Calls of the Day: Netflix, Disney, Walmart and AbbVie

Group 1: Netflix - Loop Capital upgraded Netflix to a buy rating and raised its price target to 1350, with current trading around 1220 [1] - Netflix is facing competition from Paramount and Warner's streaming assets, but it remains the clear leader in the market [2][3] - The addition of live events by Netflix, such as wrestling and boxing, may pose a threat to Disney Plus, which has a strong library but lacks focus on live events [4] - Netflix is viewed as a "permanent compounder" with reasonable valuation and potential upside [3][6] Group 2: Disney - Disney is considered the clear number two in streaming services, with a focus on transitioning from linear to streaming [4] - Streaming is now profitable for Disney, and earnings expectations are likely to exceed current estimates [5] - Disney's valuation is attractively priced at 18 times earnings, with growth expected from both streaming and theme parks [5][6] Group 3: Walmart - Bank of America increased Walmart's price target to 125, maintaining a buy rating, with Walmart trading just under 106 [7] - Walmart is recognized as a leader in AI and e-commerce, leveraging technology to enhance consumer experience [8] - Walmart is projected to reach a trillion-dollar market cap, reflecting its strong market position [8] Group 4: AbbVie (AVY) - Baronberg upgraded AbbVie to a buy rating, raising its price target to 270 from 170, indicating significant potential for the stock [9] - AbbVie has successfully navigated the expiration of Humira, with strong prospects for Skyrizzy and Renvoke [10] - The stock offers a 3% dividend yield and is trading at 15 times forward earnings, making it an attractive investment despite recent price appreciation [10] Group 5: Healthcare Sector - The healthcare sector has underperformed, with a 6% increase in the S&P compared to top sectors rising nearly 30% [11] - There are opportunities in pharma and biotech, particularly for value investors looking to diversify away from mega-cap tech [12] - Biotech stocks, such as those in the XBI index, have shown strong performance, up 14% in the quarter [13][14]