Rating Snapshot | Wall Street calls for NVIDIA to reach $1200! BYD rated as "Buy", Adobe faces price cuts.

Evercore ISI: Raises NVIDIA's Target Price from $900 to $1200

Analysts believe that NVIDIA's new growth opportunities may be revealed at the annual GTC conference starting next week!

The "clear vision" may include: NVIDIA selling out by 2024, clear product cycle support to become another growth year in 2025, and a vibrant ecosystem, "ready for huge monetization opportunities as we approach the inflection point of generative AI."

Citi: Maintains "Neutral" Rating on Adobe, Lowers Target Price from $632 to $623

The bank expects Adobe's performance in the first quarter of this year to be strong, mainly benefiting from the company's steady acquisition of new users, additional sales, and factors such as a price increase of around $70 million. Compared to Salesforce's stock price increase of about 15%, the bank points out that Adobe's stock price has lagged behind the industry (down 9%) since the beginning of the year, possibly due to the news attention on OpenAI's new video generation model Sora.

Citi believes that although there is greater long-term competition and uncertainty in the market, the development of related industries is unlikely to have a short-term impact on the company's stock price. As for the core DM business, given the company's conservative guidance and further expansion of price increases, the bank believes that there is still room for growth in the first quarter of 2025, but intensified competition driven by GenAI may reduce the company's valuation multiples.

Citi: Initiates 90-Day Upside Catalyst Observation on BYD, Target Price of HK$463, "Buy" Rating

Citi states that BYD's mainland retail sales in March are expected to recover to 280,000 vehicles. If exports recover to 30,000 vehicles, with March wholesale plus moderate replenishment, it can prove that the forecast of around 320,000 vehicles is reasonable.

The bank estimates that the net profit per vehicle in the first quarter can remain stable at around 6,000 yuan, but with the cycle of new models, strong cost scale benefits, sales recovery, and product portfolio improvements, the net profit per vehicle in the second quarter is expected to rise again to a level of 8,000 to 9,000 yuan, and the pace of improvement in pre-tax profit margin is expected to be faster than the pace of gross margin recovery.

Citi notes the recovery of the industry's local Beta value, mainly driven by plug-in hybrid electric vehicles (PHEV) and extended-range electric vehicles (EREV), while BYD is entering the best model cycle, DM-i 5.0 second-quarter upgrade, and the increase in sales of DM-p mid-to-high-end models.

Citi initiated a 30-day upside catalyst observation on Leapmotor at the beginning of March. The bank believes that the catalyst observation on Leapmotor and BYD will strengthen its view that PHEV and EREV will be the next major trend in the passenger car market slowdown.

Goldman Sachs: Gives Miniso a "Buy" Rating, Raises Target Price from HK$59 to HK$60

The company's performance in the fourth quarter of last year was strong, with sales growth in China/overseas and "Top Toy" faster than expected, and gross margin hitting a new historical high again, but partly offset by higher-than-expected sales, one-time, and selling, general, and administrative (SG&A) expenses due to the rapid expansion of the direct-to-consumer (DTC) market for overseas customers.The report indicates a positive view on Miniso after the briefing. Highlights include the challenging base in the first quarter for the group's offline business. The management's goal is a 15% YoY growth in GMV (Gross Merchandise Volume) for the first quarter of this year (13% in the first two months); the management also pointed out that the market is showing a healthy trend after the off-season of the Lunar New Year.

In addition, the group's overseas business has shown steady growth into the first quarter of this year, and the management plans to accelerate expansion in the EU/US markets.

Lyon: Maintains Li-Ning's "outperform the market" rating, with a target price lowered from HKD 26 to HKD 24

Lyon adjusted its forecast for Li-Ning, expecting a 24% YoY decline in net profit in 2023, mainly due to weak sales, e-commerce, and deleveraging.

The report indicates that the visibility of Li-Ning's full-year and mid-term growth in 2024 remains low. The bank expects short-term fluctuations in the future due to high base comparisons, and unfavorable leverage effects may occur when shipments remain sluggish.

However, the bank also focuses on the potential bottoming out after 2023 and the high base in the first quarter, expecting a 7% increase in sales and a 4% increase in net profit for the company in 2024. As the base effect gradually diminishes, the report suggests that Li-Ning's performance growth may be concentrated in the second half of 2024.