(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A streaming giant and a major wholesale retailer were among the stocks being talked about by analysts on Thursday. Jefferies upgraded Spotify Technology, calling for more than 26% upside. Bank of America, meanwhile, raised its price target on Costco after the company announced an increase to its membership fees. Check out the latest calls and chatter below. All times ET. 6:16 a.m.: Apple shares could gain nearly 10% as users look to upgrade their iPhones, Bank of America says Bank of America is bullish on Apple , citing a strong iPhone refresh cycle up ahead. Analyst Wamsi Mohan kept his buy rating and raised his 12-month price target on the iPhone maker by $26 to $256, which suggests about 9.9% upside. This year, the stock has added 21%, slightly higher than the broader market’s gains. “We are raising our PO on Apple … on increased confidence of a multi-year iPhone upgrade cycle driven by an aging installed base and GenAI features that should provide a boost to customers’ intentions to upgrade,” Mohan said in a Thursday note, adding that this upgrade cycle should also be driven by strong growth in Apple’s service revenue and greater margin expansion. Mohan cited a Bank of America global smartphone survey — which was conducted across the U.S., UK, China and India after Apple’s Worldwide Developers Conference held in mid-June — that reflected a greater intent from consumers to upgrade their iPhone models, the majority of which still own the iPhone 13 or older. He noted that customer loyalty towards Apple remains strong, with 58% of current iPhone holders having plans to buy another iPhone for their next device upgrade. When it comes to other Apple products, Mohan said there could be a recovery in wearables growth with plans to upgrade the Apple Watch seeming most prominent in India, followed by China and the U.S. There’s also interest among U.S. consumers in buying the Apple Vision Pro, the analyst added. — Pia Singh 5:55 a.m.: Bank of America raises price target on Costco after retailer’s membership fee increase Bank of America likes the sound of Costco’s newest annual membership fee hike and believes it supports what the bank views as a stock with “premium valuation.” Analyst Robert Ohmes upped his price target by $88 to $962 on Costco, suggesting shares could gain 8.8%. This year, shares of the wholesale retailer have advanced nearly 34%. The analyst’s new target comes on the back of Costco’s announcement on Wednesday that it is raising its annual membership fees in the U.S. and Canada by $5, to $65 per year, and the cost of its higher-tier membership by $10, to $130 per year. That marks the company’s first increase since 2017. COST YTD mountain COST year to date Ohmes credited the membership fee hike, as well as Costco’s continued strength in same-store sales, as catalysts for Costco’s earnings visibility into fiscal years 2025 and 2026. He estimates the fee increase will drive between $370 million and $380 million of incremental membership fee income over the next two fiscal years, but noted that Costco does not expect an impact to its earnings per share from the fee increase. “We … expect COST to gain share in the current environment as consumers continue to adjust to higher prices, making COST’s impressive value proposition and price positioning even more attractive,” Ohmes said in a Wednesday note. — Pia Singh 5:55 a.m.: Jefferies upgrades Spotify The future looks bright for Spotify Technology , according to Jefferies. The investment bank upgraded the audio streaming giant to buy from hold. Its price target of $385 implies upside of 26.2% from Wednesday’s close. “We are increasingly confident in SPOT’s ability to comfortably deliver sustainable 15%+ rev growth over the next 3 years,” analyst James Heaney wrote. “Underscoring our confidence … is our view that music is about to undergo a multi-year repricing. At just $12/mo for a Spotify subscription (vs. $61/mo spent in aggregate on video streaming), we believe there is room for price increases AT LEAST every other year.” Spotify shares have surged 62% in 2024, adding to last year’s 138% jump. SPOT YTD mountain SPOT year to date — Fred Imbert
