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(This is CNBC Pro’s live coverage of Monday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest post.) The new week kicked off with a downgrade to the world’s largest lithium producer and an upgrade to one of the best-known car brands in the world. UBS lowered its rating on Albemarle to neutral from buy, slashing its price target by more than 40%. The bank cited uncertainty around the company heading into the new year. Meanwhile, Barclays raised Ferrari to overweight from equal weight following a strong third-quarter report. A slew of shops also initiated coverage of Birkenstock. Check out the latest calls and chatter below. 6:37 a.m. ET: Export restrictions and 2025 will be central to Nvidia’s earnings report, Bank of America says Bank of America is optimistic heading into Nvidia earnings and said investors will be focused on two key themes that can help decide the direction of the stock going forward. Analyst Vivek Arya said the company should beat quarterly expectations and improve its outlook for future performance when reporting later this month. It has already been a banner year for the company, as the artificial intelligence craze has helped propel shares up more than 200% in 2023. Beyond that, Arya said investors will look for insights into how U.S. restrictions on the shipping of advanced artificial intelligence products to China has impacted the businesses. They will also be watching for any 2025 expectations more broadly to see if the booming demand experienced in 2023 can remain. The analyst has a buy rating on Nvidia and a price target of $650 per share. That forecast implies upside of more than 44%. — Alex Harring 6:19 a.m. ET: Barclays upgrades Dominion Energy after strong earnings Dominion Energy’s days of underperforming may soon be behind it — and investors should buy in now, according to Barclays. Analyst Nicholas Campanella upgraded the stock to overweight from equal weight and raised his price target by $2 to $47. Campanella’s price target reflects a 7.8% upside over Friday’s close. Campanella called the company’s third-quarter earnings call last week a “positive inflection point.” He specifically pointed to the fact that earnings per share revisions are likely going to hit a bottom in the next quarter. That comes amid a difficult year for the stock. Shares have tumbled nearly 29% since 2023 began, while the S & P 500’s utilities sector has lost just around 12.5% in the same period. D YTD mountain D in 2023 “D is currently in the 8th inning of a wider restructuring story which has driven … underperformance vs. UTY peers,” Campanella said, adding that it has been a “painful review” for the company. Despite the recent challenges, Campanella said Dominion’s execution on a gas distribution sale and progress toward finding an equity partner for a key project can help the company repay debt while keeping its dividend. — Alex Harring 6:10 a.m. ET: Wall Street firms initiate Birkenstock shares The Wall Street initiations are rolling in for Birkenstock nearly a month after the iconic clog shoemaker went public. Banks such as Citi, Goldman Sachs and JPMorgan initiated the stock with buy-equivalent rating. “Birkenstock is a one-of-a-kind brand that sells (using a scarcity model) comfort footwear that is also ergonomically as intended by nature to provide the correct support for the foot,” said Citi’s Paul Lejuez. “BIRK is one of the fastest growing companies in retail and has industry leading EBIT margins.” Baird also initiated the stock with an outperform rating, referencing the movie “Happy Feet.” “Birkenstock is an iconic brand with a storied history that has endured though decades/generations of fashion cycles,” Baird analyst Mark Altschwager said. “The company is unlocking the potential of the brand through disciplined channel management, compelling product innovation, and investments in production capacity, together supporting growth even in a weaker macro spending backdrop.” But not everyone was ready to name the stock a buy. Morgan Stanley analyst Edouard Aubin, for example, gave Birkenstock an equal-weight rating. “Birkenstock’s equity story possesses a number of attractions from a financial standpoint,” Aubin said. “However, we see these as largely priced in.” Shares added 1.2% before the bell on Monday. — Alex Harring 5:37 a.m. ET: Barclays upgrades Ferrari, says there’s a buying opportunity in the luxury automaker Barclays has turned more bullish on Ferrari , saying there’s finally an opportunity to buy into the carmaker. Analyst Henning Cosman upgraded the stock to overweight from equal weight.. It has already been a strong year for the stock, with U.S. shares up more than 54% in 2023. RACE YTD mountain RACE year to date Cosman called the company’s third-quarter earnings report last week “very strong,” though he noted full-year guidance was left “undemanding” despite being raised. He added that commentary around pricing, mix, the personalization business and order book pffered positive signals for performance between 2024 and 2026. Ultimately, he said investors should “take the plunge” and buy the stock off earnings. “Like many, we have always liked Ferrari for its impressive execution, unique earnings visibility and strong insulation from macro factors thanks to its UHNWI target audience,” Cosman said, using the acronym for ultra-high-net-worth individuals. “However, also like many, we were hoping for a better entry point, as factors like its EURO STOXX 50 inclusion, a priced-in guidance increase and all-time low discount to Hermes … all made Ferrari’s valuation seem pretty full. We are pivoting from this view today.” — Alex Harring 5:37 a.m. ET: UBS downgrades beat-down lithium stock Albemarle as demand slides UBS is moving to sidelines on Albemarle as the firm said it saw increased uncertainty for the chemical stock. Analyst Joshua Spector downgraded the stock to neutral from buy and slashed his price target to $140 from $253. Still, Spector’s new target still implies an upside of 9.4% over Friday’s closing, underscoring how much shares have struggled in 2023 with the stock down about 41% year to date. “We see a greater risk to lithium volume growth and more downside earnings risk to 2024,” Spector told clients on Monday. ALB YTD mountain ALB in 2023 Spector pointed to the fact that the price of lithium, one of Albemarle’s main focus areas, has turned down in recent weeks after beginning to move positive as one reason for concern. Others include less optimistic growth expectations for the electric vehicle market and worse spodumene prices. After the stock’s selloff this year, Spector said the stock could be undervalued if prices rise if there’s a more normalized environment in 2025. But he said he’d need more visibility into demand, pricing and capital expenditure trends to get more optimistic. — Alex Harring
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