(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Goldman getting more bullish Nvidia was the call of Friday morning so far. Morgan Stanley was also positive on Elli Lilly ahead of earnings while JPMorgan Chase upgraded Ferrari and Bank of America raised its price target for Kinder Morgan. Check out the latest calls and chatter below. All times ET. 7:12 a.m. Bank of America upgrades gas pipe stock on AI demand Energy infrastructure company Kinder Morgan is an artificial intelligence beneficiary, according to Bank of America. Analyst Neel Mitra upgraded shares to buy from neutral. He also raised his price target to $27 from $23, implying nearly 14% upside potential from Thursday’s close. The rise of AI-driven power demand and electrification supports the longer-term growth story for Kinder Morgan, the analyst said. “With uncertainty about energy, we see value in contracted natural gas pipe companies. And given demand pull from Gulf Coast LNG projects and AI/utility electrification, KMI stands to benefit from contracted long-term growth,” Mitra said in a client note on Friday. The natural gas company’s free cash flow should also rise by around $200 million to $300 million more in the following years in part thanks to lower interest rates, Mitra added. The stocks rose 1.4% Friday during premarket trading and is up around 35% in 2024. 6:40 a.m. JPMorgan becomes bullish on Ferrari Luxury carmaker Ferrari is showing resilience to the Chinese economic slowdown, according to JPMorgan. Analyst Ryan Brinkman upgraded shares to overweight from neutral. He also raised his price target to $525 from $385. The new target price suggests shares will rise nearly 16% from Thursday’s close. Brinkman is confident Ferrari will “prove impervious” to the weakening Chinese economy that is weighing upon other European luxury brands and automakers. Ferrari’s scarcity-driven growth strategy has contributed to price growth of as much as 30% for new vehicles compared to prior vehicles, per Brinkman. This gives visibility surrounding Ferrari’s future earnings growth which many other luxury names lack. The carmaker has “idiosyncratic drivers of high visibility earnings growth likely to be increasingly valued by investors amidst growing macro, industry, and geopolitical uncertainty,” Brinkman wrote in a research note on Friday. Shares gained more than 1% Friday before the bell. The stock has gained around 34% in 2024. — Hakyung Kim 6:25 a.m. Morgan Stanley raises Eli Lilly estimates Morgan Stanley notched its price target for Eli Lilly shares higher on increased weight-loss drug estimates. The investment bank’s target price on Eli Lilly is now at $1,158 from $1,106, implying shares could gain more than 27% from Thursday’s close. It reiterated its overweight rating on the stock. Analyst Terence Flynn said the firm raised its forecasts for Mounjaro and Zepbound — two of Eli Lilly’s blockbuster GLP-1 treatments — for the second half of 2024.”Moreso than the quarter we are focused on commentary that informs 2025 Mounjaro/Zepbound dynamics, given we are ~30% ahead on 2025 sales (MS $39bn vs. Cons $29bn),” Flynn said in a Friday note. Eli Lilly shares have surged 56.2% year to date. — Hakyung Kim 6:10 a.m. Redburn Atlantic initiates buy on Mercado Libre Latin American e-commerce company Mercado Libre should be added to investors’ carts, according to Redburn Atlantic. The firm initiated coverage on the online retailer with a buy rating and $2,800 price target, which represents 37.2% upside from where shares closed on Thursday. Mercado Libre already is one of the forefront online retailers in Latin America. While the opportunity in the U.S. e-commerce market is slowing, analyst Gonzalo Lopez notes the sector is “still at the point of acceleration” in Latin America — which should stand to benefit from lower interest rates worldwide.” MELI’s strong brand, extensive inventory, loyal customer base and growing fulfillment capabilities suggest years of very strong growth,” Lopez wrote in a research note on Friday. “This trajectory should amplify scale advantages, boost margins and drive earnings while unlocking opportunities in adjacent verticals, such as first-party products and advertising,” he added. Mercado Libre’s lending segment, Mercado Credito, is also capturing value in the fintech space in the region, according to Lopez. — Hakyung Kim 6:00: am Goldman Sachs raises Nvidia price target Goldman Sachs believes strong demand for artificial intelligence compute should help drive Nvidia shares higher. Analyst Toshiya Hari increased his price target on Nvidia shares to $150 from $135, implying 11.3% upside potential from Thursday’s close. He also reiterated his buy rating on the chipmaker. Many investors had previously perceived AI Inference — when an AI model is shown new data and draws conclusions — as a less intense segment, according to Hari. However, he said the intensity of Inference is rising and “could grow exponentially in the future,” driving his estimates for Nvidia higher.” Importantly, supported by its full-stack approach, we believe Nvidia is well-positioned to capture this growth opportunity in Inference (which is already nearing ~50% of the company’s Data Center revenue),” Hari wrote in a Friday note.Forward visibility in the data center segment also remains strong, Hari added. Year to date, Nvidia shares are up 172.2%. Shares were last trading 0.4% lower. —Hakyung Kim
