CFRA Keeps Hold Opinion On Shares Of 3m 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: In line with CFRA’s expectations, MMM announced a dividend cut along with first quarter results, now targeting a payout of around 40% of adjusted free cash flow – in line with industrial peers. We viewed MMM’s $1.26 quarterly dividend as unsustainable following the spin-off of Solventum amid litigation settlements and outstanding lawsuits. Pre-market share movement is positive, indicating that Q1 results and the announced dividend reset are being well received. MMM posts Q1 EPS of $2.39 (+21% Y/Y), $0.28 above consensus. Sales were flat Y/Y, with negative impacts from muted consumer spending offset by strength in automotive and electronic markets. Adjusted operating margins jumped 400 bps higher during the quarter, with traction on spending discipline, sourcing actions, and restructuring efforts aiding profitability across MMM’s three operating segments. […]

CFRA Keeps Hold Opinion On Shares Of 3m Company Read Post »

CFRA Reiterates Buy Opinion On Shares Of The Coca-cola Company

/ / Consumer Staples /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our 12-month price target by $2 to $68, based on a ’25 P/E of 22.7x, a discount to KO’s 5-year average forward P/E of 24.5x. We maintain our adjusted EPS estimates of $2.85 for ’24 and $3.00 for ’25. KO posts Q1 adjusted EPS of $0.72 vs. $0.68 (+7%), two cents ahead of consensus. The beat was driven by stronger-than-expected sales and margins, as revenue rose 3% to $11.3B ($330M ahead of consensus), driven by price/mix (+13%), partially offset by currency (-6%), concentrate sales (-2%), and other net changes (-2%). Gross margin expanded 180 bps to 62.5% (130 bps above consensus). KO maintained 2024 adjusted EPS growth guidance of 4%-5%, implying EPS of $2.80-$2.82 (current consensus = $2.81). We think the strong results should alleviate

CFRA Reiterates Buy Opinion On Shares Of The Coca-cola Company Read Post »

Amazon Expected to Report Record Q1 Sales

/ / Consumer Discretionary /

Amazon.com reports Q1s earnings after the bell. Analysts polled by FactSet predict sales rose 12% to $142.65 billion, which would be up from the 9% sales growth Amazon saw a year ago and a Q1 record for the company. Analysts expect Amazon made $8.95 billion in profit from April to June, up from $3.17 billion in the same period a year earlier. Amazon CEO Andy Jassy has significantly reoriented the company to focus on artificial-intelligence innovations. Earlier this month, in his annual letter to shareholders, he said generative AI may be the largest technology transformation since the cloud and perhaps since the Internet. But he also said Amazon remains committed to cost-cutting.

Amazon Expected to Report Record Q1 Sales Read Post »

CFRA Reiterates Strong Buy Opinion On Shares Of Eli Lilly And Company

/ / 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 raise our target price to $906 from $885, reflecting 54.6x our 2025 EPS, justified by LLY’s robust growth outlook. We lift our 2024 EPS estimate to $13.54 from $12.50 and 2025’s to $16.59 from $15.53. LLY posted Q1 EPS of $2.58 vs. $1.62, a remarkable +59% Y/Y, $0.09 above the consensus as gross margin expansion was above expectations (82.5% in Q1 2024 vs. 78.4% in Q1 2023). Q1 revenues, up by an eye catching 26% Y/Y, were $162M below consensus estimates and $230M below our forecast as sales of Mounjaro ($1.8B) and Zepbound ($517M) were slightly lower than anticipated. Yet, LLY raised its 2024 sales guidance by $2B as it expects the strong demand for Mounjaro and Zepbound to continue and has improved visibility to boost

CFRA Reiterates Strong Buy Opinion On Shares Of Eli Lilly And Company Read Post »

McDonald’s(MCD.US) Q1 2024 Earnings Conference

/ / Consumer Discretionary /

The following is a summary of the McDonald’s Corporation (MCD) Q1 2024 Earnings Call Transcript: Financial Performance: McDonald’s reported global comparable sales growth of nearly 2% in Q1 2024, marking the 13th consecutive quarter of positive growth. The average franchising cash flow remained strong despite the elevated cost environment. Adjusted earnings per share for the quarter were $2.70, an increase of about 2% in constant currencies. The adjusted operating margin for the quarter was nearly 45%. Inflation from 2023 will carry over into early 2024, impacting both food and paper costs as well as labor. Expectations for operating margins in 2024 are in a ‘mid to high 40s range,’ but it remains uncertain due to macroeconomic factors. Business Progress: McDonald’s is focusing on providing affordable meals by launching everyday value menus across several international markets. The McDonald’s mobile app and digital engagement initiatives are driving increased engagement and frequency from

McDonald’s(MCD.US) Q1 2024 Earnings Conference Read Post »

CFRA Maintains Sell Recommendation On Shares Of Gartner, Inc.

