(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.) Two big media companies have caught the attention of analysts, who see substantial upside for both Sphere Entertainment and Fox Corp. Sphere Entertainment, which owns the vaunted Las Vegas Sphere, could rise 23%, while Fox is projected to gain 18% from here. Both stocks were higher in trading before the opening bell Friday. Check out the latest calls and chatter below. All times ET. 6:44 a.m.: Bank of America downgrades Estee Lauder, cites delayed China turnaround Troubles in China could weigh on Estee Lauder shares in the near term, according to Bank of America. Analyst Bryan Spillane downgraded the beauty stock to neutral from a buy rating, citing profit headwinds from a delayed recovery in China. The move reverses an upgrade in March. “We were wrong as China appears to have decelerated since March and U.S. industry demand is softening calling into question timing and full pass through of the profit rebound,” he wrote. “Comments from competitor beauty companies and national import figures for perfumes, makeup, and skincare from the Chinese government points to a sequentially slowing category in EL’s most important market.” The stock slumped more than 2% before the bell. Shares of Estee Lauder have shed 35% this year as the firm grapples with sluggish growth in China – one of its critical markets. Spillane slashed his price target to $100 from $140, reflecting just 5% upside from Thursday’s close. He also lowered EPS estimates for 2025 and 2026 to reflect the China weakness. The analyst also called attention to the company’s profit recovery plan, focused on recapturing $1.1 billion to $1.4 billion in incremental operating profit between 2025 and 2026. “While we expect these efforts should help right-size EL’s cost base we are cautious on timing since a portion is revenue-dependent and there remains a potential need to increase marketing in the face of slowing demand,” he said. – Samantha Subin 6:20 a.m.: Piper Sandler says buy this semiconductor stock with more than 20% upside Microchip Technology looks poised to capitalize on “numerous growth levers” situated to ramp up in the short run, according to Piper Sandler. Given this outlook, analyst Harsh Kumar upgraded shares to overweight from a neutral rating, citing tailwinds to gross margins. “Overall, we see MCHP as one quarter behind its analog peers in the fundamental recovery which has provided opportunity for the stock,” he wrote. “We believe that MCHP is attractive here given the company’s track record and execution when coming off the bottom of analog cycles.” MCHP YTD line Microchip Technology shares year to date Kumar lifted the firm’s price target to $100 from $90 a share, implying 23% upside from Thursday’s close. Shares of the semiconductor products supplier have slumped 10% this year. The stock is also down 14% this month following disappointing earnings along with a broader sell-off in technology. But the firm sees better days ahead, expecting underutilization and inventory reserve charges to ease and turnaround in the near term. That should benefit gross margins and enable Microchip Technology to exit the fiscal 2026 year with margins at the 65% level, Kumar projects. He also expects accounting reserve charges to improve as the business environment recovers. “We see these green shoots in demand happening over the near term, and indications for demand are positive in selective areas of the market while cancellations have also come down,” Kumar said. – Samantha Subin 6:17 a.m.:JPMorgan upgrades Sphere Entertainment, cites attractive risk-reward It’s time for investors to consider snatching up shares of Sphere Entertainment , according to JPMorgan. Analyst David Karnovsky upgraded the media and entertainment stock to overweight from a neutral rating, citing strong financials and a solid operating model. “Three quarters in, the Las Vegas Sphere has established itself as a mainstay in the destination tourism market with travelers and artists alike,” he wrote. “Despite some early concern, the operating model has proven out and we expect can improve further as more original content is added and use cases are found for the venue.” Along with the upgrade, Karnovsky boosted his price target on the operator of the Las Vegas Sphere entertainment space to $57 from $37 a share. The adjustment reflects 23% upside from Thursday’s close. Shares have surged 36% this year and added about 3% before the bell Friday. The firm also cited its confidence in Sphere’s ability to open international venues, which could prove more profitable than the Las Vegas hub. The potential upside from this outcome isn’t fully reflected in shares, Karnovsky added. “The overall better financial performance and cultural relevance gives us confidence that the Sphere model will prove attractive to potential partners,” he wrote – Samantha Subin 6:11 a.m.: Wells Fargo double upgrades Fox, cites upside from sports streaming Fox Corp .’s sports streaming portfolio offers more opportunities than risks to the media company, according to Wells Fargo. Analyst Steven Cahall double upgraded the owner of Fox News to overweight from an underweight rating, citing upside potential from its joint Venu Sports streaming service with Warner Bros. Discovery and Disney. “We’re bullish on its potential, and see FOXA as the biggest beneficiary at [high-single digit/ low-double digit] accretion to our new EBITDA ests,” he wrote. “We’ve prev. worried about [accelerated] cord cutting and the decline of high-margin Fox News, but we now think Venu can more than offset risk to News on higher sports [average revenue per user].” Cahall adjusted the firm’s price target to $46 from $29 a share, suggesting 18% upside from Thursday’s close. Shares have already rallied more than 31% since the start of 2024 and added 1.5% before the bell Friday. He also expects the company’s cable business to benefit from the election cycle, and estimates that the Super Bowl alone could add $75 million to EBITDA. Cahall lifted EBITDA expectations by 10% to $3.3 billion for 2025 and ahead of consensus estimates. “FOXA also has low leverage, a buyback and a dividend so secular threats are more manageable,” Cahall wrote, adding that shares deserve a premium to Paramount Global and Warner Bros. Discovery. “Finally, FOXA tends to outperform earnings expectations.” – Samantha Subin
