Goldman Sachs analyst Alexander Blostein maintains Franklin Resources with a Sell and raises the price target from $26.25 to $26.75.
Goldman Sachs analyst maintains Franklin Resources with a Sell Read Post »
Boeing February Booked Gross Orders Include 4 787-9s For Royal Brunei Airlines, 10 737 MAXs And 1 777 Freighter; Delivered 17 737 MAXs, One P-8, 7 787-9 Dreamliners, 2 767s In February; Delivered 27 Jetliners In February.
Oracle’s (ORCL) cloud growth metrics for fiscal Q3 are “solid,” with Oracle Cloud Infrastructure growing 49% in constant currency, BofA Securities said in a note Tuesday. BofA said the growth “stands out” to it, slowing down “slightly” from 50% in the previous quarter “on sustained demand and execution.” “It is encouraging that strength is coming from newer solutions such as OracleDB on Azure and the high performance Alloy offering,” the firm said. “This bodes well for future growth.” For fiscal Q4, the firm said that Oracle’s cloud growth outlook of 22% to 24% is “solid” even though it’s below the 24% to 25% expected by analysts. BofA maintained its neutral rating on Oracle stock and lifted the price objective to $144 from $122. Oracle shares jumped nearly 11% in recent trading.
Oracle’s Fiscal Q3 Cloud Growth Metrics ‘Solid,’ BofA Says Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $172, cut $22, reflects a 24x multiple on our 2025 EPS estimate, below BA’s recent historical forward average, on rising regulatory and operational risk. We cut our 2024 EPS estimate by $0.17 to $3.17 and 2025’s by $0.59 to $7.17. Southwest Airlines (LUV 29 ***) said today that it sees 42% fewer deliveries of 737 MAX aircraft from BA in 2024 than originally expected, and, as a result, would be cutting its capacity in 2024. We view this development as an illustration of the difficulty in scaling production and tightening quality control measures at the same time amid heightened regulatory scrutiny. We note that the Department of Justice has also convened a grand jury over the incident on Alaska Air flight 1282. We
CFRA Keeps Sell Opinion On Shares Of The Boeing Company Read Post »
Shares of Southwest Airlines (LUV) tumbled nearly 15% on Tuesday after the carrier tempered its revenue expectations for the first quarter and said that Boeing (BA) delivery challenges will impact its 2024 capacity. Southwest now sees revenue per available seat mile coming in flat to up 2% in the first quarter, compared with a prior view of 2.5% to 4.5% growth, according to a filing with the Securities and Exchange Commission. Roughly one point of the guidance decrease is due to higher-than-expected “completion factors in February and March,” with the remainder reflecting lower close-in leisure passenger volume. With a 99.3% completion factor since Feb. 1, the airline now expects first-quarter capacity to be up 11% versus a prior view of 10%. “The company’s first quarter 2024 operational performance has been strong, thus far, and flight cancellations have been lower than was expected in late January, when first quarter 2024 capacity
Adobe Systems’ (ADBE) “underperformance” and adjusted AI expectations for fiscal year 2024 are likely to set the bar lower for Q1, Morgan Stanley said in a note emailed Tuesday. With Adobe shares experiencing a decline of around 10% in the last three months, lagging behind the median large-cap software stock by more than 15%, “investor expectations around Adobe’s Gen AI contribution near-term and competitive positioning long-term have been tempered,” Morgan Stanley said. The trajectory of Adobe’s digital media net new annualized recurring revenue for fiscal year 2024, the level of competition, and the potential of AI within Document Cloud are crucial factors that will likely influence the direction of Adobe shares moving forward, the note said. “Heading into Q1 earnings, we see a lower bar after recent underperformance and management walking down revenue contribution expectations for Gen AI and price increase benefits near-term, coupled with commentary on tough comps from
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 target by $115 to $755, 25x our CY 2025 EPS view, near peers but above KLAC’s three-year average (~18x) on its favorable exposure to AI and early signs of improvement across the semiconductor industry. We maintain our FY 2024 EPS estimate at $23.30, raise FY 2025’s by $0.99 to $27.29, and lift FY 2026’s by $1.71 to $32.70, boosted by the introduction of High NA EUV systems in 2025 and 2026 to support the continued push toward more advanced nodes. AI applications are driving new node investments, benefiting KLAC across multiple product lines. In our view, the semi-cap equipment market is getting more expensive, and we expect price movement from here to be driven more by earnings than by further multiple expansion; however, we
CFRA Maintains Buy Recommendation On Shares Of Kla Corporation Read Post »
Nike’s (NKE) fiscal Q3 EPS could top market expectations when it releases its results March 21, with outperforming gross margin driving the upside, Morgan Stanley said in a Tuesday note. The investment firm said it also expects Nike’s gross margin to outperform in fiscal Q4 as it models underlying sales growth trend to continue into the last fiscal quarter. It added that Nike could keep its low guidance bar for Q4 and the full year due to recent market volatility and challenged core demand trends. Morgan Stanley said Nike’s return to high-single-digit revenue growth would be a “meaningful” catalyst for the stock, but this is unlikely in fiscal Q3 and could be seen in fiscal 2025 at the soonest. Morgan Stanley reiterated its overweight rating on Nike, while lowering its price target to $124 from $125 previously.
