Wall St Engine
Mizuho Raises $MU PT to $130 from $124 - Outperform
Analyst comments: "Ahead of its earnings on June 25, we take a deeper look at Micron and the high-bandwidth memory (HBM) market. We see: 1) industry HBM revenue growing at a 55% three-year CAGR (2024–2027E) driven by HBM4/4e ramps into 2026–2027, 2) Micron HBM revenue growing at a 90% three-year CAGR, gaining market share and reaching over 45% of Micron’s DRAM revenue, supporting top-line and gross margin upside, 3) Micron gaining HBM market share from ~10% last year to 20–25% in 2025–2026, with HBM3e 12Hi remaining a two-player race, and 4) NAND showing a strong roadmap with continued mix shift toward more 3XXL nodes. We maintain our Outperform rating, raise estimates, and increase our price target to $130 from $124. We are buyers into the June 25 earnings, given potential upside to HBM shipments in 2025–2026 and ASP/layer count strength driven by HBM4."
Analyst: Vijay Rakesh
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Mizuho Raises $MU PT to $130 from $124 - Outperform
Analyst comments: "Ahead of its earnings on June 25, we take a deeper look at Micron and the high-bandwidth memory (HBM) market. We see: 1) industry HBM revenue growing at a 55% three-year CAGR (2024–2027E) driven by HBM4/4e ramps into 2026–2027, 2) Micron HBM revenue growing at a 90% three-year CAGR, gaining market share and reaching over 45% of Micron’s DRAM revenue, supporting top-line and gross margin upside, 3) Micron gaining HBM market share from ~10% last year to 20–25% in 2025–2026, with HBM3e 12Hi remaining a two-player race, and 4) NAND showing a strong roadmap with continued mix shift toward more 3XXL nodes. We maintain our Outperform rating, raise estimates, and increase our price target to $130 from $124. We are buyers into the June 25 earnings, given potential upside to HBM shipments in 2025–2026 and ASP/layer count strength driven by HBM4."
Analyst: Vijay Rakesh
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Wall St Engine
Mizuho Upgrades $V to Outperform from Neutral, Raises PT to $425 from $359
Analyst comments: "Upgrading to Outperform. With cash-to-card historically driving two-thirds of Visa’s volume growth, the length of the U.S. cash conversion runway is a key debate. Our in-depth category analysis shows that Visa’s subdued excess growth versus U.S. personal consumption expenditures (PCE) post-COVID has largely been due to vertical mix shift, as less-card-based categories have outgrown more-card-based categories since the pandemic. Although this adverse trend has started to reverse, we see growing reason for optimism. We estimate true U.S. card penetration at approximately 75%, versus the 80–90% consensus, suggesting a longer remaining cash-to-card runway than previously expected—potentially another decade of solid domestic top-line growth.
Additionally, Visa’s performance in Canada and the Nordics shows above-PCE growth even in markets with card penetration exceeding 90%. We are raising our FY26/FY27 estimates on improved U.S. volume growth expectations. We now value Visa at 31x our FY26 estimate (versus 28x previously). Price target raised to $425 from $359."
Analyst: Dan Dolev
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Mizuho Upgrades $V to Outperform from Neutral, Raises PT to $425 from $359
Analyst comments: "Upgrading to Outperform. With cash-to-card historically driving two-thirds of Visa’s volume growth, the length of the U.S. cash conversion runway is a key debate. Our in-depth category analysis shows that Visa’s subdued excess growth versus U.S. personal consumption expenditures (PCE) post-COVID has largely been due to vertical mix shift, as less-card-based categories have outgrown more-card-based categories since the pandemic. Although this adverse trend has started to reverse, we see growing reason for optimism. We estimate true U.S. card penetration at approximately 75%, versus the 80–90% consensus, suggesting a longer remaining cash-to-card runway than previously expected—potentially another decade of solid domestic top-line growth.
Additionally, Visa’s performance in Canada and the Nordics shows above-PCE growth even in markets with card penetration exceeding 90%. We are raising our FY26/FY27 estimates on improved U.S. volume growth expectations. We now value Visa at 31x our FY26 estimate (versus 28x previously). Price target raised to $425 from $359."
Analyst: Dan Dolev
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Capital Employed
RT @capitalemployed: There’s no shortage of cheap quality companies in Europe and Asia for small active investors to get busy researching.
Poland, UK, Italy, Japan, Hong Kong, Singapore - they’re all there in plain sight being ignored by the big boys/passive parrots.
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RT @capitalemployed: There’s no shortage of cheap quality companies in Europe and Asia for small active investors to get busy researching.
