CFRA Maintains Buy Rating On Shares Of International Business Machines (IBM )Corp.

/ / Technology /

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 price target by $19 to $196, utilizing a P/E of 19x our ’24 EPS estimate, near peers and above IBM’s 3-year historical average (~14x) and our previous multiple (17.5x) as IBM continues to execute its growth and cost-cutting initiatives despite a tough macro. We raise our ’24 EPS view by $0.20 to $10.30 and raise our ’25 view by $0.38 to $10.90. IBM prints Q4 sales of $17.4B and EPS of $3.87, both slightly above consensus ($17.3B/$3.78). Quarterly sales grew 4.1% Y/Y, highlighted by strong growth in Consulting (up 5.8%), which also exhibited an impressive quarterly book-to-bill of 1.30 (and 1.15 for the full year). We think IBM’s unique ability to provide consulting along with top-notch proprietary hardware and software solutions (including watsonx for […]

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CFRA Maintains Hold Opinion On Shares Of Intel Corp.

/ / Technology /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We up our 12-month target to $50 from $39, on P/E of 18.6x our ’25 EPS view, near peers/above historical. We keep our ’24 EPS at $1.94 and boost ’25 to $2.69 from $2.41. Ahead of Q4 results set for after the close, we see EPS of $0.45 at $15.2B in revenue and a 46.5% gross margin. We look for indications that PC vendors still possess healthy inventories after a seasonal strong H2 last year along with improving landscape for ’24 data center server builds. Mobileye is a minor headwind. Commentary on the gross margin trajectory in ’24 will be critical (we see 47%) as well as capital spending plans (seen at $22B; capital intensity of 36%) that likely imply another year of negative FCF (cost cuts

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CFRA Downgrades Shares Of Lam Research Corporation To Hold From Buy

/ / Technology /

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 price target by $36 to $777, 25x our CY 24 EPS view of $31.07, a premium to Lam’s 3-year historical average (~19x) and above our previous multiple (24x) on LRCX’s rising exposure to key technology inflections and increasing confidence that the memory market is entering an upcycle. We raise our FY 24 (Jun.) EPS view to $29.33 from $28.73 and lower FY 25’s to $35.08 from $35.43. Memory grew to 48% of Dec-Q sales (vs. 38% in Sep-Q), driven by growth in DRAM (31% vs. 23%), largely a result of continuing demand for high-bandwidth memory to support AI applications. We see this continuing in CY 24 and expect memory will account for a larger proportion of sales, supported by stable shipments into China. We

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Johna Norton to Retire as Eli Lilly Executive Vice President of Global Quality

/ / Health Care /

Johna Norton to Retire as Lilly Executive Vice President of Global Quality PR Newswire INDIANAPOLIS, Jan. 25, 2024 INDIANAPOLIS, Jan. 25, 2024 /PRNewswire/ — Eli Lilly and Company (NYSE: LLY) today announced that Johna Norton, executive vice president of Global Quality, will be retiring after 34 years of service with the company, effective July 31, 2024. She will continue to serve at full capacity in her role and as a member of Lilly’s Executive Committee until her retirement date. An internal and external search is actively underway for her successor. “Johna’s career has been built on her commitment to ensuring that our medicines are produced with the highest quality standards. By ensuring our company, manufacturing sites, production lines, team members and collaborators share this commitment, she has had a profound and positive impact on patients and our company,” said David A. Ricks, Lilly’s Chair and CEO. “During her tenure as

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Boeing Buys Out Malaysian JV

/ / Industrials /

Boeing buys out partner Hexcel from their Malaysia-based ACM aircraft composite joint venture during 4Q. Hexcel says it was paid $45M for its 50% stake in the 22-year old business, which makes wing and aileron parts. Spirit AeroSystems makes the door plugs for Boeing’s 737 MAX at its Malaysia plant. Boeing says it reinstalled the plug that failed on an Alaska Airlines flight. Hexcel shares down 8% after big 4Q profit miss.

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Southwest Airlines Keeps MAX Plans Steady

/ / Consumer Discretionary /

Southwest Airlines ‘s Boeing 737 fleet plan is one of the most fluid and reliable guides to MAX output, so notable the 79 it expects this year is only six shy of the contracted level, and its flying in 2024 excludes the uncertified MAX 7. Southwest and United are the two biggest expected recipients of the MAX this year. Boeing has told analysts that the FAA has cleared its monthly production plan of 38, and together with ones in inventory, that should be enough to move it close to the 550 deliveries this year forecast by analysts.