Nike Likely to Deliver EPS Beat in Fiscal Q3, Morgan Stanley Says Read Post »
Boeing (BA) reported Tuesday it delivered 27 aircraft in February, the same number as January but down from 28 a year earlier. The plane manufacturer booked 15 gross orders last month, up from 3 in January and 5 a year earlier, according to data on its website.
Boeing’s February Deliveries Remain Largely Flat; Orders Rise Read Post »
Apple continues to win market share of both units and revenue, says BofA – and the company even has an opportunity with buyers of used smartphones Apple Inc. likely saw declining iPhone unit shipments over the last three years, but a BofA Securities analyst sees some silver linings. The smartphone giant continues to win market share in terms of both industry revenue and units, in the view of BofA’s Wamsi Mohan. Additionally, Apple (AAPL) is having success in convincing people to pay for higher-priced iPhone models, a trend Mohan thinks could persist – and help to outweigh overall pressures in the company’s China business. “We continue to see Apple ship more high-value units over time and thereby continue to take revenue share,” Mohan wrote. The company commands almost the entire market of devices that sell for at least $1,000, he added. Used iPhones are becoming a greater portion of Apple’s
Apple’s iPhone Business Has Been Sluggish, but Here’s the Good News Read Post »
Southwest Airlines is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Southwest is getting fewer aircrafts this year than it previously expected as issues at Boeing intensify. Southwest, which strictly uses Boeing aircraft, said in a filing with the Securities and Exchange Commission that Boeing told the airline to expect 46 deliveries of the 737-8 plane in 2024, less than the previously expected 79. “As a result of Boeing’s continued challenges, the company expects the delivery schedule to be fluid and, therefore, plans to reduce capacity and re-optimize schedules, primarily for the back half of 2024, which will likely result in at least a one point reduction to the company’s full year 2024 capacity plans on a year-over-year basis,” Southwest said. Dow Jones & Co. owns Factiva.
Southwest Airlines Plans to Reduce Capacity on Fewer Boeing Aircraft Deliveries Read Post »
Nike’s (NKE) fundamentals for Q3 are “lackluster,” but likely aligning with sell-side expectations, UBS said in a report emailed Tuesday. “We don’t anticipate Nike changes its [fiscal year 2024] guidance or gives an initial view of FY25,” UBS said, adding that it doesn’t expect Nike’s report to change analysts estimates much. “We see a balanced upside/downside skew over the event,” UBS said. The upside risk is Nike’s margins outperform expectations, while downside risk is if sales fall short of expectations and sentiment proves more bullish than anticipated by investors, it added. According to UBS Quant Team’s crowding data, Nike is currently experiencing high levels of crowding, with a score of 27, which has risen notably in the past week. This score surpasses Nike’s five-year average of 19.2. “This matches what we hear in conversations with investors,” UBS said. “The market knows Nike has struggled recently, yet is looking at the
Nike’s Q3 Fundamentals ‘Lackluster’ Though Likely in Line With Expectations, UBS Says Read Post »