Poland, UK, Italy, Japan, Hong Kong, Singapore - they’re all there in plain sight being ignored by the big boys/passive parrots.
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Wall St Engine
Morgan Stanley Reiterates Overweight on $AAPL, PT $235
Analyst comments: "U.S. App Store grew 10% year-over-year in May, a 2-point acceleration from 8% growth in April, with revenue per download growing 5% year-over-year, a 3-point acceleration from April. Overall, the App Store is tracking 1.5 points ahead of our forecast, implying 40 basis points (or approximately $110 million) of June quarter Services revenue upside if the quarter ended today, all else equal.
That said, our May 2025 AlphaWise Survey shows 28% of U.S. iPhone users are 'Extremely Likely' to circumvent the App Store in-app purchase system, consistent with our 2022 survey. If these results materialize, we see 10% of App Store revenue, 3% of Services revenue, and 2% of Apple EPS 'at risk.'
Next events: WWDC (June 9), ongoing tracking of June quarter App Store performance (daily), and a pending decision from the 9th Circuit on whether to proceed with Apple’s injunction appeal (TBD)."
Analyst: Erik Woodring
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Morgan Stanley Reiterates Overweight on $AAPL, PT $235
Analyst comments: "U.S. App Store grew 10% year-over-year in May, a 2-point acceleration from 8% growth in April, with revenue per download growing 5% year-over-year, a 3-point acceleration from April. Overall, the App Store is tracking 1.5 points ahead of our forecast, implying 40 basis points (or approximately $110 million) of June quarter Services revenue upside if the quarter ended today, all else equal.
That said, our May 2025 AlphaWise Survey shows 28% of U.S. iPhone users are 'Extremely Likely' to circumvent the App Store in-app purchase system, consistent with our 2022 survey. If these results materialize, we see 10% of App Store revenue, 3% of Services revenue, and 2% of Apple EPS 'at risk.'
Next events: WWDC (June 9), ongoing tracking of June quarter App Store performance (daily), and a pending decision from the 9th Circuit on whether to proceed with Apple’s injunction appeal (TBD)."
Analyst: Erik Woodring
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Wall St Engine
BofA Reiterates Buy on $NVDA, PT $180; remains best positioned to benefit from the ongoing AI tide
Analyst comments: "We were pleased to host NVIDIA CFO Colette Kress and VP of Investor Relations Toshiya Hari for an investor dinner, as well as VP/GM of Hyperscale and HPC Computing Ian Buck for a keynote session in San Francisco. Overall, the tone was very positive regarding demand and continued customer interest across cloud and enterprise, now supported by a full-scale supply ramp.
Importantly, we believe NVIDIA addressed three key investor debates that have weighed on the stock over the past year: 1) Blackwell rack ramp and execution, 2) AI diffusion and sovereign demand, and 3) China AI shipments. We maintain our Buy rating and $180 price objective, viewing NVIDIA as a top sector pick. We believe the company remains best positioned to benefit from the ongoing AI tide, backed by a multi-year lead in performance (AI scaling), a strong pipeline, incumbency, scale, and developer support.
The current 30x next-twelve-month P/E is attractive versus the 5-year historical median of 39x, and the stock trades at a PEG ratio of less than 1.0x compared to a 2.4x median for the rest of the Magnificent Seven, excluding NVIDIA."
Analyst: Vivek Arya
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BofA Reiterates Buy on $NVDA, PT $180; remains best positioned to benefit from the ongoing AI tide
Analyst comments: "We were pleased to host NVIDIA CFO Colette Kress and VP of Investor Relations Toshiya Hari for an investor dinner, as well as VP/GM of Hyperscale and HPC Computing Ian Buck for a keynote session in San Francisco. Overall, the tone was very positive regarding demand and continued customer interest across cloud and enterprise, now supported by a full-scale supply ramp.
Importantly, we believe NVIDIA addressed three key investor debates that have weighed on the stock over the past year: 1) Blackwell rack ramp and execution, 2) AI diffusion and sovereign demand, and 3) China AI shipments. We maintain our Buy rating and $180 price objective, viewing NVIDIA as a top sector pick. We believe the company remains best positioned to benefit from the ongoing AI tide, backed by a multi-year lead in performance (AI scaling), a strong pipeline, incumbency, scale, and developer support.
The current 30x next-twelve-month P/E is attractive versus the 5-year historical median of 39x, and the stock trades at a PEG ratio of less than 1.0x compared to a 2.4x median for the rest of the Magnificent Seven, excluding NVIDIA."
