Wells Fargo has raised its price target on AMD after the company’s latest acquisition in the artificial intelligence space. Analyst Aaron Rakers sees this as a positive move for the stock and has reiterated his overweight rating. The acquisition of Silo AI, the largest private AI lab in Europe, for $665 million is expected to deepen AMD’s internal open-source AI software expertise. This strategic move could help AMD gain an additional 11.4% in stock value, according to Rakers. The deal with Silo AI complements AMD’s previous acquisitions in the AI software sector, showcasing the company’s commitment to expanding its capabilities in this area.
Bank of America is optimistic about Apple’s future, particularly with a strong iPhone refresh cycle on the horizon. Analyst Wamsi Mohan has raised his price target on Apple by $26 to $256, suggesting a nearly 10% upside potential. This increase is driven by the anticipation of a multi-year iPhone upgrade cycle, which could be fueled by GenAI features and an aging installed base. Mohan’s confidence is also supported by the growth in Apple’s service revenue and potential margin expansion. With customer loyalty remaining high, Apple is expected to see increased intent from consumers to upgrade their iPhone models, as revealed in a recent global smartphone survey conducted by Bank of America.
Bank of America has raised its price target on Costco following the retailer’s announcement of an annual membership fee hike. Analyst Robert Ohmes sees this move as a positive indicator for Costco’s stock, which he believes has a “premium valuation.” The increase in membership fees is projected to drive additional income for Costco over the next two fiscal years, without impacting earnings per share. Ohmes is optimistic about Costco’s ability to gain market share, especially as consumers adjust to higher prices in the current economic environment. The company’s continued strength in same-store sales further supports its earnings visibility going forward.
Jefferies has upgraded Spotify Technology to a buy rating from hold, with a price target of $385, implying a 26.2% upside potential. Analyst James Heaney is confident in Spotify’s ability to deliver sustainable revenue growth of over 15% in the next three years. He sees a potential for music to undergo a repricing phase, highlighting the value proposition of Spotify’s subscription model compared to traditional video streaming services. With Spotify shares already surging in 2024, this upgrade reflects a positive outlook on the future performance of the audio streaming giant.
These analyst calls and stock upgrades provide valuable insights into the growth prospects of companies like AMD, Apple, Costco, and Spotify. The positive outlook on these stocks is driven by strategic acquisitions, upcoming product cycles, pricing strategies, and market positioning. Investors may consider these updates when making decisions regarding their investment portfolios, taking into account the potential upside indicated by these analysts’ recommendations.