Wednesday’s analyst calls: More Nvidia gains ahead, Tesla ‘self-inflicted’ wounds

(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Nvidia and a major electric vehicle maker were in focus as part of Wednesday’s analyst chatter. Morgan Stanley raised its price target on Nvidia, calling for more than 15% upside going forward. Jefferies, meanwhile, cut it 12-month forecast on Tesla. Check out the latest calls and chatter below. All times ET. 6:44 a.m.: Jefferies names Zillow a top pick Jefferies sees a “one in a Zillow opportunity” when it comes to Zillow . The investment firm named Zillow as its new top pick, a designation that was previously rewarded to DoorDash. While shares of the real estate marketplace have already slid 17% this year, Jefferies’ price target of $75 means there could be more than 56% upside potential for the stock. Zillow stock has tumbled recently since the National Association of Realtors announced a settlement to potentially lower real estate commission rates on March 15. But Jefferies believes that investors have overestimated the potential drawbacks of the settlement. “As long as buyer agents can see the commission split for a given listing before presenting a buyer, we believe sellers will remain incentivized to offer compensation,” wrote analyst John Colantuoni. “The pullback in Z’s stock following NAR’s proposed settlement creates a more attractive entry point given we expect no impact on fundamentals.” Additionally, Colantuoni also believes that Zillow’s plans to expand its products and services could lead to revenue upside. Low variable costs should help drive these margins up even higher, increasing Zillow’s overall profit-taking. — Lisa Kailai Han 6:26 a.m.: KeyBanc upgrades GoodRx to overweight, sees room for subscription growth KeyBanc Capital Markets sees an increasing subscriber base propelling GoodRx’s stock in the future. The firm upgraded shares of the telemedicine company to overweight from sector weight. The bank also lifted its price target to $9, implying shares could rally 34% from Tuesday’s close. “We are upgrading shares of GDRX to Overweight as we get more constructive for this re-accelerating high-growth, high-margin company trading at a discount to peers and historical average given positive recent data trends,” wrote analyst Scott Schoenhaus. Besides increased estimates, Schoenhaus also listed increased app downloads and monthly active customers as additional catalysts. Downloads of the GoodRx app accelerated in February and have proved to hold up in March as well, despite a more challenging backdrop. Additionally, the analyst noted a 2% increase in GoodRx’s gold subscription customers from February to March. With the new Publix membership rollout unveiling GoodRx’s gold membership across 1,200 locations, even more unique customers could be subscribed to the program going forward. “Our favorite names into 1Q earnings are CERT, GDRX, PHR, and SDGR, where we see the biggest opportunities for beat-and-raises this quarter and throughout the year, and we support our thesis with data in the following pages.” GoodRX shares have struggled this year, rising less than 1%. GDRX YTD mountain GDRX in 2024 — Lisa Kailai Han 6 a.m.: Barclays views Chevron stock as attractive both with or without Hess deal Barclays sees a bright future ahead for Chevron . The bank initiated coverage of the oil and gas giant at overweight, setting a price target of $203. This implies that Chevron could soar another 25%. Year to date, the stock is up 9%. Analyst Betty Jiang thinks Chevron looks attractive, both with or without its potential acquisition of fellow energy company Hess . “After a period of challenging mega-project developments over the last decade, CVX is finally shifting into a development that’s lower capital intensity, lower execution risk, and more flexible short-cycle production,” she wrote. Meanwhile, Chevron has also managed to finetune a balanced portfolio, consisting of both long- and short-cycle assets, which helps mitigate potential base production decline, Jiang said. Additionally, she sees Chevron’s potential cash return of over 10% post-Hess deal as another catalyst. “We believe CVX offers outsized cash return (second highest in our coverage universe), free cash flow inflection from start-up of the TCO expansion, and a high return legacy position in the Permian,” she added. As an added bonus, Chevron is also actively contributing to the renewable energy transition. Jiang also viewed possible upcoming asset sales as another catalyst for the energy firm. — Lisa Kailai Han 5:53 a.m.: Jefferies lowers Tesla price target, cites ‘self-inflicted’ wounds Tesla’s troubles may not be over yet, according to Jefferies. The investment firm kept its hold rating on the electric vehicle maker and lowered its price target to $165 from $185. The new forecast implies shares could slide nearly 7% from Tuesday’s close. Tesla has already had a tough year, weighed down by waning sales in China and slowing demand for electric vehicles. The stock has lost nearly 29% in 2024, making it one of the worst performers in the S & P 500. Jefferies analyst Philippe Houchois also said Tesla is plagued by shifting product priorities. He cited reports of production of the company’s low-cost Model 2 being canceled . “Most issues affecting core auto performance appear self-inflicted and should keep returns well below potential for the coming 24 months,” he wrote. — Lisa Kailai Han 5:53 a.m.: Morgan Stanley raises Nvidia price target Nvidia has already rallied more than 72% in 2024. Morgan Stanley sees even more gains ahead. Analyst Joseph Moore raised his price target on the artificial intelligence darling to $1,000 per share from $795. The new forecast points to 17% upside from Tuesday’s close. “Preferring NVIDIA seems unimaginative, as it was the best performing stock last year … and it has risen to market caps that we would have thought of as unfathomable a few quarters ago,” Moore wrote. “That said, the peers have not been undiscovered either, with stocks with direct exposure to these markets, such as AMD and MRVL, having risen to new multiple highs.” NVDA YTD mountain NVDA year to date The analyst highlighted several factors in favor of Nvidia, including strong pricing and robust orders for its semiconductors. “We expect NVDA’s Data Center business to drive much of the growth over the next 5 years, as enthusiasm for generative AI has created a strong environment for AI/ML hardware solutions – NVDA’s being one of the most important,” Moore wrote. — Fred Imbert