Consumer Discretionary

CFRA Retains Hold Rating On Shares Of Warner Bros. Discovery, Inc.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our target by $1 to $9, using a narrower risk premium and a forward TEV/EBITDA of 6.24x, below the direct peer average. Adjusted EBITDA is expected to be negative in 1H and then turn positive in 2H 2024. Due to the actor and writer strikes, WBD faces lighter programming content in 2024. WBD is committed to doing a better job with blue-chip movie franchises like Game of Thrones, Harry Potter, and Superman. Free cash flow was $3.3B for Q4 2023 and $6.2B for full-year 2023. We think accelerated growth and profits for MAX video streaming may take longer. We believe the consensus is optimistic with a $13.70 target that suggests a high growth scenario. A year ago, we thought EBITDA would show significant growth in […]

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CFRA Maintains Hold Opinion On Shares Of General Motors Company

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target to $44 from $38, based on a 2025 P/E of 5.2x, a justified discount to historic averages. We lower our 2024 EPS estimate to $8.80 from $8.90 but leave 2025’s unchanged at $8.50. GM posted Q1 U.S. vehicle sales of 594,233 units (-1.5% Y/Y), well below the industry’s expected Y/Y sales growth of 5.5% for Q1, according to Cox Automotive estimates. EVs acted as a drag on overall volumes, declining by 20.5% Y/Y in Q1. Notably, dealership inventories of GM vehicles hit 534,479 units at the end of March, up 17% from year-end 2023 levels, and the highest level since 2020. With inventories rising rapidly, we expect new vehicle prices to remain under pressure and incentives to continue increasing. Furthermore, Q1 results

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Home Depot Acquisition of SRS Presents More Opportunities Than Risks, UBS Says

/ / Consumer Discretionary /

Home Depot’s (HD) decision to acquire SRS Distribution for over $18 billion presents more opportunities than risks for the company, UBS said in a note emailed Tuesday. Despite operating SRS independently, the acquisition will help evolve Home Depot’s perception by making it appear more legitimate in the complex projects market. Last year, Home Depot outlined plans to become a one-stop source for professionals in a $200 billion market segment it termed as “complex” pro projects that require many types of products and multiple days of work. The purchase will help Home Depot gain a deeper understanding of the complex pro customer segment and equip it with the tools necessary to serve the market, UBS said. Meanwhile, the acquisition will be dilutive to Home Depot’s fiscal 2025 earnings per share by 2.3% and then accretive by 0.2% to its fiscal 2026 EPS, the firm noted. UBS maintained a 12-month price target

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CFRA Keeps Buy Opinion On Shares Of Airbnb, Inc.

/ / Consumer Discretionary /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $188 from $168 on an above-peer P/E of 35x our 2025 EPS. We keep our 2024 EPS at $4.61 and 2025’s at $5.36. We have a positive outlook on ABNB due to its strong network effect advantage and widespread customer adoption. We see 12% revenue growth in 2024, driven by strong supply growth (+18% ex-China in Q4), higher take rates, and international expansion. We like ABNB’s positive EBITDA margins (33%, +6%-pts in Q4) and we believe persistent double-digit top-line growth can continue, driven by further penetration into markets like Asia (especially Korea), Germany, and Brazil, where adoption is early. We also expect ABNB to benefit from a resurgence in travel demand within China as Covid-19 restrictions ease, unlocking pent-up demand throughout

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Tesla Delivery Results Are Coming. Investors Want Growth. — Barrons.com

/ / Consumer Discretionary /

Tesla’s first-quarter delivery report is coming. It better show year-over-year growth or investors will get grumpier than they already are. Looking at the current consensus calls from Wall Street, growth shouldn’t be a problem. However, there’s a rub. That consensus may be too optimistic. Heading into Tuesday’s report, Wall Street expects about 457,000 units, according to FactSet, up from 423,000 units delivered in the first quarter of 2023. That’s growth of about 8%, not nearly as brisk as the growth of past quarters, but growth nonetheless. The FactSet number is too high. That’s the problem. Not all analysts update numbers at the same rate. The company-compiled consensus number is about 443,000 units. That figure is an average of more than two dozen analysts from large brokerage firms that Tesla distributes each quarter. The Tesla-provided number implies slower growth, but it might be too high too. The most current handful of

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