(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.) There were several notable calls Friday morning on J & J, Spotify and Alibaba. Check out the latest calls below: 6:25 a.m. ET: Morgan Stanley downgrades Alibaba Morgan Stanley cut Alibaba to equal-weight from overweight and lowered the firm’s price target to $90 from $110. The firm cited a slower turnaround for its cloud business. “Our previous OW thesis on Alibaba was premised on the assumptions of a fundamental turnaround in core businesses, reorganization to unlock shareholder value, and sizeable capital management potential. However, we have turned more cautious on each of the above given recent developments,” stated the note. The new target still represents 20% upside from Thursday’s close. Morgan Stanley said PDD Holdings was its top China e-commerce pick, saying its Temu business was “not fully valued by the market.” —John Melloy 5:53 a.m. ET: Citi downgrades Spotify, says risk-reward is no longer compelling It’s time to move to the sidelines on shares of Spotify , according to Citi. Analyst Jason Bazinet downgraded the streaming stock to neutral from buy, but left his price target unchanged, saying expectations may be too high after a double in the stock this year. “While we like Spotify’s strategy and execution, we no longer believe the risk-reward is compelling,” Bazinet wrote on Thursday. “And, when we look at consensus estimates, we see a few reasons to be a tad more cautious.” SPOT YTD mountain Spotify, year-to-date Of note, the analyst worries consensus expectations for Spotify’s ability to raise the average revenue per use (ARPU), while simultaneously reducing the number of users who stop using the platform, are too confident. “While our forecast (and the Street’s) expects Premium subs to continue growing, any surprises may cause a material re-rating of the equity as investors shift from EV-persub metrics to more traditional levered FCF multiples,” Bazinet wrote. Spotify shares are up by 134% this year. The analyst’s $190 price target implies shares can rise just 2.6% from where they closed Thursday. The stock is down 1.5% in Friday premarket trading. —Sarah Min 5:40 a.m. ET: UBS upgrades Johnson & Johnson to buy, cites improved outlook Johnson & Johnson is a buy given the improved outlook in its pharmaceutical business, UBS said. Analyst Danielle Antalffy upgraded shares to buy from neutral ahead of the firm’s upcoming analyst day, citing an “increasingly bullish” view on the company’s ability to deliver upside on total sales. Specifically, the analyst said the potential in Darzalex, the prescription drug to treat multiple myeloma, is underappreciated. “Our Buy rating reflects our increased confidence into JNJ’s ability to deliver above-consensus Pharma sales growth and at least in-line MedTech growth for the next few year,” Antalffy wrote on Friday. “Importantly, our conviction in the Pharma outlook is driven more by existing, already commercially available drugs in DARZALEX, STELARA (generic erosion overdone given precedent and launches on the horizon), and TREMFYA, which we believe to be underappreciated,” Antalffy added. The stock is down by more than 12% in 2023. However, the analyst’s $180 price target, raised from $167, suggests 16% upside from Thursday’s close. The stock was higher by nearly 1% in Friday premarket trading. —Sarah Min 5:30 a.m. ET: Bank of America hikes Costco price target Bank of America hiked its price target on Costco to $655 from $610 after the warehouse retailer reported a 4.4% increase in November sales, excluding gasoline and FX impact. “We reiterate our Buy rating and expect COST (and other warehouse clubs) to gain share in the current environment as consumers continue to adjust to higher prices, making COST’s value proposition more attractive,” wrote analyst Robert Ohmes. COST YTD mountain Costco YTD The new target represents a 10% increase from Thursday’s close. —John Melloy
