MongoDB Earnings Outlook Disappoints. These Analysts Say Buy the Dip. — Barrons.com

/ / Technology /

Karishma Vanjani MongoDB’s stock was down after its earnings release as the data service provider shared a disappointing revenue and profit forecast. Many on Wall Street think it’s time to buy more of the stock. MongoDB, founded in 2007, offers cloud-based database products widely used by developers to create applications. The pandemic accelerated MongoDB’s growth as businesses increasingly moved to the cloud. Shares soared 173% in 2020. This year, the stock is up 0.8%. Late Thursday, the company said for the full fiscal year ending in January 2025, revenue could be between $1.9 billion and $1.93 billion and profits between $2.27 and $2.49 a share, short of the consensus for $2.04 billion in revenue and $3.27 a share in profits. The stock is down 2.6% at $491.26 at 10:05 a.m. It was down 8.6% in premarket trading on Friday. Datadog, another cloud-related stock, had gained 1.1%. The financial impact is […]

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Marvell Technology Shares Decline After Morgan Stanley Cuts Price Target, Expects Material Recovery

/ / Technology / ,

Marvell Technology (MRVL) cut its projection across consumer, carrier and enterprise networking businesses but even with the surprising April shortfall the company should see a material recovery, Morgan Stanley said in a note Friday. Marvell’s PAM 4 shipments will see a flattish January due to a minor inventory adjustment, according to the note. The company appears to be on solid ground in the cloud custom silicon business but with new Nvidia launches and supply constraints easing, further upside remains uncertain, Morgan Stanley added. “The trajectory of custom silicon projects outside of Google has historically been disrupted by Nvidia’s rapid execution pace,” the firm said. Morgan Stanley said weaker sectors are close to the bottom, which is evident with shipping below-end demand, and “storage has already started to snap back in data center.” The firm said despite the downturn, signs of recovery are emerging in Marvell’s storage and automotive sectors, that

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Broadcom’s Earnings Power Seen at $70-$75/Share in Long Term Amid Double-Digit Sales Growth, BofA Says

/ / Technology / ,

Broadcom (AVGO) is expected to post double-digit growth in sales in fiscal years 2024 and 2025, giving the company earnings power in the $70 to $75 per share range in the long term, BofA Securities said in a report Friday. The brokerage reiterated its buy rating on the stock as it raised its price target to $1,680 from $1,500, after the company maintained its revenue guidance of around $50 billion for fiscal 2024. BofA expects fiscal 2024 EPS at $46.70, little changed from its previous estimate of $46.72, but it raised its fiscal 2025 EPS estimate to $57.82 from $56.37. “We believe 1H could mark the trough for AVGO’s non-AI semi sales, with semi sales accelerating to double digit growth exiting Q4 and into FY25,” BofA said. “Meanwhile, we think AI sales could secularly grow at a 20-25% [compound annual growth rate] with more contribution from high-speed switches.” BofA said

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MongoDB May Surprise ‘If History Is Any Indication,’ RBC Says

/ / Technology / ,

MongoDB (MDB) may be conservative with its forward guidance, RBC Capital Markets said Friday, but sees plenty of upside for the database company on growth and margin. MongoDB late Thursday forecast revenue growth in a range of 13% to 15% for its current fiscal year that began Feb. 1. The guidance lagged consensus views of 22% increase, weighing on MongoDB shares during extended hours Thursday and regular trading Friday. However, the company’s Q4 reported revenue topped estimates and may be poised to do it again. “We see plenty of levers to upside on both growth and margins, suggesting a similar level of conservatism baked into guidance as years past,” the investment firm said. RBC maintained its outperform rating for MongoDB with a $475 price target. MongoDB shares were 6% lower in recent trading.