Analyst: Vivek Arya
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Wall St Engine
Barclays on $AMZN (OW; PT $240): "The key takeaway: It shouldn't come as a major surprise that Project Kuiper is running behind, as the satellite launch delays were fairly well telegraphed and are already baked into our published numbers. This note provides detail on these changes and their impact.
We now expect 10 Kuiper launches in 2025—including one completed on April 28, one scheduled for late next week, and the remaining eight occurring in the second half of the year—down from our initial estimate of 12 (see our Kuiper Deep Dive). Kuiper is projected to cost Amazon around $2.5 billion in 2025, with quarterly costs skewing higher in the second half. We slightly increased our 2025 cost assumptions by approximately $70 million, reflecting higher satellite production costs, partially offset by lower launch costs."
Analyst: Ross Sandler
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Barclays on $AMZN (OW; PT $240): "The key takeaway: It shouldn't come as a major surprise that Project Kuiper is running behind, as the satellite launch delays were fairly well telegraphed and are already baked into our published numbers. This note provides detail on these changes and their impact.
We now expect 10 Kuiper launches in 2025—including one completed on April 28, one scheduled for late next week, and the remaining eight occurring in the second half of the year—down from our initial estimate of 12 (see our Kuiper Deep Dive). Kuiper is projected to cost Amazon around $2.5 billion in 2025, with quarterly costs skewing higher in the second half. We slightly increased our 2025 cost assumptions by approximately $70 million, reflecting higher satellite production costs, partially offset by lower launch costs."
Analyst: Ross Sandler
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Wall St Engine
Jefferies Downgrades $CHWY to Hold from Buy, Raises PT to $43 from $41
Analyst comments: "Chewy shares are up 41% this year and trade at 24x 2026 EBITDA—a valuation primed for a beat and raise. We think it's unlikely in Q1. The pet macro environment appears relatively stable, and Chewy is performing well. However, a CFO transition is underway, and current share levels already reflect the positives, including growth in sponsored ads and favorable web/app alternative data. We see limited upside to numbers beyond the high end of guidance at this point and downgrade to Hold on valuation. Price target raised to $43."
Analyst: Kaumil Gajrawala
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Jefferies Downgrades $CHWY to Hold from Buy, Raises PT to $43 from $41
Analyst comments: "Chewy shares are up 41% this year and trade at 24x 2026 EBITDA—a valuation primed for a beat and raise. We think it's unlikely in Q1. The pet macro environment appears relatively stable, and Chewy is performing well. However, a CFO transition is underway, and current share levels already reflect the positives, including growth in sponsored ads and favorable web/app alternative data. We see limited upside to numbers beyond the high end of guidance at this point and downgrade to Hold on valuation. Price target raised to $43."
Analyst: Kaumil Gajrawala
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Wall St Engine
After the UK’s Telegraph sold for £500M, Morgan Stanley says News Corp’s newspaper assets could be worth more than the market’s giving them credit for. Analyst Andrew McLeod keeps an Overweight rating and $37 target on $NWSA, noting the Telegraph deal values it at ~8.4x EV/EBITDA—well above what’s baked into News Corp’s current sum-of-the-parts.
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After the UK’s Telegraph sold for £500M, Morgan Stanley says News Corp’s newspaper assets could be worth more than the market’s giving them credit for. Analyst Andrew McLeod keeps an Overweight rating and $37 target on $NWSA, noting the Telegraph deal values it at ~8.4x EV/EBITDA—well above what’s baked into News Corp’s current sum-of-the-parts.
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Wall St Engine
NINTENDO SWITCH 2 SELLS OUT FAST - RTRS
Nintendo has dropped its next-gen Switch 2 console, priced at $499.99, and it’s flying off shelves. In Japan, 2.2 million fans entered a sales lottery just to try and get one. U.S. preorders sold out in under two hours. Nintendo expects to ship 15 million units this year, but analysts say demand could blow past that.
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NINTENDO SWITCH 2 SELLS OUT FAST - RTRS
Nintendo has dropped its next-gen Switch 2 console, priced at $499.99, and it’s flying off shelves. In Japan, 2.2 million fans entered a sales lottery just to try and get one. U.S. preorders sold out in under two hours. Nintendo expects to ship 15 million units this year, but analysts say demand could blow past that.
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Wall St Engine
UBS Assumes Coverage on $KC with Buy Rating, Raises PT to $14 from $12.50
Analyst comments: "As it is a pure-play cloud vendor with increasing AI exposure (40%+ of total revenue in 2027E vs. 17% in 2024), we think KC stands to benefit from the growing LLM training and inference demand. We forecast a turnaround in its public cloud growth, with a 20% revenue CAGR in 2025-27 (vs. -3% in 2022-24), supported by AI-driven cloud industry growth, incremental demand from Xiaomi's ecosystem and continued third-party client expansion.
