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(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) There were several notable calls Friday morning on J & J, Spotify and Alibaba. Check out the latest calls below: 6:59 a.m. ET: JPMorgan downgrades BioNTech, cites limited catalysts for the vaccine maker Investors should sell BioNTech , even after its decline this year, as it continues to face challenges, according to JPMorgan. Analyst Jessica Fye downgraded shares to underweight from neutral. Fye said investors should wait for a “more catalyst-rich period” as the company deals with weakening Covid vaccine demand, as well as limited near-term advances in its oncology pipeline. “While we acknowledge the healthy cash balance and see limited absolute downside from here, we believe downward revisions to long-term estimates and protracted time lines to meaningful pipeline readouts could hinder the stock’s ability to recover,” Fye wrote on Friday. The U.S. listed shares of BioNTech are down by 33% in 2023. The analyst lowered her price target to $99 from $106 per share. The new price target implies just a 5% gain from Thursday’s close. In Friday premarket trading, the stock slid 3.4%. —Sarah Min 6:34 a.m. ET: This little-known search company is a buy on the generative AI opportunity, Wells Fargo says Search engine company Elastic NV is a buy on the generative AI opportunity, according to Wells Fargo. Analyst Andrew Nowinski upgraded shares to overweight from equal weight, and hiked his price target, saying he expects Elastic will start gaining meaningful revenue from generative AI on its search platform. He also sees further upside from the company’s expansion into log analysis markets. “We believe Elastic is well-positioned to capture GenAI workloads, leveraging key features like ESRE and vector search. Elastic is also capitalizing on recent M & A activity to gain share in the log analytics/SIEM markets, leveraging the new ESQL, which makes it easier to convert from a legacy vendor,” Nowinski wrote on Thursday. “Finally, we see further upside to the current valuation (~5x EV/Sales) if either of these new catalysts take off,” he said. The upgrade follows Elastic’s latest earnings report, which exceeded expectations. On Thursday, the company posted fiscal second-quarter earnings of 27 cents per share on revenue of $311 million. Analysts polled by FactSet anticipated earnings of 24 cents per share on revenue of $304.4 million. The analyst’s $115 price target, hiked from $70 previously, implies 43% upside from where the stock closed Thursday, at $80.36. The stock jumped 18% in the Friday premarket. —Sarah Min 6:25 a.m. ET: Morgan Stanley downgrades Alibaba Morgan Stanley cut Alibaba to equal-weight from overweight and lowered the firm’s price target to $90 from $110. The firm cited a slower turnaround for its cloud business. “Our previous OW thesis on Alibaba was premised on the assumptions of a fundamental turnaround in core businesses, reorganization to unlock shareholder value, and sizeable capital management potential. However, we have turned more cautious on each of the above given recent developments,” stated the note. The new target still represents 20% upside from Thursday’s close. Morgan Stanley said PDD Holdings was its top China e-commerce pick, saying its Temu business was “not fully valued by the market.” —John Melloy 5:53 a.m. ET: Citi downgrades Spotify, says risk-reward is no longer compelling It’s time to move to the sidelines on shares of Spotify , according to Citi. Analyst Jason Bazinet downgraded the streaming stock to neutral from buy, but left his price target unchanged, saying expectations may be too high after a double in the stock this year. “While we like Spotify’s strategy and execution, we no longer believe the risk-reward is compelling,” Bazinet wrote on Thursday. “And, when we look at consensus estimates, we see a few reasons to be a tad more cautious.” SPOT YTD mountain Spotify, year-to-date Of note, the analyst worries consensus expectations for Spotify’s ability to raise the average revenue per use (ARPU), while simultaneously reducing the number of users who stop using the platform, are too confident. “While our forecast (and the Street’s) expects Premium subs to continue growing, any surprises may cause a material re-rating of the equity as investors shift from EV-persub metrics to more traditional levered FCF multiples,” Bazinet wrote. Spotify shares are up by 134% this year. The analyst’s $190 price target implies shares can rise just 2.6% from where they closed Thursday. The stock is down 1.5% in Friday premarket trading. —Sarah Min 5:40 a.m. ET: UBS upgrades Johnson & Johnson to buy, cites improved outlook Johnson & Johnson is a buy given the improved outlook in its pharmaceutical business, UBS said. Analyst Danielle Antalffy upgraded shares to buy from neutral ahead of the firm’s upcoming analyst day, citing an “increasingly bullish” view on the company’s ability to deliver upside on total sales. Specifically, the analyst said the potential in Darzalex, the prescription drug to treat multiple myeloma, is underappreciated. “Our Buy rating reflects our increased confidence into JNJ’s ability to deliver above-consensus Pharma sales growth and at least in-line MedTech growth for the next few year,” Antalffy wrote on Friday. “Importantly, our conviction in the Pharma outlook is driven more by existing, already commercially available drugs in DARZALEX, STELARA (generic erosion overdone given precedent and launches on the horizon), and TREMFYA, which we believe to be underappreciated,” Antalffy added. The stock is down by more than 12% in 2023. However, the analyst’s $180 price target, raised from $167, suggests 16% upside from Thursday’s close. The stock was higher by nearly 1% in Friday premarket trading. —Sarah Min 5:30 a.m. ET: Bank of America hikes Costco price target Bank of America hiked its price target on Costco to $655 from $610 after the warehouse retailer reported a 4.4% increase in November sales, excluding gasoline and FX impact. “We reiterate our Buy rating and expect COST (and other warehouse clubs) to gain share in the current environment as consumers continue to adjust to higher prices, making COST’s value proposition more attractive,” wrote analyst Robert Ohmes. COST YTD mountain Costco YTD The new target represents a 10% increase from Thursday’s close. —John Melloy
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