(That is CNBC Professional’s dwell protection of Friday’s analyst calls and Wall Avenue chatter. Please refresh each 20-Half-hour to view the most recent posts.) An e-commerce large and a snack maker had been among the many shares being talked about by analysts. Evercore ISI raised its worth goal on Amazon to $240, implying greater than 25% upside forward. In the meantime, Morgan Stanley downgraded PepsiCo to equal weight. Take a look at the most recent calls and chatter under. All instances ET. 7 a.m.: FedEx may slide greater than 30% as ‘structural challenges’ are right here to remain, Morgan Stanley says Morgan Stanley analyst Ravi Shanker downgraded FedEx to underweight from equal weight after the delivery firm’s earnings got here in under expectations. He additionally lowered his 12-month worth goal by $15 to $200, which now suggests shares can slide about 33.4%. The agency’s greatest concern is FedEx’s income: Shanker mentioned he continues to see long-term, structural challenges in FedEx’s parcel enterprise when it comes to quantity, worth and blend from secular modifications in e-commerce provide chains and competitors. “We stay skeptical about dramatically elevating pricing on prospects who’re already buying and selling down or disintermediating parcel carriers from their commerce provide chains,” Shanker mentioned in a observe to purchasers. “As well as, the USPS contract will finish September twenty ninth which is prone to depart a big income (and working leverage) gap subsequent quarter (doubtlessly as much as $1 bn annual run price in our estimate).” This yr, FedEx shares are up greater than 18.5%. — Pia Singh 6:33 a.m.: E-commerce inventory MercadoLibre has greater than 18% upside, in keeping with Morgan Stanley Morgan Stanley is bullish on Argentine e-commerce agency MercadoLibre . The agency lifted its 12-month worth goal to $2,500 from $2,175, suggesting 18.5% upside from Thursday’s shut. Shares are up greater than 34% this yr. “MELI is buying and selling close to historic highs, however we nonetheless see upside drivers — highlighting 4 throughout GMV, adverts, credit score, and Argentina,” analyst Andrew Ruben mentioned. “A diversified base of revenue drivers helps hedge towards danger elements together with worldwide competitors and macro volatility.” MELI YTD mountain MELI yr to this point Ruben reiterated his obese score however eliminated his ‘prime choose’ designation on MercadoLibre’s inventory. The corporate has higher income and earnings scale, and correspondingly decrease multiples, he mentioned within the Thursday observe. In keeping with the analyst, the corporate may see accelerated market share features, significantly throughout the Brazilian digital commerce market. Mercado’s promoting income may additionally see development because it develops an early-stage, off-platform promoting enterprise, he mentioned. — Pia Singh 6:09 a.m.: Morgan Stanley downgrades ASML, sees ‘balancing danger/reward’ for the semi inventory Semiconductor manufacturing firm ASML has new dangers traders could not have the ability to overlook, in keeping with Morgan Stanley. Analyst Lee Simpson downgraded the Netherlands-based firm to equal weight from obese. This yr, ASML shares are up 9.4%, however the inventory has slid 19% this quarter after its third-quarter outlook fell in need of the consensus steerage. The Dutch authorities has additionally indicated it may increase export controls on ASML chipmaking gear. “We see a balancing danger/reward as indicative of late cycle share worth dynamics,” Simpson mentioned in a Friday observe. “The dangers of a slowdown in expectations might be looming – it might be that traders could need to wrestle with weak spot not simply with DRAM but additionally with Intel (particularly in foundry) and the rising concern that China semis capability overspend will gradual as we glance to 2026.” To make certain, the analyst mentioned his funding thesis helps that ASML’s “2025 restoration sees a sizeable bounce in earnings yr on yr.” He anticipates rising order momentum and higher software utilization to drive the inventory’s upside this yr. — Pia Singh 5:49 a.m.: Evercore ISI hikes Amazon worth goal Evercore ISI is betting massive on Amazon’s streaming service. Analyst Mark Mahaney reiterated his outperform score and raised his worth goal from $225 to $240, which means 26.4% upside. The inventory is up practically 25% yr to this point. Mahaney additionally mentioned the e-commerce large stays the agency’s main massive cap lengthy choose. AMZN YTD mountain AMZN yr to this point “We deal with Amazon’s ramped up focus and alternative with Prime Video,” Mahaney mentioned in a observe to purchasers. “Amazon has ramped up its content material on Prime Video (e.g. extra NFL video games together with a WildCard Playoff sport, 66 common season NBA video games in ’25, and, particularly, the 2024 PPA World Championships). And monetizing that content material through promoting has turn into the next precedence.” In keeping with Mahaney, Amazon Prime Video will generate between $3 billion and $5.9 billion in complete gross sales subsequent yr, doubtlessly driving an acceleration in Amazon’s complete advert income development subsequent yr. The analyst famous that Amazon CEO Andy Jassy mentioned through the firm’s second-quarter earnings name that its promoting income was at a $50 billion run price, and that the corporate was “originally of what is attainable in our video promoting.” — Pia Singh 5:49 a.m.: Morgan Stanley downgrades PepsiCo Do not anticipate PepsiCo shares to make a lot headway going ahead, in keeping with Morgan Stanley. Analyst Dara Mohsenian downgraded the snacks and beverage large to equal weight from obese. His worth goal of $185 implies upside of simply 6% from Thursday’s shut. He cited “lingering [organic sales growth] danger and constructing EPS danger from US topline softness, pushed by each muted class development, in addition to PEP market share losses, with little indicators of a pickup put up latest higher spending/promotion.” “We upgraded the inventory to Chubby again in March at what we thought was entry level, anticipating OSG would inflect in H2 as Pepsi cycled simpler comparisons, Quaker recall points dissipated, and PEP’s pricing energy would reemerge on a relative foundation vs HPC friends,” Mohsenian mentioned. “Nevertheless, that elementary name was improper.” PepsiCo shares are up simply 2% in 2024, lagging the broader market. PEP YTD mountain PEP yr to this point — Fred Imbert
