(This is CNBC Pro’s live coverage of Monday’s analyst conference call and Wall Street chatter. Refresh every 20-30 minutes to see the latest posts.) Two tech stocks were among the stocks analysts were talking about on Monday. Citi named Micron Technology a top pick ahead of the company’s earnings report this week. Meanwhile, Goldman Sachs initiated coverage on IBM with a buy rating. Check out the latest conference call and chatter below. All times are ET. 6:18 a.m.: Morgan Stanley names UnitedHealth a top pick UnitedHealth is Morgan Stanley’s latest top stock pick. Analyst Errin Wright maintained his Overweight rating on the health insurance stock and reiterated his $595 price target. That means UnitedHealth shares could rise 23% from Friday’s closing price. UnitedHealth is down 8% in 2024, opening up an attractive entry point for investors, Wright said. “Its relative share price performance presents an opportunity in our view,” she wrote.Analysts highlighted UnitedHealth’s position as a leading Medicare Advantage company, its strong balance sheet and stable cash flow generation as catalysts. Meanwhile, UnitedHealth’s business model is strengthened by its vertical integration efforts. “With a large lead in breadth of service offerings and significant exposure to government business, UnitedHealth is well positioned for any potential changes in the U.S. healthcare system,” Wright added. In the same note, Morgan Stanley initiated Humana shares with an equal-weight rating. Wright set a price target of $374, 23% above the insurer’s Friday closing price of $355.48. Humana shares have fallen 22% year-to-date. — Lisa Kailai Hung 5:59 a.m.: Bernstein maintains outperform rating on Ferrari after recent events According to Bernstein, Ferrari’s outlook is bright from here. The financial firm maintained its outperform rating on Ferrari shares after the luxury sports maker held a sell-side and media event last week.Bernstein also reiterated its price target for Ferrari at $512, which means Ferrari shares could rise by 23%. Ferrari shares have risen about 23% year-to-date. Analyst Steven Reitman noted that the company’s “absolute commitment to its highly successful business principles” demonstrated at the event will be a catalyst going forward. “What we saw was not an intention to significantly increase production in the short term, but the sheer scale and determination of Ferrari to future-proof the fundamentals of its business,” he wrote. Reitman also noted the “deep thought process” behind Ferrari’s first fully electric vehicle, which is scheduled for release in the fourth quarter of 2025. The automaker also revealed details of its new e-building, designed to produce internal combustion, hybrid and battery electric vehicles using “cutting-edge technology,” he wrote. — Lisa Kaylai Hung 5:57am: UBS Predicts 30% Upside for Anheuser-Busch InBev Stock According to UBS, it’s all uphill from here for Anheuser-Busch InBev. The bank upgraded the brewer’s shares to Buy from Neutral. UBS also raised its 12-month target price on the stock to €72 from €63.50, which implies a 30% upside for the stock. Analyst Sanjeet Aujla cited inflection points in growth, margins and cash returns as catalysts. “Over the next 12 months, ABI is on the brink of achieving an ideal consumer staples growth profile that it has never consistently achieved since pre-2008: consistent volume growth (1.5-2%), pricing in line with inflation, margin expansion, strong cash conversion and ND/EBITDA below 3x,” he wrote. Aujla, in particular, believes margin upside will come from the company’s cost-cutting measures. Higher trading volumes will also help the company’s earnings and cash upside. U.S.-listed shares rose more than 2% in the premarket following the upgrade. They are down 8.6% year to date. BUD 1D MOUNTAIN BUD SHOWS — Lisa Kailai Han 5:48 a.m.: Micron is Citi’s top pick Citi called Micron Technology its top pick ahead of the chipmaker’s earnings report on Wednesday. Analyst Christopher Dannelly raised his price target to $175 from $150, indicating a 25% upside. Micron has already risen nearly 64% this year. Going forward, Dannelly expects the stock to “perform above its historical average but below AI-related stocks,” he wrote. “We believe Micron should continue to trade above its historical range given its exposure to AI.” As a catalyst, the analyst cited Micron’s fiscal third-quarter earnings results, due after the market closes on June 26. Dainley believes rising prices for dynamic random access memory could help the company beat expectations on both earnings and revenue. Specifically, analysts expect earnings of 36 cents a share on revenue of $6.8 billion, above the current consensus estimate of 30 cents on revenue of $6.64 billion. Dainley also projected the company’s fiscal fourth-quarter revenue of $8 billion, above the current consensus estimate of $7.58 billion. — Lisa Kailai Hung 5:48 a.m.: Goldman Sachs Recommends IBM as a Buy Goldman Sachs says IBM, a component of the Dow Jones Industrial Average, is poised for strong gains in the coming days. Analyst James Schneider has a buy recommendation on the veteran tech company. Shares were up 1% in the premarket. “IBM is a diversified provider of software, IT services and enterprise hardware for business customers worldwide. We believe IBM is in the midst of transforming its portfolio from a legacy-centric one to a suite of modern application and infrastructure software and a broader range of services,” Schneider wrote. “We believe the company is on track to sustain long-term revenue growth of 5%-7% and FCF growth of about 10%, driven by growth in AI products and services, growing consulting market share and growing its core software portfolio,” he added. The stock is up more than 5% this year, outperforming the Dow; but it’s still behind the S&P 500’s 14.6% surge in 2024. IBM’s Mountain So Far — Fred Imbert
All the market-moving chatter on Wall Street on Monday
Services
© 2024 Business Investopedia. All Rights Reserved.