Netflix Target to $700, Mobileye Upgraded Amid Market Confidence

Key Takeaway

• Morgan Stanley raises Netflix's price target from $600 to $700, citing long-term growth from diverse ventures.
• Wolfe Research upgrades Mobileye Global to outperform, sees 30% upside due to its leading autonomous vehicle tech.
• Strategic partnerships, like Krispy Kreme with McDonald's, and analyst upgrades across sectors signal confidence in market positioning and growth potential.

Analysts Adjust Targets, Ratings

Wall Street analysts have made significant adjustments to their views on various stocks, signaling potential shifts in market dynamics. Morgan Stanley has increased its price target on Netflix from $600 to $700, maintaining an overweight rating. This adjustment reflects an optimistic outlook on Netflix's long-term growth, driven by its successful pivot from DVD to streaming, the scaling of its studio, and new ventures into ads, games, and live sports. Analyst Benjamin Swinburne highlighted Netflix's under-appreciated competitive advantages, such as content from outside the U.S., original programming, and a deep content library. Meanwhile, Wolfe Research upgraded Mobileye Global to outperform, citing a 30% upside potential. Analyst Shreyas Patil emphasized Mobileye's unmatched capabilities in cost, performance, and scalability, crucial for wide-scale adoption in the autonomous vehicle technology sector.

Strategic Partnerships and Upgrades

The market has seen strategic partnerships and upgrades that could influence company trajectories. Krispy Kreme's upgrade to overweight by Piper Sandler, with a new price target of $20, follows its national partnership with McDonald's. This collaboration is expected to significantly impact Krispy Kreme's growth narrative. Similarly, Netflix's price target was raised to $765 by Pivotal Research, driven by anticipated subscriber and ARPU growth. These adjustments and partnerships reflect analysts' confidence in these companies' strategies and market positioning.

Broad Market Calls and Sector Insights

Analysts across Wall Street have issued calls that span various sectors, from technology to hospitality. Notable adjustments include Morgan Stanley's reiteration of Nvidia as overweight, highlighting its potential post the company's TMT conference. Oppenheimer raised its price target on Netflix, expecting subscriber growth, while Jefferies upgraded Choice Hotels, viewing its decision not to acquire Wyndham Hotels positively. These calls offer insights into analysts' expectations for company performance and sector trends, indicating areas of potential growth and concern.

Street Views

• Benjamin Swinburne, Morgan Stanley (Bullish on Netflix):

  "Netflix’s track record includes pivoting from DVD to streaming, scaling the world’s largest studio, and successfully monetizing password sharing. This track record, combined with new call options (ads, games, live sports) and a 25%+ EPS CAGR, supports a premium multiple."

• Shreyas Patil, Wolfe Research (Bullish on Mobileye Global):

  "Simply put, we do not see a rival that can match MBLY’s capabilities in cost, performance, and scalability, 3 key factors needed to support wide-scale adoption... And we have increasing conviction that this will become apparent over the next 6-12 months, driven by growing new business awards from high-volume OEMs."