Wall Street analysts on Tuesday raised their price targets on internet television network Netflix (NFLX), home appliance maker Whirlpool (WHR) and graphics-chip maker Nvidia (NVDA), but lowered their outlook for sports apparel firm Nike (NKE) and chipmaker ON Semiconductor (ON).
Netflix Called ‘Best Idea’
Guggenheim Securities reiterated its “best idea” buy rating on Netflix and raised its price target on the stock to 180 from 175.
“Netflix remains our best idea in the media industry as the company continues to invest in its compelling global content creation and distribution model, and expands its subscriber base,” Guggenheim analyst Michael Morris said in a note to clients. “Usage data clearly indicates that people around the world enjoy engaging with Netflix with increasing frequency.”
Los Gatos, Calif.-based Netflix is making “rational investments” in content (about $8 billion in spending estimated in 2017) and is building a big lead in the subscription streaming video market, he said.
Netflix shares were up 0.3% at 153.89 in premarket trading on the stock market today.
Nvidia Receives Cautious Upgrade
Pacific Crest Securities raised its ratings on Marvell Technology (MRVL) and Nvidia, but lowered its rating on ON Semiconductor.
Pacific Crest upgraded chipmaker Marvell to overweight from sector weight and set a price target of 22. It also upgraded Nvidia to sector weight, or neutral, from underweight, or sell, while turning negative on ON Semi, lowering its rating to sector weight from overweight.
The investment bank likes Marvell because of its pricing power in switches, multiple design wins, and sales momentum in the data-center business.
Marvell stock was up 2%, near 17.80, in early trading Tuesday. Nvidia was up 0.9%, near 158.70. And On Semi was flat near 15.50.
Nike Gets Price-Target Cut
Investment bank Cowen kept its market perform rating on Nike, but lowered its price target to 53 from 54.
Beaverton, Ore.-based Nike is facing heightened North American competition in an increasingly promotional environment with rivals Adidas and Under Armour (UAA).
“Our checks show elevated promotions continue on footwear (basketball, running and lifestyle) and apparel throughout North America (45% of sales) which also coincides with a more promotional cadence from Under Armour and Adidas,” Cowen analyst John Kernan said in a report.
Nike stoke rose 0.6% to 52.35 early Tuesday.
Whirlpool A ‘Top Pick’
RBC Capital Markets maintained its “top pick” buy rating on Whirlpool and increased its price target to 226 from 216.
“We believe that Whirlpool’s ability to achieve its long-term financial targets that were outlined at its recent investor day (May 4th) combined with expectations for multiple expansion should translate into share price appreciation,” RBC analyst Robert Wetenhall said in a report. “Sustained revenue growth, operating margin expansion, and improving free cash flow generation support our Top Pick rating.”
Benton Harbor, Mich.-based Whirlpool ended the regular trading session Monday up 0.5% to 196.87.
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