LB Takeaway | BYD price target up to HK $640, Exxon Mobil upgraded to "Overweight"

At yesterday's closing price of $25.52, this price means that it is basically flat.

Why: The bank believes that the recent restructuring and recovery of Bilibili's advertising business is progressing positively, and the business is bottoming out, but the bank is concerned about the downside risks of the company's game business and its overvaluation.

The bank expects Bilibili's advertising business revenue growth to recover to about 17% -19% in June, which means that the company's revenue guidance for the second quarter of this year can reach high single-digit growth. It is expected that the company's revenue will increase by 20% year-on-year in the second half of this year.% -30% level.

In addition, the bank expects Bilibili's online game business revenue to fall by 20% quarter-on-quarter to RMB 1.1 billion in the second quarter of this year, mainly due to the lack of new game launches and the impact of the industry's low season.

Morgan Stanley: Maintain IBM "overweight" rating, cut price target to $155

If calculated at yesterday's closing price of $130.88, this price means that there is still 18% room for improvement!

Why: The bank said IBM second-quarter revenue and non- GAAP EPS beat estimates by 2% and 4%, respectively, largely due to strong advisory results and strong first-month sales of the mainframe system z16 ™. Analysts pointed out that while foreign exchange and cost pressures were incremental headwinds, IBM management reiterated that the demand environment was strong, so the overweight argument remained "largely unchanged" in the "few bearish and bullish" comments in the second quarter.

Credit Suisse: Maintains Meta "outperform" rating, cuts price target to $245

If calculated at yesterday's closing price of $175.78, this price means that there is still 39% room for improvement!

Why: The analyst survey showed that economic growth in the second quarter was flat from the previous quarter, and in the macro context, growth expectations for the second half of 2022 were lower, and budget year over year growth for the second to third quarters was flat. As a result, the bank is taking a more conservative stance on the second half of 2022 and forecasts 1% growth in advertising revenue in the third quarter and negative 3% in the fourth quarter.

Piper Sandler: Upgraded Exxon Mobil to "Overweight", raised its price target to $109 from $102

If calculated at yesterday's closing price of $88.27, this price means that there is still 23% room for growth!

Why: Analysts see energy stocks as "increasingly attractive" in the run-up to second-quarter earnings and are generally bullish on refining and integrated oil companies. Analysts said they had a "constructive" view of Exxon Mobil, driven by strong downstream performance and stronger-than-expected resilience in the chemicals business.

Analysts pointed out that the upgrade to Exxon Mobil's stock rating reflects "the company's ongoing significant transformation, an increasingly favorable asset portfolio, an attractive business mix (with a focus on refining and a strong focus on international gas over the next 18 months) business) and an attractive relative valuation".

Analysts said Exxon's second-quarter results appeared to make up for the significant lag in its Quarter 1 downstream business. The bank expects oil companies to post record refining and marketing profits in the second quarter, with Exxon Mobil being the biggest beneficiary. Exxon Mobil recently disclosed that its second-quarter refining profit could increase by $5.5 billion compared to Quarter 1.