Rating Quick Look: Wall Street still bullish on Tesla! Meituan's target price sees a significant downward revision.
Lion has lowered the target price of MEITUAN from HKD 205 to HKD 182. It is expected that MEITUAN's total revenue will maintain a year-on-year growth of 18% to 20% this year, but there is still significant pressure on profit margins. Adjusted EBIT in the first quarter of this year may decline by 5% year-on-year. However, once the live streaming business starts to monetize, profit margins are expected to improve.
Lyon: Maintains a "Buy" rating on MEITUAN, lowers target price from HKD 205 to HKD 182
The report indicates that MEITUAN may face greater profit margin pressure in the fourth quarter of last year. Despite macroeconomic challenges, the bank still expects total revenue to maintain a healthy growth of 20.6%, reaching RMB 72.5 billion. Adjusted EBIT may increase to RMB 2.5 billion due to higher subsidies, short video, and live streaming promotions, leading to a year-on-year decline in food delivery and in-store profit margins.
Lyon predicts that MEITUAN's total revenue this year will maintain an 18% to 20% year-on-year growth, but profit margin pressure remains significant. Adjusted EBIT in the first quarter of this year may decline by 5% year-on-year. However, once the live streaming business starts to monetize, the profit margin is expected to improve. The bank slightly adjusts its growth expectations for the food delivery business and lowers long-term profit margin forecasts due to concerns about the macro environment.
RBC: Reiterates a "Buy" rating on Tesla, with a target price of $298
The bank believes that Tesla is currently between two waves, with Tesla and Tesla basically saturated, and the company is waiting for the next major push brought by the expected sub-$30,000 price model. Analysts expect this new car from Tesla to start production in the second half of 2025.
The bank stated: "Elon doesn't think in terms of days or months; he looks at things from a perspective of one year or even decades. Ultimately, we will get this catalyst on the next generation of cars."
Citi: Lowers Weibo's target price from $18 to $15, maintains a "Buy" rating
The report points out that Weibo's performance in the fourth quarter of last year was mixed, with total net revenue increasing by 3% year-on-year to $463.7 million, exceeding market expectations by 2%; adjusted net profit was $76 million, 37.5% lower than market expectations, mainly due to operating expenses and tax rate increases.
Looking ahead to this year, although Weibo's management is cautious about the outlook for the first quarter due to weak macroeconomic conditions and low visibility on advertising budget spending, they hold a positive view on the company's strong performance in the second half of the year. This is expected to benefit from increased advertising spending during the summer Olympics and gradual improvement in the mainland macro outlook.
The bank believes that the stock is not highly valued, with a 4.3% and 4.6% reduction in revenue forecasts for this year and next, and a 19% and 20% reduction in Non-GAAP net profit forecasts. It is also expected that the company's first-quarter revenue will decline by 2.6% to $403 million, with an adjusted net profit of $82 million and a gross profit margin of 20%.
Bank of America: Raises IBM's target price from $200 to $220, reiterates a "Buy" rating
The report highlights an investor conference call with IBM CEO Arvind Krishna, focusing on optimizing the company's product portfolio. After dividends, cumulative cash flow exceeds $19 billion, which can continue to support its acquisitions. Over the past four years, the group has made 39 acquisitions, most of which are related to software businesses. The bank believes that the company is in a continuous turnaround (with revenue growth and improved free cash flow), and has a defensive investment portfolio, attractive dividend yield, and undervalued artificial intelligence capabilities.