CFRA Maintains Buy Opinion On Shares Of Jefferies Financial Group, Inc.

/ / Financials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Despite earnings miss, we believe overall results were positive and showcased an emerging recovery within the sector. We raise our target by $5 to $52, on a forward P/E of 14.0x our FY 24 (Nov.) EPS estimate, a slight discount to JEFs five-year average multiple (14.8x) due to risks of recession or fewer-than-expected rate cuts weighing on the recovery of capital markets. We lift our FY 24 EPS estimate by $0.32 to $3.70 and FY 25’s by $0.27 to $4.63. JEF posted FQ1 adjusted EPS of $0.68 vs. $0.55, a $0.08 consensus miss, although impacted by an $0.18 loss taken on an investment. Net revenues jumped 35% Y/Y, driven by a 31% Y/Y increase within Investment Banking that was led by a 65% Y/Y increase in Underwriting […]

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Tesla’s Q1 Hit Hard by Soft China Demand, Marking a ‘Nightmare Quarter’ for Deliveries, Wedbush Says

/ / Consumer Discretionary /

Tesla’s (TSLA) Q1 has been a “nightmare quarter” as deliveries have suffered greatly due to persistently soft demand in China at the start of the year, Wedbush said in a report emailed Thursday. Supply challenges, including factory downtimes and the fire at its Berlin factory have hampered the company, the analysts said. “There is no denying this has been a quarter to forget for Musk and Tesla,” Wedbush said, adding that “further issues this quarter were compounded by the Model 3 Highland upgrade issues in the US /Fremont and flattish sales in Europe.” China’s challenging market, compounded by rising electric vehicle competition, remains a major concern for the company, with delivery estimates down 3% to 4% year-over-year this quarter. The current negative narrative surrounding Tesla is warranted, given sluggish growth and squeezed margins, especially in China. Wedbush said. “For Musk this is a fork in the road time to get

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S&P Global Ratings Sees Growth and Innovation Post-IHS Markit Merger: BofA Securities Information and Business Services Conference Summary

/ / Financials /

Two years following the landmark merger between S&P Global Inc. and IHS Markit, Martina Cheung, President of S&P Global Ratings, reflects on the integration’s success and future opportunities at the BofA Securities Information and Business Services Conference. The merger has yielded significant cost savings through reduced shared services and renegotiated third-party licenses. More importantly, it has enhanced the Ratings division’s access to high-value data, such as Mobility, Commodity Insights, and fixed income data from Market Intelligence. This integration has not only streamlined internal processes but also bolstered the division’s research capabilities, a cornerstone of S&P’s value proposition to investors. Cheung highlighted the synergy between IHS Markit’s products and S&P’s credit ratings, which has led to increased referrals across S&P Global’s divisions. As the President of Ratings, Cheung’s priorities align with the company’s strategic pillars discussed during Investor Day, focusing on expanding the core Ratings business, enhancing non-transaction services, and addressing

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Beacon Roofing Supply Hits New High After Home Depot Buys Rival

/ / Consumer Discretionary /

Shares of Beacon Roofing Supply rise to a new all-time high after home-improvement retailer Home Depot struck a deal to buy its privately held competitor, SRS Distribution. Beacon Roofing Supply distributes roofing materials and complementary products, such as siding and waterproofing in North America. The Home Depot deal could be a sign that big retailers are warming up to the niche roofing industry, which has in recent years consolidated under a number of brands buying local and regional distributors. Shares of Beacon rise 3% to $97.94.

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Estee Lauder Competitiveness, Distribution to Improve With Amazon Premium Beauty Deal, Oppenheimer Says

/ / Consumer Discretionary /

Estee Lauder’s (EL) bid to sell its Clinique brand through Amazon.com’s (AMZN) Premium Beauty store is a “logical” next step for the cosmetic company, Oppenheimer said Thursday. The deal, announced Wednesday, should enhance Estee Lauder’s distribution channels and boost its competitiveness. L’Oreal saw a 70% increase in demand for its products after they began selling on the Amazon platform, Oppenheimer analysts said. The company’s latest move appears favorable, but the elevated stock price and an uncertainty around its travel retail channel keep the risk/reward model unchanged. Estee Lauder “shares remain on our radar,” the investment firm said, issuing a perform rating with no price target. Estee Lauder shares were more than 6% higher in recent trading.

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AI Will Drive Big Demand for Copper, J.P. Morgan Says. 3 Stocks to Watch. — Barrons.com

/ / Financials /

By Tae Kim Surging demand for artificial intelligence might exacerbate a copper shortage later this decade, J.P. Morgan warns. Copper is an essential component for power infrastructure upgrades based upon its electrical conductivity, use in wires, and relative low cost. Data centers will need to revamp their power and cooling systems as AI servers draw more power per square foot. Incremental demand from AI is “stressing an already large looking annual copper supply shortfall later this decade,” J.P. Morgan analyst Dominic O’Kane wrote Thursday. “The implications for future copper demand are significant.” Using the International Energy Agency’s base case scenario of 15% annual power growth for data centers, O’Kane estimates AI will lead to 2.6 million tonnes of additional aggregate copper demand by 2030. Even without the advent of AI power demand, J.P. Morgan had forecast 4 million tonnes cumulative supply shortage through 2030. “Our analysis suggests that data center

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Tesla Is Navigating Free FSD Trials, Gigafactory Challenges, and Governance Hurdles: Analyst

/ / Consumer Discretionary /

RBC Capital Markets analyst Tom Narayan maintained an Outperform rating on Tesla Inc (NASDAQ:TSLA) with a price target of $298. The fourth quarter of fiscal 2023 saw a demand-pull forward from the IRA expiry of particular Model 3s, and that likely negatively impacted the first quarter of 2024, as per the analyst. The analyst flagged the Red Sea disruption in January and the arson attack in February, hampering the Berlin gigafactory operations. Narayan expects the company’s decision to give one month of free trials of FSD in the U.S. will help drive higher volumes in the second quarter. Higher FSD attach rates are also central to his investment thesis on the stock. Narayan projects Tesla deliveries of 446,000 in the first quarter of 2024, down 10.7% vs. his prior estimate of 500k and 3.3% below consensus, based on registration data and app downloads. He expects Tesla to report deliveries during the first week of April.

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Estée Lauder Shares Climb 6.2% After Bank of America’s Upgrade on Turnaround Efforts

/ / Consumer Discretionary /

Shares of Estée Lauder on Thursday climbed after Bank of America upgraded its recommendation on the stock to buy from neutral as the beauty giant implements a profit-recovery plan. The owner of cosmetics brands such as Clinique, La Mer and Bobbi Brown should benefit from a reacceleration of sales and profit growth as Estee Lauder exits the fiscal year ending in June 30 with better visibility into end-market demand, Bank of America analysts say in a research note. The New York company lost focus on product upgrades and innovation in recent years. However, its current innovation push to respond faster to trends and repair brands portfolios should come with improvements across the prestige category. Bank of America expects to see innovation specifically aimed at reversing recent market-share softness in makeup from MAC and Tom Ford. Estée Lauder’s success is dependent on achieving more consistent growth across developed markets and emerging

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