(That is CNBC Professional’s reside protection of Monday analyst calls and Wall Road chatter. Please refresh each 20-Half-hour to view the newest posts.) An electrical automobile inventory and a house enchancment large had been in focus Monday amongst early analyst calls. Barclays lowered its score on Rivian Automotive to equal weight, citing headwinds for the corporate forward. JPMorgan, in the meantime, upgraded Lowe’s to obese on the prospects of decrease mortgage charges. Take a look at the newest calls and chatter beneath. All occasions ET. 5:52 a.m.: Piper Sandler upgrades Teva Pharmaceutical to obese It is time to choose up shares of Teva Pharmaceutical , Piper Sandler stated. Analyst David Amsellem U.S.-listed upgraded shares to obese from impartial and raised his worth goal by $7 to $19, indicating 58% potential upside. The inventory —which has rallied greater than 15% this yr — climbed 2.75% in premarket buying and selling Monday. In keeping with Amsellem, Teva’s shares are “well-positioned” for a number of restoration and enlargement, as a consequence of: The corporate’s neuroscience enterprise, led by the Austedo franchise, can drive longer-term EBITDA stability Teva’s U.S. generics/biosimilars enterprise that’s better-positioned for muted strain, Amsellam stated, noting that the corporate’s roughly 13 generic product launches between 2024 and 2025 ought to drive stability Teva’s enhancing capital construction “All told, we believe that growing contribution from the brand portfolio, coupled with relative stability from U.S. generics, ultimately points to high visibility into longer-term EBITDA stability at a minimum,” Amsellam wrote in a Sunday notice. — Pia Singh 5:43 a.m.: Purchase Lowe’s forward of mortgage charges decline, JPMorgan says The Federal Reserve is predicted to begin easing financial coverage later this yr, which may result in decrease mortgage charges — boosting Lowe’s , in response to JPMorgan. Analyst Christopher Horvers upgraded the house enchancment large to obese from impartial. The analyst additionally raised his worth goal on the inventory to $265 from $210, implying upside of 19.2%. “The market is pricing in 150 bps in rate cuts by this time next year, which suggests mortgage rates fall to ~5.5% by Jan 2025, with levels implied near 6% by September 2024,” Horvers wrote. “The last time mortgage rates were at 5.5%, single family [existing home sales] trended at ~4.3MM homes, which would represent a > 20% growth rate from recent levels.” Lowe’s shares have struggled in 2024, dropping 0.1%, whereas the S & P 500 has climbed 5.4% to document ranges. LOW .SPX YTD mountain LOW vs SPX in 2024 — Fred Imbert 5:43 a.m.: Barclays downgrades Rivian Automotive amid broader EV market slowdown Provide constraints are only one near-term headwind for Rivian Automotive , in response to Barclays. Analyst Dan Levy downgraded shares to equal weight from obese. He additionally lowered his worth goal by $9 to $16, suggesting simply over 4% upside from the inventory’s newest shut at $16.68.Levy listed three key points at the moment dealing with Rivian: The corporate gives a “great” product and expertise, however that is not sufficient to keep away from elevated indicators of demand strain amid broader electrical automobile slowdown Softer demand implies a revenue danger, with slower quantity progress making it more durable for the corporate to realize optimistic margins and money circulate Rivian’s ongoing want for capital raises “The consequences of weak demand are significant. Not only does it mean that the volume outlook is challenged, but it also presents potential pricing risk – with both points reinforcing RIVN is likely to miss its 2024 target of reaching gross margin profitability,” Levy wrote in a Monday notice. “Moreover, with ongoing capital needs given preparation for the high volume R2 in 2026, we see future pressure.” Nonetheless, Levy’s equal weight score depends on his perception that Rivian is well-positioned to take “solid share” within the North American EV market, permitting for higher long-term upside. — Pia Singh
