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(That is CNBC Professional’s dwell protection of Tuesday’s analyst calls and Wall Road chatter. Refresh each 20-Half-hour to see the most recent.) A streaming big and a semiconductor maker had been among the many shares analysts had been speaking about on Tuesday. TD Cowen raised its worth goal on Netflix, predicting a 13% upside for the inventory. In the meantime, KeyBanc raised its Nvidia goal to $180, implying a 40% upside. Watch the most recent calls and discussions beneath. All occasions ET. 6:02 a.m.: Financial institution of America raises Devon Vitality’s credit standing to chubby after newest acquisition Financial institution of America sees Devon Vitality’s newest acquisition as a constructive signal for its credit score story. The financial institution raised the power firm’s credit standing to chubby from market weight following Monday’s announcement that Devon Vitality deliberate to amass Grayson Mill Vitality’s Williston Basin operations in a $5 billion deal. “In precept, we view the deal positively because it will increase DVN’s scale/margin profile within the Williston Basin whereas offering diversification outdoors of the Permian Basin (the place DVN’s manufacturing is concentrated),” analyst Daniel Lungo wrote. To finance the deal, the analyst expects the corporate to challenge between $1 billion and $1.5 billion in long-term debt and roughly $1.5 billion in time period loans. He cited this improved liquidity as a catalyst for the inventory, together with a deleveraging outlook and improved fundamentals. “We imagine probably the most important affect of the transaction would be the potential new issuance of benchmark bonds that will improve liquidity in DVN’s excellent notes, inflicting the notes to commerce extra tightly (in our view), given the present comparatively off-the-run illiquid nature of the corporate,” the analyst stated. “We additionally imagine this announcement removes among the threat that DVN may interact in a larger-scale/extra leveraged transaction, which we view positively for its credit score story.” Shares of Devon Vitality closed down 1% on Monday’s session and have gained 2% this 12 months general. — Lisa Kailai Han 5:50 a.m.: Piper Sandler upgrades Financial institution of America to impartial Financial institution of America may get a lift primarily based on its upcoming earnings outcomes, in line with Piper Sandler. Analyst R. Scott Siefers upgraded the financial institution to impartial from underweight. The analyst additionally raised his worth goal to $42 from $37, suggesting potential upside of three% from the inventory’s Monday afternoon shut. “We proceed to see higher alternatives in friends C and JPM, each of which carry OW rankings. However with BAC’s NII prone to break by this Q after which start a extra highly effective upward bend, we not see a compelling motive to name the identify out for underperformance,” Siefers wrote. Shares of Financial institution of America have gained 21% this 12 months. JPMorgan Chase added the identical quantity, whereas Citigroup shares are up 26% to this point this 12 months. With web curiosity earnings hovering round $13.9 billion within the second quarter of this 12 months, Siefers predicts that metric may rise to $14.5 billion to $14.6 billion by year-end. “BAC is definitely one of many leaders within the house right here,” the analyst added. “Given the mixture of the economies of scale and the NII now in play, we simply assume it is applicable to assign the inventory a better a number of than we might have assumed.” Financial institution of America is scheduled to report earnings on July 16. — Lisa Kailai Han 5:44 a.m.: TD Cowen raises Netflix worth goal forward of second-quarter earnings TD Cowen is anticipating higher earnings for Netflix. Analyst John Blackledge raised his worth goal on the inventory to $775 from $725, whereas sustaining a purchase ranking on the inventory. The brand new goal factors to a 13% improve from Monday’s shut. The achieve comes forward of Netflix’s second-quarter earnings report scheduled for subsequent week. “We imagine Netflix’s broad catalog throughout a number of genres creates a sustainable benefit over time,” the analyst stated, noting that TD Cowen’s second-quarter client analysis confirmed Netflix nonetheless held the highest spot for front room viewing. Along with the corporate’s second-quarter earnings and third-quarter outlook, Blackledge additionally cited paid sharing initiatives and Netflix’s ad-supported tier as near-term catalysts. “Any additional worth will increase in any of the corporate’s key markets may additionally act as a catalyst,” he added. Netflix has risen 41% this 12 months. NFLX YTD mountain NFLX 12 months to this point — Lisa Kailai Han 5:44 a.m.: KeyBanc raises Nvidia worth goal The great occasions aren’t over but for Nvidia, in line with KeyBanc. Analyst John Vinh raised his worth goal on the semiconductor inventory to $180 from $130. The brand new forecast implies a 40% upside from Monday’s shut. “Positives for NVDA embrace: 1) regardless of Blackwell’s upcoming launch in 2H24, we see no indicators of a lull in demand as H100 demand stays sturdy as we proceed to see rush orders; and a couple of) curiosity and demand in GB200 is stronger than we initially anticipated,” he stated in a observe to shoppers. Nvidia has been a stalwart of the market this 12 months, with shares surging 158.9% as enthusiasm for synthetic intelligence exhibits no indicators of abating. NVDA YTD mountain NVDA 12 months to this point KeyBanc isn’t the one agency rising extra bullish on Nvidia. Wolfe Analysis and UBS each not too long ago raised their targets on Nvidia to $150 apiece. — Fred Imbert
