(This is CNBC Pro’s live coverage of Thursday’s analyst conference call and Wall Street chatter. Refresh every 20-30 minutes to see the latest posts.) Among the stocks analysts were talking about on Thursday were the streaming giant and a large wholesale retailer. Jefferies raised its rating on Spotify Technology, predicting an upside of more than 26%. Meanwhile, Bank of America raised its price target on Costco, which announced a membership fee increase. Check out the latest conference call and chatter below. All times ET. 6:36 a.m.: Wells Fargo Raises AMD Price Target AMD’s latest acquisition in the artificial intelligence space is positive for the company’s shares, according to Wells Fargo. Analyst Aaron Lakers reiterated his overweight rating and raised his price target by $15 to $205, citing AMD’s announcement that it will acquire Silo AI, Europe’s largest private AI lab, for $665 million in an all-cash deal.Lakers’ new price target suggests the company’s shares, which have risen 24.8% this year, could rise another 11.4%. “We view this as a positive tactical/strategic move focused on deepening AMD’s in-house open source AI software expertise, i.e. stack-up capabilities,” Lakers wrote in a Wednesday note about the acquisition. Silo AI is involved in more than 200 AI implementations in Europe and North America and currently employs more than 300 AI experts, according to the analyst. AMD said Silo AI will help develop AMD-powered AI models and help customers build AI models using its chips. Lakers noted that the deal with Silo AI complements AMD’s acquisition of AI software company Mipsology in August, its acquisition of Nod.ai in October, and the more than $125 million the company has invested in 12 AI companies over the past 12 months. — Pia Singh 6:16 a.m.: Bank of America says Apple shares could rise nearly 10% as users consider upgrading their iPhones. Bank of America is bullish on Apple, citing a strong iPhone refresh cycle ahead. Analyst Wamsi Mohan maintained his buy rating and raised his 12-month target price on the iPhone maker by $26 to $256, implying an upside of about 9.9%. The company’s shares have risen 21% this year, slightly outpacing the overall market rally. “Our reason for raising our PO on Apple is growing confidence in a multi-year iPhone upgrade cycle driven by an aging installed base and GenAI capabilities that should boost customer willingness to upgrade,” Mohan said in a Thursday note, adding that the upgrade cycle should also be driven by Apple’s strong services revenue growth and expanding margins.Mohan cited Bank of America’s global smartphone survey, conducted in the U.S., U.K., China and India after Apple’s Worldwide Developers Conference in mid-June, which he said reflects consumers’ growing willingness to upgrade their iPhone models. The majority of consumers still own iPhone 13 and earlier models. He noted that customer loyalty to Apple remains strong, with 58% of current iPhone owners planning to buy another iPhone in their next device upgrade. As for other Apple products, he said growth in wearables could rebound, with Apple Watch upgrade plans most prominent in India, followed by China and the U.S. The analyst added that U.S. consumers are also interested in purchasing Apple Vision Pro. — Pia Singh 5:55 a.m.: Bank of America Raises Costco Price Target After Retailer’s Fee Increase Bank of America likes the sound of Costco’s latest annual fee hike and believes it will support what the bank sees as a “premium valuation” stock.Analyst Robert Ohmes raised his price target on Costco by $88 to $962, suggesting the stock could rise 8.8%. The wholesale retailer’s shares have risen nearly 34% this year. The analyst’s new price target comes after Costco announced Wednesday it would raise annual membership fees in the U.S. and Canada by $5 to $65 per year and annual fees for its elite memberships by $10 to $130 per year. This would be the company’s first price increases since 2017. Ohmes assessed the membership fee increase and Costco’s continued strength in same-store sales as catalysts for Costco’s earnings outlook for fiscal 2025 and 2026. He estimated that the membership fee increase will boost membership revenue by $370 million to $380 million over the next two years, but noted that Costco does not expect an impact on earnings per share from the membership fee increase. “We expect COST to gain share in the current environment as consumers continue to adjust to higher prices, making COST’s superior value proposition and price positioning even more attractive,” Ormes said in a Wednesday note. — Pia Singh 5:55 a.m.: Jefferies upgrades Spotify The future looks bright for Spotify Technology, according to Jefferies. The investment bank upgraded the audio streaming giant to buy from hold. Its $385 price target implies a 26.2% upside from Wednesday’s closing price. “We are increasingly confident in SPOT’s ability to comfortably achieve sustainable revenue growth of over 15% over the next three years,” analyst James Heaney wrote. “What supports our confidence is our view that music is about to undergo a multi-year price revision. With a Spotify subscription costing just $12/month (compared to the $61/month total spent on video streaming), we believe there is room for price increases at least once every two years.” Spotify shares are up 62% through 2024, adding to a 138% gain last year. SPOT YTD Mountain SPOT YTD — Fred Imbert
All the market-moving chatter on Wall Street Thursday
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