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MongoDB’s Concerns About Outlook Despite Strong Q4 Results: Analysts Revise Forecasts

/ / Technology /

MongoDB Inc (NASDAQ:MDB) shares were down on Friday after the company reported its fourth-quarter results and issued weak guidance. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. DA Davidson On MongoDB Analyst Rudy Kessinger upgraded the rating from Neutral to Buy, while raising the price target from $405 to $430. Although MongoDB reported strong fourth-quarter results, its shares slid on disappointing fiscal 2025 guidance, which projected growth of 13%-15% and operating margins of around 10%, missing the consensus estimate of 22% and 14%, respectively, Kessinger said in the upgrade note. “Rev will face a $80M headwind in FY25 from multi-year term licenses ($40M) & unused Atlas commitments ($40M) that will not repeat,” the analyst stated. “This is very high GM Rev that is not repeating, and when combined with accelerated hiring, OMs will take a step back from 16% in FY24,” he

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CFRA Keeps Hold Opinion On Shares Of General Electric Company

/ / Industrials /

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 price of $174, up $34, reflects a 29x multiple applied to our 2025 EPS estimate, in line with GE’s aerospace peers. We lift our 2024 EPS estimate by $0.09 to $4.58 and 2025’s by $0.17 to $5.99. The spinoff of GE’s renewables and power unit, GE Vernova, has now been officially slated for April 2, 2024, and GE will be a pure-play aerospace firm thereafter. We like GE’s prospects as a key supplier to a commercial aerospace industry that has considerable pent-up demand for new planes. However, we do see some risk for GE, notably its reliance on major original equipment manufacturer The Boeing Company (BA 200 **). In our view, BA is facing a bit of a high wire act, trying to iron

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Broadcom Is A Buy For ‘AI, Dividends And M&A Benefits,’ Analyst Says: Takeaways From Q4 Earnings

/ / Technology /

Broadcom Inc (NASDAQ:AVGO) shares were down on Friday, even after the company reported upbeat fourth-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. JPMorgan On Broadcom Analyst Harlan Sur maintained an Overweight rating while lifting the price target from $1,550 to $1,700. Broadcom delivered better-than-expected quarterly results and reiterated its full-year outlook of $50 billion in revenues and 60% EBITDA margin, “on sustained momentum in semiconductors and solid growth in its mission critical software franchise,” Sur wrote in a note. “For its semiconductor business, the team saw accelerating demand for its AI solutions ($2.3B in the Jan-Qtr, up 50%+ Q/Q) which offset weakness in its core diversified semi business (ex-AI ~$5.1B down 12% Q/Q,” Sur added. Goldman Sachs On Broadcom Analyst Toshiya Hari maintained a Buy rating while bumping the price target from $1,325 to $1,550. Broadcom delivered “solid” results for

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Broadcom Poised for Second-Half Growth Acceleration Amid VMWare, AI Strengths, BofA Says

/ / Technology /

Broadcom (AVGO) is expected to see growth acceleration in the second half of the year as VMWare bookings are off to a strong start and the company’s artificial intelligence pipeline is “solid,” BofA Securities said Friday. Late Thursday, the chipmaker logged stronger-than-expected fiscal first-quarter results as it benefited from its VMware acquisition, completed in November, as well as AI demand. The company continues to project 2024 consolidated revenue advancing 40% year over year at $50 billion. Although the company held its outlook steady, the sales mix is shifting more towards AI, which is now pegged to top $10 billion, up from $7.5 billion estimated previously, BofA analyst Vivek Arya said in an emailed note. VMWare has seen a strong start to the year, with overall company software bookings set to almost double sequentially to $3 billion in the current quarter and VMWare sales seen increasing 10% every quarter, according to

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Certain Stocks Hit Valuations That Will Be Hard to Sustain — Barrons.com

/ / Consumer Discretionary /

By Andrew Bary It’s getting to be a silly season for certain stocks. The technology stocks propelling the S&P 500 have raced ahead while leaving much of the rest of the market behind. Valuations on the priciest tech stocks based on profits and sales are approaching the peak values reached in late 2021, before the big Nasdaq selloff in 2022. Companies such as Cadence Design Systems, Cloudflare, and Nvidia trade for nearly 20 times projected 2024 sales, a calculation based on market value divided by estimated revenue. Even Microsoft, the world’s largest company at $3 trillion, is valued at more than 10 times estimated sales in its current fiscal year ending in June. Once upon a time, 10 times sales was viewed as pricey. As Scott McNealy, the former CEO of Sun Microsystems, said 20 years ago, “At 10 times revenue, to give you a 10-year payback, I have to

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