Buy Now Pay Later Helps Drive Online Holiday Spending, Adobe Says

/ / Technology /

Buy Now Pay Later is helping drive strong online spending so far this holiday season, Adobe Analytics says. BNPL spending on Saturday and Sunday rose 20% from last year, and is expected to rise nearly 19% to $782 million on Cyber Monday. “An uncertain demand environment pushed retailers to deliver big discounts this season, while also fortifying their e-commerce services with flexible payment methods,” says Vivek Pandya, a lead analyst at Adobe Digital Insights. “Consumers have taken note and spent at record rates during the big shopping days, despite dealing with rising costs in other parts of their lives.”

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3M Expands Reseller Agreement With Smart Reporting to Include US

/ / Industrials /

3M Co.’s (MMM) 3M Health Information Systems said Monday it has expanded its reseller agreement with Smart Reporting, a German technology provider in radiology and pathology reporting, in international markets to include the US. The collaboration helps expand 3M Health Information Systems’ portfolio of solutions, including 3M M*Modal Fluency for Imaging, the company said. The company said its 3M Fluency for Imaging solution complements Smart Reporting’s synoptic reporting, available in nine languages, in advancing speech-driven reporting and workflow management.

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Analog Devices Entering Later Stages of Downcycle, Morgan Stanley Says

/ / Technology /

Analog Devices (ADI) is entering the later stages of a downcycle, with the severity of the current downturn pointing to a bottom in Q2 of next year, Morgan Stanley said in a note emailed Friday. “We are not yet at bottom — but it is in sight: current analog/MCU downcycle is expected to bottom in May 2024,” the investment bank said, citing a 24-month peak to trough view. The current cycle peaked in May 2022, according to analysts. Morgan Stanley said Analog Devices has outperformed its peers in the past three downcycles in terms of gross margin, adding the company’s forward earnings are de-risked and the company has relatively higher ASP products that should limit direct competition with Chinese products. Analog Devices’ quarterly results, expected on Nov. 21, “will be mixed at best,” the investment bank said. “We revise down estimates, and now forecast a 23% peak-to-trough revenue decline, with

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Ross Stores’ Upbeat Guidance Signals Earnings Season Resilience, Potential for Q4 to Defy Post-Print Decline, Morgan Stanley Says

/ / Consumer Discretionary /

Ross Stores’ (ROST) annual guidance boost could set it apart this earnings season with Q4 numbers likely to avoid a post-print decline, Morgan Stanley said in a note e-mailed Friday. The revised FY guidance indicates a Street EPS increase of approximately low-single-digit percentage points, while 4Q remains largely unchanged. Morgan Stanley considers it a pivotal factor contributing to the positive 6% after-market close reaction. Additionally, the positive outlook is based on conservative 4Q/FY guidance and “the fact that the margin recapture opportunity is perhaps more credible with revenue acceleration continuing on an underlying basis,” Morgan Stanley said. Morgan Stanley expects significant upside to the revised Q4 guidance for the company. Ross Stores’ revised Q4 EPS guidance is now in range of $1.56 to $1.62. “We now model $1.69 EPS, & see potential upside even beyond that level,” Morgan Stanley said. Morgan Stanley maintained its overweight rating on the company’s stock,

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Walmart’s Omnichannel Transformation Set to Support US Sales Momentum, BofA Says

/ / Consumer Discretionary /

Walmart’s (WMT) omnichannel transformation is set to continue to gain momentum and support more sustainable sales in the US, BofA Securities said in a note Thursday. The firm reiterated its buy rating and $190 price target on the retailer. The analysts, including Robert Ohmes, said that in fiscal Q4, they expect Walmart to see moderating sales growth as grocery inflation continues to decline, headwinds from store closures and recovery costs related to the recent hurricane near Acapulco, Mexico, and a lower than expected interest expense. BofA expects the retailer’s fiscal Q4 adjusted earnings per share to be $1.61 and its gross margin expansion to continue with support from growing digital ad contributions, the analysts said. For fiscal 2024, BofA maintains its adjusted EPS outlook of $6.45, in line with Walmart’s guidance of $6.40 to $6.48. Looking ahead, the retailer’s digital advertising, Walmart+ membership, and growth in third-party marketplace and fulfillment

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Analog Devices Scores an Upgrade. A Bottom Is Close for the Chip Stock, Says Analyst — Barrons.com

/ / Technology /

By Tae Kim Analog Devices stock is an attractive buying opportunity because the worst of the downturn in chip demand is nearly over, according to Morgan Stanley. On Thursday, analyst Joseph Moore raised his rating for Analog Devices shares (ticker: ADI) to Overweight from Equal-weight. He increased his price target for the stock to $225 from $176. “We are not yet at bottom — but it is in sight,” he wrote. “The report next week will be mixed at best, but has potential to be the ‘last cut’”. Analog Devices is slated to report its fiscal fourth-quarter earnings on Tuesday. The stock was up 1.5% to $182.55 in midday trading Friday. The analyst said that six out of the past eight chip downturns lasted 22 to 26 months. He believes Analog Devices chip shipments peaked in May 2022 before entering the current slide, suggesting the bottom may come around May

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CFRA Maintains Buy Opinion On Shares Of Cisco Systems, Inc.

