Investing.com — A professional summary of the top takeaways from Wall Street analysts over the past week.
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instacart
what happened? On Monday, Needham upgraded Instacart ( maple bear Inc.) (NASDAQ:) and add it to your Conviction list with a price target of $56.
*TLDR: Needham is optimistic about CART’s strong revenue and customer experience in 2024. They predict significant growth and a compelling risk-reward profile for GTV.
What’s the full story? Needham analysts believe CART’s better-than-expected 2024 revenue suggests that concerns about competition and Total Addressable Market (TAM) traction are likely overstated. There is. They believe this is because CART’s superior customer experience in the grocery sector continues to improve. Needham Cohort Analysis Shows COVID-19 Cohorts Are Stable and Large Post-COVID-19 Cohort Additions Driving Consolidated Gross Volume (GTV) Growth .
Based on this, Needham’s bullish outlook suggests CART could achieve low-teens GTV growth over the next two years, leading to an adjusted EBITDA compound annual growth rate (CAGR) of 30%. I’m doing it. They believe CART stock’s risk-reward profile is attractive, with an $80 bull case and a floor supported by potential mergers and acquisitions (M&A) opportunities.
advanced micro device
what happened? On Tuesday, Loop Capital initiated coverage of Advanced Micro Devices, Inc. (NASDAQ:) as a Buy with a price target of $175.
*TLDR: AMD stock has underperformed and is trading below SOX. Analysts at Loop Capital highlight the accelerating success of computing.
What’s the full story? Loop highlights that AMD stock underperformed the SOX index in 2024, declining by about 18% compared to the SOX index’s 19% gain. AMD stock currently trades at 24.0x NTM non-GAAP EPS, well below SOX’s 29.0x. Analysts note that AMD’s stock price is more in line with peers exposed to mature end markets such as the PC, smartphone and industrial sectors.
According to Loop, AMD’s stock price should better reflect the company’s success in accelerated computing, such as GPU-based data center computing and XPUs, and its unique market share growth opportunities in the PC and general server markets. . Analysts highlight that these opportunities have become more prominent recently due to Intel’s (NASDAQ:) continued challenges.
shift group
what happened? On Wednesday, DA Davidson upgraded Shift Group (NASDAQ:) to Buy with a price target of $15.
*TLDR: Davidson upgrades SHYF after investor meeting. CEO Barend Fruithof highlights the benefits of the deal.
What’s the full story? Davidson upgraded SHYF after meeting with the incoming CEO and investors. The company has expressed confidence in the strategic and financial aspects of the Aebi-Schmidt acquisition, further boosted by the fact that its share price has fallen by around 30% since last month’s downgrade, making it an attractive entry point. There is.
Discussions with incoming CEO Barend Fruithof highlighted strong customer enthusiasm for the deal. Additional details regarding synergies and long-term prospects strengthen the company’s positive stance and shift the balance of risk and reward in investors’ favor.
advanced micro device
what happened? On Thursday, Wolfe Research downgraded AMD to Peer Perform.
*TLDR: Wolfe Research sees performance degradation in AMD datacenter GPUs. Expectations for CY25 have been lowered from $10 billion to $7 billion.
What’s the full story? Wolfe Research initially highlighted the underperformance of AMD’s data center GPU business and lowered its CY25 forecast from more than $10 billion to $7 billion. The brokerage doubts whether AMD will provide guidance on CY25 on its fourth quarter conference call. Following its recent trip to Asia, Wolfe Research expects AMD to face revenue challenges going forward. Original design manufacturers (ODMs) plans indicate only modest growth from Q4 2024 numbers, with data center GPU revenues of $1.5 billion to $2 billion in Q4 and 70 billion in 2025. billion, which is lower than previous expectations.
Wolfe Research models data center GPU revenue at $1.75 billion in Q1 2025, with flat growth expected for the rest of the period. They expect PC seasonality to slow after a strong fourth quarter (Q1 customers down 17% QoQ) and gaming to continue to slump (down 20% QoQ) in 2025. We do not expect a full-fledged recovery to occur until the second half of the year. However, Wolfe Research expects the MI350 series to be a key catalyst for AMD in the second half of 2025, with optimism continuing into 2026. MI350 is expected to be significantly redesigned over MI325, primarily with increased memory pressure.
cloudflare
what happened? On Friday, City upgraded. Cloudflare Co., Ltd. (NYSE:) Buy with a price target of $145.
*TLDR: Citi’s bullish view is tied to expected growth.
What’s the full story? Citi rates Cloudflare a Buy due to NET’s significant evolution over the past five years. With NET’s expansion, the bank has expanded beyond its core competencies of content caching, web performance, and infrastructure protection to now deliver fast, reliable, and secure Internet connectivity through its proprietary cloud across 100 countries and 250 cities. states that it is. This growth is in its early stages, and Citi is optimistic about NET’s role in AI development, especially as AI training moves to AI inference. Cooperation with Apple (NASDAQ:) and strengthened management team strengthen NET’s future potential.
Citi believes recent changes in NET’s go-to-market strategy have stabilized and set the stage for significant growth. With improved sales productivity and expected 27-30% revenue growth, Citi sees NET with a clear path to reaching approximately $5 billion in revenue by 2028.
The bank underlines its solid financial outlook, highlighting the potential for profitable scale-up through higher free cash flow margins.
