(This is CNBC Pro’s live coverage of Tuesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A streaming giant and a semiconductor maker were among the stocks being talked about by analysts on Tuesday. TD Cowen raised its price target on Netflix, calling for 13% upside for the stock. Meanwhile, KeyBanc hiked its Nvidia target to $180, implying upside of 40%. Check out the latest calls and chatter below. All times ET. 6:02 a.m.: Bank of America lifts credit rating for Devon Energy to overweight upon latest acquisition Bank of America views Devon Energy’s newest acquisition as a positive sign for its credit story. The bank upgraded the energy company’s credit rating to overweight rating from market weight upon Monday’s announcement that Devon Energy was planning to acquire Grayson Mill Energy’s Williston basin business in a $5 billion deal. “Fundamentally, we view the deal positively as it increases DVN’s scale / margin profile in the Williston basin while also providing diversification away from the Permian basin (where DVN’s production is concentrated),” wrote analyst Daniel Lungo. To finance the deal, the analyst expects the company to issue between $1 billion and $1.5 billion of long-term debt, and around $1.5 billion of term loans. He cited this enhanced liquidity as one catalyst for the stock, alongside a deleveraging outlook and improved fundamentals. “We think the most important impact from the transaction will be the potential new issuance of benchmark bonds which would enhance liquidity in DVN’s outstanding notes, helping bonds trade tighter (in our view), given the company’s current relatively off-the-run illiquid nature,” the analyst said. “We also think this announcement removes some risk that DVN could participate in a larger scale / more levering transaction, which we view positively for its credit story.” Shares of Devon Energy ended Monday’s session 1% lower and have overall added 2% this year. — Lisa Kailai Han 5:50 a.m.: Piper Sandler upgrades Bank of America to neutral Bank of America could get a boost on the back of its upcoming earnings results, according to Piper Sandler. Analyst R. Scott Siefers upgraded the bank to neutral from underweight. The analyst also raised his price target to $42 from $37, indicating a potential 3% upside from the stock’s Monday afternoon close. “We still see better opportunity in peers C and JPM, which are both OW rated. But with BAC’s NII likely to trough this Q and then begin a more powerful inflection upward, we no longer see compelling reason to single out the name for underperformance,” Siefers wrote. Shares of Bank of America have rallied 21% this year. JPMorgan Chase has added the same amount, while Citigroup stock is up 26% year to date. With net interest income flatlining around $13.9 billion in the second quarter of this year, Siefers predicts this measure could leap to between $14.5 billion and $14.6 billion by year-end. “BAC is certainly among the industry leaders here,” the analyst added. “Given the combination of its scale benefits and now-inflecting NII, we simply think it’s appropriate to ascribe a higher multiple to the shares than we have assumed previously.” Bank of America is due to report earnings July 16. — Lisa Kailai Han 5:44 a.m.: TD Cowen lifts Netflix price target ahead of second-quarter earnings announcement TD Cowen expects more gains ahead for Netflix . Analyst John Blackledge raised his price target for the stock to $775 from $725, while maintaining his buy rating on the stock. The new target points to 13% upside from Monday’s close. The increase comes ahead of Netflix’s second-quarter earnings report which is slated for next week. “We think Netflix’s broad catalog across multiple genres creates a durable advantage over time,” the analyst said, noting that TD Cowen’s second-quarter consumer survey showed Netflix as still taking to top spot for living room viewing. Besides the company’s second-quarter earnings and third-quarter outlook, Blackledge also cited paid sharing initiatives and Netflix’s ad-supported tier as near-term catalysts. “Any further pricing increases in one of the company’s major markets could also act as a catalyst,” he added. Netflix has rallied 41% this year. NFLX YTD mountain NFLX year to date — Lisa Kailai Han 5:44 a.m.: KeyBanc hikes Nvidia price target The good times for Nvidia are not over yet, according to KeyBanc. Analyst John Vinh raised his price target on the semiconductor stock to $180 from $130. The new forecast implies upside of 40% from Monday’s close. “Positive takeaways for NVDA include: 1) despite the impending launch of Blackwell in 2H24, we are not seeing any signs of a demand pause as demand for H100 remains robust, as we continue to see rush orders; and 2) the interest and demand in GB200 is greater than we initially had sized,” he said in a note to clients. Nvidia has been a market stalwart this year, with shares rallying 158.9% as enthusiasm around artificial intelligence shows no signs of easing. NVDA YTD mountain NVDA year to date KeyBanc isn’t the only firm getting more bullish on Nvidia. Wolfe Research and UBS recently increased their targets on Nvidia to $150 each. — Fred Imbert