/ / Telecommunications /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We trim our 12-month target price by $5 to $55, 14.2x our FY 2024 (Jul.) EPS estimate, a slight discount to its three-year forward average P/E at 14.3x, reflecting its lower guidance. We cut our FY 2024 EPS estimate by $0.17 to $3.88 and trim FY 2025’s by $0.15 to $4.06. CSCO reported Oct-Q operating EPS of $1.11 vs. $0.86, $0.08 above the consensus. Oct-Q revenue was up 8%, led by Networking, with strength in switching on double-digit growth in campus and datacenter, and a 4% increase in the Security segment driven by zero trust and threat intelligence. While results were strong, its guidance came in weaker than expected due to a slowdown in orders, mostly from its large enterprise, service providers, and cloud customers, who currently

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No Reason to Shift Positive View on Nvidia Ahead of Q3, Wedbush Says

/ / Technology /

Nvidia (NVDA) is still facing supply constrained amid strong demand as the company is set to report its Q3 results on Nov. 21, Wedbush said in a Friday note. “With NVDA still seemingly supply constrained through at least CQ2’24 despite a seemingly significant…ramp, and with constraints potentially lasting well beyond that point (depending on how quickly applications built on AI begin to get monetized), we see no reason to shift our positive view on the stock,” Wedbush analyst Matt Bryson said. Bryson said the situation remained the same amid significant newsflow over the past quarter, pointing to new US restrictions on shipments to China, positive commentary and increased revenue goals from key competitors. “If Nvidia beats by less in Q3 or guides lower in Q4, with Nvidia supply falling well short of demand, any shortfall just leaves a greater amount of demand unfulfilled that Nvidia can ship to in future

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Lululemon’s Brand Loyalty & Expansion Opportunities In Focus, Analyst Sees Attractive Entry-Point For Investors

/ / Consumer Discretionary /

Truist Securities analyst Joseph Civello initiated coverage on Lululemon Athletica Inc. (NASDAQ:LULU) with a Buy rating and price target of $500. According to the analyst, Lululemon has some of the strongest brand loyalty in the activewear industry as its direct-to-consumer (DTC) model enables it to invest more in products & foster deeper customer relationships. The analyst writes that even in today’s macro-pressured/promotional environment, LULU’s demand/full-price selling remains robust. Civello sees ample growth opportunities as it rapidly expands in key areas (men’s, digital, & international). From high-tech fabrics that offer the best fit/feel to its fashion-forward designs, customers have shown they’re willing to pay a premium for LULU products, per the analyst. Further, despite leading earnings visibility, LULU’s premium to peers/the market remains at/below historical levels, which creates an attractive entry-point for a best-of-breed name, the analyst adds. The analyst forecasts a 15% revenue CAGR from 2022-2025E. Further, given LULU’s solid cost controls, the

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Walmart Could Maneuver In A Deflationary Environment

/ / Consumer Discretionary /

Walmart CEO Doug McMillon is warning that a period of deflation could be coming in the next few months, but the retailer is better positioned than most to manage such an environment, Baird analysts say in a research note. While falling prices ratchet up the need to sell more units, customers are responding well to price rollbacks that are funded by Walmart’s vendors, and paying less for food should free up dollars for more spending on general merchandise, the analysts say. They recommend buying Walmart’s stock after the past week’s pullback.

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Estée Lauder Divided About Succession Planning

/ / Consumer Discretionary /

Estée Lauder’s founding family and board are divided about how to regain investors’ confidence after seeing its stock price plunge by 50% this year. Chairman Emeritus Leonard Lauder, who built his mother’s company into an empire, and some board members, are dissatisfied with CEO Fabrizio Freda, according to people familiar with the matter. Freda’s biggest supporter remains Executive Chairman William Lauder, the people said. Jane Lauder, family member and marketing executive at her grandmother’s company, and Executive Group President Stéphane de la Faverie, are on the shortlist of internal CEO contenders. Some board members are considering external candidates in addition to internal ones to succeed Freda, the people said.

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