Why Nvidia Stock Can Keep Climbing. Plus, Apple, MGM, and More From Analyst Reports.

Nvidia

• NVDA-Nasdaq

Buy • Price $126.84 on July 5

by UBS

Our recent supply-chain checks confirm our prior suspicions that demand momentum for Blackwell rack-scale systems remains exceedingly robust. We now believe EPS of $5 could be doable for calendar 2025, as the order pipeline for NVL72/36 systems is materially larger than just two months ago as hyperscaler budgets for 2025 firm up. This comes as sentiment on the stock, though still strong, has faded somewhat in recent weeks, creating more of a “wall of worry” that should be ultimately healthy if our outlook materializes.

We are raising our calendar 2025 revenue/EPS estimates by 12%/15% to $204 billion/$4.95—far above sell side’s $161 billion/$3.62, though we do believe expectations among a subset of investors has risen to a range close to our new numbers. Given all of this, we believe a $150 price target can be supported (up from $120 previously) and we maintain our Buy rating.

Apple

• AAPL-Nasdaq

Outperform • Price $232.98 on July 11

by Wedbush

We are seeing more signs of iPhone stabilization based on our recent Asia supply-chain checks, which is a very good sign heading into an AI-driven iPhone 16 supercycle.

We now believe initial iPhone 16 shipments will be closer to 90 million (with upside movement likely as we get closer to launch date in September) versus original Street expectations in the 80 million to 84 million range, and up double-digits year over year. We strongly believe June will be the last negative growth quarter for China, with a growth turnaround beginning in the September quarter. China remains the linchpin of growth for Apple and now this key region is set to see growth once again, starting with iPhone 16, in our view.

Since Apples’ Worldwide Developers Conference in early June, we believe optimism is growing throughout the Asia supply chain, and that this iPhone 16 AI-driven upgrade could represent a golden upgrade cycle for Cupertino, looking ahead with pent-up demand building globally. Price target: $275.

Corning

• GLW-NYSE

Outperform • Price $44.67 on July 10

by Oppenheimer

GLW announced that it expects 2Q core sales to reach $3.6 billion (up from $3.4B) and core EPS to be at the high end or slightly above guidance of $0.42 to $0.46. Management also reiterated that 1Q24 will be the lowest quarter of the year and that it expects to create more than $3B in incremental annualized revenue in the next three years. We caught up with management after the announcements. The positive surprise is mainly attributed to new product designs for Gen AI, in addition to strength in other segments.

We raise our 2024/2025 estimates following the preannouncement, based on earlier-than-expected contribution from sales to Gen AI markets. We also raise our price target from $40 to $50.

Citizens Financial Group

• CFG-NYSE

Market Perform • Price $36.31 on July 11

by Raymond James

We are initiating coverage on shares of Citizens with an investment rating of Market Perform. While we believe the headwinds from the March 2023 bank liquidity events and the aftereffects have subsided, additional upside in CFG shares appears limited after the stock price appreciated 55% since Oct. 31, 2023.

Additionally, we expect its terminated swaps and active swaps portfolio will be a drag on net interest margins in coming quarters. Its lower-than-peer loan-loss reserves level and nonperforming-loan coverage leaves the bank at risk for higher-than-expected loan loss provisioning if the Federal Reserve does not engineer a soft landing. Net, we believe CFG shares are appropriately valued at a P/E multiple in line with or a slight discount to that of its bank peers.

Itron

• ITRI-Nasdaq

Buy • Price $100 on July 11

by Guggenheim

We are upgrading ITRI [a provider of technology for energy] from Neutral to Buy, and establishing a $130 price target. We believe that the stock’s recent pullback from $110 to $100 (versus the

S&P 500’s

6% gain over the same period) provides investors with a nice entry point. We also think the company should be in a position to show improved bookings momentum as the year progresses.

Our research, as well as a recent conversation with the company, suggests that funding made available under the Bipartisan Infrastructure Law, more specifically grid-resilience funding available through the Department of Energy’s Grid Deployment Office, should begin to flow through ITRI’s business in 2025. Our 2025 estimates are moderately above consensus, and applying a 17-times target multiple of Ebitda supports our valuation.

MGM Resorts International

• MGM-NYSE

Overweight • Price $43.91 on July 10

by J.P. Morgan

We think the risk-reward in MGM shares is favorable, offering an attractive combination of 1) reasonably good fundamentals in Las Vegas and regional gaming markets (as well as Macau), 2) appealing free cash flow generation and related balance sheet strength, and 3) an enviable development pipeline that is not priced in at all. Moreover, we see a valuation that is appealing, including a low absolute lease-adjusted enterprise value to Ebitdar multiple of 6.9x.

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