(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Tesla and a major bank were in focus Wednesday as part of the day’s analyst chatter. The EV maker got a price target cut from Citi, citing concern round the company’s upcoming delivery numbers. Wells Fargo was downgraded to market perform by KBW, which noted the stock is due for a consolidation phase after outperforming recently. Check out the latest calls and chatter below. All times ET. 6:50 a.m.: UBS raises Disney price target UBS said multiple tailwinds ahead for Disney could turn the stock into “an earnings compounder.” The firm, which already had a buy rating on shares, raised its price target on Disney by $20 to $140. This suggests shares adding 16.7% from where they closed Tuesday. “We remain bullish on Disney shares and believe there is potential upside to the model in a number of areas that should push consensus estimates up over the next several quarters,” analyst John Hodulik wrote in a note. Hodulik highlighted the park segment’s outperformance, which he expects will be further strengthened by new spending over the next several years. Hodulik also underscored Disney’s direct-to-consumer segment as the largest near-term upside driver, which he forecasts will break even by the fiscal fourth quarter and reach 10% margins in 2026. Disney has been embroiled in an acrimonious proxy battle with activist investor Nelson Peltz. The upcoming shareholder vote could contribute to some near-term volatility for the stock, according to Hodulik. — Hakyung Kim 6:28 a.m.: HSBC initiates buy rating on Spotify Spotify is “hitting the right notes” as a music streaming leader, according to HSBC. Analyst Joseph Thomas initiated coverage on Spotify with a buy rating and $310 price target. This suggests 17% upside potential for shares from Tuesday’s close. Spotify is already the preeminent name in the music streaming business — and “new verticals with large opportunities” could help it capture opportunities beyond music in areas such as podcasts and audiobooks, Thomas said in a Wednesday note. These efforts could help the company finally achieve profitability, he added. “Spotify has historically been loss making but recent restructuring, alongside improved podcast profitability, should help to move it to an operating profit in 2024. From here, we see significant potential for margins to move upwards as mix shifts away from music towards higher margin verticals and as Spotify’s promotional business continues to quickly expand,” said Thomas. Shares have surged nearly 40% year to date. SPOT YTD mountain SPOT in 2024 — Hakyung Kim 6:12 a.m.: BMO upgrades mining company to outperform Precious metals mining company Royal Gold has a compelling valuation, according to BMO Capital Markets. Analyst Jackie Przybylowski upgraded the stock to outperform from market perform. She also raised her price target to $158 from $148, implying the stock could rally 45% from where it closed on Tuesday. “Royal Gold’s valuation is now more compelling under our new commodity price assumptions and with modest relative underperformance of Royal Gold share price year to date,” Przybylowski said in a Wednesday client note. Przybylowski cited a positive environment for new stream and royalty deals for the company in 2024. Royal Gold’s asset quality and portfolio is also strengthening, the analyst added. “We see strong potential for this business model this year,” Przblyowski said. “Even smaller deals will still ‘move the needle’ for Royal Gold. … [which is] large enough to compete and small enough to show growth,” she added. Shares are down 9% in 2024. — Hakyung Kim 5:49 a.m.: Tesla partnership with battery maker potentially a ‘game changer,’ per Morgan Stanley Morgan Stanley’s Adam Jonas says a partnership between Tesla and Chinese electric vehicle battery maker CATL could “recharge” the U.S. EV market. According to reports earlier in the week, Tesla and CATL are working together on a fast-charging battery in Nevada. Although CATL is “effectively barred” from directly selling into the U.S. market due to geopolitical tensions, it supplies automakers by licensing its technology to partners. If a partnership materializes, this “battery ‘power couple'” could “re-charge the U.S. EV market,” which is “in need of high quality, cheap battery tech,” Jonas wrote in a note on Tuesday. “Tesla-CATL could be a game changer,” said Jonas. “In our view, Tesla is in a very strong position to ‘on-ramp’ Chinese EV tech to the U.S. In leveraging Chinese manufacturing know-how, Tesla can deliver a $25k EV and drive EV adoption in the US.” Jonas has an overweight rating and $320 price target on shares, which suggests more than 85% upside potential for the shares. Tesla’s stock has declined nearly 29% in 2024 as the company grapples with slowing demand and higher competition, particularly from Chinese…
Read More: All the market-moving Wall Street chatter from Wednesday