Wall Street analysts are issuing a flurry of upgrades and price target hikes this Friday morning, reflecting a generally bullish outlook across diverse sectors, from luxury automobiles and e-commerce to energy infrastructure and pharmaceuticals. Several major companies are seeing significant upward revisions in their valuations, driven by factors such as the burgeoning **artificial intelligence (AI)** market, robust growth in emerging economies, and the success of innovative new products. This wave of positive sentiment underscores investor confidence in a number of key market players and their potential for continued growth.
Key Takeaways: Wall Street’s Bullish Friday
- Nvidia receives a price target hike, fueled by the escalating demand for AI compute.
- Ferrari‘s resilience against the slowing Chinese economy earns it an upgrade to “overweight.”
- Eli Lilly‘s impressive weight-loss drug performance leads to increased estimates and a target price boost.
- Mercado Libre, a Latin American e-commerce giant, receives a “buy” rating amidst regional market growth.
- Kinder Morgan benefits from increased AI-driven energy demand, resulting in an upgrade and a higher price target.
Goldman Sachs Amplifies Nvidia’s AI-Fueled Growth
Goldman Sachs has significantly increased its price target for Nvidia shares, boosting it to $150 from $135. This represents an 11.3% upside potential from Thursday’s closing price. Analyst Toshiya Hari attributes this positive outlook to the robust and ever-increasing demand for AI compute. Hari’s analysis highlights a previously underestimated aspect of the AI market: AI Inference. While initially viewed as less intense than other segments, Hari argues that the intensity of AI Inference is rapidly escalating and “could grow exponentially in the future,” directly impacting Nvidia’s growth trajectory. Hari’s confidence stems from Nvidia’s “full-stack approach,” which positions the company to strategically capture the expanding market share in AI Inference – a segment already nearing ~50% of Nvidia’s Data Center revenue. The analyst also points to the strong forward visibility in the data center segment as further evidence supporting their bullish prediction. Year to date, Nvidia shares have shown phenomenal growth, climbing a staggering 172.2%.
Ferrari’s Strength Amidst Global Economic Uncertainty
JPMorgan Chase has upgraded Ferrari to an “overweight” rating, raising its price target to $525 from $385. This represents a substantial 16% potential increase from Thursday’s close. Analyst Ryan Brinkman’s assessment is noteworthy, as it directly counters concerns surrounding the weakening Chinese economy – a factor that has negatively impacted other European luxury brands and automakers. Brinkman expresses confidence that Ferrari will “prove impervious” to this economic slowdown. He attributes this resilience to Ferrari’s unique “scarcity-driven growth strategy,” which has resulted in price increases of as much as 30% for new vehicles compared to their predecessors. This strategy, according to Brinkman, provides significant visibility into Ferrari’s future earnings growth, a critical advantage that many other luxury brands lack. In his research note, Brinkman emphasized that Ferrari possesses “idiosyncratic drivers of high visibility earnings growth likely to be increasingly valued by investors amidst growing macro, industry, and geopolitical uncertainty.” Ferrari’s stock has already seen considerable growth in 2024, rising approximately 34%.
Eli Lilly’s Weight-Loss Drugs Drive Upward Revisions
Morgan Stanley has increased its price target for Eli Lilly shares to $1,158 from $1,106, suggesting a potential gain of more than 27% based on Thursday’s closing price. The firm maintained its “overweight” rating on the stock, driven by upward revisions in the sales projections for Mounjaro and Zepbound – two of Eli Lilly’s blockbuster GLP-1 weight-loss treatments. Analyst Terence Flynn explained that the firm’s focus extended beyond the current quarter, emphasizing the importance of commentary informing the 2025 dynamics of these key drugs. Flynn stated, “Moreso than the quarter we are focused on commentary that informs 2025 Mounjaro/Zepbound dynamics, given we are ~30% ahead on 2025 sales (MS $39bn vs. Cons $29bn).” Eli Lilly shares have already experienced significant growth this year, surging 56.2% year to date.
Mercado Libre: Capitalizing on Latin America’s E-commerce Boom
Redburn Atlantic has initiated coverage of Mercado Libre with a “buy” rating and a bold price target of $2,800. This represents a predicted 37.2% upside from Thursday’s closing price. The firm highlights Mercado Libre’s dominant position in the Latin American e-commerce market, a sector that, unlike its American counterpart, is still in a phase of considerable acceleration. Analyst Gonzalo Lopez emphasizes that while the U.S. e-commerce market is showing signs of slowing growth, Latin America presents a significantly different scenario. Lopez noted that the sector is “still at the point of acceleration” in Latin America, further aided by lower interest rates globally. He further elaborated on Mercado Libre’s strong position within the market, stating that “MELI’s strong brand, extensive inventory, loyal customer base and growing fulfillment capabilities suggest years of very strong growth.” Lopez believes this trajectory will lead to amplified scale advantages, improved margins, and significant earnings growth, while simultaneously opening doors for expansions into related verticals, including first-party products and advertising. Mercado Libre’s Mercado Credito lending segment is also seen as a significant value-generating asset, capitalizing on fintech opportunities in the region.
Kinder Morgan Rides the Wave of AI-Driven Energy Demand
Bank of America has upgraded Kinder Morgan, an energy infrastructure company, to a “buy” rating, concurrently raising its price target from $23 to $27. This implies a potential upside of nearly 14%. Analyst Neel Mitra argues that Kinder Morgan is a direct beneficiary of the rising demand for energy fueled by the growth of AI and electrification initiatives. Mitra’s rationale emphasizes the inherent value in contracted natural gas pipe companies in a period marked by energy market uncertainty. He explains, “With uncertainty about energy, we see value in contracted natural gas pipe companies. And given demand pull from Gulf Coast LNG projects and AI/utility electrification, KMI stands to benefit from contracted long-term growth.” Mitra’s projection includes an increase in the company’s free cash flow of $200 million to $300 million in the coming years, partially attributed to lower interest rates. Kinder Morgan’s stock has performed strongly in 2024 already, showing a rise of around 35%.
