(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A biotech stock and an energy company were among the names being talked about by analysts on Friday. JPMorgan downgraded Moderna to underweight from neutral. Meanwhile, BMO Capital Markets initiated GE Vernova with an outperform rating. Check out the latest calls and chatter below. All times ET. 7:44 a.m.: Citi resumes coverage of Eli Lilly Increased Zepbound forecasts for the near-to-medium term may send Eli Lilly shares higher, according to Citi. The firm resumed coverage on the stock with a buy rating and set its price target at $1,060, which implies more than 13% upside from Thursday’s close. Citi also hiked its adjusted earnings outlook for Eli Lilly by up to 19% through 2027. “We believe there is upside to current investor expectations across its broad portfolio,” analyst Peter Verdult wrote in a note to clients. “We believe the market currently underestimates the potential for key diabetes and obesity drugs Mounjaro and Zepbound (tirzepatide) and the diabetes/obesity pipeline (retatrutide and orforglipron), as well as other assets including Omvoh in UC and Crohn’s, and Verzenio in adjuvant breast and prostate cancer.” Verdult also believes that the competitive threat from Roche’s obesity pill has been “diminished” given an “elevated heart rate and high nausea instance.” This year, Eli Lilly shares have soared more than 60%. — Sean Conlon 7:29 a.m.: Deutsche Bank says sell AstraZeneca Challenges may be in store for AstraZeneca over the next year, according to Deutsche Bank. The firm downgraded its rating on the stock to sell from hold, with analyst Emmanuel Papadakis pointing to the disappointing performance of the company’s experimental drug datopotamab deruxtecan. “Having been longstanding supporters of the enviable oncology-driven innovation/growth story at AZN, it challenged us as much as any to accept the reality that TROP2 asset datopotamab was not going to be the next breakthrough in lung cancer we had hoped last Summer,” the analyst wrote in a note. He added that events such as the detailed data presented at the European Society for Medical Oncology (ESMO) Congress last year increased the likelihood of regulatory hurdles. The drug data presented this week, Papadakis said, raised new concerns. As a result, Papadakis believes AstraZeneca’s risk-reward profile has become “outright challenging” over the course of the next six to 12 months due to its fiscal 2025 forecast facing downside risk and catalysts being skewed to the second half of next year. “These seasonal festivities don’t look particularly appealing,” the analyst also said. Shares of the biopharmaceutical company have risen more than 17% year to date. — Sean Conlon 6:43 a.m.: Raymond James initiates Arm as outperform Arm is primed for more growth ahead with its content story still in “early innings,” according to Raymond James. The firm initiated coverage with an outperform rating and a $160 price target, which implies around 15% upside from Thursday’s close. Analyst Srini Pajjuri believes the semiconductor company is well-positioned to benefit from generative AI adoption and expects the trend to contribute to more than 20% revenue growth at the company through fiscal year 2026. “GenAI is a meaningful tailwind to ARM CPUs in data centers, and the company also stands to benefit from a potential AI-driven iPhone upgrade cycle,” the analyst said. “While ARM is not directly participating in the data center AI accelerator market, we see that as a good possibility longer term, which could significantly expand its [software asset management].” Pointing to content increases in mobile and penetration of the company’s technology in the auto, data center and PC markets, Pajjuri believes Arm is poised for “sustainable double-digit growth for the next several years.” He added that the company’s Compute Subsystems in particular will become another content driver later this year. Shares of the company have surged this year, with the stock rising more than 85%. — Sean Conlon 6:19 a.m.: Pivotal says buy TKO Group A competitive media landscape could mean gains for TKO Group , according to Pivotal Research Group. The firm initiated coverage on the stock with a buy rating and a price target of $170. That implies nearly 48% upside from Thursday’s close. Analyst Jeffrey Wlodarczak highlighted the strength of the sports and entertainment company’s business model, noting high EBITDA margins and strong free cash flow conversion rates. He also pointed to “relatively under-monetized” assets on multiple fronts. “It is a play on the continued heightened competitive environment in the distribution business,” the analyst said in a note, adding that the inclusion of Internet streaming players into sports rights bidding could make the media landscape even more competitive. “In our view, the battle to stay relevant will force traditional media players into more aggressive sports rights offers, while ownership of sports rights by large cap tech will accelerate advertising away from traditional players while bolstering their core businesses,” the analyst said in a note. TKO Group shares are up nearly 41% year to date. TKO YTD mountain TKO in 2024 — Sean Conlon 5:49 a.m.: JPMorgan downgrades Moderna to underweight JPMorgan sees a rocky road ahead for Moderna . The bank downgraded the stock to underweight from neutral and decreased its price target to $70 from $88, implying less than 1% upside from Thursday’s close. Though the firm welcomes the expense discipline exhibited by Moderna’s cost-cutting plans, analyst Jessica Fye said the company’s recent change to its long-term revenue forecast is weighing on the stock. She also pointed to Moderna’s 2025 top-line outlook as being lower than the expected figure in product sales for 2024. “We are projecting the launch of multiple new products over the coming years, however our 2028 rev est falls shy of the $6bn targeted to achieve operating cash breakeven that year,” the analyst wrote in a Thursday note. Another headwind, Fye said, is feedback from the Food and Drug Administration that it’s not in favor of accelerated approval for the company’s individualized neoantigen therapy (INT) in adjuvant melanoma. “We think it could be challenging for the stock to perform apace with the group and therefore we rate MRNA Underweight,” the analyst also said. Shares have fallen around 30% year to date. MRNA YTD mountain MRNA year to date — Sean Conlon 5:49 a.m.: BMO says GE Vernova is a buy Investors looking for a way to play the transition toward clean energy should buy GE Vernova , according to BMO Capital Markets. Analyst Ameet Thakkar initiated coverage of the General Electric spin-off with an outperform rating. His price target of $245, which implies upside of nearly 14% from Thursday’s close. “We see the successful transition of the power electric industry involving five Ds: Decarbonization, Demand, Dispatchability, Decentralization, and Debottlenecking,” Thakkar wrote. “GEV is the only company under our current coverage with the scale, products, and market leadership that can check all five boxes.” The analyst added he’s also bullish on “potential emerging super-cylce for Gas Power next decade and optimistic onshore wind rebounds, offshore issues transitory. Electrification growth should help drive improvement in consolidated EBITDA margins.” GE Vernova was spun off from General Electric on April 2. Over the past three months, shares are up more than 22%. GEV 3M mountain GEV 3-month chart — Fred Imbert