"We also expect its non-GAAP operating margin to narrow losses before it turns profitable in 2027E due to a higher AI revenue mix and scale-driven cost efficiency. KC is trading at 2.4x 2025E price to sales (P/S), below its recent average/peak of 2.6x/4.2x and back to its pre-DeepSeek levels."
Analyst: Wei Xion
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UBS Assumes Coverage on $KC with Buy Rating, Raises PT to $14 from $12.50
Analyst comments: "As it is a pure-play cloud vendor with increasing AI exposure (40%+ of total revenue in 2027E vs. 17% in 2024), we think KC stands to benefit from the growing LLM training and inference demand. We forecast a turnaround in its public cloud growth, with a 20% revenue CAGR in 2025-27 (vs. -3% in 2022-24), supported by AI-driven cloud industry growth, incremental demand from Xiaomi's ecosystem and continued third-party client expansion.
"We also expect its non-GAAP operating margin to narrow losses before it turns profitable in 2027E due to a higher AI revenue mix and scale-driven cost efficiency. KC is trading at 2.4x 2025E price to sales (P/S), below its recent average/peak of 2.6x/4.2x and back to its pre-DeepSeek levels."
Analyst: Wei Xion
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Wall St Engine
Bankrupt 23andMe is headed for a second auction after former CEO Anne Wojcicki challenged the last one. She’s now leading a $305M opening bid—almost $50M higher than Regeneron’s winning offer from the first round. Both bidders have promised to follow 23andMe’s privacy rules. The company filed for bankruptcy in March.
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Bankrupt 23andMe is headed for a second auction after former CEO Anne Wojcicki challenged the last one. She’s now leading a $305M opening bid—almost $50M higher than Regeneron’s winning offer from the first round. Both bidders have promised to follow 23andMe’s privacy rules. The company filed for bankruptcy in March.
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Wall St Engine
Citi Lowers $ENPH PT to $43 from $47 - Sell/H
Analyst comments: "We received multiple questions regarding what is currently priced into residential solar, the potential for improvements to IRA provisions in the Senate, and Enphase’s valuation under various scenarios. We believe the deficit is unlikely to increase further, and commentary from senators indicates Medicaid is a higher priority.
If the bill is passed in its current form, historical context suggests U.S. residential solar installations could decline by approximately 75% next year. This would lead to large-scale business closures in the residential solar sector, a significantly slower pace of innovation due to reduced R&D budgets, and challenging restructurings within companies.
Assuming no changes to the bill, we estimate Enphase’s EBITDA could decline by about 60% next year, with the stock potentially trading in the high teens. Maintain Sell rating."
Analyst: Vikram Bagri
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Citi Lowers $ENPH PT to $43 from $47 - Sell/H
Analyst comments: "We received multiple questions regarding what is currently priced into residential solar, the potential for improvements to IRA provisions in the Senate, and Enphase’s valuation under various scenarios. We believe the deficit is unlikely to increase further, and commentary from senators indicates Medicaid is a higher priority.
If the bill is passed in its current form, historical context suggests U.S. residential solar installations could decline by approximately 75% next year. This would lead to large-scale business closures in the residential solar sector, a significantly slower pace of innovation due to reduced R&D budgets, and challenging restructurings within companies.
Assuming no changes to the bill, we estimate Enphase’s EBITDA could decline by about 60% next year, with the stock potentially trading in the high teens. Maintain Sell rating."
Analyst: Vikram Bagri
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Wall St Engine
JPMorgan Upgrades $DLTR to Overweight from Neutral, Raises PT to $111 from $72
Analyst comments: "Multi-year, we see Dollar Tree returning to a double-digit EPS “compounder” with top- and bottom-line drivers in place at the core DT banner (MPP 3.0 format store expansion) and idiosyncratic bottom-line drivers through tariff mitigation strategies, MPP expansion, 1x cost recapture, and corporate expense leverage following the sale of the FDO business (with capital allocation representing an incremental catalyst)."
Analyst: Matthew Boss
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JPMorgan Upgrades $DLTR to Overweight from Neutral, Raises PT to $111 from $72
Analyst comments: "Multi-year, we see Dollar Tree returning to a double-digit EPS “compounder” with top- and bottom-line drivers in place at the core DT banner (MPP 3.0 format store expansion) and idiosyncratic bottom-line drivers through tariff mitigation strategies, MPP expansion, 1x cost recapture, and corporate expense leverage following the sale of the FDO business (with capital allocation representing an incremental catalyst)."
Analyst: Matthew Boss
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