(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Broadcom and a Chinese electric vehicle maker were among the stocks being talked by analysts about on Tuesday. Bernstein named Broadcom a best idea, saying the chipmaker could jump more than 20%. Bank of America and Goldman Sachs, meanwhile, initiated Zeekr with buy rating, calling for strong gains ahead for the Chinese EV maker. Check out the latest calls and chatter below. All times ET. 7:29 a.m.: Bank of America lists Logitech a top pick Logitech could find itself yet another beneficiary of the AI trade, according to Bank of America. The bank stood by its buy rating for the stock, and listed it as a top pick in the EU IT hardware sector. Analyst Didier Scemama also raised his price objective to $113. Shares of Logitech are up 2% on the year and could rally another 17%, if Scemama’s target price holds true. Scemama believes that Logitech’s higher margins and strong cash generation mean that it will continue to trade at a premium compared to its peers. The analyst thinks that Microsoft’s newly-announced Copilot extensions, which will incorporate new AI features, could lead to a modest pick-up in laptops and tablets. This could benefit Logitech by making its product offering look more appealing to end uses. “We believe that the launch of AI PCs this year and next year should help LOGN sell more PC peripherals such as mice and keyboards as well as higher margin categories such as webcams,” Scemama wrote. — Lisa Kailai Han 7:16 a.m.: Morgan Stanley upgrades Heico stock to equal weight Morgan Stanley believes that Heico’s year-to-date outperformance is justified by a more positive industry backdrop. The bank upgraded shares of the aerospace electronics company to equal weight from its previous underweight rating. Analyst Kristine Liwag accompanied the move by raising her price target to $225 from $178. Shares of Heico have already soared 24% year to date. Liwag’s forecast is just 1% from Monday’s close. As one catalyst, Liwag pointed to the strength in the commercial aftermarket business performance resulting from increased regulatory scrutiny following a series of quality-control issues from Boeing. “Additionally, our previous valuation methodology using GAAP P/E underestimated the company’s cash generation as recent acquisitions have been larger than historical norms, creating greater than usual non-cash amortization headwinds to GAAP earnings,” the analyst added. Now, she sees balanced risk-reward that considers Heico’s better-than-expected results and improved investor sentiment. “Today, aerospace faces a similar supply constrained, high demand environment for new aircraft, albeit with different drivers of supply constraints,” Liwag added. — Lisa Kailai Han 7:08 a.m.: Barclays lowers Stanley Black & Decker to equal weight Shares of Stanley Black & Decker are currently trading at levels too high to be justified, according to Barclays. The bank downgraded the industrials stock to equal weight from overweight. The bank accompanied the move by lowering its price target to $86 from $100, implying that the stock could remain stagnant from its current level. As one reason for the downgrade, analyst Julian Mitchell pointed to Wall Street’s earnings estimates, which he believes currently look unjustifiably high. “Sluggish sales are likely to be a key headwind to rapid EPS growth,” the analyst wrote, also noting that tax rate increases could pose a similar threat. Mitchell added that the stock’s sales and productions figures are likely to face some downwards pressure from swollen inventories. The company may also need to engage in more restructuring to further cut its costs. Meanwhile, U.S.-imposed tariffs on imported Chinese products could also hurt shares of Stanley Black & Decker. Leverage on the company’s balance sheet also looks extremely high, and is unlikely to come substantially down in the near term, Mitchell noted. Shares of Stanley Black & Decker are down 12% on the year. — Lisa Kailai Han 6:49 a.m.: Bank of America adds Nvidia to its list of best investment ideas Bank of America added Nvidia to its U.S.1 list, which represents some of the firm’s best investment ideas. Nvidia, a manufacturer of graphics processing units, has been one of the biggest beneficiaries of the recent artificial intelligence trade. The company has led the latest bull market rally and is already up an eye-watering 132% this year. Last month, shares of Nvidia surged 9% in a single day after the company reported its latest quarterly results, which topped analysts’ expectations on both the top and bottom lines. BofA has a buy rating on Nvidia. — Lisa Kailai Han 6:37 a.m.: Wells Fargo highlights American Express as a top stock pick Wells Fargo on Tuesday listed American Express as one of its highest conviction stock calls. The bank reiterated its overweight rating on the credit card stock but lifted its price target to $275 from $265. This updated forecast is roughly 16% higher from where shares of American Express closed on Monday afternoon. American Express stock has already rallied 26% this year. Despite this, analyst Donald Fandetti still called the growth story “underappreciated.” “With an inflection in global acceptance and volume penetration rates well below the US, we believe international will be their strongest segment for the next decade and beyond,” wrote the analyst, who also highlighted the stock as his top pick within consumer finance. Fandetti noted that while overseas competition is tough, it’s less intense as compared to