Tesla Faces Uphill Battle: Morgan Stanley Analyst Adam Jonas Cuts Target Price, Forecasts Lower FY24 Sales Volume

/ / Consumer Discretionary /

Morgan Stanley analyst Adam Jonas on Tuesday noted both product and market issues as he slashed target price and FY24 earnings estimates for EV giant Tesla Inc (NASDAQ:TSLA). Analyst Rating: The analyst cut the target price from $345 to $320 while maintaining an ‘overweight’ rating. Tesla Thesis: In a note, the analyst noted the several downsides plaguing Tesla at the minute including dwindling EV demand, older product line-up as compared to other automakers, heavy competition and price war in China, and not the least, the increasing popularity of hybrids over battery electric vehicles in the company’s primary market of U.S.. “If there was ever a time for Tesla to potentially post a GAAP EBIT loss in the auto business, it may be this year,” Jonas wrote. The analyst said that he expects the EV giant’s first-half results for the year will fail to meet expectations with GAAP operating margins in the 2-3% range. After taking a severe […]

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CFRA Adds Eli Lilly To The High-quality Capital Appreciation Portfolio

/ / Health Care /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We add Eli Lily and Company (LLY) to CFRA’s High-Quality Capital Appreciation Portfolio. LLY is one of the largest U.S. drug makers in terms of revenue and is a leading developer of drugs in a wide range of therapeutic areas such as endocrinology, which includes a diabetes drug portfolio that generates more than half of its total revenue. We are increasingly optimistic on LLY’s many ongoing efforts, including late-stage therapies such as donanemab (for Alzheimer’s disease), pirtobrutinib (for certain forms of leukemia and lymphoma), and tirzepatide (for sleep apnea and cardiology). Such innovation could complement LLY’s 10 key current drugs, which represent the majority of LLY’s total sales. LLY replaces CVS Health Corporation, which was downgraded to a Hold recommendation.

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Microsoft-Backed OpenAI Remains ‘Uncontested Leader’ in Artificial Intelligence, Macquarie Says

/ / Technology /

Microsoft-backed (MSFT) OpenAI continues to be the “uncontested leader” in artificial intelligence despite the cases filed against it by Tesla (TSLA) Chief Executive Elon Musk and The New York Times (NYT), Macquarie said in a note emailed on Monday. Musk is seeking the removal of GPT-4 from the scope of Microsoft’s intellectual property licensing agreement with OpenAI, while The New York Times sued OpenAI for copyright infringement. “But, regardless of these cases, we have seen the performance gap between GPT-4 and other models narrow, but certainly not close, throughout 2023,” the note said. Macquarie said Microsoft’s Copilot product roadmap would likely be set back if GPT-4 becomes inaccessible to the company because of any of those cases. “But we do not think it would derail its AI product initiatives by any means,” Macquarie said. Macquarie maintained its outperform rating and $455 price target on Microsoft stock.

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DoorDash Close in on Profitability With New Ventures, International Market, RBC Says

/ / Technology /

DoorDash (DASH) has the potential to stabilize profitability with entry in new verticals and international markets, RBC Capital Markets said in a note Monday. DoorDash’s new verticals and international segment may have peaked at losses of around $1.3 billion annually, RBC added. The firm expects that while the company’s core business investment may be minimal, new vertical losses are unlikely to increase year-over-year. The investment firm said it previously underestimated the company’s order growth resilience primarily because of the frequency “which should continue to be a multi-year mid-to-high-teens grower.” DoorDash’s potential partnerships, particularly with LYFT (LYFT), could drive significant incremental orders and enhance its loyalty program, according to the note. The firm said consumer concerns and slow expansion into non-restaurant verticals remain a risk to the company’s growth with low likelihood and potential for upward estimate revisions. RBC raised DoorDash’s stock rating to outperform from sector perform and increased the

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Lyft a ‘Stable Duopoly’ With Potential for DoorDash Partnership, RBC Says

/ / Consumer Discretionary /

Lyft (LYFT) is a “stable duopoly” with a potential for a DoorDash (DASH) partnership, RBC Capital Markets said in a note to clients Monday. The investment firm upgraded Lyft’s rating to outperform from sector perform and raised its price target to $23 from $17. RBC said its latest driver supply analysis points to a “stable duopoly” compared with the past two years, which showed Uber (UBER) “flexing its structural advantage.” “The improved execution of Lyft’s core business is foundational to our thesis in that it allows it to build scale and marketplace efficiency to grow down-market products which drive elasticity and gives any potential partners greater confidence in being a sustainable competitor longer term,” RBC analysts said. A partnership with DoorDash “makes enormous sense and becomes more probable,” RBC said. The analysts estimate mid-single-digit to mid-teens of additional orders is possible, along with a 22% revenue or rides headwind, which

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FactSet Research Systems to ‘Modestly Beat’ Fiscal Q2 Consensus, RBC Capital Markets Says

/ / Financials /

FactSet Research Systems’ (FDS) fiscal Q2 financial results are expected to “modestly beat” consensus estimates, RBC Capital Markets said in a note Friday. Consensus for the quarter is adjusted EPS of $3.85 on revenue of $546 million, lower than RBC’s estimated adjusted EPS of $4 on revenue of $547 million, RBC said. FactSet Research is set to report fiscal Q2 earnings on March 31. For fiscal 2024, RBC said it expects FactSet to maintain its guidance for adjusted EPS of $15.60 to $16 on revenue of $2.20 billion to $2.21 billion. “We expect FDS to reiterate their fiscal 2024 revenue guidance due to benefits from two customer wins in fiscal Q1, a wealth manager with [about] 17,000 seats, and Analytics win at a large US asset manager,” RBC said. The investment bank said it forecasts fiscal 2024 adjusted EPS of $16.06 on revenue of $2.21 billion for FactSet, compared with

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American Airlines MAX 10 Jet Order Juices Boeing Stock — Barrons.com

/ / Consumer Discretionary /

Boeing stock turned higher in Monday trading after investors stopped worrying about quality problems for a minute and thought about strong demand for new commercial jets instead. Boeing shares had dipped to as low as about $197 early Monday after Friday’s $200 close. Investors have been weighing what a potential takeover of supplier Spirit AeroSystems Holdings means for Boeing stock and efforts to improve manufacturing quality. Both companies confirmed talks this past Friday. Early Monday, Boeing stock was down about $10 dollars since buyout talks surfaced. Spirit Aero shares were up about $5, to $33.32 over the same span. Boing shares rebounded, for a gain of about 0.3% in midday trading while the S&P 500 and Dow Jones Industrial Average are down 0.1% and 0.2%, respectively. American Airlines Group helped turn things around. Monday, American announced an order for 260 jets, including 85 Airbus A321neo jets and 85 Boeing 737

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