Piper Sandler says Nvidia is the premier A.I. stock play. The firm made the chipmaker its top large cap pick on Monday, and reiterated an overweight rating alongside a $620 per share price target. Piper Sandler’s forecast implies nearly 33% upside from Friday’s $467.65. Nvidia stock has climbed 22% from the start of the year. Analyst Harsh Kumar highlighted Nvidia’s competitive edge over peers thanks to both strong software offerings and its artificial intelligence exposure that will grow the company’s “already large TAM [total addressable market].” “Given the dominance of NVDA in its core hardware competencies there is no better company to manage the infrastructure software layer,” Kumar said. The analyst noted that the emergence of a new China chipset could drive revenue beginning in the forthcoming April quarter from $2.5 billion to $3 billion per quarter. — Brian Evans 6:22 a.m. ET: Wells Fargo downgrades Lululemon Wells Fargo is moving to the sidelines on athleisure brand Lululemon after a strong year due to a more muted growth outlook. The firm downgraded the retailer to equal weight from overweight on Monday and removed the stock from its top picks list, but maintained its $445 per share price target. Wells’ forecast implies about 5% downside from from Friday’s $466.61 close. Lululemon stock is up about 46% from the start of the year. Analyst Ike Boruchow says previous positive catalysts, including a normalization of inventory and overseas growth, have already played out meaningfully. Instead, the analyst added, “laggard names with ‘easy’ productivity/margin stories and depressed valuations into 2024 are the stories to own.” “[We] are taking our chips off of the table following a solid run YTD,” Boruchow said. — Brian Evans 6:18 a.m. ET: Carvana upgraded by JPMorgan Carvan (CVNA) was upgraded to neutral from underweight by JPMorgan’s Rajat Gupta, citing progress made on cutting costs and improving productivity. “The known unknowns around the CVNA story are better appreciated by investors today in our view and it is possible CVNA can execute its way through this uncertain macro and used car industry phase in a way that limits downside to near- and medium-term estimates,” stated the Monday note. Still, JPMorgan believes most investors will “remain on the sidelines” until the used car market recovers and Carvana can improve its cash flow generated per unit. As business boomed during the pandemic, Carvana became a Wall Street darling with the stock soaring. Then the shares lost 97% of their value last year. The stock is up 9% in the last month, coinciding with a rebound in the overall market. The analyst raised his price target from $25 to $40, which represents 14% upside. —John Melloy 6:00 a.m. ET: Deutsche Bank downgrades Anheuser-Busch as stock is already ‘fairly valued’ Deutsche Bank says the valuation of Bud Light maker Anheuser-Busch InBev has little room to expand further. The firm downgraded the beer behemoth to hold from buy in a Monday note, and lowered its price target on European listed shares to €58 from €61, or about 0.4% downside from Friday’s €58.25 close. Shares have added roughly 4% from the start of the year. “We continue to see ABI’s broadly EM focused sales exposure as attractive combined with the company’s market leading market share positions,” analyst Mitch Collett said. “However, with the shares trading on a CY24 P/E of 17.3x (an 18% discount to European Staples but a 3% premium to European Beverages) and offering a FCF yield of 5.6% we see the shares as broadly fairly valued for now.” Bud’s U.S. shares were slightly lower in premarket trading. —Brian Evans 5:40 a.m. ET: GM upgraded by Mizuho Securities Mizuho Securities thinks General Motors stock has reached a bottom and is poised for growth as the company turns a corner after settling a pay dispute with the United Auto Workers union. The firm upgraded the legacy automaker to buy from neutral in a Sunday note, and raised its target price to $42 per share from $38. Mizuho’s forecast implies nearly 30% upside from Friday’s $32.36 close. GM YTD mountain GM YTD GM stock has slipped roughly 4% from the start of the year. “We have noted earlier that GM offers the broadest portfolio in North America, with a full range of SUVs, Pickups, Commercial Vehicles, Vans and EVs with a key focus on the higher growth SUV and Pickup Truck market in N.A.,” analyst Vijay Rakesh said. Rakesh also pointed to key catalysts for GM’s potential stock turnaround, including a “refreshed” electric vehicle strategy, a pause in the company’s Cruise segment investments as well as plans for a $10 billion in stock buybacks. Rakesh also noted the UAW cost dispute has largely abated and the planned wage increases will be offset by about $2 billion in cost reductions elsewhere. —Brian Evans
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