/ / 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 lower our target by $11 to $372, 34x our ’24 EPS view, below IT’s three-year average (~36x) on decelerating growth. We lift our ’24 EPS view by $0.32 to $10.95 and lower ’25’s by $0.02 to $12.90. IT posted Q1 sales of $1.47B (+5% Y/Y, near consensus) and EPS of $2.93 (+2% Y/Y, above consensus). Renewal issues with tech vendor customers hurt contract value growth during Q1 (+6.9% Y/Y ex-FX), with Global Technology Sales (78% of total CV) up just 5.4%. While this was well telegraphed, with a high portion of business up for renewal in Q1, we remain cautious on calling a bottom given continued macro headwinds. We similarly view total wallet retention, which fell 320 bps Y/Y (80 bps Q/Q) to 102.8%. Consulting (+6%)

CFRA Maintains Sell Recommendation On Shares Of Gartner, Inc. Read Post »

MSCI Shares Already Price In Worst-Case Scenario, BofA Says in Upgrade

/ / Financials /

MSCI (MSCI) is a quality business at a discount, with the recent stock pullback already pricing in an “unlikely worst-case scenario” and the company is likely to see upside support from buybacks, BofA Securities said in a note Tuesday. BofA said it expects multiple expansions as investors are likely to be attracted to a high-quality long-term growth story at a discount. The company’s shares derated after it reported heavy Q1 cancellations, which management “indicated was a one-off event and bad timing,” the note said. “We think the business is in better shape than valuation reflects, although slowing ESG sales and weak near-term Index subscription growth will cap upside,” BofA said, adding it expects $425 million of buybacks this year “with room for upside.” “At a 7% discount to peers, MSCI shares are likely to attract incremental investor interest, in our view,” the note said. “MSCI is a double-digits EPS compounder

MSCI Shares Already Price In Worst-Case Scenario, BofA Says in Upgrade Read Post »

Domino’s Pizza Succeeds In Driving More Traffic: Analysts Revise Forecasts After Q1 Results

/ / Consumer Discretionary /

Domino’s Pizza Inc (NYSE:DPZ) shares were climbing Tuesday after the company reported better-than-expected first-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. BMO Capital Markets On Domino’s Pizza Analyst Andrew Strelzik reiterated an Outperform rating while raising the price target from $535 to $575. Domino’s Pizza reported first-quarter earnings of $3.58 per share, surpassing consensus of $3.41 per share, with the beat being “driven by stronger comps, higher supply chain profits, and a lower tax rate,” Strelzik said in a note. The company “continues to realize meaningful domestic business momentum,” with its partnership with Uber Technologies Inc’s (NYSE:UBER) Uber Eats and loyalty revamp, “as well as more vocal marketing,” he added. “DPZ’s strategy is driving broad momentum, including among the more challenged low-income consumer cohort, which should extend through the remainder of 2024 and beyond,” the analyst further wrote. TD Cowen On Domino’s Pizza Analyst Andrew Charles maintained

Domino’s Pizza Succeeds In Driving More Traffic: Analysts Revise Forecasts After Q1 Results Read Post »

Microsoft, Conduent Partnership Highlights Microsoft’s ‘Unique AI Leadership’ Position, Macquarie Says

/ / Technology /

Microsoft’s (MSFT) collaboration with Conduent (CNDT) underscores the “unique AI leadership position” held by the software giant, Macquarie said in a report emailed Tuesday. Conduent on Monday announced an initiative with Microsoft aimed at using the Azure AI platform to improve healthcare claims management, customer service, and fraud detection. “We think Microsoft’s AI strategy uniquely positions it as the ultimate adoption beneficiary,” the Macquarie analysts said. Since its January 2023 investment in OpenAI, the company has steadily advanced its AI deployment, moving from testing to broader availability, Macquarie said, adding that “we view this recognition by Conduent as significant, as it highlights the importance of safety to a successful initial AI deployment.” Microsoft’s continued prioritization of its Azure platform has driven significant revenue growth, with Azure AI Services estimated at $4.1 billion in annualized run rate revenue, Macquarie said. Conduent plans to leverage Microsoft’s Azure AI platform across three pilots,

Microsoft, Conduent Partnership Highlights Microsoft’s ‘Unique AI Leadership’ Position, Macquarie Says Read Post »

Nike Faces Talent Loss, Lacks Innovation Spark Amid Aggressive Competition, Wedbush Says

/ / Consumer Discretionary /

Nike’s (NKE) recent challenges stem from the loss of talent as a combination of layoffs and voluntary departures hurt morale, productivity and near-term performance, Wedbush said Tuesday in a report, citing an interview with Peter Orcutt, who worked at the footwear company for 24 years. The company lacks any near-term catalyst for product innovation, and despite new releases, is missing a “groundbreaking” release for the Olympics in three months, Wedbush said. Orcutt, a senior leader who left in a major round of layoffs in early 2020, said that the company pursued a direct-to-consumer strategy too aggressively, which damaged its wholesale partnerships and pushed retailers to seek alternatives, the Wedbush report said. Nike rival Adidas is gaining ground, and early views of Adidas’s 2025 products impressed industry insiders, Orcutt said, according to the Wedbush report. “There are several key challenges that the company must work through,” Wedbush said. Partly because “one

Nike Faces Talent Loss, Lacks Innovation Spark Amid Aggressive Competition, Wedbush Says Read Post »

CFRA Reiterates Hold Opinion On Shares Of Marathon Petroleum Corporation

/ / Energy /

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 $195, up $29, reflects a 7.1x multiple of projected 2024 operating cash flows, in line with MPC’s historical average. We raise our 2024 EPS view by $0.01, but lower 2025’s by $0.56 to $15.42. Q1 EPS of $2.58 vs. $6.09, in line with consensus. Q1 adj. EBITDA (~$3.3B) fell 38% Y/Y due to MPC’s Refining segment (-51%). Q4 refining utilization (82%) fell seven percentage points Y/Y, while throughput volumes (~2.7 mb/d) fell 6% due to turnaround activity. We believe MPC could face headwinds in 2024. The U.S. Energy Information Administration forecasts flat Y/Y refined product demand growth in 2024; however, concerns surrounding economic growth, while U.S. consumer savings have become almost exhausted, could weigh heavily on refined product demand. At the same time,

CFRA Reiterates Hold Opinion On Shares Of Marathon Petroleum Corporation Read Post »

Scroll to Top