Analyst Review – 01/24/24

Upgrades

$AMD – Advanced Micro Devices Inc.
Recent News
New Street, a London-based stock research firm, has upgraded AMD stock from neutral to buy, setting a price target of $215, indicating an expected 28% increase by the end of the year. This upgrade is based on AMD’s potential in the AI chip market, with the company being seen as having significant upside and the best valuation for investment. New Street’s recommendation is influenced by forecasts predicting global annual spending on datacenter AI chips could reach $400 billion by 2027. Although there’s some skepticism about this projection, its accuracy would imply rapid AI adoption worldwide, benefiting AMD and others in the AI chip sector due to increased demand, revenue growth, and profit margins.

Brokerage Firm: New Street
Rating Change: Neutral >> Buy
Price Target: $215

$NFLX – Netflix Inc.
Recent News
Analysts from several firms have expressed optimism about Netflix following its strong fourth-quarter results and future prospects. Key points include Netflix’s effective strategies in boosting subscribers, revenue, and earnings, highlighted by its recent deal with WWE. This partnership, starting in 2025, is expected to significantly enhance Netflix’s audience and ad revenue, especially with live content like WWE Raw. Analysts acknowledge the potential of Netflix’s ad-supported plan and its efforts in paid sharing, content improvement, and scaling its advertising business. The company’s position in the media landscape is seen as unique, with expectations of continued positive performance. Additionally, Netflix’s total addressable market is large, and its penetration into a vast revenue opportunity across various entertainment sectors remains modest. Despite some caution about increased content spending and competition for sports rights, the overall sentiment is bullish, reflected in Netflix’s shares reaching new 52-week highs.

Brokerage Firm: Macquarie
Rating Change: Neutral >> Outperform
Price Target: $410 >> $595

Downgrades

$DD – DuPont de Nemours Inc.
Recent News
DuPont de Nemours experienced a downgrade from Wells Fargo & Company, moving from an “overweight” to an “equal weight” rating, with a reduced target price of $69.00, down from $85.00. This adjustment reflects a potential 6.42% upside from its previous close. Other analysts have also revised their views on DuPont: TheStreet upgraded it from “c+” to “b-“, Bank of America downgraded it to “underperform” with a target price increase, Barclays and BMO Capital Markets lowered their price targets, and StockNews.com downgraded it to “sell”. The overall consensus is a “Hold” rating with a target price of $77.44. DuPont’s shares dropped to $64.84 amid active trading, showing a market cap of $27.88 billion and varying financial ratios. The company’s recent quarterly earnings surpassed estimates, though its revenue showed a year-over-year decrease. Institutional investors have been actively trading the company’s shares.

Brokerage Firm: Wells Fargo
Rating Change: Overweight >> Equal Weight
Price Target: $85 >> $69

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