4 analyst calls of the day: Apple is a buy, says Goldman | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of some of this morning's biggest analyst calls that you may have missed on InvestingPro. Start your free 7-day trial to get this news first.

Apple started at Goldman with Buy

Goldman Sachs initiated coverage on Apple (NASDAQ:AAPL) with a Buy rating and a price target of $199.00, noting that the company’s success in premier hardware design and resulting brand loyalty has led to a growing installed base of users that provide visibility into revenue growth by reducing customer churn, lowering customer acquisition costs for new product and services launches, and encouraging repeat purchases.

“The installed base growth, secular growth in services, and new product innovation should more than offset cyclical headwinds to product revenue (e.g., longer replacement cycles, slowing industry growth for PCs & tablets),” added the firm.

Meanwhile, last week Morgan Stanley raised its price target on the company to $180.00 from $175.00 while maintaining an Overweight rating and reaffirming the Top Pick designation as it sees several catalysts that can help shares re-rate higher.

Morgan Stanley says near-term catalysts include pent-up iPhone demand, services re-acceleration, underappreciated gross margins upside, and Apple's first new product launch in 8 years. Beyond the near term, the firm sees a catalyst-rich event path over the next 12 months that is underappreciated by investors, including reaccelerating iPhone and Services growth, record gross margins, two new product launches, and the potential introduction of an iPhone subscription program.

Also last week, Bloomberg News reported that Apple's top executive Michael Abbott, who heads the iCloud service, is leaving the company in April, citing people familiar with the matter.

Fresh IPO Nextracker initiated at several brokerages

Citi initiated coverage on the new IPO Nextracker (NASDAQ:NXT) with a Neutral rating and a price target of $36.00. While noting that the company is a global leader in the rapidly growing solar tracker market, with a strong balance sheet, management team, patent portfolio, and global supply chain, Citi said it has modest margins, equity overhang risk, UP-C structure with Flex control, and is already priced at a premium valuation.

Mizuho Securities initiated coverage on the company with a Buy rating and a price target of $40.00, noting that the company stands to benefit from the global transition to renewable energy. “Global clean energy policies should accelerate the transition to zero-emission generation and utility-scale solar will likely play a larger role after years of falling costs,” added the firm.

Furthermore, Barclays and JPMorgan initiated coverage on the company with an Overweight rating and a $42 price target. Meanwhile, KeyBanc initiated coverage with a Sector Weight rating.

Shares closed the week with a 10% gain.

Two more rating moves

Redburn upgraded Monster Beverage (NASDAQ:MNST) to Buy from Neutral.

Piper Sandler initiated coverage on Chinook Therapeutics (NASDAQ:KDNY) with an Overweight rating and a price target of $41.00. Shares gained more than 9% last week.