the U.S. American Express’ card penetration is between 5% to 7% in foreign markets, much lower than its domestic rate of over 20%. As this number grows, the company could see additional meaningful upside. “We view international as critical to their algorithm of 10%+ rev growth and mid-teens EPS. International revs should run above the 10%+,” the analyst added. — Lisa Kailai Han 6:18 a.m.: Canaccord Genuity upgrades SentinelOne on back of recent sell-off A recent pullback means it’s time to buy SentinelOne stock, according to Canaccord Genuity. The financial services firm upgraded the cybersecurity stock to a buy rating, but decreased its price target to $23 from $28. This updated forecast implies a potential 34% upside for SentinelOne stock. Shares of SentinelOne have lost 37% this year. S YTD mountain SentinelOne in 2024 Analyst Kingsley Crane called the sell-off “well overdone” and a catalyst for his upgrade, along with the company’s recently improved execution. “We view SentinelOne as a long-term secular winner due to the company’s positioning as a data-driven security platform, which is facilitated by its roots in Endpoint Security and a strong position in mid-market Enterprise,” he wrote. Meanwhile, SentinelOne’s solid fundamentals should also help the company capture a greater share of the IT market. The company has also demonstrated its ability to drive better-than-expected profitability. “With global enterprises inhibited by resource constraints, we strongly believe increased automation with little to no human intervention is a clear advantage against modern adversaries,” Crane added. — Lisa Kailai Han 5:55 a.m.: Oppenheimer initiates Flutter Entertainment at outperform Flutter Entertainment could be big winner ahead, according to Oppenheimer. The financial firm initiated shares of the sports betting and gambling company at an outperform rating, also setting a $240 price target. Shares of Flutter have added nearly 6% this year, with analyst Jed Kelly’s price target implying that the stock could soar another 27%. As a catalyst, the analyst pointed to the company’s structural advantages, while give Flutter a massive edge in growing within the domestic market. Eventually, Kelly foresees a duology emerging between FanDuel — whose majority owner is Flutter — and DraftKings. “Hold advantages allow for significant promotional velocity at higher unit economics to generate a massive edge in product stickiness/customer retention,” he wrote. Meanwhile, the company also offers a top U.S. parlay mix and provides players “the most pre-built selections with seamless bet-building experience,” Kelly added. While higher taxes pose a risk to the company, the analyst believes that Flutter is positioned the best to absorb these increasing tasks. Reduced competition and more state legalization could also help lower these taxes in the future. — Lisa Kailai Han 5:47 a.m.: Wall Street analysts see bright prospects ahead for Chinese EV maker Zeekr New player Zeekr could be giving its competitors a run for their money, according to some Wall Street analysts. Goldman Sachs and Bank of America initiated the Chinese electric vehicle maker at a buy rating. Goldman analyst Tina Hou set a 12-month price target of $34, while Bank of America analyst Ming Hsun Lee set a price objective of $35. The forecasts respectively imply a potential upside of 33% and 37% from the Monday’s close. “We view ZEEKR as well placed to ride on the rise of domestic brands, premiumization, and electrification trends in China EV market,” wrote Lee at BofA. “Leveraging R & D capabilities, ZEEKR has the advantages in vehicle design, drivability, safety, smart cabin, centralized E/E architecture, e-drive system, charging experience, and user community.” While Zeekr commanded 1.3% of the China electric vehicle market in 2023, Lee expects this number to rise to 2.5% by 2026, aided by “robust model portfolios.” Both Lee and Hou noted how the brand could benefit from its ownership by Geely Automobile. The company could leverage Geely’s existing engineering strengths, manufacturing capabilities, brand equity, strong supply chain and global footprint to expand overseas. “We believe ZEEKR is in a better position to compete by adopting an asset-light manufacturing model leveraging its parent company’s (Geely) factory capacity, which helps alleviate heavy upfront capex burden,” Hou said. Zeekr could grow its profitability by launching attractive models that generate consistently strong sales volume, which would ultimately drive economies of scale and build its brand, Hou added. Zeekr went public in the U.S. last month, listing its IPO at $21. Since then, shares are up 22%. — Lisa Kailai Han 5:47 a.m.: Bernstein names Broadcom a best idea Broadcom’s gains this year are primed to expand, according to Bernstein. Analyst Stacy Rasgon named the chipmaker one of its best ideas. He has an outperform rating on shares along with a $1,600 price target, which implies upside of 21%. The stock has already been on a tear in 2024, surging nearly 19%. AVGO YTD mountain AVGO year to date Despite these gains, Rasgon thinks the company’s valuation “remains compelling, inline with history vs industry for a story that has only gotten better with age.” On top of that, it “remains among the cheapest of all the ‘AI play’ semis, with a better narrative than many peers,” the analyst said. Broadcom shares trade at about 28 times forward earnings, while AI darling Nvidia has a multiple of 42. AMD also trades at 46 times forward earnings. — Fred Imbert