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Tesla Bull Rues ‘Train Wreck’ Earnings Call, Slashes Price Target By 10%: ‘Dead Wrong Expecting Musk And Team To Step Up Like Adults In The Room’

/ / Consumer Discretionary /

Tesla, Inc. (NASDAQ:TSLA) uber-bulls appear to be throwing in the towel, with two of them tempering their expectations for the electric-vehicle giant in the wake of a double miss in the fourth quarter. A Shaky 2024 Ahead: Wedbush analyst Daniel Ives expressed disappointment with the earnings call. “We were dead wrong expecting [Elon] Musk and team to step up like adults in the room on the call and give a strategic and financial overview of the ongoing price cuts, margin structure, and fluctuating demand,” he said. “Instead, we got a high-level Tesla long-term view with another train wreck conference call.” Musk was much more cautious and chose to steer the discussion around production, next-gen vehicle timelines, and FSD/investments, the analyst said. The much larger Tesla story gleaned from the call was the 2024 unit growth likely coming in notably lower, and a lack of guidance on margins/expense structure. Ives, however, is optimistic about the

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Apple Vision Pro 2024 Sales Poised to Soar Following ‘Very Impressive’ Launch, Wedbush Says

/ / Technology /

Apple (AAPL) is likely to ship and sell nearly 600,000 Vision Pro mixed-reality headsets this year, up from an initially estimated 460,000 units, following a “very impressive” launch, Wedbush Securities said Wednesday. The brokerage’s initial estimates suggest the technology giant sold “close to” 180,000 Vision Pro units over the weekend, Wedbush analysts, including Daniel Ives, said in a note. “While many on the Street are dismissing Vision Pro as noise, we strongly disagree.” “We believe this is just the start for this new form factor, with our industry checks showing the next version of Vision Pro 2 will have much lower price points in the sub $2k area code, as Apple looks to push more aggressively towards its golden installed base,” the analysts said. Wedbush maintained its outperform rating and $250 price target on the Apple stock.

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Netflix Eyes EMEA for Revenue Growth as Shares Soar Following Upbeat Fourth Quarter

/ / Consumer Discretionary /

Netflix (NFLX) sees the Europe, Middle East, and Africa region as a lynchpin for ongoing revenue expansion, with the streaming service expressing that view as its shares soared on a robust fourth-quarter revenue performance. Efforts to boost paid-sharing accounts bolstered sign-ups, Chief Financial Officer Spencer Neumann said on the company’s conference call, according to a Capital IQ transcript. Netflix added 5.05 million paid subscribers in EMEA during the fourth quarter, higher than in other regions. Revenue in the region jumped almost 19% to $2.78 billion in the quarter and was up 13% on a currency-neutral basis, Neumann said. “It starts with great slate performance,” Neumann said. He cited shows like the UK royal family drama ‘The Crown,’ French thriller ‘Lupin’ and Polish comedy ‘1670’. “I’ll say, very importantly, it’s not just net adds,” he added. “Our primary focus is on revenue growth. We had very strong revenue growth as a

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General Dynamics Q4 Earnings, Revenue Rise

/ / Industrials /

General Dynamics (GD) reported Q4 earnings Wednesday of $3.64 per diluted share, up from $3.58 a year earlier. The company shares were up more than 5% in recent Wednesday trading. Analysts polled by Capital IQ expected $3.62. Revenue for the quarter ended Dec. 31 was $11.67 billion, up from $10.85 billion a year earlier. Analysts surveyed by Capital IQ expected $11.47 billion.

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Netflix Q4 Results Outperform Bullish Expectations, Morgan Stanley Says; Price Target Raised

/ / Consumer Discretionary /

Netflix’s (NFLX) Q4 results and projections for 2024 indicate the entertainment and streaming company is “outperforming our more bullish expectations,” Morgan Stanley said Wednesday in a report. The company added 13.1 million new subscribers in Q4, showcasing a healthy growth runway Morgan Stanley said. Morgan Stanley expects Netflix to increase its free cash flow by 60% from 2024 to 2026. The company will continue to benefit from net additions from paid sharing in the next few quarters, and in the long term, paid sharing will expand Netflix’s total addressable market by 20%, the report said. Advertising and gaming revenue probably won’t contribute much to growth in 2024, Morgan Stanley said. Morgan Stanley raised Netflix’s share price target to $600 from $550 and reiterated the stock’s overweight rating. Netflix shares jumped 12% in recent Wednesday trading.

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AT&T Inc. (T) Q4 2023 Earnings Call Transcript Summary

/ / Telecommunications /

The following is a summary of the AT&T Inc. (T) Q4 2023 Earnings Call Transcript: Financial Performance: AT&T finished Q4 2023 with improved results, including annual free cash flow growth. Reported over 1.7 million postpaid phone net additions for 2023 and a base increase of more than 10% to over 71.2 million subscribers. Annual wireless service revenues increased by more than $7.5 billion and mobility EBITDA grew by approximately $4 billion. Expanded fiber revenues to over $6.2 billion in 2023 with 1.1 million fiber net customers. Full year free cash flow was higher than expected at $16.8 billion. Reduced vendor financing obligations by $3.3 billion in 2023 and achieved a year-end net debt to adjusted EBITDA ratio of under 3 times. Quarterly revenue growth was at 2.2%, while full-year growth was at 1.4%. Adjusted EBITDA and EPS for the quarter grew by 3.2% and fell by 11.5% respectively. Notably, full-year

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