(This is CNBC Pro’s live coverage of Wednesday’s analyst call and Wall Street chatter. Refresh every 20-30 minutes for the latest posts.) Stocks analysts mentioned Wednesday included chipmakers and lab equipment makers. Morgan Stanley raised its price target on Ambarella to $73, implying a nearly 40% upside. Meanwhile, Wells Fargo initiated an overweight rating on Thermo Fisher. Check out the latest calls and chatter below. All times are ET. 6:12 a.m.: Deutsche Bank upgrades ArcelorMittal. Despite a “bearish cycle” that has forced more bullish ArcelorMittal investors into a “reality check,” Deutsche Bank thinks the stock still has significant upside potential at current trading levels. The firm upgraded the steel producer’s stock to buy from hold on Wednesday and raised its price target. The U.S.-listed stock has fallen more than 17% in 2024. “We expect the second half to be challenging (and still slightly below Wall Street),” said analyst Bastian Synagowitz. “However, we believe the risks are better understood at this level, as we are near the bottom of the physical cycle.” The analyst added, “Given the substantial growth pipeline in a high-multiple business (most of the capex has already been spent), we think this offers significant upside potential.” — Brian Evans 5:56 a.m.: Wells Fargo labels Thermo Fisher as overvalued As fundamentals improve in the life science tools and diagnostics startup sector, Wells Fargo has named Thermo Fisher as one of its picks to play in the space. The firm initiated coverage of the lab tools maker with an overvalued rating and a price target of $670 per share. Wells’ forecast implies an upside of about 10% from Tuesday’s close. Analyst Brandon Couillard highlighted the company’s “unparalleled scale, breadth” and “top-notch” management as among his bullish catalysts. Thermo Fischer has the second-highest exposure to the biopharmaceutical sector in Wells Fargo’s coverage universe. “TMO believes that more activity will start to come out of China, and given that their network is effectively 100% U.S. and Western Europe, they are likely to be a beneficiary,” Couillard said. Shares are up 15% in 2024. TMO YTD is TMO YTD — Brian Evans 5:56 a.m.: Morgan Stanley Raises Ambarella Price Target Following Ambarella’s latest quarterly results, Morgan Stanley is expecting more earnings going forward. Analyst Joseph Moore raised his price target on the chipmaker to $73 from $67. The new target represents a 38% upside from Tuesday’s close. Ambarella reported a narrower-than-expected loss in the second quarter, and revenue beat estimates. The company’s guidance for third-quarter revenue was also stronger than expected. Shares rose 21% in premarket trading following the earnings report. AMBA YTD mountain Ambarella Since the beginning of the year, “Ambarella has delivered a strong quarter with an exceptionally bullish outlook,” Moore wrote. “Inventory adjustments are now largely complete, and second-half revenues should reflect real end-market demand.” “While the current economic environment will be a headwind — global auto production is expected to decline this year and the enterprise/consumer market will be mixed — the strength of Ambarella’s technology and increased demand for its new inference chips should more than offset this demand,” he added. The stock rally will be welcomed by Ambarella investors. The stock is down more than 13% since the beginning of the year. — Fred Imbert
All the stories that moved the markets on Wall Street starting Wednesday
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